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Wednesday, April 7, 2010 as of 11:14 AM ET

Humana

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Humana Inc. () is an American managed health care company that markets and administers health insurance.

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Humana Expects Costs Of $45 Million For Hospital Settlement

Health insurer Humana Inc.

(HUM) said Monday it will pay about $45 million to resolve a five-year-old lawsuit filed a group of hospitals that had alleged breached agreements by Humana's military health-care business.Humana--which is still dealing with the case for a handful of hospitals that didn't settle--expects to incur the estimated expense in the second quarter, according to a company regulatory filing. As a result, Humana lowered its per-share guidance by 17 cents.The company now expects earnings in a range of $7.38 to $7.58 a share this year. For the second quarter, the company now is targeting earnings of $1.98 to $2.08 a share.The lawsuit was filed in 2007 by several hospitals, including ones run by Sacred Heart Health System Inc. and Tenet Healthcare Corp. (THC). The hospitals' lawsuit included allegations that Humana Military Healthcare Services Inc. breached network agreements with hospitals in six states that contracted for reimbursement of outpatient services for people c...

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