Humana forecast annual profit below Wall Street estimates on Tuesday as it anticipates a greater-than-expected decline in its Medicare Advantage plan enrolments following a planned exit from some markets.

Humana Tuesday reported $1.2 billion in 2024 profits that included a $693 million fourth quarter loss as the health insurer exits unprofitable Medicare Advantage

Humana forecast annual profit slightly below Wall Street estimates on Tuesday, signaling that costs from its government-backed plans for older Americans would remain elevated for the rest of the year.

Humana (HUM) stock will be in focus as the company reports Q4 2024 results and warns about a potential 10% drop in Medicare Advantage membership. Read more here.

Humana depends more than other insurers on revenue from Medicare Advantage, private versions of the government’s program for older and disabled people. Investors are concerned about the long-term results from the business as the government has lowered Humana’s quality ratings,