The Louisville-based insurer also updated its full year earnings per share guidance.
Humana Inc. reported quarterly GAAP revenues of just over $20 billion and a quarterly pretax income of more than $1.7 billion, according to the company's latest earnings report released Tuesday morning.
Both metrics experienced significant year-over-year growth despite the effects of the ongoing COVID-19 pandemic.
The company's earnings per diluted common share (EPS) was $10.05 on a GAAP basis and $3.08 on an adjusted basis.
Humana's quarterly operating cash flows fell to $1.8 billion, down from $2.4 billion this time last year. The company's adjusted pretax income also slid from $869 million in Q3 2019 to $550 million in Q3 2020.
The Louisville-based insurer also updated its full year EPS guidance to a range of $24.70 to $24.95, with an adjusted EPS between $18.50 to $18.75.
Humana also increased its full year guidance for individual Medicare Advantage growth to 375,000 members.
"We continue to see more Medicare beneficiaries choosing Medicare Advantage (MA) plans over Medicare-Fee-For-Service due to MA’s ever-increasing value proposition. What’s driving this strong value is the fact that plans must constantly innovate to stay competitive as Medicare beneficiaries have the freedom to choose a plan that’s affordable for them and that suits their lifestyle needs. For example, about 60 percent of our members are in $0 premium plans and enjoy supplemental benefits not included in Medicare-Fee-For-Service, like dental, vision, hearing, access to healthy foods, and gym memberships," Bruce Broussard, CEO of Humana, said in a statement.
Prior to the release of its earnings report, Humana's most recent news was the announcement that the company would partner with Cohere Health, a healthcare technology company, to streamline prior authorizations across a dozen states starting next year.
Additionally, Humana and Salesforce signed a multiyear agreement two months ago for the insurer to deploy Salesforce Health Cloud for its new Enterprise Clinical Operating Model.
The new care coordination platform is aimed at supporting Humana's multidisciplinary care team and aligning their work with "members' needs to receive care and stay healthy."
For complete financial information, review Humana's filing with the Securities and Exchange Commission.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.