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Health insurer Humana (NYSE:HUM) cited uncertainty over some of its forecasts on Tuesday due to the ongoing disruption at UnitedHealth’s (UNH) Change health tech unit following a cyberattack that took place nearly two weeks ago.
During the TD Cowen Annual Health Care Conference, HUM’s CFO, Susan Diamond, said that the company has yet to fully assess its paid claims as the incident has cut off many healthcare providers from getting their healthcare claims processed.
Change, which UNH acquired in 2022 after a $12B deal, processes insurance claims and pharmacy requests for over 340,000 physicians and 60,000 pharmacies in the U.S. 15%–20% of Humana’s (HUM) medical claims depend on Change, Diamond noted.
“Typically, by this time, we would have our early view of February paid claim restatements,” she explained. “I would say, unfortunately, just given the Change health care disruption that we’re all navigating that is much more difficult to assess.”
“So we would say until that is ultimately resolved, and the backlog of inventories work through, it will limit to some degree, our ability to fully assess sort of the paid claims,” she noted.
Ahead of 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 compared to $16.11 in the consensus.