Humana (HUM) 24 Apr 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Humana First Quarter 2024 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to Lisa Stoner, Vice President of Investor Relations. Please go ahead.

morning. good and you, Thank I hope release available review press chance our had prepared remarks, a and are to both website. our everyone of on which

Humana's brief We Susan President Humana's Diamond, joined Officer. Bruce Operating a Financial from morning and begin by Chief Officer; with Humana's Followed session, will Bruce Jim Chief this and Broussard, by Q&A Chief Officer. Rechtin, Jim Executive and be remarks where will

Securities cautionary statement. call we earnings earnings made non-GAAP and financial share. earnings use the that filings forward-looking first to filings. We press also conference call to not these detailed historical along measures our our site. Investors or future statements in Any today's or Before for our regarding the measures in latest of risk press to the undertake release our Form or and are share reconciliations press read with included should release. our with explanation in our update GAAP. Management's obligation per note any financial participants in Actual discussed XX-K, materially. participants accepted Call need this of refer discussion, available to or includes and are the with uncertainties. our advised measures per principles EPS Exchange quarter are news in of discussion results. could filings results release, and other number our SEC financial diluted on our are and releases accounting GAAP common Relations non-GAAP Today's business communications of or to our advise Investor to forward-looking Certain factors XXXX during generally SEC today's that this accordance they references no begin with I other a risks relate call discussed matters as discussed and to statements, are and differ the address of risks Commission conference publicly forward-looking involve filings

this Investor is Bruce being for replay I'll humana.com, recorded on replay Broussard. the page purposes. to Relations Humana's call that, call website, That available over the today. With Finally, of turn will be later

Thank opportunity you our everyone, which release. highlight morning morning, earnings spend a the review you time prepared I messages like today but the we discussion. good that first had Lisa, and We'll we to along for joining to hope posted our remarks, us. our majority you, key and with Q&A, this to you our few of want away I'd from thank take on

strong our we to de of indicators reaffirm novo start and we're adjusted seen MA by our while mature individual EPS $XXX,XXX more expectations, growth to to outlook positive year-to-date centers. in in in medical Early largely primary to individual increasing our our cost are business and with year relative trend centers business growth X% MA solid a wholly patient and XXXX XX% had have growth care in membership pleased $XX,XXX owned we to line growth. in full our growth guidance First, approximately net $XX our

Florida, continued wins Virginia. our Medicaid expanding of organic contract In platform proud addition, we success with Texas are recent in incredibly our and

We are in is line pleased with expectations. that XXXX trending

we notice And industry in levels, outlook is that and significant notice, ahead, sufficient difference the for cost and trend near and planned for changes. medical which continue rate final current environment MA a regulatory by impacted to time industry seniors acknowledge address to the MA final and disruption negatively As ability current the the while rate their create our industry fundamentals Considering previous with not is the experiencing no adjusted between must the in we range the we of the will to compete believe growth assumption, change stability $XX we look our challenging dynamic TBC is environment navigate. XXXX. to imposed to XXXX, we inherent and the of target expect MA combined $X strong EPS the by and benefit to choice we the pricing term, believe remains longer effectively intact. Specific growth the in appropriate limitations market core thresholds, for funding be

margin long the profitable Importantly, an In actions, we creating deliver term. through believe appropriate growth value funding least a growth X%. adjust of the committed multiyear over regulatory current our top that normalizing continuing that industry we to will remain time, margin at line strong at to recovery the to and pricing for shareholders over context, and

be until membership later will cost MA growth. growth which pricing of industry finalization XXXX, our have continued outlook year, of including to we variables adjusted will the impact bid will trends XXXX decisions, not Our the pricing level this competitor the net impacted by and evolution several in which visibility actions EPS of clear our

XXXX, support continue addition, evaluate In of desire detail regarding growth. your for for outlook appreciate an finalization, and to growth therefore, on fall further plans expected to we implications. membership productivity XXXX further in post lines EPS adjusted have bid drive strategy update our our opportunities with business will, and once across bid update competitor we the We we and provide all our visibility more to into

we the care a and outlook there for growth core for the for that further Before believe and strong intact. turning strong I'd it remain support to and fundamentals remarks, is that to continue few bipartisan MA program MA Jim emphasize value-based

