Humana announced adjusted earnings before interest, taxes, depreciation and amortization of $327 million in its Healthcare Services segment in the third quarter, compared with $283 million in the third quarter of 2019.
The figure includes results from all lines of business within the segment and also includes the impact of Humana’s 40% minority interest in Kindred at Home and its partnership with Welsh, Carson, Anderson & Stowe to develop and operate senior-focused, payer-agnostic primary care centers.
Year to date, EBITDA in the Healthcare Services segment is $1.04 billion, up from $815 million for the same time period in 2019.
Overall, Humana’s third-quarter earnings release shows an almost 100% surge in profits to $1.76 billion, or $10.05 per share, compared with third-quarter 2019 profits of $888 billion, or $5.14 per share, as beneficiaries delay and postpone treatments and procedures.
Meanwhile, third-quarter profits rose 24% to $20 billion, compared with $16.2 billion in the same quarter of 2019. Utilization of its health plans has “resumed at a faster pace for fully-insured group commercial medical members in the group and specialty segment, compared to a more gradual return for senior and Medicaid members in the retail segment,” Humana said in a press release.
Looking ahead, the company has increased its 2020 financial outlook and projects growth in its Medicare Advantage membership to 375,000 from a previous range of 330,000 to 360,000.
“We continue to see more Medicare beneficiaries choosing Medicare Advantage (MA) plans over Medicare-Fee-For-Service due to MA’s ever-increasing value proposition,” Humana CEO Bruce Broussard said in a press release.
