Humana (HUM) 2 Nov 222022 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Q3 2022 Humana Inc. Earnings Call. At this time all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the call over to your host, Lisa Stoner, Vice President of Investor Relations.

begin. may You

and good President and Chief a Bruce XXXX moment, Officer, XXXX. outlook Thank Chief morning. Executive Humana's results quarter third and discuss Diamond, updated Officer; Broussard, financial will for you our In our and Financial Susan

listen recorded and prepared will with remarks, and Officer, purposes. session to public later will for joining and Investor management's analysts. media to these also a This humana.com, prepared the the remarks for our website, the Susan We investing replay will today. the be we Following both analysts. Joe encourage Relations Q&A up Ventura, open lines question-and-answer industry with call Legal That the Humana's page be on related for Q&A available session. Chief is of being Bruce replay

of earnings Form response to release forward-looking of other XX-K, the XXXX Before Certain factors with conference and we cautionary are as involve our in to begin discussed in need COVID-XX Investors Commission detailed be results impacted particular could this latest statements are to discussed in number and to to I and our participants quarter spread third to they and related read filings Exchange relate note call risk and the forward-looking our advised these advise statements Securities in our of call the could differ press discussion, risks of forward-looking that pandemic. uncertainties. materially. matters our Actual the statement. risks a by the

explanation Today's SEC and or other update and release, measures financial includes publicly uncertainties that SEC available Call are that our on financial non-GAAP also non-GAAP should risks note our Investor discussion releases in these press Relations measures accounting any no should obligation of in or results. of filings principles reconciliations today's and with to generally the accordance and included press the historical in along business are communications these today's with are filings. GAAP. forward-looking statements of participants undertake considered use financial additional be accepted site. therefore for Management's statements or our filings with forward-looking release. We Our to measures discussed GAAP news regarding future in not our all address risks, our light or

conference to references to any diluted share Finally, With per per to Broussard. I'll EPS call over common earnings this or turn the during made earnings that, call share. Bruce refer

Good appreciate joining morning, you, Thank We you everyone. us. Lisa.

quarter We us our at the fundamentals third throughout continuation above enterprise earnings the across $X.XX EPS by expectations. the year of the to quarter, September initial XXXX Our our $XX of raise quarter per $X.XX adjusted allowed seen XXXX and solid reflect results for Day. full guidance strong of Investor to our as strength execution year. the reported The adjusted share

creation as framework raised We are We several weeks. in a share representing Susan quarter growth as performance last recent third investors at our expectations pleased to affirm to XX% the engagement the appreciate additional this share a our over detail opportunity compelling outlook our XXXX. recently with value year the subsequent moment. Day and on full will well Investor our over

to about focus executing and excited communicated. company's on against the strategy are the future commitments We our our on deliver

and of XXXX. at by growth As Medicare Advantage mid-term or EPS is to $XX by industry in earnings target above previously discussed, return of achievement XXXX a adjusted underpinned our in membership

high XXX,XXX year X.X%, full of of single-digit an in to line our we individual X.X% landscape, plans growth are anticipating members. of expectations XXXX represents to happy with are to Now rate of expectation the XXX,XXX provide period membership This that expected industry we Advantage Based today. and competitive our enrollment we've is seen understanding competitor growth for underway, XXXX for initial on growth. annual Medicare growth the

As we've – strong to targeted are our position. MA our confident spoken members' our surveys offering Through and in better previously, meet made in products investments we've competitive meet designed product needs. substantial and we've about deep analytics,

of option members allowance, healthy healthy eligible transportation, For food, dual allows plans and to rent will for our flexibility funds offer XXX% the over-the-counter pay supplies, example, health the our to items, direct which utilities.

strategies, categories in as well membership. offer geographies. our wide improved in flexibility through consumer many we we our differentiated the are and We offerings benefit plan for rollover specific as feature this breadth the of segment Outside broader also spending

competitor of or our for parity value example, markets. HMO believe XX% the in premium key plan approximately zero LPPO above our and we're at For products, we

our important affordability seniors on plans current believe are unique solutions value, both the is product urgent especially given we serve with most members conditions providing LPPO options better increase We incomes. over looking footprint XX% which to in offered providing to and counties, network premium and also knowing expanded low-cost seniors combined now needs, All fixed many year-over-year flexibility. of economic X,XXX for our a zero

our our Beyond distribution strategy. are a our and continuing remain investments, focus omnichannel we advance capabilities to evolving product

working a previously discussed, of to our improve variety we've been external sales initiatives. closely partners As with we've quality through

satisfaction. sales. that to maintain enhance the strong our such Meanwhile, in we internal tend to we'll continue partnerships channel, this confident which and improved quality and as higher quality retention through are capabilities continue provide better drive We better channels, customer to

inbound are to marketing in intelligence refreshed for We result this, combination internal with improved believe increase agents in customers. calls and our both analytics We all strategy, will XX% in improved approximately artificial our experiences sales our of leveraging an and drive for year-over-year.

