Published on 2 Dec 2022 on Zacks via Yahoo Finance

Humana (HUM) Ups '23 Medicare Advantage Membership Growth View

Humana Inc. HUM recently raised its membership growth outlook for 2023. A better-than-expected sales witnessed so far in the current enrollment period and modestly favorable retention are expected to support the growth.

The company hiked its 2023 individual Medicare Advantage membership growth guidance to a minimum of 500,000 members, up from the earlier increased estimated range of 325,000-400,000 members. Previously, HUM provided individual Medicare Advantage membership growth guidance of 150,000-200,000 members during 2022.

It expects 2023 net membership gains to be a minimum of 10.9% from the 2022 projection. HUM expects the industry growth rate to be in the high single digits. However, the membership growth is not expected to impact its 2023 adjusted EPS, which is estimated to grow 11-15% from the 2022 adjusted EPS guidance of $25.