Humana Inc. Revenue & Financials

Revenue has grown from $89.1 billion in 2021 to $111.2 billion in 2024, a trajectory driven almost entirely by Medicare Advantage enrollment growth and premium rate increases from the Centers for Medicare and Medicaid Services. Net income of $1.5 billion on $111.2 billion in revenue implies a 1.35% net margin — thin by any standard, but consistent with the capital-intensive, high-revenue nature of managed care economics. The medical loss ratio expanding to 89-90% in 2024 is the central financial story. Every percentage point of MLR expansion reduces the pretax profit by over $1 billion given the revenue base. Post-pandemic use normalization — patients who deferred care during COVID returning to the system in numbers that actuarial models hadn't fully priced — drove the expansion. The pharmaceutical cost inflation layer compounded the effect. RADV audit scrutiny in 2023 introduced regulatory risk around risk adjustment data validation. Medicare Advantage plans receive higher risk-adjusted payments for members with documented complex conditions. If the risk adjustment data validation process identifies overcoding — attributing risk scores to diagnoses that don't meet the documentation standards — Humana could face payment recoupment demands that affect multiple prior years simultaneously. Market capitalization of $45 billion against $111.2 billion in revenue implies a price-to-sales ratio well below 0.5x — the market pricing in the MLR pressure, RADV risk, and the political uncertainty around Medicare Advantage funding levels. The valuation gap between the revenue scale and the market cap is the most striking number in Humana's financial profile.