our is experience. in customer position maintain Our the ability and industry to by our quality MA excellence in supported leadership

for of all five highest plans achieved year rated MA star in such XX% stars national four-plus bonus four and Star Humana ratings, as our competitors members where success has consecutive above our enrolled years. percentage demonstrated in now contracts XXXX. members our areas in across for of Our the

triennial a to our significant Our improvement Medicare in that by audit saw named been in completed Advantage again also results insurance company audit. evidenced commitment And CMS to for compared overall quality program results proud are once CMS where our when audit the is finally, has XXXX U.S. best we overall has recently Humana our we

which News newly and ratings the Star services Medicare released Medicare created plans. World for centers for on honor an based role Advantage and Report, Medicaid

Additionally, experience capabilities, the locally Humana of the and experience and company was for these best member capabilities, The members outcomes can our on raise provider and pursuit continuously maintaining and for of will efforts areas of continue that the receive analytics deployment customer-centric and is as deep company focused low declared our digital entire as ranked the well care so our relationship we differentiated organization availability. our as results. value-based better first-mover best in to success of diversified on interoperability, quality reflect models, durability use our solutions including oriented member The and solutions. highly industry-leading premium products relentless bar

sight I'm billion described. expect near has and value which we line required XXXX, just to focused changes initiative. growth investments we we in execution for show over of effort support the and started results continue The I difficult have Turning that to $X long-term. billion that our share the fully goal in in XXXX positive MA pleased $X have to to choices, to that realize already the creation company, which will the

mix approximately we been target on committed goal XX billion a to points business in $X leverage adjusted. annually with improvement ongoing are basis operating achieved, has formal the of While a

forward, on with utilizing has our learned efforts. been framework intend the continue practices historical Going productivity, value focus best our a through we creation that to enhanced

our that continuous are leverage We way wherever work in promotes while that a to creating our assist business sustainability improvement, driving focused culture and on adoption efficiency operating running a technology will and possible. create automate workflow

We sustainable the by productivity are early of indications encouraged the framework.

example, automatically I'd match correct artificial an pre-authorization our authorization incoming in solution This creates of images. to inbound efficiencies an where like efforts we're across faxes productivity to As leveraging intelligence requests. solution to highlight millions administrative in-house process the

multiple to We turnaround experience. result and authorization expanding are AI for are also reduction pharmacy this will to support application creating as which friction decision and a such the improvements to also scaling clinicians, providers business times, member in better of units to this in type of provide solution

like success to members I our all like also their shareholders employees to every would they thank our Susan, patients. thank work and it our you for say do Before turning bring that to for possible. sales over to I appreciate day our I'd make their best continued XX,XXX to and support.

forward We are discipline our capital Investor within to the and integration, operate growth the look we industry We strong commitments for delivering XXXX, of we offerings, that, excited deployment. of you call through positioning over at market and about our the compound beyond our shared local healthcare to against the to competitive scaling I'll in Susan. MA the fundamentals and turn opportunities with services Day. the continued With and cost market

in growth morning in for we good third of initial the XXXX. third over And lower Results primarily than quarter everyone. our our anticipated our representing quarter, Bruce. Thank at you, driven quarter EPS expectations above adjusted today. XX% trends businesses. reported Day we EPS came $X.XX September, Today by Advantage year medical cost which and we raised Medicaid to Medicare full $XX individual by that affirm Recall Investor guidance $X.XX and adjusted in the

performance compelling of XX% favorable Advantage individual year and strength dilution support some details than last reflects for with the we to I our the membership marketing Medicare and than for hospice respect the by business beginning with Our expected and that season growth we adjusted Retail. higher incremental costs third total group XXXX, trends anticipated a the now additional moderation. non-inpatient quarter were divestiture. and while XXXX funding with guidance seeing medical With the segment, full revenue Medicare year growth quarter quarter our were utilization. AEP the shared initial on in related expectations selling line advantage revised the in to the seen MA, expectations, lower quarter to continuing will provide throughout with remain inpatient earnings

that statements been in see positive third September, ERE suggesting some and the we described trends mentioned was demand. due I moderating trend As during current the to quarter, we previously pent-up [ph] pleased higher have likely of to

as note early our and business Investor shared are is Medicare the it at strong that while would Advantage is All updated I in consistent flu expectations in tracking with levels Finally, season, running the anticipated. Day.

