The company announced Thursday that Humana would leave the commercial health insurance market and focus its efforts on government-sponsored products such as Medicare Advantage.
Over the next 24 months, the insurer will phase out its fully insured, self-funded and federal employee health benefit program plans, as well as its wellness and rewards offerings, according to a news release. Humana did not disclose the value of its employer business.
Humana does not expect the decision to impact financial performance this year. The insurer will continue to serve the Medicare Advantage, Medicare Part D, Medicare Supplement, Medicaid and Tricare markets and will maintain its dental, vision and life insurance products.
Humana did not immediately respond to a request for an interview.
Bruce Broussard, CEO of Humana, said in the news release, “This decision is an opportunity to focus resources on our biggest opportunities for growth and where we can deliver industry-leading value for our members and our customers. enables.” “This is a great opportunity for the company to focus our health plan offerings primarily on government-funded programs and specialty businesses, while furthering our leadership position in integrated value-based care and expanding the capabilities of our CenterWell Healthcare services.” in line with its strategy.”
Humana’s employer-sponsored plans had 986,400 policyholders at the end of 2022, down about 16%, and the company expected membership to decline by another 300,000 this year “as we continue to improve our cost structure and margins in this line of business.” focused on optimizing,” said Susan Diamond, chief financial officer, during Company’s Fourth Quarter Earnings Call this month.
Humana is restructuring as part of a $1 billion plan To grow your Medicare Advantage business. Humana is the second largest Medicare Advantage carrier with 5.1 million enrollees. Medicare Advantage membership grew nearly 14% for the current plan year, nearly Five times the industry average.