Humana (HUM) Boosts Healthcare Choices for MA Members in Denver
Humana Inc. HUM recently inked a deal with the leading U.S. health and hospital system, Denver Health, which has already become effective from the very beginning of this month. The deal promises to bring enhanced care access and convenience for HUM’s Medicare Advantage customer base across the Denver area.
Denver Health now forms a part of Humana’s local provider network. Subsequently, the health insurer’s members with Medicare Advantage HMO, PPO and PFFS plans can enjoy access to the high-quality healthcare services at the main campus of Denver Health situated in Bannock Street. In addition to this, the members can also avail care from a network of 1500 plus doctors who are well-versed in 131 medical specialties throughout the Denver area.
The latest move thereby aims to boost medical, dental and mental healthcare choices for the working individuals as well as the residents of downtown Denver. The urgent care locations of Denver Health also remain active to offer healthcare services beyond the normal business hours.
Humana often resorts to such contracts with leading healthcare providers in order to bolster its local provider networks and better serve its members spread across different U.S. communities. An expanding provider network may attract more individuals to opt for HUM’s Medicare Advantage plans and subsequently, boost its customer base. Management anticipates individual Medicare Advantage membership to witness minimum growth of around 825,000 in 2023. A growing customer base inevitably brings higher premiums, which are the most significant contributor to a health insurer’s top line.
The recent initiative may also enable Humana to solidify its U.S. foothold and Denver Health, which serves one-third of Denver's population, seems to be the apt partner for complementing its endeavor. This March, HUM collaborated with the largest independent primary care network in the United States – Aledade – to ensure continued value-based primary care to the health insurer’s Medicare Advantage members from Aledade-backed physicians.
Humana boasts an expansive Medicare Advantage business and therefore, it stays on its toes to integrate lucrative features within its plans. As of Jun 30, 2023, HUM served around 8.7 million Medicare customers across 50 states, Washington, D.C., and Puerto Rico, out of which Medicare Advantage members of roughly 5.8 million were a significant portion. Its 2024 Medicare Advantage plans promise to offer dental, vision and hearing benefits as well as extend prescription drug coverage for several common generic prescriptions. HUM targets to reach 39 new U.S. counties with such cost-effective plans next year.
Shares of Humana have gained 13.7% in the past three months compared with the industry’s 9.2% growth. HUM currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
Some better-ranked stocks in the Medical space are Catalyst Pharmaceuticals, Inc. CPRX, Acadia Healthcare Company, Inc. ACHC and Progyny, Inc. PGNY. While Catalyst Pharmaceuticals sports a Zacks Rank #1 (Strong Buy), Acadia Healthcare and Progyny carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Catalyst Pharmaceuticals’ earnings surpassed estimates in three of the last four quarters and missed the mark once, the average surprise being 7.17%. The Zacks Consensus Estimate for CPRX’s 2023 earnings is pegged at $1.55 per share, which has more than doubled from the prior-year reported figure. The consensus estimate for revenues suggests a surge of 81.5% from the year-earlier actual. The consensus mark for CPRX’s 2023 earnings has moved 37.2% north in the past 60 days.
The bottom line of Acadia Healthcare outpaced estimates in two of the trailing four quarters, matched the mark once and missed the same in the remaining one occasion, the average surprise being 2.77%. The Zacks Consensus Estimate for ACHC’s 2023 earnings indicates a rise of 13% from the year-earlier actual. The consensus estimate for revenues suggests a growth of 10.5% from the year-earlier actual. The consensus mark for ACHC’s 2023 earnings has moved 0.3% north in the past 30 days.
Progyny’s earnings surpassed estimates in each of the last four quarters, the average beat being 96.25%. The Zacks Consensus Estimate for PGNY’s 2023 earnings indicates a surge of 80%, while the same for revenues suggests an improvement of 36.7% from the respective year-earlier actuals. The consensus mark for PGNY’s 2023 earnings has moved 5.9% north in the past 30 days.
The Catalyst Pharmaceuticals stock has gained 2.2% in the past three months. However, shares of Acadia Healthcare and Progyny have lost 12.5% and 10.9%, respectively, in the same time frame.
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