current XX,XXX XXXX. also medical of the of XXX,XXX our year public our full guidance Medicaid Medicaid performed emergency updated approximately guide up to a up January, in costs. range XXX,XXX of anticipated the health than experiencing reflect membership We a from Our to extension the to lower business well to quarter

approximately prepared segment than live adding on expected which expectations We to our in dental continuing Ohio Specialty guidance. lower quarter the implementation, Specialty go December the were with and results to for are utilization. in line X, our business XX,XXX members for Group at with from contract included benefit is

than XXX,XXX the pricing and anticipate first also the end I medical quarter We the earlier communicated the with on members in add for centers serving approximately a continue Services XX center Organization a count expectations Care greater were XXXX, the expected nearly to on our we anticipate on by expansion for Pharmacy and April Healthcare is margin by through line XXX,XXX Investor at discipline the year. continues to The portfolio shared stability. with XXXX, in of focus Day, and XXX. expectations XXXX. in the as in our executing scene increased Primary approximately to we line patients group to discuss businesses. focused quarter employer grow total results to team with well XX Patient reduction of The our our now in quarter. driven to will of served we continues perform bringing we to value-based results continue of the result strategy to expect outperformance as

home year-over-year. total episodic X.X% Turning increase. in to year line while total in health third business, with full up year-over-year, X.X% while Year-to-date are quarter episodic are for the our are up up are a the admissions Home X.X% expectations core of admissions admissions up year-over-year fee-for-service our mid-single-digit X.X% tracking admissions

majority XXX the in quarter end bringing of value-based our in to addition, points to as billion covered August. $X we capital plan ratio Kindred of a which additional deployment XX.X% to XX% interest our XXX,XXX members to lives in perspective, retired fourth the our In the Advantage decreased debt quarter, of of year. health model basis an Hospice, by in From home approximately total following expand our Medicare debt the to cover capitalization the as closed third we divestiture

XXXX debt on starting continue additional to of level color with to share a of for to and outlook be XXs repurchase our now at I result, few XXXX in We the the anticipate early our to ratio customary end membership. year. the provide low take expect a as a capitalization will moments in

to have XXX,XXX As is our made the our support remain of growth Bruce we growth line early are digit pleased individual positioned shared, while in members, and the to we XXX,XXX we market us membership to XXXX well it's that AEP, expectations expectation of still with investments growth. MA confident today in high-single which share

is As the so ultimately we year, call of how sales results a always our support retention disenrollment partners. XXXX change member the depending modestly result are our early of and today we increased for limited have all we volumes we take center in. could voluntary outlook that in data those caution strong lower to early longer but sales in to our Initial as season do into offerings, this provide members dis-enrollments the new Recall focus it by improved expectations. complete, on selling onboarding this enhanced expect season, time and and AEP in and sales quality favorable AEP on as attrition benefit visibility come

models additional our and We also techniques, granular retention inputs sales machine advanced our analytic incorporating learning ability. and improving forecasting

Medicare Taken as improvements all the based together, can large we guidance pipeline growth and previously opportunities, early to With out going vary group confidence Advantage, bid. particularly on in of support to shared year-to-year the accounts our results today. respect stated, these

market We approximately of primarily reduction market. is group to standalone more driven This expected of account offset With small in in net XX,XXX in beneficiaries group PDP the XXXX. expect Advantage. committed Medicare pricing MA as loss PDP, growth We overall reduction in the is a remain by partially Medicare membership a membership. account declining large to respect discipline Advantage by choose a group competitive

In low net XXXX, we expected in will million in one and regions approximately PDP and in Value disciplined decline as an our benchmark not as plan competitively the remain income basic exceed addition, pricing our a positioned result, plan be our members. Walmart driving three of will

are we in As regulatory the proposition. from various MAPD changes we XXXX, movement result which PDP industrywide look of broadly MAPD the evaluate premiums to lead plan proposed, PDP given strong could higher will to beyond the and plans, impact to value likely further

to on by convergence Our order from penetration enterprise increased and PDP focus Medicare value mail driving remains our plans Advantage. creating

which XXXX the Finally, membership largely the to will Louisiana in impact of expect our Medicaid business, flat to begin as slightly in and be state new offset we awards up will Ohio redeterminations, will begin indicated public the has end the members XXX,XXX following the members to XXX,XXX the months. Louisiana of of ramp health emergency. program with that we over Ohio XX while will course

to our our expected commitment performance, reiterate XXXX financial Turning to within expected now EPS XXXX range to I our of would off adjusted of long-term XXXX EPS our XX% $XX. XX% targeted adjusted grow of

our XXXX providing to growth be path our EPS a the more of look XXXX call us EPS to expect We specific We forward fourth with quarter adjusted with continue approximately earnings on and in will XXXX. February. this in The practice on guidance in line current early planning solid our target estimate put for achieve $XX our consensus time conservative will $XX.XX to at initial of earnings adjusted guidance. anticipated

appreciation Before and their our for closing, I for to echo would our success to contribution continued their shareholders Bruce's to support. employees our

outcomes one caller. With line yourself patients for questions. and that, in limit we creating report We Day, strong experiences and delivering introduce fairness our are to those excited that outlook commitments the for about Investor you for and please we are value the providing In to look you XXXX your ask pleased members, queue, for with quarter the shared forward We our to at shareholders. question. we significant and better against another will beyond. Operator, first waiting the and to our open

question Our Fargo. comes with Instructions] Stephen first from Baxter Wells [Operator

open. line is Your

Medicare plan about Maybe on or bit if that in channels? you I you be growth retention that And any last contributes outlook did year? much little commentary quantify the Thank to on much. to insight you or broadly, expecting for Appreciate provided have sales individual your result early either you for wanted dynamics Hi. you. ask would growth outlook? more on on the XXXX. better. you very your Advantage same what tell benefits that us maybe the Thank outlook a XXXX, how to then you competitive Could be had retention

on the provide it we how detail Yes, the affects just won't overall.