Jim. and us compelling center deliver capabilities In to addition, focus the effectively compete expanding unique will to on long and term. turn well that, With value MA over over allow shareholder Humana's platform, it

in not that the needed navigated that this continuing past. challenging recall and successfully to strong. navigate the echo is this for Humana industry navigating MA time, and to Bruce. remains to the had that your challenging The specifically to comments but it's a broadly adjusting we've is that the important time more Thanks, period industry first want periods and Humana we've seen difficult grow. times I outlook for has just as

well includes compelling value term, will anticipate fundamentals leader sound. the positioned we proposition grow, disruption remain a This be the demographics, traditional to a to relative to will industry the near We While believe in market. and are Medicare. favorable the sector in Humana continue

want to are bid and also reiterate this cycle. to I we committed margin pricing in recovery discipline that

are actively level pricing impact and plan to decisions evaluating the expected membership. We

drive forward you are opportunities on and everyone's updates question. it. to evaluating and as appreciate And the and focused caller. please year. With we data to one yourself share to in queue, we beyond. are first productivity, providing our those levers have will on EPS waiting we incremental Operator, We support additional the We on adjusted support line look to In ongoing XXXX growth XXXX, to limit introduce that open fairness the the we we throughout that, outlook questions. will for in your the performance ask

Our question from first [Operator Mizuho. the will of Hynes line with Ann Instructions] come

I trends healthcare suggest just would believes suggested were on cost approach want early just Can trends or the it versus better. line remarks, focus great. that comment, situation, indicators prepared took but change to you they company given to that in reserving in change Also trends. in you on be sounds a that your cost the you just elaborate see XQ? Did any like conservative

Susan. is This

are utilization understand, guys to we authorization On as real-time as dependent cost inpatient on from data. and evaluate first do their more claims. you the So good unit have inpatient, more we trends, cost quarter we visibility non

to disruption more might expected things have was quarter, this the in unexpected the as in But inpatient from of visibility way effect some was in an we limited [indiscernible] did given we related even and that change typically, did into quarter so changes believe experience uptick the went the so And utilization, January. our quarter. commentary, remember first fourth one healthcare you which in rule

levels the and then the we first fourth to management changes be As said we anticipated had changes response anticipated would into continue further to quarter, impacted quarter the utilization those programs. we higher always in the in that utilization by

had evaluated a expected, little that we see we some the improving results than some and commentary utilization, where at a inpatient week. it inpatient acknowledged quarter the but we ultimate as higher first program a commented had those utilization, February, for I of week changes weeks different slightly did ago January of the conference impact we couple bit and was So had provided to of were

is see expectations. much quarter, exiting February, week line in into we we and March of to in were some were that with that inpatient favorability said continue as posted would the even that utilization more last February in while positive results full slight We line say such first such that overall continue the and our that commentary, we saw for we

So that's develop maturation. costs as and see non-inpatient claim get into to trends positive. We'll visibility inpatient how the we unit more the have

third like more visibility the disruption and quarter is recent. indicator first we The think the impactful for We periods claims better through XXXX. incurred the more the of year feel have change how to other quarter quarter, fourth development prior matures. early incurred of healthcare was that In we

So on did the we for commentary, prior in third the quarter we we see our -- through we positive development, both felt said across relying and third favorable year quarter. comfortable particularly And saw what positive inpatient non-inpatient. as

as that view positive. we So

see quarter-end contemplate have claims the did mature, the that we'll further reserving, is fourth As further our we we purposes hope some limited that for recognized because not we of just But quarter. profits into visibility.

have those have quarter ahead visibility, in. to that Healthcare And we seen reported we're that all in go the full claim additional made analysis line disruption. we Change results, would the in we MLRs we didn't adjustment believe on for just reserves some we said, Because we you recognize net what for as book explicit our positivity with an did As we quarter, first did did expectations. and due ultimately based claims our missing the

is hope that, conservatism. will proves that some to our see So that have we

those intra-year what's in that's in you to on helpful develop But in guys received planes reflected updated the we'll keep development. first all how understanding that as see quarter. will any We of are process, otherwise, and continues hopefully,

Kevin question from the come will with next line America. of Bank of Fischbeck Our

kind commentary and margin. of that to -- X% like. to about a case why little than seem margin the lower that's kind margin for I before. to MA wanted towards what on I your enterprise you I true, talking be enterprise And over the years, to margin what the of which Is this are couple maybe X% talking X% plus were be guess towards lower to would orienting about of just end just that would you if a last maybe look bit the the hear trying peers of around love implied translates then think might guys? X% that focus the the many an you've of you been reorient margin, into how then

Kevin, yes.

