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Humana sees higher-than-expected medical costs in fourth quarter

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© Reuters. FILE PHOTO: A screen displays the logo and trading information for Humana on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 6, 2023. REUTERS/Brendan McDermid/File Photo

(Reuters) -Humana Inc said on Thursday it sees medical costs to be higher than previously expected in the fourth quarter due to increased demand for medical services, sending its shares down 13% in premarket trading.

The higher-than-anticipated cost trends are expected to result in adjusted insurance segment benefit ratio of about 91.4% in the fourth quarter 2023, verses previous expectation of 89.5%, the company said.

Last week, larger peer UnitedHealth (NYSE:) reported higher-than-expected medical costs for the fourth quarter as older Americans sought respiratory syncytial virus (RSV) vaccines and received additional medical services towards the end of the year.

Shares of other health insurers also fell between 3% and 2% before the bell.

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