continue early that do process. it’s are in practice What been volume our where has new is to of with we First the thing than sales into just want the expected. this AEP. we weeks are just we being strong But in transparent higher and just on investors two seeing

The expectations are our volumes we down than are volumes which ratios close sales versus call particularly center year-over-year in year-over-year, addition, And expected. are. strong. higher what our channel slightly field Our are

nowhere As I’ve to data is mentioned, close term our being complete.

result But [ph] this have we into improvement XXX So, incorporating our in do improvement are addition, we’re visibility we and rate really limited we non-distant with see year, we’ve what and product a that in the then And in seeing our point that plans. the what term area onboarding both our that. with our is in about basis our broker that’s in the just in place relationships a put on improvement our along with seeing we’re of enrollment and members. workflow

improvement So, that the is aspect is good see all coming seeing what parts with really across the growth channels. on and growth exciting of where in early a just good our organization we we’re with relationships continued of

our moment Thank question. for you. next One

Kevin next of Our Fischbeck with America. comes from Bank question

Your line open. is

upon of the your beat what much how with just like Is reported guidance your and QX It that make thought it? kind you because about implications is cost consensus you’ve just you sounds back as is think cautions QX so want sure then MLR. lowering like that just obviously for I’m would you to September understanding QX I far And I period. about Great. where Thanks. trend. about function the it’s largely based sounds outlook? I expected you frame to to MLR for in versus didn’t MLR of QX guess saying as MLR more how Thanks. commentary you’re implications this just want to It is. kind go a of how that and by how

Sure, Kevin.

the which mentioned, bit in for beat a Investor a of initial raise appreciate. are guidance, our the in trend I to seeing announced $X.XX confusing, so the But expectations you mid-quarter with terms in relative cost the cost lower-than-anticipated we as in that at quarter, little it’s Day trend So, our we was were mid-September. considered raise

the But relative expectations. we our account So commentary then guidance, morning more was initial this we the to for expected. again, then once with in line increased what

than year we result, will results In consensus, at higher year the now, currently an The expectations. retail MLR MLR our are we [ph] announcement the Street full would which QX full a would the as see line and terms increase We XQ say in current for of look And quarter EPS models a the of consolidated. that right and today, fourth then would current they’re estimates of guide. then then our adjust expect QX, [ph] which and bit fourth I be in given XX.X% little and reaffirmation analysts their as that versus quarter more accordingly. with should estimates XX.X% for that light were

Thank One our moment next you. for question.

question next Lake from comes Wolfe Justin Our with Research.

open. is line Your

numbers The Thanks, good – morning. questions. two

Steve’s follow-up to a just First, question.

basis is down XXX You churn points. number the said

X% the a as at as a CMS. improvement math you members So for a what help is versus simple. of adjuster lastly, the X% drove in simple last in members lot PMPM And decline I at if wondering quarter? XX,XXX you saying questions was like what RADV. to on the million year. is have just The industry growth could individual, reasonable fee-for-service looking Medicare that’s that in it then Advantage understand us And X.X

or when final lobbying that see we fee-for-service notice would what reasonable So been for? for that that you’ve number be February, in final rate Thanks. a adjuster

and then next let Susan I’ll take the two. I’ll first take question, the

points, basis XXX pretty the correct, there, On math Justin. your is simple

your on me number. amaze ability the back you always, to like into So

away it. those impacting perspective the enroll as typically revenue over members have in continue a year Justin, and there’s from few always terms seasonality to risk course things scores. of in passing then, that And scores the new There’s members at higher passed to of decline – the and PMPM, low the lower members risk late

that was of as sequestration, other ended just place The quarter, need of item you this last but the year year. which is you sort for second in as know,

And impact the so on well. that an have year-over-year will as compare

just fee-for-service access. would In position data terms speculate be on your a of be, just to based adjuster, adjuster to to and on comment ultimately fee-for-service we question honestly, is aren’t what would on the fee-for-service in have the I want it wouldn’t which we don’t mean,

next question. you. moment our Thank One for

next comes Rich Goldman Nathan Our with question Sachs. from

open. is line Your

you. Thank follow MLR. the Good outlook to wanted morning. I on up for

course flat. consensus guess next is roughly specifically, to could guess you about I are of And your and made change inpatient any you. talk that investments year? around takes thinking think you utilization expecting of pressures maybe you’re the Thank the how in economic next And and for XXXX, I you expectations highlighted MLR the over for puts your normalization the you about year? plans given maybe utilization, procedures of to I year? a some of the just

