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Humana health insurance (NYSE:HUM) cited uncertainty on some of its forecasts Tuesday due to the ongoing outage at UnitedHealth’s (UNH) Change health technology unit following a cyberattack nearly two weeks ago.
During the annual TD Cowen At the Healthcare Conference, HUM Chief Financial Officer Susan Diamond said the company has yet to fully evaluate its compensation claims as the accident has prevented many healthcare workers from receiving their healthcare services. Processed health care claims.
Change, which UNH acquired in 2022 in a $12 billion deal, processes insurance claims and pharmacy claims for more than 340,000 doctors and 60,000 pharmacies in the United States. 15%-20% of Humana’s medical claims (HUM) depend on Change, Diamond noted.
“Typically, at this point, we would have our advance view of February’s paid claims reclassifications,” he explained. “I would say, unfortunately, just in light of the health care changes that we’re all going through, it’s much harder to evaluate.”
“So we would say that until this is resolved definitively, and the inventory backlog is resolved, it will limit to some extent our ability to fully evaluate paid claims,” he noted.
Prior to the event, Humana (HUM) reaffirmed full-year earnings per share of ~$14.87 and ~$16.00 on a reported and adjusted basis, respectively, for 2024 versus the $16.11 consensus.