(By Salman - iStockAnalyst Writer) Humana Inc. (NYSE: HUM) is scheduled to release its third quarter earnings before the market open on Monday, November 2, 2009.  Analysts, on average, currently expect the company to report a net earnings of $1.77 a share on revenue of $7.82 billion. In the year ago quarter, the company reported earnings of $1.09 cents per share on revenue of $$7.15 billion.

Humana Inc. provides various health and supplemental benefit plans for employer groups, government benefit programs, and individuals in the United States. The company operates in two segments, Government and Commercial. It is one of the nation's largest Medicare providers and over the last several years, the majority of Humana's enrollees have been in state- or federal-government-sponsored programs. In 2008, Humana raked in $29 billion in revenue and $833 million in profits.

Early in August, the Louisville, Kentucky-based company reported a 34.2% rise in its second-quarter profit, driven by premium growth. Net income rose to $281.78 million or $1.67 per share, compared with $209.90 million or $1.24 per share, in the year-ago quarter. Revenue climbed 7.5% to $7.90 billion from $7.35 billion in the same quarter last year. Analysts, on average, expected the company to report earnings of $1.64 per on revenue of $7.77 billion.

The company's revenues have more than doubled since 2004, with almost all of the growth coming from the sale of privately administered Medicare Advantage plans. Medicare Advantage membership grew to 1.499 million as of June 30, up 12% from last year. Medicare Advantage premiums were up 19% to $4.15 billion, helped by a 13% increase in average Medicare Advantage membership and the introduction of member premiums for most of the company's Medicare Advantage products.Total Government Segment premiums rose 9.8% to $5.87 billion from $5.35 billion in the previous year. Medicare Advantage membership grew 12% from last year to 1.499 million at June 30. Plan members fell 36% to 1.992 million from a year ago. The company said it lost low-income seniors to a competing plan. However, Humana suffered a loss in membership for its stand-alone Prescription Drug Plan, however. Membership in stand-alone PDPs totaled 1.99 million as at June 30, 2009, down 36% from 3.11 billion at June 30, 2008.

Humana expects third-quarter earnings in the range of $1.75 - $1.80 per share, excluding the impact of future share repurchases.

For fiscal 2009, the company expects earning per share in the range of $6.10 - $6.20 per share, that excludes any potential accounting charges and other costs associated with the military contract loss. The 2009 projection compares to earnings per share of $3.83 for fiscal 2008. Humana anticipates full-year consolidated revenues to be in the range of $30 billion - $32 billion.

Stocks of the health insurers have witnessed increased volatility in past few months amid concerns over health care reform debate in Washington, D.C. Investors and analysts fear that a government-run insurance program-also called public option, would grab market share from private insurance companies, and will hurt the bottom line of managed care companies. Meanwhile, there has also been talk of higher taxes on expensive healthcare plans that could cut into their profit margins and lower earnings going forward. Investors are also worried about possible impact of high flu-related costs on results.

Humana is among three companies poised to lose federal contracts to provide health coverage to U.S. military personnel in 11 Southern states. Loss of the multi-billion dollar contracts next year is likely to result in revenue and profit declines and  membership could drop by three million.

In terms of stock performance, Humana shares are down 0.5% since the beginning of the year. Shares of the company fell 83 cents or 2.14% to $37.90 in afternoon trade on Friday.

Disclosure: Author doesn't own any of the stocks discussed here.