Humana President and CEO Bruce Broussard said in the company’s annual shareholders’ meeting last Thursday that the company will focus on Medicare Part D and Medicare Advantage patients. The emphasis on the Medicare population comes as more baby boomers become Medicare beneficiaries.
Humana officials trumpeted a strong fiscal year despite its failed merger with Aetna. A federal court spiked the $37 billion merger deal in January because the move would “substantially lessen” competition in the Medicare Advantage and ACA exchanges markets.
- Humana is pulling out of the individual insurance market next year. Humana had 152,000 members in plans in the ACA exchanges in January and had previously pulled out of the individual market in a few states.
Humana officials believe pulling out of the ACA exchanges market and focusing on older Americans is the way to go. Humana leaving the ACA exchanges market is a minor speed bump to the exchanges. The company was not a major player in the individual market, so its departure won’t affect many members and states.
Broussard said during the shareholders’ meeting that the insurer plans to focus on building relationships with providers so care is more about health than treatment, improving care integration for members with chronic illness, and educating members about their health and the healthcare system.
This focus away from the individual market to the Medicare population is one to watch in 2018. Other insurers may follow suit if Humana finds more success in Medicare Advantage and Part D after shedding the Affordable Care Act exchanges.