Signage is displayed on the exterior of the Humana Inc. office building in Louisville, Kentucky, … [+]
Humana profits doubled to $ 1.8 billion in the second quarter as elective procedures the large health insurer pays for were postponed or delayed amid the spread of the Coronavirus strain Covid-19.
Humana, which is one of the nation’s biggest providers of health benefits to seniors through its Medicare Advantage plans, on Wednesday reported net income of $ 1.8 billion, or $ 13.75 per share, in the second quarter compared to $ 940 million, or $ 6.94 per share in the same period last year.
“Humana’s second quarter results of operations were materially impacted by the significant, temporary deferral of care resulting from stay-at-home orders, physical distancing measures, and other restrictions on movement and economic activity implemented throughout the country to reduce the spread of COVID-19,” Humana said Wednesday in announcing its second quarter earnings.
Elective procedures are being postponed at hospitals across the country to free up inpatient capacity for patients sickened by Covid-19, which was a big benefit in the second quarter for health insurers like Humana. Other health insurers including UnitedHealth Group, Anthem and CVS Health’s Aetna unit, are seeing similar benefits and that could continue into the third quarter as Covid-19 hot spots in Arizona, Texas and Florida and across the southern U.S. face rising cases of the virus.
Humana, in particular, has a large market share of seniors enrolled in its plans in Texas and Florida where Covid-19 cases are rising to levels unseen this year. “Hospital admissions and utilization were significantly depressed in April, increased throughout May and June, and remained modestly below normal at the close of the quarter,” Humana said in its report.
A large share of Humana’s business is providing health benefits to seniors. Humana’s enrollment in individual Medicare Advantage plans was up 11% to 3.8 million as of June 30 compared to the year-ago period.