On Feb. 23, Humana announced its plan to exit the employer-based insurance business over the next 18 to 24 months. The company will instead focus on government-funded programs—such as Medicare, Medicaid and military—and specialty businesses.
Employer-sponsored health insurance is a common way for Americans to get coverage, but such plans accounted for less than 6% of Humana’s total membership at the end of 2022. Humana revealed that the Employer Group Commercial Medical Products business could no longer sustainably meet the needs of commercial members nor support the company’s other long-term strategies. The employer insurance business includes fully insured health insurance plans purchased by employers and employer-sponsored health plans run by Humana.
“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. … We are confident in Humana’s continued success, and our commitment to improving the health of those we serve is unwavering.”
Bruce D. Broussard, president and CEO of Humana, in a news release.
The company expressed its commitment to a smooth transition of services for members and commercial partners as the line of business is phased out.
Humana is one of the nation’s largest health insurers, but commercial insurance has been a diminished focus for the company for years. As Humana fully leaves the commercial insurance business, it will no longer cover people through employer-sponsored plans or administer health plans on behalf of self-insured employers.
Contact Benefit Analysts, Inc. today for more employee benefits-related resources.
The content of this News Brief is of general interest and is not intended to apply to specific circumstances. It should not be regarded as legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. © 2023 Zywave, Inc. All rights reserved.
We provide professional help designed to meet your specific needs with a wide range of insurance products for your business and your family. Learn more about our Benefit Analysts Insurance Products.
The content herein is provided for general information purposes only, and does not constitute legal, tax, or other advice or opinions on any matters. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy.