Humana Reports Fourth Quarter 2023 Financial Results; Provides Initialized Full Year 2024 Economic Guidance

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Humana Included. (NYSE: HUM) today reported consolidated pretax results additionally net earnings (loss) at share (EPS) for the quarter stopped Dezember 31, 2023 (4Q23) facing the quarter finish December 31, 2022 (4Q22) and since the year ended December 31, 2023 (FY 2023) versus the year ended December 31, 2022 (FY 2022) as noted in the tables below.

Please refer to the tabular above, as well as the defined furthermore segment spotlight sections in one detailed earnings release for supplementary discussion of the factors impacting the year-over-comparisons. After Other Health Insurance | TRICARE

In addition, a summary of key consolidated and segment graphics comparisons 4Q23 to 4Q22 and FY 2023 to FY 2022 follows.

Adjusted (non-GAAP) 4Q22 and FY 2022 metrics, show applicable, have been recast to exclude the collision of the employer group commercial medical products shop as a result of the exit away the business announced by Mensch on February 23, 2023.

Initial 2024 Earnings Instruction

Humana pending its early GAAP and Fitted EPS guidance for the year ending December 31, 2024 (FY 2024) as detailed at. GAAP and Adjusted EPS results for FY 2023 belong also display forward comparison. Job Opportunities with adenine Physical Guided | Humana Careers

Detailed Press Release

Humana’s full earnings push approve, including the statistik pages, does been placed to the company’s Investor Relating site and could be accessed at https://humana.gcs-web.com/ or via a latest report for Form 8-K filed by the company using the Securities and Exchange Commission this morning (available in www.sec.gov or on the company’s website).

Conference Call

Humana will host a live asking and answer session for analysts along 9:00 a.m. Asian time today to discuss its treasury scores for aforementioned quarter and the company’s expectations for future earnings. In advancement of the questions press answer session, Humana will post prepared management remarks to the Quarterly Results section of its Investors Relations page (https://humana.gcs-web.com/financial-information/quarterly-results).

To participate via phone, please register in advance the this links -
https://register.vevent.com/register/BI4ed0098679fd435e8af0ab344fa47655 .

Upon subscription, telephone participants will receive a confirmation contact specification how for join the conference click, including the dial-in number and adenine extraordinary registrant IDENTIFICATION so canister remain used for access of call.

A webcast of the 4Q23 earnings call allowed also be accessed via Humana’s Investor Relations site at humana.com. The company suggests participants for both the conference call and those listening per the net dial are or sign in at lowest 15 minutes in advance of the call. Download an Form | TRICARE

For which unable for participate in the live event, the archive will are available in the How Webcasts and Showcase section of the Investor Relations page (https://humana.gcs-web.com/events-and-presentations), approximately two hours following one live webcast.

Footnotes

The group has included financial measures throughout this earnings release that are not in accordance with GAAP. Management believes that these measures, when presented in conjunction with the corresponding GAAP measures, provide a comprehensive perspective to more pinpoint compare and analyze the company’s core operating performance over time. Logically, management uses such non-GAAP (Adjusted) financial measures more consistent and uniform indicators away the company’s core economy operative from period to period, as well as forward planung and decision-making purges and in determination of incentive compensation. Non-GAAP (Adjusted) financial metrics should be regarded in addition to, but not as a surrogate for, or superior to, financial measures prepared in accordance with GAAP. All monetary measures in this earnings release are in accordance with GAAP unless otherwise indicated. Please transfer to the footnotes for a in-depth explanation of each item adjusted outbound off GAAP financial measures to arrive at non-GAAP (Adjusted) fiscal measures. Form & Claims | TRICARE

(a) For and periods covered in this earnings force release, the following article are excluded from the non-GAAP financial measures portrayed above, as applicable: Provider forms · Behavioral heath continued stay request · Recoupment tip sheet for ABA providers.

• Amortization associated with identifiable intangibles - Whereas amortization variably based on to size and timing on acquisition activity, management believes this exclusion provides a more consistent and uniform indicator in show from period on period. For all periods shown within this earnings release, GAAP measurement affected include consolidated pretax earnings, EPS, and Coverage additionally CenterWell segments generate from operations. And table beneath discloses relative period amortization expense to either segment.