enterprise to capabilities. well we center be yes, and plan health maximizing margin continue the oriented to across and So that

the impact intend the potential recurring anticipating and health And we what longer sitting was so But the specifically term. that it important we currently the is felt for margin a of for our XXXX only don't we're margin acknowledgment not reiterate but to our a on the X% margins breakeven, to speak magnitude of and MA, plan. to given the XXXX are to And closer sector minimally that individual broadly. reasonable should be for more believe view plus Humana, do long-term basis

cost not members, capabilities we ultimately degree to improved would to outcomes, better overall we also think incremental and be industry health focus literal CenterWell those to higher as which in further driving use and back members the we're we addition CenterWell in our on. just expect can from suppress business total if to reinvest we've industry suggest increase by incremental we over we trying opportunity increase health we to opportunity, would intentionally time, the for the the ultimately plant par say, believe lead services. as penetrating and be and then would support to there's said should competitive, Now that something with loyalty create that, further can a patient before, further and experiences margin plan X%. normalize continue our We to think would I to retention have that satisfaction, engagement, can on which the it than SARS we which it. minimally margin about care that, who and improved differentiated results, do of And satisfaction growth.

and health minimum to potential little we margin final we in bit So had long-term of light progression X% longer a notice just our the optimistic remain the back acknowledge initially as as about will plan expected. that ever take than rate you

Taylor next with from Our will come Gary question of line the Cowen. TD

with 'XX. from I true X [ recovery I to at changed I might for wasn't have ] think you're speak, first you Two Back quick been more negative just that so understand. asked X% about things margin to just call, on to quarter the an underwriting want the is a sure a constraint underwater, And funding PBC we felt make what's and perspective. assumption, but X, it

is PBC 'XX. relevant to And so now more

want just some bridge. then in in But notice, to I secondly, earnings of that March, paper, So on And our to view, bridge, had expected $XX the $X growth at had you most confirm see wipes suggested conference you 'XX. our to that final for that. still out

wanted affirm expectation So you see could to if I just that today?

you correct. achieve Gary, in final stable TVC are will the came thresholds larger benefit reductions Yes. approach some where and in, rate cases. With the it margins to notice and require

what bids then today county our process, any the light on do plane evaluating what we'll given look designs. post where, certainly, ultimately in further margin And final will ability Jim we details we be going notice optimize we sort to We so of the TBC for price changes a more approach of be bidding margin. support opportunities like. will bid, strategy as at can And plan for where rate how impactful be net that and to bit look the deliver. said to on that more within products we're as to that's But to we along, detail to impede limits little might a 'XX competitive improvement, membership sharing benefit the all avoid suggested, share also recognize exits specific the able reasonable

might have previous thinking. in For the 'XX earnings it than been

we can have we more the into have visibility need where thing we final to evaluate rate the I'll that's technically, like here to as we PBC we final competitor today, reactions before for just that. threshold do so is, really feel say The notice XXXX. not And sit

And what or so couple moves ultimately even deliver. to negatively, can positively of impact think a dollars we can the degree we that

are. margin we For progression given where

we said, confident in reasons, to need we interest and sure of provide just to. all update information you additional know we we going will But we more for as have as those we're more, time. to So become some as with you the access be that

the next of from Our come Lake question Wolfe with Justin line will Research.

me? hear you can Hello,

Yes.

which the about a I getting So MA when that then wanted for X% you'd confirm I them contrast? key X% was that on got compare known XXXX. the follow to point, know is the you originally on question the up come. The my of my I comparable? within got one, just Kevin's so At margin, I previously ballpark then doesn't question has still plus and Is is that assumed one can less we investment when a this XXXX, TDC and that or did recollection And own. margin think to makes then rates target, income, this I math my individual had $XX, are $XX. you right the little include -- to I And can X.X%

Advantage walk Medicare a appears know You've I here, be you maybe from to less can but I'm can get thinking some us of questions on key the right? decisions. get SG&A, I make through. the of But impacts got offset any And membership, P&L lot there's factor CenterWell. then visibility with swing lost the whether specifically efficiencies. to impact loss beyond margin, on kind that membership, downstream you from that deleveraging

in loss something. decline framework impact So X% margin membership, a ex every like to maybe about could you us through think give the P&L the be negative the might

Yes. Okay.