Nathan. Sure,

that XXXX. think initial have better in respect terms last seen puts expectations, consider. the think and a I say not of cost as develop medical we we trend contemplate we utilization, in I our we’ll quarter, always about would we XXXX, of did there’s to on and this As variety that takes in commented

be risk certainly although offset does that should the adjustment so And that continue in given expect of utilization. into lower XXXX, would something some we terms

but would account for prepared quarter So that’s estimate on our as that on provide take into we’ll certainly certainly guidance next call. we give we’re MLR obviously, something year, fourth which guidance to today, not that

rates see year. of with service of frankly outpatient CMS those certain more the procedures, items we’ve expected of outpatient The some procedures. this of is remove pretty we think particularly with to high list, from inpatient-only pleased inpatient for that I also movement, sort to terms continued orthopedic been inpatient procedures. commented flat to In moving frankly, And to be we’ve

to shift. we should theory, moderation in some in that So start see continued

XXXX. the release some Just list. and consider there, to there last something in And changes additional have we sort within it are on the CMS reimbursement. baseline outpatient shifting on trends greater what, review inpatient-only normal if think to have night, I did But will for any, of counting otherwise, we’ll further are we utilization, utilization That’s also course say, implications would for detail trends.

As before, my to are expectations, I is season, few we to commentary mentioned but watch. that two we’ve we’ve we is commented there want years. lower items so levels, continue far flu. the the that in which in with One given are it is than anticipating early seen in last historical line in what

medical does trend be want and and to that mention higher we’ve to factors will And we if anticipating which a as that some constrained. I then well. watch. we will some our finally, we it’s fact, consider we XXXX. we’d to to we, to monitor cost mindful start levels. or And continue We is start to healthcare labor continue of additional utilization just see see something an uptick, as if been would that return go-forward of for other that that and estimates evaluate something trends capacity see we as in The continue to know have if is capacity That’s

year but this prepared guidance as on normally the MLR, do. on do call that our certainly, again, fourth we’ll today So we quarter not

question. next our for moment One you. Thank

comes with from Taylor Gary Cowen. question next Our

open. Your is line

were good key kind morning. of my questions guess answered. Hi I

XXXX, a seen. where would PDP a been million decline largest go just you’ve but enrollment is, minute down a I which for members I want to the down be third, think, coming almost declining So, coming to has since

One I lower it of who guess XX is, This basis So about clearly, is lot have generate comment made was Bruce I a business had think G&A. the doesn’t adjusted. a business two mix this improvement, I G&A with questions. earnings. points

going do be, a you’ve last a MA. down. dollars years, that lose year? less sort originally, would behind is second we the couple billion the about just Is has PDP G&A thesis of Clearly, bump? next it of important? here, been piece into then six which the And in up of you’re thesis think if So nice be of would set the the how really PDP, to of that improvement fact is to kind whole impacting coming kind that very nicely despite Is that it years, revenue five feeder grown

out a wanted on thinking your just I that. So, around to call get

Yes. to the as the an leverage. point then PDP in initial have conversions see on let to the ongoing see are and see take relationship latter that Gary, And operating do Maybe them we Medicare PDP. things Susan with I’ll take we Advantage we happening from that relationship. – basis. we expand around still and an opportunity One two

there’s sort question is in of same there at the they we’re a and First, of plans area sort of And how that few lower there in. price really group can are end, then plans that a are the we get at the that offering. they’re

aggressiveness as that’s result which think, there’s to a also people there as And we’re industry, to the So go of of lower in the in expand company. marketplace. between causing pricing relationship is member is of end result in and PDP PDP us that’s you the happening because really to it through we is is question, the not a conversion I value platform really bifurcation our a proposition business, a to, happened just – see a the direction. our opportunity just It’s there’s but very the going a within follow that to But MA as much that as to for as at your MA we in the answer look only our the a with our PDP do see a side. industry still that company, declining results. viable specific that MA conversion do to what overall and strategy just not But larger

clear question just the were then lines your was on leverage, adjusted of to that XX And commitment operating a we point all you business basis mix Yes. our recall basis Gary, business. across on if recognizing of

you mentioned, rest say this say loads, as accounted target out, with I amount said to that We so to the the then ratio. does ensure will pressured you degrees the ground a the to as than the costs decline as sure admin of that in across we indirect as costs reduction hard for of ultimate respect so will we make and run varying expense our remain that of for sure lower some result. isn't just rate also PDP work but level organization take that we and be on appropriate well Medicare with the enterprise get particular have variable the to of would operating committed admin in

Thank Instructions] you. from Our Stephens. comes Fidel [Operator with Scott next question

Your line is open.

