* Q1 EPS $1.49 vs $1.53 Street view
* Slightly raises FY forecast
* Comes after Aetna, Coventry disappointing quarters
April 30 (Reuters) – Humana Inc posted a 21 percent
decline in quarterly profit on Monday, missing Wall Street’s
target, as higher medical benefit costs weighed on the health
insurer’s results.
The first-quarter report from Humana, one of the largest
providers of Medicare plans for the elderly, comes after rival
insurers Aetna Inc and Coventry Health Care Inc
posted lower-than-expected profits last week.
Humana’s net income fell to $248 million, or $1.49 per
share, compared with $315 million, or $1.86 per share, a year
earlier.
Analysts were expecting $1.53 per share. Humana said the
earnings did top its expectations of $1.35 to $1.45.
Revenue rose 11.2 percent to $10.22 billion, about $100
million ahead of estimates.
The company spent 85.4 percent of premium revenue on medical
benefits, up from 83.8 percent a year before.
Profit fell 47 percent in Humana’s retail segment, which
includes its Medicare plans, primarily because of the higher
medical benefit costs.
Humana pointed to the extra day of claims because of the
Leap Year, requirements due to the new U.S. healthcare overhaul
law and the increased membership in its plans for the increase
in health benefit costs.
Membership in Humana’s Medicare Advantage plans rose 18
percent to 1.88 million.
Humana raised its 2012 earnings forecast to a range of $7.55
per share to $7.75 per share, an increase of 5 cents on both
ends.
Through Friday, Humana shares were up 0.2 percent this year,
underperforming a nearly 9 percent rise for the Morgan Stanley
Healthcare Payor index of health insurers.
