Humana Warns Medicare Payments Won’t Keep Up With Costs (3)

Humana Inc. fell after maintaining its annual profit guidance despite a strong first quarter, suggesting it may foresee difficulties later in the year.

The company’s adjusted earnings per share for the quarter was $10.31, above the average analyst estimate of $10.19, the company said in a statement Wednesday. Humana said its 2026 adjusted profit will still come in at at least $9 a share.

Humana is one of the largest providers of Medicare Advantage plans. The program was once seen as a reliable profit driver for health insurers, but increased government scrutiny and stricter payment policies in recent years have ...