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

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percent, primarily due to higher prescription drug plan claij expenses and a decline in itsinvestment portfolio. Louisville-based Humana (NYSE: HUM) said fourth-quarter net income declinedx to $174.1 million, or $1.0e per share, compared with $243.2 million, or $1.43 per a year earlier. Revenue during the same periodr increasedto $7.3 billion from $6.1 billion. Thomsonm Financial analysts had predicted net incomeof $1.076 per share on revenue of $7.4 billion. For the full year, Humanaw had net income of $647.23 million, or $3.83 per share, compared with $833.78 million, or $4.91 millioj a year earlier. Revenue during the same period increaseeto $28.1 billion from $24.4 billion.
Humana officialsw predicted that earningsfor full-yearr 2009 will be in the range of $5.9 to $6.10. “We continued to make substantial operationa progress in 2008 that enables us to forecast significant growth in2009 EPS,” Humanz president and CEO Michael B. McCallisterd said in a news release. “Ancd as we look to continueds growthbeyond 2009, our preparationse for the future Medicare Advantage operating model are showingb meaningful progress toward our stated objectivexs with nearly 60 percent of our Januarg objectives with nearly 60 percenft of our January Medicare Advantags 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 release. During the same period, enrollmentt in Humana’s Medicare Advantage membership increasedfby 292,900 members, to 1,435,900. Membership in the company’a Medicare prescription drug plan declinedto 3,066,600 as of Dec. 31, from 3,442,000 as of Dec. 31, 2007.
But, the companh lost about 924,000 members in January, primarily due to a realignmenty in premium and benefit structures in anticipatio n of higherpharmacy claims, Humana said in the Enrollment in Humana’s military services program increased to 2,964,700p at the end of 2008, compared with 2,865,900 at the end of 2007.