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 worked as a journalist since 2011 and has covered health care since 2020. At AIS Health, Peter covers trends in finance, business and policy that affect the health insurance and pharma sectors. For Health Plan Weekly, he covers all aspects of the U.S. health insurance sector, including employer-sponsored insurance, Medicaid managed care, Medicare Advantage and the Affordable Care Act individual marketplaces. In Radar on Drug Benefits, Peter covers the operations of (and conflicts between) pharmacy benefit managers and pharmaceutical manufacturers, with a particular focus on pricing dynamics and market access. Before joining AIS Health, Peter covered transportation, public safety and local government for various outlets in Seattle, his hometown and current place of residence. He graduated with a B.A. from Colby College.

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