NU Online News Service, Oct. 29, 1:46 p.m. – Humana Inc., Louisville, Ky., is reporting $30 million in net income for the third quarter on $2.6 billion in revenue, up from $23 million in net income on $2.6 billion in revenue for the third quarter of 2000.
Enrollment in fully insured commercial plans fell 12%, to 2.4 million, but the average commercial plan member generated $528 in revenue, up 8% from an average of $490 for the third quarter of 2000.
Humana has another unit the manages health plans for TRICARE, a plan that serves military personnel, veterans and dependents. TRICARE enrollment increased to 2.7 million, from 1.1 million, as a result of an acquisition.
Humana and many of its competitors have been reducing their level of participation in the Medicare health maintenance organization program, arguing that government reimbursement levels are too low.
Medicare HMO enrollment at Humana has fallen 21% in the past year, to 406,100.
But the premium yield on the remaining Medicare HMO members has increased to 10.2%, from 5.5%, Humana says.