Healthcare DIVE February 5, 2024
Last week, regulators proposed Medicare Advantage payments for 2025 that could lower Humana’s benchmark funding more than the insurer anticipated.
Dive Brief:
- Medicare Advantage rate changes proposed by regulators last week are upsetting Humana’s funding expectations for 2025.
- If finalized as proposed, the MA changes will lower Humana’s benchmark funding by around 160 basis points compared to a flat rate environment, the health insurer disclosed in a filing with the Securities and Exchange Commission on Monday.
- The discrepancy is because the CMS didn’t factor in persistently elevated medical costs into how it calculates rates, Humana said. However, regulators could do so in the final rule. Despite the uncertainty, the insurer reaffirmed its earnings outlook for 2025.
Dive Insight:
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