Humana’s Strategy for Boosting Medicare Advantage Profitability
A central theme in Humana’s plan for boosting Medicare Advantage profitability in the future is a strategy its peers have relied on for over a decade: coaxing members in for their annual wellness visits.
The Medicare Advantage business has faced scrutiny in recent months for its impact on the federal budget, with concerns about insurers maximizing government payments. Despite these challenges, Humana remains confident that there is money to be made in the private form of Medicare for older adults by focusing on proven strategies.
George Renaudin, the president of Humana’s insurance business, emphasized the importance of annual wellness visits during the company’s investor day in Louisville, Ky. He highlighted the benefits of these visits for seniors, noting that they appreciate the convenience and personalized attention they receive in the comfort of their own homes.
While annual wellness visits were initially intended for doctors to assess their patients’ health conditions comprehensively, insurers have leveraged these visits to add lucrative diagnosis codes that result in higher government payments. Humana is committed to increasing annual wellness visits through innovative partnerships with its primary care subsidiary and embedding clinical insights into providers’ workflow systems.
Lisa Stephens, the chief operating officer of Humana’s insurance division, outlined a comprehensive approach to encourage members to schedule their annual wellness visits. This includes integrating reminders into call center interactions and streamlining the appointment scheduling process.
Humana’s focus on engagement mirrors similar strategies employed by UnitedHealth Group, another major Medicare Advantage insurer. By emphasizing accurate diagnoses, follow-up care, and improved clinical outcomes, Humana aims to lower expenses and achieve sustainable profit margins.
Jim Rechtin, Humana’s CEO, emphasized the company’s commitment to providing quality senior services, positioning itself not just as a health insurer but as a comprehensive senior care provider. Moving forward, Humana plans to prioritize member retention and quality care delivery to drive business growth and ensure long-term success.
In conclusion, Humana’s emphasis on annual wellness visits and member engagement reflects a strategic approach to maximizing profitability in the Medicare Advantage market. By prioritizing quality care and member retention, the company aims to secure its position as a leader in the industry while delivering value to its members.
