Humana increased operating profit and improved adjusted margin

UnitedHealthcare and Humana are discontinuing Medicare Advantage plans covering nearly 1 million members, withdrawing from less profitable markets. UnitedHealthcare is ending plans for 390,000 members, while Humana is cutting 600,000. Both companies are focusing on more profitable products and regions, according to reports. Rising medical costs are driving these changes, with insurers reducing flexible PPO plans and increasing out-of-pocket expenses for members.

UnitedHealthcare and Humana are discontinuing Medicare Advantage plans affecting nearly 1 million Americans in 2027, citing higher medical expenses and profitability pressures. UnitedHealthcare will impact 390,000 members, focusing on PPO plans, while Humana will affect 600,000 members, targeting lower-performing plans. Both companies are also scaling back certain benefits for 2027, with UnitedHealthcare reducing dental benefits and Humana adjusting premium givebacks.

Humana (HUM) agreed to a $2.8 bn deal with BlackRock, restructuring ownership of 150 CenterWell clinics. BlackRock acquires WCAS's majority stake, with Humana retaining minority ownership. The deal reduces Humana's balance sheet obligations. Humana's Medicare Advantage star ratings improved, potentially increasing 2028 bonus payments to $4.8 bn, per Evercore ISI. S&P affirmed Humana's BBB rating but maintained a negative outlook.

Humana announced that BlackRock's HPS Investment Partners will acquire Welsh Carson's stake in about 150 CenterWell clinics, valued at $2.8B. The deal, expected to close in Q4 2026, will make BlackRock the majority owner, with CenterWell retaining a minority stake and operational control. Humana stated patient care will remain unchanged, and the deal is not expected to materially affect its 2026 earnings guidance.

Humana and BlackRock's HPS Investment Partners will form a joint venture to operate and expand CenterWell clinics, with BlackRock acquiring WCAS's stake for $2.8B. The deal aims to provide growth capital and lower costs for Humana, with no disruption to patient care. Humana may repurchase clinics starting 2028. The transaction is expected to close in Q4 2026, with no impact on 2026 earnings guidance.

Humana (NYSE: HUM) announced a joint venture with BlackRock to manage 150 CenterWell clinics, while Village Medical divested 27 clinics to Harbor Health. These moves suggest a shift in the senior-focused primary care industry, with changes in ownership and financing strategies. Humana's deal includes a $2.8 billion equity acquisition and potential clinic purchases by CenterWell starting in 2028.