However, the reality and truth about the pressures on Humana’s profitability began to emerge in June 2023 when one of Humana’s primary competitors, UnitedHealth Group, revealed it was seeing increased levels of outpatient care activity and suggested that higher utilization rates were due to “pent-up demand or delayed demand being satisfied.”
“UnitedHealth further explained that it was ‘seeing very strong volumes’ in certain areas, including ambulatory surgery, and an overall ‘higher number of cases that are being performed,'” the complaint says.
According to the complaint, the similarities between Humana and UnitedHealth’s businesses and the likelihood that Humana was also suffering from increased utilization and costs due to pent-up demand caused Humana’s stock price to fall $57.63 per share, more than 11%, from $512.63 per share on June 13, 2023, to close at $455 per share on June 14, 2023.
Three days later, Humana suffered another stock price drop when it confirmed seeing similar trends to UnitedHealth.
