Humana Sees Lower Profit Due to Spending on Exchanges, Medicaid

U.S. health insurer Humana Inc on Wednesday said it expected earnings to decline next year because of spending on the new health exchanges and on the Medicaid program for the poor.

Humana and its competitors began selling insurance plans to individuals on October 1 on state-based exchanges created under the national healthcare reform law. Those plans take effect in 2014.

The company also has managed care contracts with some states for their Medicaid health plans.

Read the full story here: http://bsun.md/1cWNtma

Source: The Baltimore Sun

Humana said it expected 2014 earnings of $7.25 to $7.75 per share, including 50 cents to 90 cents in Medicaid and health exchange costs.

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