Humana Will Soon Close the Book on Commercial Insurance Division

Humana Inc. will exit the commercial insurance business and focus exclusively on government books of business, the company said on Feb. 23. Industry analysts say it was a wise strategic move, and experts tell AIS Health, a division of MMIT, that the decision will have a marginal impact on Humana’s profits.

Humana said that “following a strategic review,” it has decided to shelve its Employer Group Commercial Medical Products (FEHB) business — which includes all fully insured, self-funded and Federal Employee Health Benefit plans — over the next 18 to 24 months. A press release said the division “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 streamlining move comes on the heels of Humana’s divestment of its hospice business during 2022; the firm also executed a “value creation plan” that executives say delivered $1 billion in additional earnings.

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Peter Johnson

Peter Johnson

Peter has been a reporter for nearly a decade. Before joining AIS Health, Peter covered a wide variety of topics in his hometown of Seattle, where he continues to live. Peter’s work has appeared in publications including The Atlantic and The Stranger. Peter attended Colby College.

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