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Human health insurer (New York Stock Exchange: humming) cited uncertainty about some of its forecasts Tuesday due to the ongoing outage at UnitedHealth's (UNH) Change health technology unit following a cyberattack that took place nearly two weeks ago.
During TD Cowen's annual meeting At the Healthcare Conference, HUM Chief Financial Officer Susan Diamond said the company has yet to fully evaluate its claims paid, as the incident has prevented many healthcare providers from getting their processed healthcare claims.
Change, which UNH acquired in 2022 after a $12 billion deal, processes insurance claims and pharmacy applications for more than 340,000 physicians and 60,000 pharmacies in the U.S. Between 15% and 20% of medical claims of Humana (HUM) depend on Change, Diamond noted.
“Normally, at this time, we would have an early view of February paid claims restatements,” he explained. “I would say that, unfortunately, given the change in healthcare that we're all going through, it's much more difficult to evaluate.”
“So, we would say that until that is finally resolved and the inventory buildup is resolved, it will limit to some extent our ability to fully evaluate paid claims,” he said.
Ahead of the event, Humana (HUM) reaffirmed the full year earnings per share of ~$14.87 and ~$16.00 on a reported and adjusted basis, respectively, for 2024 compared to $16.11 in consensus.