will to So my in them but hit X I best X, think was that questions all. I do

belief thinking support revenue guidance. we that X% have that from not correct, guess here then any plus you sort would your improvement said previous you in in period. think remain been are over and between are of are income. and was trend it to that claim of of progression competitive margin would referenced X% product we that can grow. in sort the efficiency, our you we I where include that the the correct. and not and modeling, X.X% and XX, any investment had largely first vendors would productivity So always and And come about continue the initial correct does And MLR of you comment gains to And terms

vary targets. peers investment margin report And so sometimes income. their that But that in would can for of exclude how us, terms

you is we of factor, where of In you given just membership as to going think be net terms XX, and are said, huge PBC said. terms in changes benefit as a we expected the growth,

the could be Depending to well. trend. trend how in The 'XX I'll before other membership that 'XX back develops, well, mention develops -- on as restate impactful 'XX coming thing frankly, just ultimately to how how is

to not emerge pricing favorability XXXX. are for in any We

does, And ultimate membership, you I and in we going so into year expected that the think say rate incrementally about the it to next light in positive are our final as think say, non degree When is more important. notice a I There would well. certainly changes sensitive versus the absolute would we of and And otherwise be would then plan addition the membership certain expect, the that, the that And geographies varying other net it mix than across to been. will might have membership result profiles factors. to be deal margin underneath.

anticipating certainly in we we light we of landscape. membership know Depending driving important planes certainly incrementally exit admin apprised And or very on we all thinking. we'll as say that of will on do how is of be the competitive others. of mindful ultimately as be so dependent cost whether right for larger the positioned we've I intend the counties membership declines now, keep will mix planes in planes level adjustments and more, would largely that. relative ultimately be are change, to on our appropriate our along, certain that to XXXX, will we you see said smaller because are other what And that based across the

the of set strategies we'll have The items, We we're address membership is easier that see have currently said, normal are are of losses, thinking. in but currently, to given And impacted would the be in pharmacy fairly so proactively I targets generally business change the finally, largest to would is and penetration CenterWell certainly we the that's within net then mindful the members we just some should That is as I pharmacy. any say, would that. also to sensitive than across speaking, the certainly We anticipating membership by that anticipating much Humana just who less nonvariable more mail and to for at planning order sensitive the rate. we sensitive be variable of very place to changes are a dual course. differences who to in use co-pays. on lower consumers terms mix, those be highly value shopping

they and continue So something be of we providers to and primary member clinic mostly, their across continue because would retain home with other them on we'll side even positioned such payer hopefully, contracts have other the care, if at to impact [indiscernible] looking to smaller impact pharmacy. in we care say I that through work The contracts. be on that's a primary would monitor. side, much particular, will see the But they're

Our next from with Baxter Stephen of line question the will Fargo. come Wells

by how elaborate cutting could thresholds. about are was Cards. TBC. benefits the hoping are the it and TBC not suggesting Just I dynamic the you're incremental is to you're that this outside there that bit that And our are you're Flex by of understanding TBC benefits little you a governed making lot up of headwind like commentary, outside comfortable not clarify thinking of sensitivity seems and TBC on like benefits a are rate that

Yes. Sure, Steven.

non-D-SNP say the we would of most TDC. side, selected the about as buses on are I vintage, talk So the

technically supplemental PBC, few a those items So purposes transportation, like are things even that. things, like are fitness versus those for accounting are of outside [indiscernible] B, things are that some things tools. dental, fall There Part but OTC, some that other relatively small things and

we post PVC. we a a as we drive of across will plan. of some be other believe some -- the Certainly, even considering current will be whether and in way. growth categories. will cases, be going the We it's impacts financial situated these evaluate In way in above changes in not. that can cases, And just that profitable both performance sustainable

the properly will ensure we For as those said, to can are the go products that that positioned. we not, are in that we maximum order to planes,

those right? apply On D-SNP the to it don't card got QVC because the going OTCs the covers and are the supplements, to benefits food, transportation. healthy technically, side, they of be You've D-SNPs options most

So no limitation technically, there is on side. that

more is plans We more changes in thinking the on all considering. will are do plans from the those for through Those will benefit And IRA performing, so things dual are And opportunity be how expect we those impact growth well. further the see what's markets. side. decent the that financially as

same but literal So consider, all those limitation. have TBC are things we'll don't technically the

question of will Capital from RBC next Hendrix Our come Markets. with Ben line the

I question. was a if little provide more you could on utilization a bit information wondering previous

You you measures short-stay of observation earlier stays. took higher versus some volume mix mentioned inpatient to address the

earlier avoidance I to year, in inpatient the those some bring and saw believe in line. You other training back and noted rates you've measures

impacted Just measures APT the to there XX% could source guidance. outperformance if for of what quarter. your the that degree performance balance some a MBR year be the through those versus curious of And your

Yes, Ben.

