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Humana's Stock Plunges on Earnings Forecast
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Humana's stock plummeted due to poor earnings guidance, driven by soaring medical costs, impacting the broader insurance industry. The company's full-year earnings forecast for 2024 is significantly lower than analysts' estimates, leading to a 37% stock decline. Humana's medical benefit ratio for the fourth quarter was 90.7%, resulting in a loss of $591 million compared to the previous year.
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How might Humana's stock plunge impact the broader insurance industry?
What factors contributed to the significant difference between Humana's actual and estimated earnings?
What strategies could Humana employ to mitigate the impact of soaring medical costs?
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