July 31 (Reuters) - Humana beat Wall Street

estimates for second-quarter profit on Wednesday, helped by

strength in its government-backed Medicare Advantage insurance

business for older adults.

The health insurer heavily depends on Medicare Advantage

plans, under which the U.S government pays private insurers a

set rate to manage healthcare for people aged 65 and older or

with disabilities.

The quarterly profit beat was driven by higher-than-expected

revenue in the business, and lower-than-estimated administrative

expenses, the company said.

It raised its 2024 individual Medicare Advantage growth

target by 75,000 members.

The company recorded higher-than-anticipated inpatient

admissions, which surged in the back half of the quarter.

The Louisville, Kentucky based company has, however, warned

of a potential hit to its profit this year and the next, and

pulled back its 2025 profit forecast, citing disappointing

government Medicare reimbursement rates.

Lower-than-expected rates piled up more pressure for

insurers, struggling with high medical costs since last year as

older adults returned to hospitals to catch up on delayed

procedures.

For the second quarter, Humana's benefit expense ratio - the

percentage of premiums spent on medical care - rose to 89% from

86.3% a year ago, but was in line with LSEG estimates.

On an adjusted basis, Humana reported a profit of $6.96 per

share, higher than the average analyst estimate of $5.85.

(Reporting by Sriparna Roy in Bengaluru; Editing by Shinjini

Ganguli)