Humana, one of the largest health insurance companies in the U.S., announced it will be phasing out its employer group business over the next 18 to 24 months. The move is part of the company’s broader strategy to focus on Medicare and Medicaid health plans.
For many years, Humana has offered employer-group plans, which are health insurance plans that employers provide to their employees. These plans have been a relatively small part of Humana’s overall portfolio, and the company has struggled to grow its employer group business in recent years.
At the same time, Humana has seen significant growth in its Medicare and Medicaid businesses. Medicare is a federal health insurance program that provides coverage to individuals 65 years of age or older and includes those with specific disabilities. Medicaid is a joint federal and state program that provides health coverage to eligible individuals, including low-income adults, children, pregnant women, elderly adults, and those with disabilities.
Why Now?
The decision to phase out its employer group business is a strategic move to focus on growing Medicare and Medicaid markets. Humana believes it can better serve these markets by dedicating more resources and attention to them. This decision is part of a broader trend in the health insurance industry. Many health insurers are shifting their focus away from employer group plans and toward Medicare and Medicaid plans. Medicare and Medicaid markets are growing, mainly due to the aging population and an increasing number of low-income individuals. These trends are expected to continue in the coming years, meaning the demand for Medicare and Medicaid plans will likely continue to grow.
Fear No More!
As Humana phases out its employer-group business, businesses that relied on them for their group health plan must find alternative options. Have you ever heard of a professional employer organization (PEO)? Working with a PEO such as GMS might be the solution you’re looking for. At GMS, we change the health insurance approach by increasing affordable options and give your employees access to small business health insurance. We give businesses the buying power of large corporations, so in turn, we’re able to offer:
- Financial security
- Flexible benefit options
- An unprecedented customer service experience
We’re the only PEO that provides an in-house master health plan that helps YOU avoid large swings in usage, trends, and renewal rates. At GMS, we understand that no “one-size-fits-all” group health insurance plan exists. That’s exactly why we quote various major insurance carriers so we can provide multiple health coverage options for your business. GMS’ experts are here to help you every step of the way. Let’s get ahead of your competition and get your employees the health coverage they need TODAY. Contact us now to get started.