"Rising Medical Costs and Profit Warnings: Humana's Troubles Signal End of Private Medicare Boom"
Humana Inc.'s bleak earnings forecast and withdrawal of 2025 guidance signal a challenging future for private Medicare plans, with rising medical costs expected to impact profitability and potentially lead to increased costs for seniors. The company's shares fell sharply, dragging down the sector, as it anticipates having to raise prices and reduce benefits to maintain profit margins. The outlook reflects broader industry concerns, with other major insurers also facing uncertainties related to escalating medical expenses and regulatory changes.