Thanks. Question final your how the interested on out, of margins contracting to re-contracting of influencing that industry interested focus Home, XXXX? first some thoughts the How rates sort you home morning. came your business, just a been now about that the X.X%. Hi. plus home then and health Good amongst around that and home just think MA for different from perspective for type there's health models. of And lot the health just

of MA with compared to some just recontracting levels, the sort engaging considerations And it based components moving guess For in in in Thanks. home these of activity interested that. rates of types to side? to interest I health example, – side some of as from the value from Humana's case care for in terms

Sure. Scott. Hi

business questions rule that our a a bid. about an been final and larger X.X% Health to the benefit time of on perspective, Home know Home relative I gave question the enterprise first what your mitigated that been at of hit million some by reduction got proposed from and some would've a health sort plan. to and the that's commentary but expectations about So And the would've $XX impact we previously

no that but longer slightly the to rule X.X%, headwind we an not obviously at coming which thought would at time X.X%, of would've out it is but the say relatively positive it what issue final had would the be immaterial, contemplated positive to at and year. relative we been in earlier With what I bids, certainly

on mentioned of Day of covered risk space by XX% year. that Medicare we terms Investor to Home capitated as a on about team MA clinical doing, of In patients Andy advancement end by network have model, in about we've inclusive expect management, both question and that his the in think utilization how which we is your the at members our is work full full take value-based mentioned implementing management, of the the my to model commentary, Health,

on models of also and MA – Medicare offer for then would expect would as payer that would offer working value-based remainder In payers initially, reimbursement we to addition, other arrangements the Kindred population well. those they're our –

total care look also model. side such payment of there, utilization we're that we same driving improve payment, to forward of and there's are also that would so the Home sure value-based outcomes a fee-for-service can on in on Health then of focused the Kindred appropriate a contractually things but that And services, component advancement making very clinical of making where terms savings in that some cost structure help participate drive the under but can then going we

we Humana and to can to membership agnostic would progress our we start keep then our success, to well. as take intend demonstrate with expect once the we look you to apprised of continue payers So that to then do But there.

Thank you. Deutsche comes Our George Instructions] Bank. Hill question next with from [Operator

is open. line Your

I it targets? But guys optimism, kind of I And for and a for you Investor guys, that ratings if big on Day your the the morning in of Good be guess interested recent guidance. initial performance. provided I XXXX to taking does question questions. increase that first I'd you your of a sense you to had a performance kind ask suspect held the guys star going your had relates window and was ratings the the thanks star kind be like performance. before confidence into Yes. landscape Star's I'd picture what guess outperforming the as

our was have but did to not ability we into Day the to insight ratings, have during the meeting. industry understand the how We going did a perform Investor

We a ratings. it company, proud very confidence of impact proud continue us wouldn't, wouldn't means commitment. well more performance. deliver achieve remained going the very do, can and our we but those it that of overly to in better and the I'm gives to I in capabilities be better commitment health of confident we're I as outcomes it's say that I But financial as to what what

Research. Instructions] from [Operator Nephron Josh Our next you. Raskin Thank with comes question

open. line is Your

you'll by to you're speak expectations value-based where then you was of specifically thanks. growing providers? operators? faster M&A around to of supported are MA update taking clinic other morning. in or care if with, if maybe areas you're lives And care that Hi, us and primary the wondering could just in on in your own if risk the you end XXX,XXX potential your views I number that in compared growth Good around year could delegated XXXX, sort

why Why latter don't take I I the Susan take and former. can the then don't –

that able for size the ability side marketplace. into M&A the really best get care serve. our continue and being There's but in of find existing offer the acquisitions, use primary in-market broader best marketplace, we in to just value leverage roll clinics is also doing to administrative ability payers the we productivity and scale the On capital we have to the – continue value to we to the the only the and not to those

most think be So will I scenario. the that likely

transactions at looked that. the larger some reviewing of out we've and course that Of are been have there

think I for what really but we're us probably that's direction where time. we'll might acquisitions trading medium-to-smaller time on values change, marketplace, where can this to do convinced our we'll are – based this do the the and and continue do right the not at in-market. we That inside and at

in your the on some primary expect provide patients expected to morning can't Josh because what then we of fourth that guidance provide you And in business specific our But we commentary increase XXXX, call. second didn't due for those an this care additional patient will opened continuing in question; our quarter is in that's increase centers. what in XXXX. we we'll maturation you I that in as the panel relative will certainly of said say growth and the to we've that to centers terms then XXXX generally expect And deliver more

growth allow drive Florida One that. alluded as Humana Some also, made value we'll predicated nice some that panel of as in thing should to you growth there a advancement's on which the is proposition. in we've result value sort us particular; is to greater of improved then of the proposition, increased watch pretty closely

and we'll be more within centers closely, quarter year organization have expectations those commentary our owned watching in centers the provide that full a growth we'll of fourth wholly number and of something We certainly patient so in provider particular panel terms on but anticipating own improved our whole large for we're is there growth.

