Humana has announced it is leaving commercial insurance behind to focus on government insurance programs.
The exit includes all employer group commercial medical products business, which covers all fully insured, self-funded and federal employee health benefit medical plans, as well as associated wellness and rewards programs. The move comes after Humana determined the commercial business would no longer sustainably meet the needs of the commercial members in the long term.
“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,” Humana President and CEO Bruce D. Broussard said in a statement. “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.”
Humana plans to pull out of the commercial insurance space over the next 18 to 24 months. Humana also noted it will expand its CenterWell business, which offers primary care, pharmacy and home health services.
Upon announcing the news, Humana now expects first-quarter 2023 earnings to represent approximately 33% of full-year 2023 Adjusted EPS, compared to the 35% estimate previously disclosed.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."