So correct. you are

of that the short did on were And day. rules we call, would things stays to an in first and built an said would see to we the incrementally. to changes flip we the observation that the see light quarter were we anticipating that quarter under rule and as now continue increase that X-midnight the saw in old merge as they start in So inpatient's fourth fourth quarter an in

with see over rates February, and we time that exited we rules, week, had we week Cowen became by those our Conference, improve and in said, at the But we a providers we said initially, we as short new -- short did fall the line trained what of more such were of the staff the bit we As expected. sort they were as accustomed did avoidance see expected. to the much what rates

In saw positive that I APT's [indiscernible] we rates on some January One the March, for we we thing line in quarter, slightly in want utilization did provide the evaluate is being a we actually higher said So for cost to then February, unit But is but we're coming come incremental to as to earlier, unfavorability basis. first on lower. the in theory, what line, should continue see largely such in year. tailwind we're a they those the fully those that. be as full paid said as could resulting relying That on claims and APTs. assess before,

remember So continue you we a did this you not implemented were I take did is that present guidance that did about relative our year. internal change MLR plan, did and that But the expectations. we the I'll worth for physician quarter. think think we'll changes in to could only XX%, into to our headwind something about the a We and first February second morning. not that this that do the acknowledge was quarter thing earlier that our year, million potentially over say tailwind evaluate payments results to be to $XXX if the The our

so can [indiscernible] we assume you And impact will physician of fee that the and change. assuming we're cover that that schedule the

And in certainly event, [indiscernible] to first both But didn't and see we further We'll be if certainly for the so about obviously, positive to the that with do admin cautiously we we the quarter, cost that perspective need seeing we're cost that. in commentary, it some delivered optimistic admin we'd the unit this the individual able be emerge, any some as reason, just paid in have we what the help trends. evaluate cover to confidence would that claims through side. But from said of favorability non-inpatient on savings. able

of question will line A.J. next from UBS. Our come with Rice the

me? Can you hear

Yes.

went there second, for sure. dark just a I XXX% wasn't Sorry, so

year-to-year beyond you fourth Just the even and to thought to a XXX the asked, been for press you on I'm you the commentary disruptive that could understand, things from that improvement quick, changed? you the have from few about ability that been and think, quarter of Cooling to to guess margin get the recovery that saying with margin points I real annual to timing some still two this had the I competitive next over And be time? that? kind the operating you but lower, Are the on be you just of that affects Can perspective years having might your about, about release, few might XX% that this comment is you over the was could said haven't Any of years. talked might or recovery outlook? basis starting absorb is in realize XXX how year point road next gradual get the market quarter year-end standpoint over that but that impact that that. thought [indiscernible] -- expenses something of you of rest some and in on trying favorable. seniors you kind the

certainly. Yes,

rate but significant the 'XX developed trend and of thinking I So on the the anticipated, the to do acknowledge that change then Part for recover would of previous what expectation, would going to And to with environment, thought light will think phase final in the margin keep our bids. have is 'XX suggested we say X% TBC we post margins. 'XX, be we we say higher-than-anticipated the reasonable trajectory we're longer-term in of multiyear D environment VXX, a largely have terms that mind rate X/X the process relative not the the timing to IRA Also in dealing cost this with recovery we be that on competitive only for currently coming medical have dependent the final combined our would to is certainly would guidance in notice. also the of and more that filing then in prior notice as we threshold environment. regulatory would the funding out, exact

D degree that -- limit of is one we changes, think still of the X/X So 'XX. phase-in, amount impact. we Part won't final to going arguably more the margin get we can some in have recovery VXX trend have we have the we while to the 'XX, won't When about

lessen, environment, will then 'XX longer for phased had should room a have more likely take margin action rate further then in going headwinds which us then we've pricing reasonable recovery. VXX those additional a fully purposes assuming that years suggested hoped previously. take once and should the than X give we So certainly, we post of it's to which is incremental bit opportunity, to the why And

XX from thing the would levels. degree remember, should as the the you other potentially rate slight provide remind could anticipated is that would develops current in you the rate rates which actually go-forward you trends CMS the what tailwind to than it ultimately I assumed environment. as a The just trend think about then their into make the and different moderate notice, that well CMS if

a OpEx, for to lot assess, quarter. provide that for us did continue and I you incremental just believe monitor then the for meaningful opportunity the all as do 'XX 'XX regions beyond relative margin and So but we for favorability to on mentioned. And recovery to see said,

we going largely that more is where then a we where continue would it's onetime there is than and year. assumed in for news, say, is just different A portion portion will And good budget. that favorability, believe, developed but we it's it As of the of repeat. not we to timing evaluate it, that, the nature some in had

differently, things so where of that be pacing of the hiring may come are example may And like it an often marketing in different.

the would not in, are only say in balance of year. variety that the more reverse timing they'll favorability that But all won't, but a expect recur, not of year. the there's will positive, things out in still actually fact, nature in so we for we And

it run rate the to OpEx, wouldn't quarter. For appropriate first be just fully

line the will question come with of Our Scott Stephens. from Fidel next

you hear me? Can

Scott.

