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.[0] 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.[1] 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.[2]

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.[1] Humana is also committed to expanding its CenterWell healthcare services capabilities.[0]

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.[0] 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]

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

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