OKLAHOMA CITY -- Humana (HUM) likes to think that Medicare will always be its friend.
The giant health insurer knows that Congress aims to cut payments for private Medicare Advantage plans, particularly the "private fee-for-service" coverage that most seniors now prefer, but the company remains committed to the program nonetheless. Even if Democrats manage to kill its lucrative PFFS business altogether, the company feels confident that everything will work out in the end.
"Now the headlines will probably be ugly," Humana CEO Michael McCallister admitted ahead of this year's big election. But "Medicare has always been good to Humana, even during the '90s, so I think there is a future" in the business.
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