From CNBC:

Health insurance company Humana Inc. saw its shares plunge after issuing full-year earnings guidance blaming soaring medical costs. They expect adjusted earnings of about $16 per share for 2024, less than half of the expected $29.10 per share. UnitedHealth also reported an increase in medical costs, but it was less extreme. Expectations for Humana’s earnings were already low after the company warned that medical costs were higher than expected in the fourth quarter. Humana predicted that higher expenses could harm their profits in the coming year. The insurer’s stock sunk 10% after the announcement, dragging down other health insurance stocks as well. However, Elevance Health’s stock rose more than 1% after forecasting earnings above estimates. Humana reported a medical benefit ratio of 90.7% for the fourth quarter, signaling an increase in outpatient and inpatient services for patients enrolled in Medicare Advantage plans. The company posted a fourth-quarter revenue of $26.46 billion but reported a loss of $591 million, or $4.42 per share. Excluding certain items, Humana reported a loss of 11 cents per share, contrary to analysts’ expectations of 15 cents per share.



Read more: Humana reports grim 2024 forecast due to soaring medical costs