Humana exits group health insurance market
“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,” says Bruce D. Broussard, Humana’s president and CEO.
Health insurance giant Humana has announced that they will exit the group commercial health care space to focus on government-backed programs.
This exit includes all fully insured, self-funded and Federal Employee Health Benefit medical plans, as well as associated wellness and rewards programs. Human’s health plans in other areas will not be significantly affected.
This adjustment will be done over the next 18 to 24 months, and Humana has vowed to make the transition smooth for members and customers.
“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, Humana’s president and CEO said in a statement. “It is in line with the company’s strategy to focus our health plan offerings primarily on government-funded programs and specialty businesses, while advancing our leadership position in integrated value-based care and expanding our CenterWell health care services capabilities.”
As of 2021, the group and specialty markets account for less than 10% of the company’s revenue, generating approximately $7 billion. Still, for employers relying on Humana for their health care plans, the move will create some challenges.
“Humana exiting the employer group commercial medical products business speaks to a reduction of yet another carrier in the commercial space with significant business — leaving a number of employers and PEOs without a renewal in the coming year,” says Caleb Parker, chief commercial officer at Angle Health. “On a larger scale, this illustrates that the market is seeking modern platforms that push past the old guard.”