Humana is exiting the employer group commercial market after a strategic review of its business lines, the insurer announced Thursday.
The review found that the business was “no longer positioned to sustainably meet the needs of commercial members over the long term” and was not playing a key role in supporting the company’s other long-term strategic focuses, according to the announcement.
The decision means that Humana will no longer offer fully-insured or self-funded employer plans or any of the associated wellness and rewards programs. It will also exit the Federal Employee Health Benefits program, according to the announcement.
Humana expects to phase out the line of business over the next 18 to 24 months.
“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 Broussard, Humana’s CEO, in the release. “It is in line with the company’s strategy to focus our health plan offerings primarily on Government-funded programs … and Specialty businesses while advancing our leadership position in integrated value-based care and expanding our CenterWell healthcare services capabilities.”
“We are confident in Humana’s continued success, and our commitment to improving the health of those we serve is unwavering,” he added.
After a poor showing in the annual enrollment period for 2022 Medicare Advantage coverage, Humana set out to generate $1 billion of value that it could invest back into the core MA business. Part of that effort included a reorganization, which established two main pillars at the company: insurance services and CenterWell.
The value creation initiative seems to have paid off, as Humana rebounded a year later during the most recent enrollment window.