Humana warns of rising medical costs due to increased demand for procedures.

Humana has warned of a surge in medical costs this year due to higher-than-expected demand for surgeries and other medical procedures, following UnitedHealth's similar warning earlier this week. Pandemic-driven restrictions and hospital staffing shortages had led to long delays in elective procedures such as hip and knee replacements, especially among older adults at higher risk of contracting severe COVID-19. The surge in demand for medical procedures is also being fueled by an aging baby boomer population, a bump in life expectancy, and a shift towards value-based care where payments are based on health outcomes rather than services provided.