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Humana profit beats Street view but shares fall
Humana Inc (HUM.N: Quote, Profile , Research) posted sharply higher quarterly profit on Monday, above Wall Street's average estimate, on strength in its Medicare health plans for the elderly and its plans for employers, and forecast 2008 earnings ahead of analysts' expectations.

The health insurer said it would add at least 200,000 members to its full-service Medicare Advantage plans in 2008, exceeding many analysts' projections.

But Humana shares, after rising nearly 8 percent and reaching an all-time high in opening trading, were off 3 percent in afternoon dealings.

David Heupel, a portfolio manager with Thrivent Investment Management, said investors continue to fret about possible legislative changes to Medicare, the U.S. government health program for the elderly, that would crimp reimbursements to insurers.

Humana is one of the largest Medicare providers, aggressively expanding its business as it takes advantage of a larger private-sector role.

Heupel also noted the strong recent performance of Humana's stock, which has outperformed other large health insurers this year.
http://today.reuters.com/news/articleinvesting.aspx?type=hotStocksNews&storyID=2007-10-29T183801Z_01_WNAS8691_RTRUKOC_0_US-HUMANA-RESULTS.xml