Humana Announces Plan to Leave Employer Market

The major health insurance company, Humana, published a press release announcing its plan to exit the employer group medical products business in order to focus their offerings on government-funded programs such as Medicare, Medicaid, military, and specialty business. 

“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,” said Bruce D Broussard, Humana, president and CEO in the press release. 

The change, expected to go into effect over the next 18-24 months, will impact all fully insured, self-funded, and federal employee health benefit medical plans, in addition to existing wellness and reward programs.

The decision to depart the employer market was based on a recent strategic review in which Humana states their employer business was “no longer positioned to sustainably meet the needs of commercial members over the long term or support the company’s long-term strategic plans.”

According to the press release, Humana will be adjusting Employer Group Commercial Medical Products financial results for non-GAAP purposes and it doesn’t expect a major impact on 2023 adjust earnings per share. It expects first-quarter earnings to comprise approximately 33% of 2023 adjusted earnings, down from the original 35% estimate.

Reference:
Humana to exit employer group commercial medical products business. Press Release. Humana. February 23, 2023. https://press.humana.com/news/news-details/2023/Humana-to-Exit-Employer-Group-Commercial-Medical-Products-Business