In prepared remarks, Humana said that considering the significant difference between the final rate notice and its previous funding assumption, combined with the inherent pricing limitations imposed by the Total Beneficiary Cost change thresholds, the company no longer believes $6-$10 of adjusted EPS growth is the appropriate target range for 2025. Humana remains committed to margin recovery and profitable growth through multiyear pricing actions, creating value for shareholders over the long term, though now believes the recovery process will be longer than previously anticipated. It said its adjusted EPS growth outlook will be impacted by several variables “into which we will not have clear visibility until later this year. As a result, we believe it is prudent to provide more specific guidance for 2025 once we have greater clarity.” Humana said it is evaluating plan level pricing decisions and the expected impact to net membership along with opportunities to drive growth and further productivity across all lines of business to support 2025 adjusted EPS growth.
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