Humana Inc. (NYSE: HUM) touted its second quarter results for “Solid” and highlighted multi-year transformations, focusing on scalable growth, cost savings and technology integration during its revenue call on Wednesday.
The company announced integrated revenue of over $32 billion, up 9.6% compared to the same period last year. CEO Jim Rechtin attributed this growth to the strong performance of the Centerwell Division.
Humana has shown more confidence in revising its full-year forecast for 2025 and increasing annual revenue, but the company is cautious in 2026.
“We are pleased with the solid performance years we have done so far and the improved outlook for 201025,” President and CEO Jim Letchin said over the phone. “Looking ahead, we continue to focus on providing a more stable and compelling MA margin by providing clinical excellence to our members and patients through levers within our controls.”
Centrewell reported revenue of $5.5 billion for the second quarter, reflecting an 11.9% increase from the previous year, as detailed in its revenue statement.
Hospitalizations at the same store at Centerwell Home Health increased by about 1% year-on-year.
Despite the slow hospitalizations at Centerwell Home Health, the outcome from the start and forecasts for 2025 remain consistent with the initial forecast, according to company leaders. Leaders attribute this stability to increased clinical productivity and increased profitability at their subsidiary OneHome. As a result, membership percentages are expected to increase by 12% this year, with 15% growth expected in 201025.
OneHome coordinates home care services for Humana Medicare Advantage (MA) planning members by working with existing home care providers in specific markets. The model establishes a single point of accountability to consider the health planning needs of patients, physicians, hospitals, and home patient care who provide that care through a network of local home care providers. Services include infusion care, nursing, occupying therapy, physical therapy, and durable medical device services. Humana acquired Onehome in 2021.
Humana's strategic expansion has been pending with the launch of a Medicaid contract in Virginia in July, raising the company's active state footprint to 10, awarded by Georgia, Texas and Michigan. According to Lisa Stoner, Vice President of Investor Relations, Medicaid's revenues are consistent with the company's expectations, and leadership feels optimistic about its position.
Still, Humana offers acquisitions to eligible employees through a voluntary early retirement program.
To qualify for the program, workers must be at least 50 years of age and have completed at least three years of service. Eligible employees will receive an exit package that includes two weeks of payments for each year of service and an additional amount based on work level. The total employee payments will be concluded with a maximum of 52 weeks of payment.
“Looking ahead, we continue to manage levers within control, providing best-in-class clinical excellence, transforming the company, enabling scalable growth, and strengthening the driving lever,” said Celeste Mellet, Chief Financial Officer. “We believe these efforts will help us to increase margins and realize our business's revenue potential, but we can drive better results for our members, patients and peers.”
Humana is currently involved in legal disputes with the U.S. Department of Health and Human Services (HHS) and the Centers for Medicare and Medicaid Services (CMS) over MA Star Ratings after receiving a low score in 2025.
The company filed a lawsuit to overturn the score, but it was dismissed. It intends to pursue a further legal battle. However, if that fails, the company leader said he was worried that it could harm the company's financial health in the long run.
