© Reuters. FILE PHOTO: Humana Inc. signage at a healthcare facility in Queens, New York City, U.S., November 30, 2021. REUTERS/Andrew Kelly/File Photo
(Reuters) – Humana Inc (NYSE:) said Thursday it will phase out the employer group insurance business over the next 18 to 24 months and focus primarily on government-funded programs and specialty businesses.
The company said it does not expect the move to affect its full-year 2023 forecast.
It now expects first-quarter earnings to represent about 33% of full-year 2023 adjusted earnings per share, compared with 35% previously estimated.
Humana also anticipated an increase of approximately 30 basis points in its medical cost ratio, a percentage of its claims expenses to the premiums it charges, for the first quarter.
However, he expects an impact on the medical cost ratio for the full year.
