Humana Inc.'s Earnings Soared in Quarter

[babylonsister]

http://www.nytimes.com/2007/07/31/business/31humana.html

Humana Earnings Soared in Quarter

By THE ASSOCIATED PRESS
Published: July 31, 2007

LOUISVILLE, Ky., July 30 (AP) — The health insurer Humana Inc. reported Monday that its second-quarter profit more than doubled from a year ago on the strength of improved cost controls and sharply higher income from its government business.

Humana, based in Louisville, posted net income of $216.8 million, or $1.28 a share, compared with $89.5 million, or 53 cents a share, in the period a year earlier.

Analysts had been expecting a profit of $1.17 a share for the quarter.

Revenue rose 19 percent, to $6.43 billion, compared with $5.41 billion a year ago, while premium and administrative service fees were up 18 percent, mainly driven by higher average Medicare membership.

Michael B. McCallister, Humana’s president and chief executive, called it “probably the best quarter we’ve had” since he became the company’s chief executive in 2000. He said it was a result of “virtually every line of business doing better,” noting improvements in the commercial segment and expansion of the company’s Medicare business.

The company also reaffirmed its full-year earnings projection for profit of $4.40 to $4.50 a share, up from $2.90 in fiscal 2006.

Shares of Humana rose 27 cents, to $65.08 yesterday.

[whistle]

1. That is $216.8 million in healthcare which Humana members lost

[thecrow]

2. Not necessarily

Doesn't an HMO charge people to see doctors? sell prescriptions? charge premiums?

This could mean that people are getting healthier, too.

[LSK]

3. now if only all Americans could buy into a Medicare program for cheap

Oh wait, doesn't a candidate propose that?

:D

[Vinca]

4. The key words here are "cost controls."

How does an outfit like this "control costs?" By denying care.