Humana has projected higher medical costs with a medical loss ratio expected to be at the upper end of the range for the year. The increase is driven by greater utilization of non-inpatient services such as emergency room visits, outpatient surgeries, and dental services, as well as unexpected inpatient trends. This announcement follows UnitedHealth’s CEO mentioned a rise in healthcare utilization as older adults seek services delayed during the pandemic.
Humana has joined UnitedHealth in issuing a warning about rising medical costs. In a filing with the Securities and Exchange Commission (SEC) on June 16, Humana projected that its medical loss ratio for the full year will likely be at the higher end of the estimated range of 86.3 percent to 87.3 percent.
The company attributes this expectation primarily to higher-than-expected utilization trends in non-inpatient services such as emergency room visits, outpatient surgeries, and dental services. Additionally, there has been stronger-than-anticipated utilization in inpatient services in recent weeks, deviating from historical seasonality patterns.
Humana’s filing follows a statement made by Tim Noel, CEO of Medicare and retirement at UnitedHealthcare, two days prior. Noel stated that UnitedHealth is also observing increased utilization as more elderly individuals are seeking healthcare services that were delayed during the COVID-19 pandemic.