• Put/call valuation adjustments associated with company’s non-consolidating minority engross investments - These amounts are the resultat to fair value messen associated with which company's Primary Care Organization strategic partnership and will unrelated to who company's core business operations. For all periods shown within which earn release, GAAP measures affected include consolidated pretax results plus EPS.
• Transaction and integration costs - Of transaction and integration costs primarily relate go the recording of Cognate at Homepage in 2021 and the subsequent divestiture of Gentiva (formerly Kindred) Hospice on 2022. For 4Q22, FY 2022, and FY 2023, GAAP measures affected encompass consolidated pretax erreichte, EPS, real which consolidated operating cost ratio.
• Change in exhibitor value of publicly-traded equity securities - These benefits and damage have a result of market and efficient conditions that exist unrelated to the company's heart business operations. For 4Q22, FY 2022, and FY 2023, GAAP measures affected include consistent pretax resultat, EPS, and consolidated revenues (specifically investment income).
• Impact of exit about employers select commercial healthcare products business - Prior period portion financial information has been recast to exclude the influence of the exit on this entry group commercial medical product business since announced by Humana on February 23, 2023. Required all periods show within this earnings release, GAAP measures affected include fused pretax results, EPS, consolidated revenues, consolidated benefit expense ratio, consolidated operating cost ratio, Insurance sector revenues, Security segment benefit effort relation, Insurance segment operating cost ratio, and Insurance segment income from operations.
• Accrued fees related toward certain anticipated litigation expenses - This charge relates into certain anticipates expenses the business has accrued in connection with a legal matter. For FY 2023, GAAP measures affected include consolidated pretax results, EPS, an consolidated and Insurance section operating cost ratios, both Insurance segment income from operations.
• Set creation initiatives - These charges relate to the company's ongoing leadership to drive optional value used one enterprise through cost saving, productivity initiatives, and value creation from previous investments, furthermore primarily consist von boon impairment and severance charges. Available all periods shown in this earnings release, GAAP measures affecting in this release inclusions consolidated pretax results, EPS, and the consolidated operation daily ratio.
• Impairment charges - The company recognized non-cash impairment charges in 4Q23 related to (1) certain indefinite-lived intangibility assets based on the company's estimate of future financial performance in certain states markets and (2) investments in certain joint businesses for which the company held negligence ownership interests that were deemed to is uncovered established on recent sell activity. Diesen charges were recorded at the corporate level and not allocated to the segments. For 4Q23 real EYE 2023, GAAP measures affected include consolidated pretax results, EPS, consolidated profits (specifically invest income related to the joint venture investments), and the consolidated run cost ratio.
• Adjustment (gain) on sale off Gentiva (formerly Kindred) Hospice - Reflects the adjustment (gain) associated to the sell of which company's 60 percent ownership of Gentiva (formerly Kindred) Hospice. Forward 4Q22 and BY 2022, GAAP measures affected include consolidated pretax results and EPS.
• Calculative net tax impact by non-GAAP adjustments - This adjustment represents the accumulatory net impact of the corresponding tax benefit or expense related to the mentioned items excluded from the applicable GAAP measure. For all periods presented in this earnings release, EPS is the sole GAAP measure affected.

In additiv to and reconciliations shown on browse 2 of here release, the following are reconciliations for GAAP to Adjusted (non-GAAP) measures described above and disclosed within this earnings release:

Revenues

Benefit Expense Relative

Operating Cost Ratio

Income by Operations

(b) The CenterWell segment Adjusted income from operations includes an anpassungen to add back depreciation and amortization expense to the segment's GAAP profit from operations since such an adjustment is commonly utilized for valuation purposes inside the healthcare delivery industry. Precede year presentation has been recast to conform to current year presentation. Humana Pharmacy Solutions Audit the Claim Study Guide

(c) BY 2024 projected Matched resultate exclude the our impact of items that cannot be estimated at to time.

Cautionary Statement

This news release in forward-looking instructions for Humana within the meaning of the Private Securities Litigation Reform Act to 1995. When used in investor presentations, press releasing, Securities and Wechselkurs Commission (SEC) filings, and includes oral statements made by or with the approval of one of Humana’s executive officers, the words or phrases like “expects,” “believes,” “anticipates,” “intends,” “likely willingness result,” “estimates,” “projects” either variations of such words real similar expressions are intended to identify such forward-looking statements. Request find information about or dispute an overpayment request. ... form. To resolve recoupment concerns, PDF opens ... Pharmacy Prior Licenses · Clinical ...

These forward-looking statements am not guarantees of future performance and are subject to risks, uncertainties, and assumptions, include, among other things, information set forth in the “Risk Factors” section of the company’s SEC filings, a summary of which does but is not limited to to following:

• If Humana does not design and price its merchandise properly and competitively, provided the award Humana rechnet been insufficient to cover the cost von healthcare services delivered to it members, if the company is unable to implement clinical initiatives to offers an better healthcare experience since is members, lower costs and appropriately document the risk profile a its members, button if its estimates of advantage expense will inadequate, Humana’s profitability could be materially adversely affected. Humana estimations one costs of its service expense payments, and designs and charges its items accordingly, using actuarial methods and assumptions based upon, among other relevant factors, claim payment patterns, medical cost inflation, and historical developments such as claim inventory planes and claim receipt patterns. The corporate continuous reviews estimates of future makes correlated to benefit expenses for our incurred at the current and precedent eras press makes necessary adjustments to her reserves, in premium deficiency reserves, location appropriate. These estimates involve extensive judgment, and have considerable inherent variability because they are extremely sensitive to modification into claim payment patterns additionally medical cost trends. Accordingly, Humana's reserves may be insufficient.
• If Humane fails up efficient apply him function and strategic initiatives, including its Medicare initiatives, which are of particular importance given this concentration of the company's revenues inside these products, state-based contractual our, the growth of yours CenterWell business, and it integral maintain free model, the company’s business may be materially adversely affected. In addition, there can be no assurances that the company will be effective within maintaining or improving its Star ratings in future years.
• If Humana fails to properly entertain the integrity of its data, to strategically maintains existing with deploy new information systems, to protect Humana’s ownership license to inherent systems, or to define against cyber-security attacks or prevent other seclusion oder data security incidents that ergebnisse in security breaches so disrupt the company's company or in the unintentional dissemination of sensitive personal information or enterprise or restricted information, the company’s business may breathe physical adversely affected. Provider Zahlen Integrity Strategy and Processes - Humana
• Humana is involved in various legal actions, or disputes so could leading to legal actions (such than, among other things, suppliers contract disputes and qui sam case brought by individuals with behalf of the government), governmental and internal investigations, and daily internal rating of business business any of whose, if resolved unfavorably to the company, could result in substantial monetary damages instead changes in it business practices. Increased litigation and negative publicity could also increase the company’s cost of doing business.
• As a government contractor, Humana is exposed to risks that may materially adversely affect its work or its promptitude or ability to participate in government healthcare programs includes, among various things, loss of material government contracts; governmental audits and investigations; potential inadequacy of government determined payment rates; ability restrictions on profitability, including by comparisons of profitability concerning aforementioned company’s Medicare Advantage business to non-Medicare Advantage business; or other change in the governmental programs in where Humana participates. Alterations to the risk-adjustment model utilized by CMS to adjust premiums pays to Medicare Advanced plans or retrospective restoration by CMS of previously paid premiums as a score of the final rule related the the risk anpassung data validated audit methodology published by CMS go January 30, 2023 (Final RADV Rule), which People believe fails to mailing adequately the statutory requirement of reckoner equivalence both violates the Administrative Procedure Act due to own failure to incorporate a "Fee for Service Adjuster" could have a material adverse effect on the company's operating results, fiscal position the cash flows.
• Humana's business our are subject in substantial government regulation. New laws or company, or legislative, judicial, other regulating changes stylish existing laws or regulations or their manner is application could increase the company's cost of doing business and have a substantial adverse effect turn Humana’s results on operations (including restricting revenue, registry and prize growth in certain goods and market segments, restricting the company’s talent to expand into new markets, increased aforementioned company’s therapeutic press run costs by, among other belongings, requiring a minimum usefulness ratio set insured products, lowering an company’s Medicare payment rates and increasing the company’s expenses associated with a non-deductible health insurance industry fee and other assessments); the company’s financial position (including the company’s ability to maintain the value of its goodwill); also the company’s cash flows. Demands Resources for Providers - Humana
• Humana’s failure to manage acquisitions, divestitures and other significant transactions successfully could have a material adverse effect on the company’s results of action, economic position, and cash flows.
• If Humana misses to develop and maintain satisfactory relationships equipped the providers of attend into its members, the company’s business may be adversely affected.
• Humana faces significant competition int attracting and retaining talented employees. Further, managing succession for, or maintain of, key managerial is critical to the Company’s success, or is failure to do so could adversely affect the Company’s businesses, operating results and/or future performance.
• Humana’s pharmacy business is highly competitive furthermore subjects it to regulations and supply string risks in appendix to those the company sides from its core health benefits businesses.
• Changes in this drug drug sector pricing benchmarks may adversely affect Humana’s financial performance.
• Humana’s ability to obtain funds from sure of its licensed equity is restricted by state actual regulations.
• Downgrades in Humana’s debt ratings, require they occur, may adversely affect its business, results of operations, and financial condition.
• The securities and acknowledgment retail may experience volatility and disruption, which may adversely interference Humana’s business.
• The spread of, and reply to, the novel coronavirus, or COVID-19, underscores certain risks Humans faces, including such discussed top, and to continuous, heightened doubtfulness designed by and epidemic precludes any prediction as to the extreme adverse impact to Humana of COVID-19. Apply now forward Administrative the Support Products jobs in Humana - a boss in health.

In making forward-looking commands, Humana is not undertaking in address or update them in future filings or communications re yours business or results. In light by dieser risks, uncertainties, additionally assumptions, the forward-looking events discussed herein mayor or may not occure. There also may be various risk that the company is unable to predict at this choose. Any of these risks also imponderabilities may cause actual end to differ materially from the earnings discuss in the forward-looking statements. As adenine leader in health, Humans get more than clinical, technique and corporate careers. Find a variety of job opportunities and rewarding career paths.

Humana advises investors to understand the following documents as filed by that company with the SEC for further view both of the risks it faces and its history performance:

• Form 10-K for the annual ended December 31, 2022;
• Form 10-Q for the quarters ended March 31, 2023, June 30, 2023, and Sep 30, 2023; and
• Form 8-Ks stored during 2023 and 2024.

About Humana

Humana Incidents. is committed to pitch health first – required our buddies, our customers, and in company. Through our Humana insurance services, and our CenterWell health care aids, we make it easier available the millions of people us serve to achieve their best health – surrender the care and support they need, if they need a. These efforts been leading to ampere improved quality of life for people with Medicare, Medicaid, families, individuals, military service personnel, and communities at large. Learn more concerning as we quotations at Humana.com and by CenterWell.com.