Humana will situation as a lot as $1.25 billion in bonds to repay debt and finance operations, the agency introduced Tuesday.
The insurer plans to make the most of the proceeds to repay a $500 million mortgage from 2021 to offset the worth of its deal to amass residence care agency Kindred at residence, and for regular agency features.
Humana expects the bonds to be valued at $1.21 billion after accounting for underwriting prices. The offering is predicted to close March thirteen. the agency did not immediately reply to an interview request.
The insurer has been restructuring since Medicare benefit enrollment obtained here in beneath expectations for the 2022 plan 12 months. Humana is the second-largest Medicare benefit provider and had 5.1 million members on the tip of the 12 months. the agency expects so as to add 625,000 enrollees this 12 months.
Humana is implementing a $1 billion worth-creation plan focused Medicare benefit and first care clinics for Medicare beneficiaries. the agency divided its operations into an insurance coverage division and CenterWell, its healthcare supply and providers arm. Humana introduced final week it may finish its $4 billion enterprise employer enterprise to think about solely authorities-sponsored insurance coverage and care supply.
Humana reported a 4.5% decline in web income to $2.eight billion in 2022, with the drop primarily associated to prices stemming from its worth-creation plan and a dip in funding income. income grew virtually 12% to $ninety two.87 billion.
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