Humana (HUM) Grows On Strong Medicare Business Expansion
Zacks Investment Research | Dec 27, 2019 12:11AM ET
Humana Inc. (NYSE:HUM) is well-poised for growth on the back of its robust Medicare business. The company has been constantly taking up initiatives to boost this line of business, which bodes well for the long term.
Impressive uptick in the Medicare Advantage business is owing to its operating initiatives, evident from the 54% surge in Medicare membership from 2013 to 2018. Higher enrollment and a better offering led to this outperformance.
Demand for this business line is expected to bump up, riding on complex patient populations who are constantly looking for value-based care.
For 2019, Individual Medicare Advantage membership is predicted to be around 530000, above the previous projection of 415,000-440,000.
The company has been making concerted efforts to boost its network of Medicare Advantage members. Recently, it announced the upgrade of health plan choices for its Medicare beneficiaries in New Jersey by adding numerous counties to its network.
Last month, it entered into a partnership with Hawaii Senior Medical Group to provide coordinated and enriched experience for Medicare Advantage members in Hawaii. Several strategic alliances have been made by the company of late in order to enhance this business line.
Humana has also been chosen as one of the health plans to provide Florida’s Medicare retirees with Medicare coverage effective Jan 1, 2020. The company recently announced the launch of Humana Honor Medicare Advantage plans for 2020, designed to complement the Veterans Affairs program.
Earlier, management stated that it plans to add 270,000-330,000 members to its Medicare Advantage plans for individuals in 2020. As of Sep 30, 2019, the company had more than 2.3 million individual Medicare Advantage members.
Other companies in the same space like Anthem, Inc. (NYSE:ANTM) has also been working on its Medicare Advantage network. Also, Centene Corporation (NYSE:CNC) is on course to acquire WellCare Health Plans, Inc. (NYSE:WCG) , which is expected to close by the first half of 2020. This combined entity will have a wider scale and diversification with more than 12 million Medicaid and nearly 5 million Medicare members.
Shares of this Zacks Rank #3 (Hold) company have surged 30.9%, outperforming its Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.