Humana Posts Lower 4th-Quarter Profit

Higher medical costs and a corporate restructuring involving 700 to 900 job cuts caused managed-care company Humana Inc. to report a 55% decline in fourth-quarter earnings. Humana earned $22 million, or 13 cents per share, compared with $49 million, or 30 cents, in the fourth quarter of 1995. The earnings include a previously announced charge of 6 cents per share to pay severance and other costs associated with the restructuring. Humana is exiting from unprofitable markets including Washington and Alabama. It is also raising rates to improve profit. . . . Meanwhile, Cigna Corp.’s fourth-quarter operating earnings fell 5.8% to $261 million, or $3.47 a share, from $277 million, or $3.62, a year ago.