Humana has reached a decision to exit from the Employer Group Commercial Medical Products business, which includes all fully insured, self-funded, and Federal Employee Health Benefit medical plans, as well as Go365.
Importantly, no other Humana health plan offerings or any of their CenterWell healthcare services lines of business are materially impacted by this decision and will continue to operate as normal. This includes group and individual specialty (dental, vision, life, etc.), Medicare Advantage, Medicare Supplement, Group Medicare, Medicare prescription drug plans, Medicaid, and Military lines of business.
This decision was made after a strategic and financial review of their business. Humana took into account valuable feedback on their product offerings, among other considerations, and determined they are not able to meet the long-term needs of their Employer Group Commercial Medical customers
Please be assured that there is nothing you need to do at this time and there is no change in the short term. Humana will give advanced notice whether anything is required of you. In the meantime, below is a high-level view of what you and your clients can expect:
Humana will stop quoting and issuing Employer Group Commercial Medical plans consistent with their obligations under state and federal law, so dates will vary by state and product. At this time, Humana intends to stop issuing plans in all states by plan year 2024.
Existing plans will continue to operate as they do today and will terminate at the group’s next renewal date starting with plans effective 11/1/2023, 12/1/2023, or 1/1/2024; where required, Humana will offer renewals in accordance with state law, and will manage the run-out claims administration for their ASO clients following their termination.
Humana will no longer quote or install new Level Funded Premium (LFP) or Administrative Services Only (ASO) groups after the 4/1/2023 effective date.Â
Humana will continue to manage its network of Employer Group Commercial Medical providers to ensure outstanding and continuous care until the last member is off the books
There will be no changes to standard medical commission schedules. However, Humana has amended the Medical Growth Bonus program for the remainder of 2023.Â
Importantly, this does not impact any individual or group specialty (Dental, Vision, Life, etc.) business – Humana is continuing to invest in and grow these areas and are committed to their goal of being a best-in-class specialty carrier.Â
On February 23, 2023 Humana also sent an email to all Employer Group Commercial employers about this decision. Once Humana initiates the exit, they will provide notice to affected employers and members prior to their plan year renewal date to give groups the time they need to work with you to transition their medical coverage to a new carrier. Â
As always, if you have any questions or would like additional information, please reach out to our team.
