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February 24, 2014
10:57 EDTHUMHumana Medicare Advantage rate view better than expected, says Susquehanna
Susquehanna says Humana's disclosure that it expects the CMS proposed 2015 Medicare Advantage rates to reduce funding by 350-400 basis points in 2015 is in-line with the firm's view and much better than expectations for 600-700 bps of pressure. The firm thinks further rate improvement is probable when the final rule is released in April, but stills believes rate pressure will be a significant challenge to Humana and the industry. Susquehanna has a Neutral rating on shares of Humana.
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