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Humana Expands Medicaid Footprint With Virginia's Cardinal Care Win

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Key Takeaways

  • Humana is now one of five insurers chosen for Virginia's Medicaid program, Cardinal Care.
  • The new Humana Healthy Horizons plan offers Medicaid members comprehensive, whole-person care.
  • This expansion provides HUM with a steady revenue stream and broader population reach beyond Medicare.

Virginia’s Medicaid program, Cardinal Care, has chosen Humana Inc. (HUM - Free Report) as one of five insurers to administer services through its new Humana Healthy Horizons plan. All Virginia Cardinal Care members are now eligible to choose this as a new Medicaid plan option.

Cardinal Care offers health coverage to low-income individuals, children, seniors, people with disabilities and pregnant women. Rather than paying healthcare providers directly, the program partners with private insurance companies known as Managed Care Organizations, which manage medical services, prescriptions and overall care coordination for members.

Humana Healthy Horizons is poised to deliver comprehensive care to individuals and families across the state, focusing not only on physical and mental health but also on the social factors that often hinder better overall well-being. With existing service to Medicare Advantage and TRICARE members in the state, the expansion into Cardinal Care allows Humana to extend its human-centred approach to Medicaid recipients, aiming to offer innovative solutions, address complex needs, and improve both health outcomes and quality of life.

This move opens a valuable opportunity for Humana’s growth. By managing care for enrolled members, the company can increase memberships and receive regular payments from the state, offering a steady and scalable source of revenue. Through Humana Healthy Horizons, the company already serves 1.5 million Medicaid members in the country. Expanding into Virginia’s Medicaid broadens Humana’s reach beyond Medicare and TRICARE.

HUM’s YTD Price Performance

In the year-to-date period, Humana’s shares have lost 3.9% compared with a 24% decline across the broader industry. Due to rising healthcare costs, increased service utilization, and operational inefficiencies, Humana continues to face pressure on its profitability and long-term margins.

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Humana’s Zacks Rank & Key Picks

HUM currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the medical space areCentene Corporation (CNC - Free Report) ,Cigna Group (CI - Free Report) and Molina Healthcare Inc. (MOH - 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 Centene’s current-year earnings is pegged at $7.28 per share, implying 1.5% year-over-year growth. CNC’s earnings surpassed estimates in each of the last three of four quarters, the average surprise being 25.5%. The consensus estimate for Centene’s current-year revenues is pegged at $179.5 billion, implying 10.1% year-over-year growth.

The Zacks Consensus Estimate for Cigna’s current-year earnings is pegged at $29.68 per share, implying 8.6% year-over-year growth. Cigna’s earnings surpassed estimates in three of the last four quarters. It has witnessed eight upward revisions in the last 60 days against no movement in the opposite direction. The consensus estimate for Cigna’s current-year revenues is pegged at $258.2 billion, implying 4.5% year-over-year growth.

The Zacks Consensus Estimate for Molina’s current-year earnings is pegged at $28.44 per share, implying 7.9% year-over-year growth. MOH’s earnings surpassed estimates in three of the last four quarters. The estimate remained stable in the last 60 days. The consensus estimate for Molina’s current-year revenues is pegged at $44.1 billion, implying 8.4% year-over-year growth.


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