Thank you. [Operator Credit with comes Suisse. Instructions] A.J. Our question from Rice next

open. Your line is

Yes. Hi everybody.

lot strategically PBM the big you're it with arena thoughts as in or be respect a more in on service it's continues making with internal home just your membership; obviously Just health. MA talk wondering overall of what comments part focus doing a what any years well. know offering services you're doing the population the with on over your moves any PBM? thoughts but updated and primary been that I care The to to primary doing we that, about in Any has to your

things on opportunity are. being what large we're Yes. there also home of delivery digital really our of A our a continuing of penetration through just what convenient mail experience, as is few make grow warehouses order but to working delivery to shortening where hard customers we for see more and that both number one members able in have is our to A.J., having time to result to and the a closer continue of the the

working on utilizing mail So customers that. rate more few say are small hard continue We customers; opportunity do I to of our would improve private a the We've to the are under a label. order platform overall. we seen have that

to opportunity area our us. for opportunity to specialty specialty of with stronger we patient and think business, orientation, done not side in being continue lot oriented relationships a that the able to is is of of work provider but a We've of and an side and utilize the pharmaceutical provider an more the focus compliant I which agnostic on programs. to see continue a area and have ability grow an to the

our be So to top then improve I the label specialty private through our continuing And continue will of mail but for at will to look to do less say our we would delivery, area, white or our that grow secondarily, label is probably order opportunities focus. experience.

Our next Instructions] [Operator Michael comes Morgan you. Stanley. from Thank Ha question with

open. is line Your

you guys. thank Hey,

into deeper next a dive little to year’s growth. MA wanted Just

increasing we’ve analysis done your on than benefit which value based significantly the planned and benefit So is more double national average. that on and almost shows richness peers Humana

the that growth in XXXX But provide. able you MA your can are dilutive your history. impact event and your positioning been impact industry more growth for just specifically, slightly your of growth reach I members, your is and XXXX one that does to given in the to coupled some evolved ratings expectations, So strongest membership year and how with earnings roughly the exceed one, ability earnings. of target diluted leading think growth might membership star number could seemingly of looks year. stronger be into a multiyear which benefit you’re application October? I’m up peers, surprising Is a appreciate that it with being range. long-term end recent next the starts And since be to understand there developed Thank specific power your MA line I early XXXX from decline how performance growth expecting like the it’s to EPS, But potentially you’re in – you. know end you low gets curious

have was into to sort capacity are that validate our since And in where of of time making, investor, center partners had up been of well are some et they terms value was value the generally be where terms with we also so get independent how developed the reinvest to those to through are commented we given also speaking, Michael, us are us strong we XXXX. in notice some discussions – thing. positioned to sufficient expected question, terms We marketing, into analysts of and in first proposition. reducing rate data the would released, the calls the the was this it to the the Medicare able say, to really our then further within during brokers think positioning very opened that a they I relatively they’ve that do that validation. comments of in expect in value and positive that that That back data made number and with thinking all additional of heard call initiative changes we for our going view our see in I XXXX, as has recognize We’ve more certainly Hi, pleased product agreement a about we channel year our cetera. came that is same your before creation change addition, out

I still develops. in one it But his of reasons need that to our while commentary, signals terms to we all see we positive, so say, a cautious bit how the early. range, little continue recognize is that And early mentioned would of Bruce that’s recognizing in the remain are as we’ll

growth Those of In commented members but typically have obviously is from would incremental The in they your the relevant little wouldn’t compromise any just for our more be year? say, times of no, that accretion contribution is terms there number question earnings a think second terms I They members are we’ve year. of growth no would level EPS contribution, about of add a to that first wouldn’t I negative. in retention. new metric the contribution. positive perspective

think reasonable. in our to a that be watch could would in we product, retention degree the why it retention to And comes improvement could we strength lower, – everything headwind. And But so the again, the based see expecting for degree, estimates is we’re our tailwind be always quite then on XXXX. we’re we the a seeing we and it and of closely. outperformance that And that’s

Our question Gill with Instructions] [Operator Lisa you. Thank next comes from JPMorgan.

Your line is open.

for much my taking questions. very Thanks

just coming couple thoughts then you for just curious as QX even part really we’re Susan, quick first just of in XXXX? there in as PBM, you And And to I’m follow-up to kind just expectations a given Clearly, a specialty number line. big what in curious Southern maybe Just there of think But highlighted I’m your drug that Bruce market. think you that. when we flu your the Hemisphere, the trending One, think that an late ones. to what are XXXX. secondly, seeing and there’s was about the as the of said Is Humira the is business? to around specialty about how a XXXX, of early opportunity are we the business. biosimilars about

Lisa. Hey,

mentioned, so are that. the flu watch quarter, fourth as seeing It’s and So in we’ll season for flu terms about low first I early of very the to in continue your flu, question relatively certainly levels. we so

In but expectations, in last our higher fourth we guide two flu in not years, anticipate we’ve seen pre-COVID. did the we our that levels than as the as quarter would have high terms we of see in would seen

that expectations far, trends are our the early certainly so early, we’ll it’s And while consistent again, continue watch with to that.

