Humana Cuts 2024 Forecast, Pulls 2025 View; Insurers Tumble

Humana Inc. plunged after it withdrew its 2025 earnings target and forecast 2024 profit far lower than Wall Street estimates as runaway medical expenses and tighter government payment policies threaten insurers.

The Medicare-focused health insurer now sees adjusted earnings of approximately $16 a share in 2024, according to a statement Thursday, just over half as much as analysts expected. Humana also pulled its 2025 target of $37 a share in adjusted earnings and now plans for growth of $6 to $10 a share for that year.

The forecast, far worse than investors anticipated, dragged down the health insurance sector. Humana ...