Humana Exits Employer Group Commercial Medical Products Business to Focus on Government-Sponsored Products
Humana Inc. (NYSE: HUM) is exiting its Employer Group Commercial Medical Products business, the company announced Thursday. This move follows Humana’s decision in 2017 to stop participating in the individual commercial market covering people buying their own plans through the Obamacare health exchanges. This decision enables Humana to focus resources on its greatest opportunities for growth and where it can deliver industry-leading value for its members and customers, according to Humana CEO Bruce Broussard.
Humana will now focus its efforts on government-sponsored products such as Medicare Advantage. This includes plans offered to federal employees, large organizations that self-insure but pay Humana to administer their plans, and employer-sponsored plans. Humana is also committed to expanding its CenterWell healthcare services capabilities.
The company's decision to exit the Employer Group Commercial Medical Products business has affected its full-year 2023 fiscal guidance. Humana now expects first-quarter 2023 earnings to represent approximately 33% of full-year 2023 Adjusted EPS, after considering the non-GAAP treatment of the Employer Group Commercial Medical business. Additionally, the non-GAAP treatment of Employer Group Commercial Medical results is also anticipated to increase the first-quarter 2023 Insurance segment benefit ratio by approximately 30 basis points, with no impact expected on the full-year 2023 Insurance segment benefit ratio.
0. “Humana decides to exit Employer Group Commercial Medical Products business (HUM)” Seeking Alpha, 23 Feb. 2023, https://seekingalpha.com/news/3939769-humana-decides-to-exit-employer-group-commercial-medical-products-business
1. “Humana to exit commercial insurance, focus on government programs” WDRB, 23 Feb. 2023, https://www.wdrb.com/news/business/humana-to-exit-commercial-insurance-focus-on-government-programs/article_08730dec-b383-11ed-aa9f-2b92f1ab120c.html
2. “Humana will exit employer insurance market” Modern Healthcare, 23 Feb. 2023, https://www.modernhealthcare.com/insurance/humana-will-exit-employer-health-insurance-market