Humana Inc. (NYSE:HUM) saw a big increase in individual commercial health insurance sales in the first quarter.
The number of people covered by Humana individual policies increased to 715,600 at the end of the quarter, up from 460,800 a year earlier.
The company received 270,000 Patient Protection and Affordable Care Act (PPACA) exchange applications for “qualified health plan” (QHP) coverage that was supposed to start in the first quarter and 430,000 for QHP coverage starting between April 1 and June 30.
More than 75 percent of the consumers who sign up for exchange QHP coverage are paying for the coverage, executives said during a conference call with securities analysts.
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Humana held the call to go over first-quarter earnings.
The company as a whole is reporting $368 million in net income for the latest quarter on $12 billion in revenue, compared with $473 million in net income on $10 billion in revenue for the first quarter of 2013.
Originally, the company was expecting to deduct about $75 million to $140 million from operating results this year to account for investments in exchange QHP sales.