Medicare was seeing prop on what traditional for about some you seniors of in also and as think Medicare would in about going can prop you on MA all may D. seen leading value about we utilization talked seems not that think IRA And headwinds about, seeing thinking is growth potentially just to MA fact with moderation? significant also the how value much feels rising between about facing in CMS impacts rate traditional if not headwinds I'm very I been terms Medicare curious just it marketplace. think ultimately, to maybe increases headwinds just to of Supplement. utilization Medicare? But because which to is that the MA fee-for-service, when contrast in the feared may trying in see headwinds, be Med Medicare interested higher there we'll about But as to as challenging everything just talk meaningful MA the also to introductional in in these traditional as the a of are the the well Part outlook. in we've Medicare seniors, reimbursement that clearly the And then moderate Obviously, you've like necessarily on so whether [indiscernible] that to be the relates are Or that likely potential it comparing it relative that out some enrollment XXXX. focused we're

break MA, have to believe And the her been a reasons. will too, to thank relative saying we you, give asked for Advantage to a value to sure I'm proposition side. to the value significant continue that number have financial is proposition. of for questions of the Relative Medicare really the all Susan

mean, today, economics the year. see I a itself, just $X,XXX about we First,

You bit feel the stepping shopping benefit it XXXX see make but we something side that increase. to Medicare a of as material for back fee-for-service to changes, little result will the that a not

receive dental thing like product. is the Medicare as that care second they like coordination, a wouldn't other things The fee-for-service all result get a that things of transportation, benefits they in

only And additional but being beneficiary. a of also Medicare benefits from view, result that so as the we just actuarial value receive inherent they point of Advantage dollar an the see a not

question? that will done of see we With X where today, that, is than amount significant was what want you to it value that proposition supplement we'll the to today, a years And we the Medicare a want confident do around ago. the you lesser X to be little is the continuing greater -- see do case. We've be growth that analysis there. than years was see we it So X, feel X value proposition Susan, or ago, the where take still but

disruptive our care enough, MedSup change was business. interestingly On MedSup, Yes. disruption the to health particularly

MedSup. disproportionate plans. a if MA just CMS see don't And for I'm redirection with not the function of sure, versus to know working impact but a so I that's providers not we did

of say say you be. underlying those for that the [indiscernible] And would bit impacts across would said. -- And the would Part IRA is plans. I we for Part visibility less it will typically the mix D different. current D, -- plans, our I is little of the each a so than see recognizing impact impact Otherwise, will XXXX degrees as varying just plan

MedSup so to plan. having also stand-alone are point, your purchase a who And Part D to in are those

proposition of the give And terms in different we certainly and as perspective as value a a they them offerings evaluate terms so themselves. see the bit MA the should we'll mitigant what to of of of MA, that in act impact plan a

years be continue decade, over out with penetration latter more Advantage. we and growth, question this with going Medicare Kaiser of there I a and very few Medicare years that to little demographic that looks. continue believe of Scott, using next of maybe estimate to mid-single-digit penetration combination to a along think an continue coming a the achievable that years just was MA in bit we put about see growth Advantage be that it XX% that will And believe how growth, relative a and beneficiaries your just that's And see other the the and forward. slowing of will but to will we be over the

the the also benefits. additional value is to the proposition going feel to be result as but actuary value, not of we So continue only strong a

that believe overall. penetration drive Medicare that's to Medicare beneficiaries more to of going Advantage continue We for

mid- to to And maintain so look single-digit growth. we continuing at

will of the Our Nephron Joshua come Raskin next question line from with Research.