into then that some won’t it date. in levels For experienced XXXX, year, we assume permanently going flu increase to assuming next incremental lower stay we’ve further at the

you with expectations, guys it keep But we so certainly we’ll So previously. seeing slightly in which are informed. line experienced far, than run we are higher what

and receive. see the rebates we a we contracting when talk to we that see don’t the from the our that in to about XXXX, compare continue both look at that. as Humira, significant coming we marketplace and existing And today, what’s benefit And as XXXX that we you

competition in some Now more don’t We’ll the at. becomes to price. term, But short driving benefits. we increases see maybe see the benefits it oriented just as and the down

question comes Our Instructions] from Steven Valiquette [Operator Barclays. next with Thank you.

Your is line open.

Thanks. everybody. Hello

up quick RADV following on situation. a here question Just the

more to help relative dynamic. already investment material be really get a the investors But inbounds have of the that you’ve risk a that just growth the situation factor? You take view on your to X, some of color mentioned Is on this to community around this potential expected the impact just that I following what was how you based of not potential the second, wide Thanks. for guys just on extension. investors guidance maybe if new that into just was you for the context. can’t company RADV Feb situation. you of heavily the coming wondering a be internally it rule really us could wanted framework just around provided? are is remind Just EPS the week. a pretty with on sense adjustment new on to might material just comment this for effect this And on XX-day seem focused more just the to Or preliminary

answer Steve, to Hi happy yes, that.

we’ve address So proactive failed engaged, our adjuster in rule been the overpayment concerns statutory substantive to previously, applying of RADV to by fee-for-service that CMS adequately calculations. in disclosed our final equivalents the that the the actuarial rule. as CMS. is to provided and communicating will proposed comments requirement these view address very actively We’ve hoping position have not a And

Medicare times to to programs feel are industry-leading we very in CMS, material internal for mechanisms our as risk a level our that identified disclosures about we compliance. data. including feel if has pointed Risk commented our adjustment you risk have correcting errors a respect perform, adjustment, data out, we which that In in on then contract the number sophisticated we to of adjustment addition, And as any processes good around we’ve to reported And what risk over have determine audits included this be internal results payments. we factor. and It’s This of do which we related included there item.

depending would language investors out. material final on rule review that encourage definitely to item as represent So comes it a how does the

comes Our from with Instructions] Cleveland you. next Rob Research. Thank [Operator Cottrell question

open. line Your is

Hi, for my question. morning. good Thanks taking

Just of couple follow-ups. a

you’re of beneficiary? cash last a AEP? through any applications those can utilization far much in next you more XX of year come stronger-than-expected it’s comment back-end that in offering days? rates of And implication? if increase applications the weighted? on more that can of Thank payment does so throughout us expected interested have applications Does secondly, How appreciate all Thanksgiving many typical on in you. option How allowance. commentary then to given I AEP. you the is healthy But cash-like First, that the utilization the some the benefits after remind And pacing MLR

sort weeks your of particularly first Hi definitely completion the terms in loaded, say of back two question in AEP. AEP the a of bit of you represents more of Rob, disproportionate say, course cycle, sales. over little the last see percentage a yes, would selling terms of I the

or fully predict be, will X% what AEP as you in that’s why can unfortunately, generally get so have a you impact. either pretty outcome even movement can the retention in to late imagine, since the the cycle And sales takes rates meaningful it

And That another plan loaded. longer be why that’s have the to it so us would us, enroll see I a more member to a CMS plan. which back to say even full and is then they it are function dis-enroll, to for communicated completion. Terms back to And communicate loaded. that of, if is has to to able takes were CMS

food cash-like card the our for that XXXX. the years, rate some expect that with benefit do benefits expected last of offered are terms of seen In we’ve high included expect and number to services we utilization, the the we new the and those of a very offering for benefits. OTC utilization that in that for be case We’ve and

an We rollover enhanced also included benefit.

utilization of I XXXX. generate rate our utilization anticipate, We’ve expect pressure it estimates. some We that all we provides any to to additional our given for high expect the pricing for in our contemplated also and XXXX that, guidance flexibility that as don’t members. more to of of in obviously, And terms create

Thank I’d closing back further time. you. over any call Broussard not showing any at turn for the this remarks. I’m questions to Bruce to like

the want reiterate, end I to to time comments, As what I’ll success really to to comments, I you our us to look and forward industry the just and as to the to every continue tell Thank company have updated continuing the from thank employees you my the can from dialogue want of our strong continuing also and continue stated a investors our excited make you we committed. progression. on provide to you thank and our as for we’re meeting on us. the say – day about at call continuing forward do. fundamentals your I today, support they of And to and for that look support our XX,XXX to progress

this presentation. conclude gentlemen, and Ladies today’s does

disconnect, may wonderful now a and day. You have