TacticScaleWhat Humana Does & How It Makes Money (HUM)
Updated October 2026 · reflects Humana's latest reported financials
US health insurer focused on Medicare Advantage and senior primary care. Humana earns most of its revenue from premiums on Medicare Advantage, prescription drug and other insurance plans.
How Humana makes money
Humana earns most of its revenue from premiums on Medicare Advantage, prescription drug and other insurance plans. It also earns fees for administrative services, and revenue from its CenterWell primary care, home health and pharmacy operations, many of which use value-based care arrangements.
What Humana does
Humana Inc., founded in 1961 and headquartered in Louisville, Kentucky, is a US health insurer whose business centers on Medicare. Its Insurance segment offers individual and group Medicare Advantage plans, stand-alone prescription drug plans, Medicare supplements, and specialty coverage such as dental, vision, life and disability. It also provides administrative services for military health care and pharmacy benefit management. The CenterWell segment gives Humana a direct role in delivering care. It runs value-based primary care centers for seniors under the CenterWell Senior Primary Care and Conviva brands, along with a management services organization, CenterWell Home Health, OneHome for post-acute care, and pharmacy and hospice services. Together the two segments combine paying for care with delivering it for older Americans.
Products & services
- Medicare Advantage plans
- Medicare stand-alone prescription drug plans (PDP)
- CenterWell Senior Primary Care
- Conviva Senior Primary Care
- CenterWell Home Health
- OneHome
What is Humana worth?
On an owner-earnings DCF, Humana's most-likely value is about $968 versus a recent price near $432 (124% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$397) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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