follow-up X%, come think just back plus? to capital? return Humana some of industry? X% guess, And translates you invested on the for to getting Just that What of then membership is just even what how looking form sense the bucket of mean did are industry do relative And in how to but on that I in considered the exits. estimate like market a many members you that into in does this long-term for I'm margin just a curious that what how of being areas of are for I'm consideration? lose, you'll percentage many your a markets even not exits. specific of

margin, is of all only that that would the health the we down. of navigate industry and as historically But had that the level and of capital and think and is talked midterm environment, those I have set. margin across just risk the just the regulatory sort a long-term the asked been that about experienced. business in proposition X% just feels able maintain the to, the seen are consumers. performing you inherent the in have in differences but insurance some appropriate the at get reflect that recent look strong of recognizing reiterated there X%, sustainable to to to as even the will earlier, in I to continue funding performance Also, be is minimally the be we X% some and basis very has earlier, an the to we targets that trends numbers long-term reasonable the as national think, so to to had we've certainly certainly, have of more able most be business. that on Josh, and included peer We the that back then others, has provide and more -- a in that said peers believe Justin not that expectation to the range. like established, have and it we that value level to still require been believe have margin what's -- environment how as believe plans that everything And higher

capital, would more of is in say think for I In terms I and to would change similar return would business. the how invested again, because about recently we've the on historically performed, returns then terms to that, material no what we -- or say expected

market past. haven't happy certainly, more said planes, commented specifically we given information feel we're filing. on of just that comfortable either percentage on exits, bid have the number and as And on sensitivity do terms or you more to of post that [indiscernible] the in as of we In again, eligible sharing we --

larger-scale executed plane have exits. We

feel competitive in don't Just advance bids doing being of comfortable reasons. submitted that for the

of for And this growth. cost margin in just on I statutory the any capital, put organic of capital a as Josh, all look X% and since business, acquisition and capital to on company. kind the it's to creates on amount the of a the And incremental is at which overall accretive you the growth highly not of activity, mean about math, XX% kind we is us. return this capital significant return

the Sachs. next question from Nathan Rich with line Our will of come Goldman

dynamics level sustained talk timing of I that guess, to And March also have that a result year? changes give the of in over first XX% A.J.'s mainly I curious few any Susan, the guess, change is driving dynamic on seasonality consider? around then there's more care. trend earnings be that guided in the view us in could Easter then that for Or follow-ups. I if your should just here? think utilization, versus of of could expense some acuity we maybe the thought you're half showing some response patients up be EPS And could trend. that about you I calendar this related seeing the to for the there maybe Is of you are it in year. mentioned first question? what's any you've you the of other

quarter this year. say, in seasonality, Nathan, terms Yes, leap of the and I utilization first would is

and such the for say, workday [indiscernible] leap our year. over plan quarter. the consistent we prior year. because seasonality seasonality a And a was would and you would there's But have that anticipated February of first of quarter in in have guidance trend total, are not higher then had impact in relatively those things the really initial gave all would then other we there we all with So the

ER. we of the moving previous the reported terms would changes, again, In versus management observation, events effectively short-stay the utilization cost just would severity the aside I which anticipated of from say that where acuity, lower end we into inpatient category up always impact

we need time certainly how additional as seeing, develops. said, cost that, see are ultimately I some unit to the we So

disruption are time more that. just average Some fully of of limited do acuity an in more has submissions. caused with we what which the would of airway to indicators again, lower But that but disruption, on makes But sense, of those recent any the standpoint. evaluate of unit that, us terms some the because suggest the some I cost, say need, to because from concern I'd nothing from say, you again, aside change claims do have, visibility periods we

the the total proportionate insurance half terms proportion to of going see is say of lower EPS MA differences and years. year to In driver would you business in than contribution just, the be general, the first biggest of the every disproportionate seasonality, I the prior

say half just That of some And unusual of more quarter. we in year, year course, so about thing as because earnings in investment only those first some the is it, do commissions. all you're we're are year. just going that in are to certainly partly as lower think nothing the income this year. The that obviously in first first in positive half you to for Admin first other see have I is has disproportionately of impacting to obviously, the seasonality did much the proportionally seeing normal given the because but and MA year, things developing overall quarter they which the what we lower, expectation PPD, enrollment result the going the impact the would earnings EPS would see is and

things And so of out But I that, develop particular see are in seasonality would plan a typical. relative aside that, will Again, of to we could the from admin level nothing call in little bit those terms on to differently. for. expect based growth we

