Humana going all in on Medicare business
- Thread starter sman
- Start date
- 527
I don't know why they're leaving Group Market...they're making a fortune ~
Maybe . . . but any company that relies on almost any business segment is being squeezed due to downsizing, closures, foreclosures, BK . . . the list goes on.
While Humana (and other carriers) may be making a fortune now it won't last. Laid off employees who continue under COBRA and are unable to find work soon experience deteriorating health. Poor nutrition, increased alcohol use, skimping on health care including Rx is not a new pattern . . . this has been evident during recession years.
- 29,515
I heard on the news that the group market is only 6% of their business.
That may also be true, but group health is very competitive with slim margins. Small group plans, fewer than 100 covered lives, often are not profitable, even with volume.
Large group plans are marginally profitable and plans for 500+ employees are generally ASO plans.
Group insurance is often marketed by carriers as a way to pick up more profitable ancillary lines such as retirement plans, group life insurance, vision, dental, etc.
- 527
yes... THEY WANT THE 'Life insurance' ---- not sure how competitive Humana is with Life ?
GTL, especially when paired with group health insurance, generally does not have to be competitive except in super groups where the GTL is shopped separate from the health.
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