Humana announced it will exit additional Medicare Advantage plans in 2027, a move expected to affect about 600,000 members as part of a strategy to improve profitability and reshape its portfolio toward a sustainable 3% pre-tax margin by 2028. The exits will target lower-return plans while the insurer aims to preserve benefits in higher-performing offerings, with Chief Financial Officer Celeste Mellet stating during the second-quarter earnings call that the company expects to retain just over 40% of affected members through recapture efforts similar to those in 2025. The announcement came alongside Humana's second-quarter results, which beat Wall Street estimates with adjusted earnings of $7.61 per share on revenue of $40.89 billion, though the company lowered its 2026 GAAP earnings outlook. Individual Medicare Advantage membership grew 23% year over year to 6.45 million, and total Medicare membership reached 11.13 million, with the company still expecting about 25% growth in individual Medicare Advantage membership in 2026. The move occurs as Medicare Advantage insurers face pressure from rising medical costs and regulatory scrutiny, while the Trump administration finalized a 2.48% increase in Medicare Advantage payment rates for 2027.
Humana IncCompany exits plans and lowers 2026 earnings outlook, though Q2 beat estimates.