Humana 4Q profit down 28 percent - Business First of Louisville:

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percent, primarily due to higher prescription drug plan claim expenses and a decline in itsinvestmen portfolio. Louisville-based Humana (NYSE: HUM) said fourth-quartert net income declined to $174.1 or $1.03 per share, compared with $243.2 or $1.43 per share, a year earlier. Revenue durinbg the same period increasedto $7.3 billion from $6.1 billion. Thomsobn Financial analysts had predicted net incomeof $1.07 per sharer on revenue of $7.4 billion. For the full year, Humanq had net income of $647.2 million, or $3.83 per compared with $833.7 million, or $4.91 million a year earlier. Revenue during the same periosd increasedto $28.1 billion from $24.4 billion.
Humanaa officials predicted that earningsfor full-year 2009 will be in the range of $5.90 to $6.10. “We continued to make substantiapl operational progress in 2008 that enablews us to forecast significant growtjh in2009 EPS,” Humana president and CEO Michael B. McCallistee said in a news release. “And as we look to continuefd growthbeyond 2009, our preparations for the future Medicarse Advantage operating model are showing meaningful progresds toward our stated objectives with nearly 60 percent of our January objectived with nearly 60 percent of our January Medicare Advantage membership enrolled in network-based products.
” Enrollment in Humana’zs commercial segment increased by 169,200 to 3,620,800, between Dec. 31, 2007, and Dec. 31, Humana said in the During thesame period, enrollment in Humana’w Medicare Advantage membership increaser by 292,900 members, to 1,435,900. Membershilp in the company’s Medicare prescriptiom drug plan declinedto 3,066,600 as of Dec. 31, 2008, from 3,442,0000 as of Dec. 31, 2007.
But, the companu lost about 924,000 members in January, primarily due to a realignmen in premium and benefit structures in anticipation of higheerpharmacy claims, Humana said in the Enrollment in Humana’s military servicesx program increased to 2,964,700 at the end of 2008, comparede with 2,865,900 at the end of 2007.