Humana to Exit Employer Insurance Business
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.
If you have any questions about employee Health & Benefits and how TehcServe Alliance can make your renewal and enrollment process seamless, efficient, and up-to-date on compliance, please contact Tommy Poulin, TechServe Alliance Health & Benefits Advisor.