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Humana
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Latest analysis
Updated Nov 6, 2026
Humana Q3 2026: Benefit ratio deteriorates 280bps to 93.9% as BY2026 Star Ratings headwind and new-member mix pressure overwhelm MA pricing gains
Humana's Insurance segment swung to a $303 million operating loss in Q3 2026, driven by a 260bps benefit ratio deterioration to 93.7% — the combined result of the BY2026 Star Ratings revenue headwind, higher benefit ratios on newly acquired MA members versus retained members, and materially lower favorable prior-period reserve development ($67M in Q3 2026 vs. $275M in Q3 2025). The BlackRock-HPS joint venture replacing the WCAS primary care partnership, valued at approximately $2.8 billion for the WCAS equity stake, repositions CenterWell's clinic network with extended call periods beginning in 2028 and committed capital for new clinic builds and acquisitions. Despite the Insurance segment loss, the nine-month benefit ratio of 91.5% and operating cash flow of $5.4 billion confirm the near-term pressure is structural but bounded, with pricing discipline and operating leverage partially containing the damage.
Tone: defensiveRevenue
$129.7B
HUM 10-K · FY 2025
Employees
67,060
Revenue FY2024
$117.8B
Founded
1964
Profile
HUM 10-K Item 1 · Feb 19, 2026Humana is a Louisville, Kentucky-based managed care organization offering Medicare Advantage, Medicare Part D, Medicaid, and specialty insurance products through its Insurance segment, alongside pharmacy, primary care, and home health services through its CenterWell segment. The company serves approximately 15 million medical benefit plan members and derives 83% of its premiums and services revenue from federal government contracts. At its core is an integrated care delivery model combining value-based provider arrangements, owned primary care clinics, and home-based care capabilities.
Read filing description ↓ Collapse description ↑
Humana Inc. and its subsidiaries is committed to putting health first for its teammates, customers, and company. Through Humana insurance services and CenterWell health care services, the company makes it easier for the millions of people it serves to achieve their best health, delivering the care and service they need, when they need it. These efforts are leading to a better quality of life for Medicare and Medicaid participants, families, individuals, military service personnel, and communities at large. The company operates two reportable segments: Insurance, comprising Medicare Advantage (individual and group), Medicare stand-alone PDP, Medicare Supplement, state-based Medicaid contracts, specialty benefits, and military services; and CenterWell, comprising pharmacy solutions, primary care, and home solutions. As of December 31, 2025, the company had approximately 15 million members in medical benefit plans and approximately 4.7 million members in specialty products. The company has participated in the Medicare program for private health plans for over 30 years and has established a national presence. At the core of its strategy is an integrated care delivery model that unites quality care, high member engagement, and sophisticated data analytics, designed to improve health outcomes and affordability while offering members a simple, seamless healthcare experience. The company operates 350 primary care clinics and employs approximately 1,300 primary care providers, serving approximately 491,100 patients primarily under risk-sharing arrangements. CenterWell Home Health operates in 37 states.
Primary products
- Individual Medicare Advantage (HMO, PPO, PFFS, D-SNP)
- Group Medicare Advantage
- Medicare stand-alone PDP
- Medicare Supplement
- State-based contracts (Medicaid)
- Specialty benefits (dental, vision, life, disability)
Business segments
End markets
Geographies
Named customers
During 2025, 83% of our total premiums and services revenue were derived from contracts with the federal government, including 14% derived from our individual Medicare Advantage contracts in Florida with the Centers for Medicare and Medicaid Services, or CMS, under which we provided health insurance coverage to approximately 1.0 million members as of December 31, 2025.
“Many of our competitors have a larger membership base and/or greater financial resources than our health plans in the markets in which we compete.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Total revenues increased from $117.8 billion in 2024 to $129.7 billion in 2025, driven primarily by growth in Insurance segment premiums and CenterWell services revenue.
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