Research Analyst at Baird Robert W & Co. Inc. /wi/
Michael Hall is an analyst at Robert W. Baird & Co. Incorporated, specializing in equity research with a focus on specific sectors such as industrials, business services, or related fields. He covers notable companies within his coverage universe, delivering actionable investment insights and demonstrating a solid track record of successful recommendations and rankings. Hall began his career in financial services and joined Baird in a key analyst role after building experience in relevant research and advisory positions at other firms. He holds professional credentials, including FINRA securities licenses, and is recognized for his analytical rigor within the investment community.
Michael Hall asked about Humana's views on the 2027 advance rate notice, specifically if the 8.5% HCR fee-for-service cost trend for 2025 aligns with internal expectations for an effective growth rate potentially north of 9%.
Celeste Mellet, CFO, stated that speculating on the rate notice landing is imprecise and declined to comment on specific numbers or headwinds/tailwinds, noting they will get a first look early next year.
Michael Hall from Baird asked for the specific impact of the Q4 risk adjustment true-up on the Medicare MCR and sought more comfort on 2025 Medicare pricing given the portfolio's shift toward D-SNP. He also questioned the confidence in Marketplace margins given the strong growth and FTR recheck risks.
CFO Mark Keim did not quantify the risk adjustment impact but stated that the D-SNP trends from late 2024 were factored into conservative 2025 bids, positioning the business as a 'segue' into high-growth duals products in 2026. For Marketplace, Keim clarified that recent growth is less dramatic off a Q4 2024 baseline and that the 70% renewal rate and strong effectuation rates in the mid-80s provide confidence in their guidance, which already nets out attrition assumptions like FTR.
Performance on expert-authored financial analysis tasks