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Humana's (HUM) Medicaid Business Teams Up With CPESN USA in Ohio
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Humana Inc.’s (HUM - Free Report) Medicaid business, Humana Healthy Horizons, recently announced that it has joined hands with CPESN USA in Ohio to ensure that its members have increased access to pharmacists across the state. This partnership aims to overcome barriers like limited access to healthcare services in rural and underserved communities.
CPESN USA is a clinically integrated organization of pharmacy networks. By enhancing its pharmacist network through CPESN Ohio pharmacies, Humana can provide more personalized and accessible care to its members. This is expected to play a major role in improving health outcomes in the region. Humana Healthy Horizons – Ohio already caters to more than 115,000 members. Partnerships like this will likely create more demand for HUM’s services.
Humana Healthy Horizons integrating a network of more than 300 pharmacist providers within local community pharmacies is expected to bolster Ohio's healthcare framework. As community pharmacists have deeper knowledge about their localities, it will likely enable them to offer more individualized care. The members of Humana Healthy Horizons in the state can start utilizing the new pharmacist network right away.
Moves like this are expected to strengthen its Medicaid business’ capabilities and boost its geographical footprint, which is a strong contributor to its top-line growth. Notably, its Oklahoma and Indiana Medicaid contracts were expected to become effective in April and July, respectively.
However, rising medical costs remain a concern for the company, which forced it to let go of the ambitious 2025 EPS target it provided earlier. Furthermore, the U.S. regulator's decision to stick to the proposed 3.7% hike in private Medicare Advantage rates on average for 2025 may impact HUM’s profitability in the future.
Price Performance
Humana’s shares have declined 40.4% in the past year against the 3.5% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Humana currently has a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for Universal Health Services’ 2024 bottom line suggests 27% year-over-year growth. UHS has witnessed two upward estimate revisions over the past 30 days against no movement in the opposite direction. It beat earnings estimates in all the last four quarters, with an average surprise of 5.9%.
The Zacks Consensus Estimate for Cigna’s full-year 2024 earnings indicates a 13% year-over-year increase. CI beat earnings estimates in each of the past four quarters, with an average surprise of 2.9%. The consensus mark for revenues suggests 20.4% growth from the year-ago period.
The Zacks Consensus Estimate for Health Catalyst’s 2024 full-year earnings implies a 120% increase from the year-ago reported figure. HCAT beat earnings estimates in each of the last four quarters, with an average surprise of 247.9%. The consensus mark for its current-year revenues is pegged at $308.2 million, which indicates a 4.2% year-over-year increase.
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Humana's (HUM) Medicaid Business Teams Up With CPESN USA in Ohio
Humana Inc.’s (HUM - Free Report) Medicaid business, Humana Healthy Horizons, recently announced that it has joined hands with CPESN USA in Ohio to ensure that its members have increased access to pharmacists across the state. This partnership aims to overcome barriers like limited access to healthcare services in rural and underserved communities.
CPESN USA is a clinically integrated organization of pharmacy networks. By enhancing its pharmacist network through CPESN Ohio pharmacies, Humana can provide more personalized and accessible care to its members. This is expected to play a major role in improving health outcomes in the region. Humana Healthy Horizons – Ohio already caters to more than 115,000 members. Partnerships like this will likely create more demand for HUM’s services.
Humana Healthy Horizons integrating a network of more than 300 pharmacist providers within local community pharmacies is expected to bolster Ohio's healthcare framework. As community pharmacists have deeper knowledge about their localities, it will likely enable them to offer more individualized care. The members of Humana Healthy Horizons in the state can start utilizing the new pharmacist network right away.
Moves like this are expected to strengthen its Medicaid business’ capabilities and boost its geographical footprint, which is a strong contributor to its top-line growth. Notably, its Oklahoma and Indiana Medicaid contracts were expected to become effective in April and July, respectively.
However, rising medical costs remain a concern for the company, which forced it to let go of the ambitious 2025 EPS target it provided earlier. Furthermore, the U.S. regulator's decision to stick to the proposed 3.7% hike in private Medicare Advantage rates on average for 2025 may impact HUM’s profitability in the future.
Price Performance
Humana’s shares have declined 40.4% in the past year against the 3.5% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Humana currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked and promising stocks in the Medical sector are Universal Health Services, Inc. (UHS - Free Report) , The Cigna Group (CI - Free Report) and Health Catalyst, Inc. (HCAT - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Universal Health Services’ 2024 bottom line suggests 27% year-over-year growth. UHS has witnessed two upward estimate revisions over the past 30 days against no movement in the opposite direction. It beat earnings estimates in all the last four quarters, with an average surprise of 5.9%.
The Zacks Consensus Estimate for Cigna’s full-year 2024 earnings indicates a 13% year-over-year increase. CI beat earnings estimates in each of the past four quarters, with an average surprise of 2.9%. The consensus mark for revenues suggests 20.4% growth from the year-ago period.
The Zacks Consensus Estimate for Health Catalyst’s 2024 full-year earnings implies a 120% increase from the year-ago reported figure. HCAT beat earnings estimates in each of the last four quarters, with an average surprise of 247.9%. The consensus mark for its current-year revenues is pegged at $308.2 million, which indicates a 4.2% year-over-year increase.