Humana to Exit Employer Group Commercial Medical Products Business
February 23 2023 - 6:30AM
Business Wire
Humana Inc. (NYSE: HUM) today announced that it will be exiting
the Employer Group Commercial Medical Products business, which
includes all fully insured, self-funded and Federal Employee Health
Benefit medical plans, as well as associated wellness and rewards
programs. No other Humana health plan offerings are materially
affected. The company remains committed to the long-term growth of
its core Insurance lines of business, including Medicare Advantage,
Group Medicare, Medicare Supplement, Medicare Prescription Drug
Plans, Medicaid, Military and Specialty (Dental, Vision, Life,
etc.), as well as its CenterWell healthcare services business.
Following a strategic review, the company determined that the
Employer Group Commercial Medical Products business was no longer
positioned to sustainably meet the needs of commercial members over
the long term or support the company’s long-term strategic plans.
The exit from this line of business will be phased over the next 18
to 24 months. The company is committed to ensuring a smooth
transition of services for members and commercial customers.
“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 D. Broussard,
Humana’s President and Chief Executive Officer. “It is in line with
the company’s strategy to focus our health plan offerings primarily
on Government-funded programs (Medicare, Medicaid and Military) 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.”
Financial results for Employer Group Commercial Medical Products
will be adjusted for non-GAAP purposes going forward and are not
expected to impact the company’s full year 2023 Adjusted earnings
per share (EPS) guidance.
Based on the seasonality of Employer Group Commercial Medical
Products earnings, the company now expects first-quarter 2023
earnings to represent approximately 33 percent of full-year 2023
Adjusted EPS, after considering the non-GAAP treatment of the
Employer Group Commercial Medical business. This compares to the
approximately 35 percent estimate previously disclosed, which did
not take into account the non-GAAP treatment of Employer Group
Commercial Medical earnings.
Further, due to this seasonality dynamic, 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.
About Humana
Humana Inc. (NYSE: HUM) is committed to helping our millions of
medical and specialty members achieve their best health. Our
successful history in care delivery and health plan administration
is helping us create a new kind of integrated care with the power
to improve health and well-being and lower costs. Our efforts are
leading to a better quality of life for people with Medicare,
families, individuals, military service personnel, and communities
at large.
To accomplish that, we support physicians and other health care
professionals as they work to deliver the right care in the right
place for their patients, our members. Our range of clinical
capabilities, resources and tools – such as in-home care,
behavioral health, pharmacy services, data analytics and wellness
solutions – combine to produce a simplified experience that makes
health care easier to navigate and more effective.
More information regarding Humana is available to investors via
the Investor Relations page of the company’s website at humana.com,
including copies of:
- Annual reports to stockholders;
- Securities and Exchange Commission filings;
- Most recent investor conference presentations;
- Quarterly earnings news releases and conference calls;
- Calendar of events; and
- Corporate Governance information.
Humana Cautionary
Statement
This news release includes forward-looking statements regarding
Humana within the meaning of the Private Securities Litigation
Reform Act of 1995. When used in investor presentations, press
releases, Securities and Exchange Commission (SEC) filings, and in
oral statements made by or with the approval of one of Humana’s
executive officers, the words or phrases like “expects,”
“believes,” “anticipates,” “intends,” “likely will result,”
“estimates,” “projects” or variations of such words and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements are not guarantees of
future performance and are subject to risks, uncertainties, and
assumptions, including, among other things, information set forth
in the “Risk Factors” section of the company’s SEC filings.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230223005322/en/
Investors: Lisa Stoner - Humana Investor Relations; (502)
580-2652; lstamper@humana.com Media: Mark Taylor - Humana
Corporate Communications; (317) 753-0345; MTaylor108@humana.com
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