Medicare Advantage: A Good and Growing Businessby Denise Early on Nov. 04, 2010, under Health
From the Associated Press on Nov. 1, 2010:
Humana Inc.’s third-quarter net income climbed 30 percent partly on a jump in Medicare Advantage enrollment and because the health insurer’s claims leftover from previous quarters came in lower than expected.
Humana said it earned $393.2 million, or $2.32 per share, for the three months ended Sept. 30. That’s up from $301.5 million, or $1.78 per share, a year earlier.
Revenue rose 9 percent to $8.42 billion.
Humana also said its Medicare Advantage enrollment climbed 17 percent in the third quarter to more than 1.7 million people. Humana is the second largest provider of Medicare Advantage plans, trailing only UnitedHealth Group Inc.
Medicare Advantage plans are privately run versions of the government’s Medicare program. They provide health coverage for the elderly and disabled. Subsidized by the government, the plans offer basic Medicare coverage topped with extras or premiums lower than standard Medicare rates.
Aside from Medicare Advantage, Humana also offers Medicaid and commercial coverage and insurance for military members and their families.
UnitedHealthcare Medicare & Retirement (formerly Ovations)
Third quarter Medicare & Retirement revenues of $8.8 billion grew $886 million or 11 percent year-over-year. This strong growth included revenue advances in the Medicare Advantage, Medicare Supplement and Part D prescription drug businesses. The Medicare & Retirement business has increased its customer base in primary offerings by 615,000 people in the past 12 months.
In Medicare Advantage, the Company brought its services to 290,000 more seniors in the past year, a 16 percent year-over-year increase, including net growth of 20,000 seniors served in the third quarter.
Growth in active Medicare Supplement products continued, with the number of seniors served increasing by 90,000 or 3 percent in the past 12 months, including 25,000 people in the third quarter of 2010.
As of September 30, 2010, 4.5 million people participated in the Company’s stand-alone Part D prescription drug plans, an increase of 235,000 people over the past 12 months.