Is HUM (Humana Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, HUM is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in HUM.

Humana Inc. is a major United States healthcare company that provides medical and supplemental benefit plans to individuals. It operates across Retail, Group, and Healthcare Services segments, holding significant contracts to administer Medicare, Medicaid, and long-term support services. For Muslim investors using AAOIFI standards, Humana is currently classified as Doubtful. While its core healthcare operations pass the business activity screen, the company fails on the financial side due to excessive leverage, making it unsuitable for a strict halal portfolio at this time. The primary concern from an Islamic finance perspective is Humana's Debt-to-Market Cap ratio, which stands at an elevated 46.9%, well above the 33% maximum limit. On a positive note, the company's interest-bearing cash and securities are manageable at 15.2%, and its interest income is practically zero. Islamic investors should monitor Humana's balance sheet in upcoming quarters to see if management pays down its debt or if market capitalization improves. Until the debt-to-market cap ratio falls below the 33% threshold, conservative halal investors should look for alternative healthcare stocks. Humana Inc. operates in the Healthcare sector under the Medical - Healthcare Plans industry and is headquartered in Louisville, KY, US. The company is led by CEO James A. Rechtin and employs approximately 65,680 people.

HUM was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. HUM passed 3 of these 4 screens.

HUM was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.