In response to increasing Medicare costs Humana reduces 2012 forecast

Bloomberg: Humana Reduces 2012 Forecast As Medicare Costs Increase
Humana Inc., the second-biggest provider of Medicare benefits, cut its 2012 profit forecast as enrollees in the U.S. health insurance program visited the doctor in higher numbers than the company expected….The company generated three-quarters of its sales last year from Medicare, the U.S.-backed program for the elderly and disabled, and Chief Executive Officer Michael B. McCallister said in the statement that new members were proving more expensive. Humana's report contrasted with that of Minnetonka, Minnesota-based UnitedHealth Group Inc., the top Medicare insurer, which raised its profit forecast two weeks ago (Nussbaum, 7/31).