Mok of question next Andrew with Barclays. the Our come line will from

of could Was target that you on enrollment the the revised elaborate channel in $XX,XXX and during individual open up drivers MA membership. just of end? changes see that your resulted for growth that. you Or did higher in any growth the versus $XXX,XXX. expectations on You initial conservatism your Hoping distribution period membership your unexpected

that's combination say we is would And main the how think just OEP. I of performed difference a I in things. few a

from to it's the that we've that we've have had some of and in us, in for having actual ability the and performance been we our second the to some area us challenges think servicing growth continue competitors their that markets competitive. that. grow is a And seen nonduals I benefit -- thing to recovery the are has in in both

a stability OEP that our benefit of service what stands thing we that third we've our times differences our side, the of And marketplace and think point that seen we competitive and out even say is the of from brand I would less from in The view that in the brand, are view, we overcomes of point in the lot that. quality marketplace. have I our in saw the both

largely than Yes. OEP Retention line. the had from largely the volume higher nondecent And to switchers We other agents in in both was was MA. in he attributable saw to what sales. add we increase and just total said, to expected, in

the And so year-end of rest favorability increase. from the ends. some that the the agent think progression the said, switcher the about so The is redeterminations the rely issue year. status we that rest for throughout drove to obviously we we've OEP a by There's continue little on less of eligible And once as them that will current of then as less the of the impacted into also where verification. is the of healthcare changed bit because visibility dual year,

fully we'll see not why of how But to the you through end So full that's continue the rating OEP run can your develops. that see estimate.

with Bernstein. will come the of from Wilkes Lance question next Our line

contemplating talk you opportunities more structural opportunities any impressions that transition to as creation the CEO PBM or what little made your leadership or any in larger bit scale, the Jim, Are a like are? the and both have value with there of maybe are Could operational like things outsourcing that? changes of And you again, dynamics in or market sorts transition? CEO guys structure, the

Jim. The any team. -- is changes there not to are the no, This

real quick. hit So me one that let

We're drive process to do stronger side evaluating a the on we in believe the We Second, to time. expectation that to will need are the are of about by the opportunities. intend over those year, there is well cost have get as after time. operating we We're continued say of the as opportunities. still over be the evaluating would there how management certainly we opportunities them to medical continuing how end and more opportunities? go And exactly in still both efficiency. that where That's

question line will Gill Our of come JPMorgan. from next with the Lisa

in are for basis? strategy, Susan, the when over IRA MA get around the XXXX? I XXXX. about for And stand-alone just Will update? for 'XX? want your thinking for it the conversion QX to separate in we want you you that And and comments about on Can talk how about to seen then will back what to press update a PDP become I just unprofitable stand-alone go are to to you've secondly, bid then talk a waiting the you Or that understand, release? PDP be

Yes.

to So a question IRA see disproportionate we opportunity in terms around the PDP stand-alone you on your D, say would impacts to of to and Humana I conversions, make capture Humana MA. our PDP members thinking first Part movement continue that from

do we share market right, just MA For members have of a in that than tend higher individual they to MA those that get and to overall of in choose. individuals to offering choose making space. MA, the that any terms visibility, we We are convert decision those

membership just continues lower sort that be the as somewhat of of very So because past. that is seeing year, advantage to growth hold we've to volume we're seen continues overall absolute The but this that lower in positive. the

stand-alone specialty As profitability of to level that strategy of of the for and oriented very we you given utilization in the D utilizers of I of say just particular. will we're magnitude the sensitivity underlying terms our 'XX, the risk on sort changes would think about Part mitigation, based in the and membership have

changes our -- our approach frankly, any in probably to performs for XXXX. of in how a light how goal inherent market limitation we in the be the are the positioned our plans, today today, ultimately cautious of IRA plans those which X and minimize reassess will and changes, the risk and to Given more clean only have of health industry then how having the sort take offerings to business see responds

As plans, others it -- Part we will may depending suggested, is D we for some sure have larger mix. on their some see so less while premium increases on

could that's and said, evaluate. as drive that something for some to opportunity, we'll And MA, continue we so

just as that's final if I the So the was I'd And we're remember navigate to level and we thinking industry say Did how for XXXX, there through changes given can't lot cover end it. one that didn't the a I about question everything? learn of address. at that

strategy? bid a around you'll update release it that that Or Will be QX? is press on separate something your

Yes. quarter on quarter be will my between. the don't any that scheduled call. at I do is we if call. it would But we're in guess is I second likely guess second know My conferences would imagine the no.

a compete our and allow and continued long year. navigating industry a great difficult environment, capabilities Well, of term. We the thank reiterate time through fundamentals acknowledge near-term would intact effectively and continue is you differentiated strong for today. on value-based over start MA and care day. performance uncertainty, outlook XXXX. shareholder Have the deliver and that the compelling the throughout effectively of returns entire providing to appreciate to solid our we remain In while manage us scale strength and outlook support the we and And had MA to believe forward will closing, I updates and your platform interest Humana a look that and to the growth your

for concludes This Thank conference call. today's participating. you

now may You disconnect. Goodbye.