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Humana Q2 benefit ratio holds near 91% as Medicare Advantage surges
Revenue rose to $40.87 billion in Q2, while Humana raised its full-year 2026 adjusted EPS floor to at least $9 but cut GAAP EPS guidance to at least $6.52.
Humana reported a Q2 2026 insurance segment benefit ratio of 91.2%, slightly above management’s guidance of just over 91%, as Medicare Advantage membership jumped about 25% year over year, lifting consolidated revenue to $40.87 billion for the quarter, according to Insurance Business.
The company said GAAP diluted earnings per share were $5.73 for the three months ended June 30, up from $4.51 a year earlier. Adjusted diluted EPS increased to $7.61 from $6.27, an advance of 21%, as consolidated pretax income rose to $952 million on a GAAP basis and adjusted pretax income climbed to $1.25 billion.
Humana also reported an improved adjusted operating cost ratio of 9.7%, down from 10.9% in Q2 2025, and it affirmed full-year 2026 adjusted EPS guidance of at least $9. At the same time, the insurer revised full-year GAAP EPS guidance down to at least $6.52 from at least $8.36, attributing the change to non-cash items and value creation initiative charges.
Looking ahead, Humana said its adjusted EPS guidance implies a year over year decline from 2025 levels due to Medicare Advantage Star Ratings headwinds that are expected to weigh on quality bonus payments in 2026. It also reported CenterWell Senior Primary Care patient growth of 130,900 patients, or 27%, year to date, and said it won a statewide Illinois Medicaid managed care contract expected to start in January 2027 as the only new entrant among the six awardees.