Humana Will Leave Employer Group Insurance Business to Focus on Public Plans
After exiting the employer group insurance business, Humana will prioritize the long-term growth of its Medicare Advantage, Medicare, and Medicaid health plans.
Source: Humana logo
- Humana has announced plans to leave the employer group insurance business and direct its focus toward its government-funded health plan offerings.
The payer’s employer group commercial medical products business includes fully insured, self-funded, and Federal Employee Health Benefit medical plans and associated wellness and rewards programs.
Going forward, the payer will prioritize the long-term growth of its other insurance offerings, including Medicare Advantage, Group Medicare, Medicare Supplement, Medicare prescription drug plans, Medicaid, military and specialty plans, and its CenterWell healthcare services business.
After a strategic review, Humana determined that the employer group insurance business was not in a position to meet commercial member needs or support the company’s long-term strategic plans. The payer said it will ensure a smooth insurance transition for commercial members as it phases the exit over the next 18 to 24 months.
“This decision enables Humana to focus resources on our greatest opportunities for growth and where we can deliver industry leading value for our members and customers,” Bruce D. Broussard, president and chief executive officer of Humana, said in the announcement.
“It is in line with the company’s strategy to focus our health plan offerings primarily on Government-funded programs (Medicare, Medicaid, and Military) and Specialty businesses, while advancing our leadership position in integrated value-based care and expanding our CenterWell healthcare services capabilities. We are confident in Humana’s continued success, and our commitment to improving the health of those we serve is unwavering.”
Financial results for the employer group commercial products will be adjusted for non-generally accepted accounting principles (GAAP) purposes and will not affect the payer’s full-year 2023 adjusted earnings per share (EPS) guidance, according to Humana.
Considering this adjustment, Humana said it expects first-quarter 2023 earnings to represent 33 percent of full-year 2023 adjusted EPS rather than the initial 35 percent estimate. The non-GAAP treatment of the financial results is also expected to increase the first-quarter 2023 insurance segment benefit ratio by 30 basis points and will not impact the full-year 2023 ratio.
Over the past year, Humana has made strides in expanding care offerings for its Medicare Advantage and Medicare populations.
In January 2022, the payer partnered with Vancouver Clinic to extend value-based primary care services to Medicare Advantage members in Oregon. Through the collaboration, members gained access to integrated care teams, medication management, social services resources, and physical and mental healthcare services.
Humana also expanded 2023 dental benefits for Medicare Advantage members in Florida, introducing higher annual allowances of up to $6,000 that can be used for out-of-pocket dental, vision, or hearing expenses.
