You may have heard the rumors that Humana has made the decision to exit the group commercial medical products business, and you might be wondering if this will negatively impact your Humana Medicare clients. On the contrary, while the rumors are true, the reason Humana has made this decision is because the company wants to focus more on its Medicare business.
Reasons for the Shift
Humana's decision to exit the group health insurance market is likely driven by the desire to concentrate its resources on its core growth areas, including Medicare Advantage, Medicare Supplement, and Medicaid, which have proven to be more profitable for the company. According to Bloomberg Law, the Medicare market offers a more stable source of revenue and has experienced considerable growth in recent years, making it an attractive segment for insurers.
Impact on Employers and Employees
In a press release, Humana stated that it would continue to honor all existing contracts, and members currently enrolled in the company's employer group medical products would not experience any immediate changes to their plans. However, Humana will not renew its group medical contracts upon expiration.
AHCP and Humana's Medicare Products
It's important to note that AHCP does offer Humana's Medicare products, which will not be impacted by this decision, in a number of markets. Insurance agents interested in learning more about the Humana Medicare products available through AHCP can visit this page on our website for more information.
Humana's decision to exit the group health insurance market signifies a strategic shift toward focusing on the more lucrative senior market. This move will ultimately benefit agents working with Humana's Medicare products. If you do sell group health products that are impacted by Humana's decision, we just want to give you a quick reminder that AHCP does offer small group health products through our parent company, Allstate Benefits. You can learn more on this page of the AHCP website.