Just as I predicted, Humana
Humana's revenue was up 14%, thanks to a 19% increase in the membership of its Medicare Advantage program, as well as the addition of CompBenefits and KMG America -- which offer vision, dental, and life insurance -- at the end of last year.
But net income was down 3%, as higher-than-expected medical costs -- mostly from prescription drugs -- cut into the bottom line. Humana's stock jumped because the company had guided for an even bigger drop in the bottom line. It's much easier to substantially clear the bar when you take it off the posts and lay it on the ground.
Ironically, the company's Medicare drug plans -- yes, the same drug programs that started the entire industry's downward spiral -- contributed the most to the windfall. I guess Humana's miscalculations weren't quite as bad as they first appeared.
The good news for health insurers like Aetna
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