(Reuters) -Humana Inc forecast 2024 profit sharply below Wall Street estimates on Thursday as it expects higher costs within its Medicare Advantage plans for older adults to persist into 2024, sending the company’s shares plunging 15% premarket.
The company forecast an adjusted profit of about $16 per share for 2024, much lower than analysts’ expectations of $29.10 per share, according to LSEG data.
Humana, which primarily provides government-backed insurance including Medicare Advantage, saw an increase in its medical benefit ratio to 90.7% in the fourth quarter, higher than analysts’ estimates of 89.7%.
(Reporting by Sriparna Roy and Leroy Leo in Bengaluru; Editing by Maju Samuel)
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