Becker's Healthcare August 2, 2023
Higher utilization is putting pressure on Medicare Advantage medical cost ratios and will likely continue through the end of 2023, executives from CVS Health and Humana told investors.
CVS Health revised its 2024 earnings-per-share guidance from $9 to $8.50 to $8.70, citing a challenging Medicare Advantage environment as one of the factors for the change.
The company assumes Medicare Advantage utilization rates will stay elevated through the end of 2023, CFO Shawn Guertin told investors on an Aug. 2 call.
The trend is isolated to Medicare Advantage, executives said, with costs for commercial and Medicaid businesses in line with expectations. Costs are mostly increasing among outpatient services, Dan Finke, president of Aetna, said.
“This is likely due...
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