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Humana says its medical claims related to Affordable Care Act-compliant plans will exceed the premiums it has collected, but the company still is determining the magnitude of the loss.

The Louisville-based health insurer also said that excluding the impact of the so-called premium deficiency reserve (PDR), its projections for adjusted earnings per share for 2015 remain at $7.75.

Humana filed the information with the Securities and Exchange Commission on Friday after markets closed.

Investors can become skittish when companies announce PDRs, even after generally positive earnings reports: Last November, investors punished WellCare’s stock when the company recorded higher year-over-year income in the third quarter but said it would incur a PDR of up to $95 million.

Humana released the information in advance of the J.P. Morgan Healthcare Conference in San Francisco this week. Humana said “it will not opine on any financial results or expectations for 2015 or 2016 at this conference beyond those listed below.”

Humana will report fourth-quarter earnings on Feb. 10.

The insurer also said in the filing that it expects to lose between 200,000 and 300,000 clients this year in its individual commercial segment, which includes those it had gained through the Affordable Care Act, also known as Obamacare.

Some health insurers, including Humana, had said late last year that they’re struggling to make a profit on new customers they’ve gained through the Affordable Care Act and are re-evaluating how they can continue to participate. Humana said at the time that it would abandon some of its products in 2016, which would affect about 100,000 current customers.

Humana also said it expects to gain about 110,000 customers for its individual Medicare Advantage plans this year. It is projecting a loss of about 120,000 customers in its group Medicare Advantage plans “due to the previously disclosed loss of a large account that moved to a private exchange.”

In its stand-alone prescription drug plan, the company expects to gain about 315,000 customers this year.

Aetna, the insurance company that has proposed acquiring Humana for $37 billion, also will participate in the San Francisco conference.

Boris Ladwig is a reporter with more than 20 years of experience and has won awards from multiple journalism organizations in Indiana and Kentucky for feature series, news, First Amendment/community affairs, nondeadline news, criminal justice, business and investigative reporting. As part of The (Columbus, Indiana) Republic’s staff, he also won the Kent Cooper award, the top honor given by the Associated Press Managing Editors for the best overall news writing in the state. A graduate of Indiana State University, he is a soccer aficionado (Borussia Dortmund and 1. FC Köln), singer and travel enthusiast who has visited countries on five continents. He speaks fluent German, rudimentary French and bits of Spanish, Italian, Khmer and Mandarin.


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