Humana, Louisville, Ky., reported a 36% jump in third-quarter earnings thanks to new commercial products and lower medical costs. Net income for the three months ended Sept. 30 reached $84.3 million, or 52 cents per share, up from $62.1 million, or 38 cents per share, a year earlier. Revenue rose 2% to $3.18 billion. Total enrollment fell 10%, to 5.98 million members, due to the loss of 990,000 military beneficiaries as the Department of Defense reshuffled its Tricare contracts. Effective today, however, Humana said it added back about 1 million new Tricare members. The company raised its full-year earnings forecast to between $1.66 and $1.69 per share, up from a previous estimate of $1.60 to $1.65 per share.
Separately, Humana officials said an internal review found no improprieties in the company's broker-commission agreements. Health insurers have been examining their broker incentives in recent weeks due to an expanding investigation, led by New York Attorney General Eliot Spitzer, into alleged fraud and kickbacks within the insurance and brokerage industries. So far, Aetna, Anthem and Cigna Corp. have acknowledged receiving subpoenas related to the probe.