First-quarter income at health insurer Humana dropped 22.2 percent, from $473 million in 2013 to $368 million this year.
For the three months ended March 31, Humana reported total revenue of approximately $11.7 billion, up 11.7 percent from nearly $10.5 billion in 2013. However, total operating expenses rose 13.1 percent year-over-year to about $11 billion.
Operating costs jumped 23.4 percent to $1.8 billion. The rise in operating costs was primarily driven by the non-deductible health insurance industry fee mandated by the Patient Protection and Affordable Care Act, acquisition costs for new Medicare Advantage members, and investment spending on the health insurance exchanges and new state-based contracts, according to a news release.
More Articles on Humana:
5 Key Things to Know About Medicare Advantage Enrollment
Humana - 150 Great Places to Work in Healthcare | 2014
Humana, Mercy Launch Accountable Care Partnership