Humana's Strategic Response to Medicare Advantage Challenges

Humana's stock has plummeted after reporting a surprise loss in the fourth quarter due to higher usage in its Medicare Advantage business, with costs expected to remain elevated through 2024. The surge in older patients seeking care last year led to higher-than-expected costs, impacting the company's earnings forecast. The Medicare Advantage market is facing significant regulatory changes and increased medical cost trends, affecting companies like Humana and UnitedHealth Group. The industry may see disciplined pricing and slower enrollment growth in the future due to changing demographics.