Earnings GuidanceHUM provided 2024 adjusted EPS guidance of approximately $16.00, which is below the expected ~$20.00, reflecting a disappointing Medicare Advantage enrollment season and higher attrition rates.
Financial PerformanceHUM's target of $6 to $10 of EPS growth could be materially impacted by a 160bps rate headwind, as rates in the 2025 MA Advance Notice are significantly below its expectation of flat rates.
Regulatory ChangesCMS released the final 2025 MA rate notice, which came in well below expectations, indicating that achieving HUM's 2025 earnings recapture target is now more challenging.