Louisville-based Humana to phase out of commercial insurance business. What that means

Lucas Aulbach, Louisville Courier Journal
·2 min read

Humana, the massive Louisville-based health insurance company, is set to begin phasing out commercial insurance offerings over the next two years.

The company, which reported having around 10,000 employees who live in the region as of last year, announced the move Thursday morning, noting it "remains committed to the long-term growth" of Medicare Advantage and other Medicare offerings and government-funded programs. The exit from the "Employer Group Commercial Medical Products business," which includes fully insured, self-funded and federal employee plans, will take place over the next 18 to 24 months, a release said.

Company spokesperson Mark Taylor said the number of jobs that will be eliminated is not currently clear as "final decisions surrounding organizational changes, the development of new job opportunities and the wind-down of the business are still underway." A focus on health plan offerings for government and specialty businesses should "best position Humana for long-term growth and success," he said in an email.

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The lobby of the Humana headquarters building in Louisville, Kentucky. March 9, 2022
The lobby of the Humana headquarters building in Louisville, Kentucky. March 9, 2022

Commercial plans accounted for 4% of Humana's total premiums and services revenue in 2022, according to Securities and Exchange Commission filings, at about $3.7 billion.

Humana President and CEO Bruce Broussard said the move will allow the company to "focus resources on our greatest opportunities for growth" and support members and customers.

"We are confident in Humana’s continued success, and our commitment to improving the health of those we serve is unwavering," he said in a release.

Humana is headquartered in downtown Louisville. The Fortune 500 company was founded by in 1961 by Wendell Cherry and David Jones and offers insurance to more than 20 million people.

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Louisville Metro Government to keep employees 'fully informed'

The change will eventually impact Louisville Metro Government employees, as the city's medical benefits plan is currently managed by Humana.

Ernestine Booth-Henry, the human resources director for Metro Government, informed city employees in an email Thursday of Humana's announcement and how the 18-to-24-month transition period "will not have any impact on current city employee coverage through Humana or the upcoming 2023/2024 Open Enrollment Period for Metro Benefits."

"We will keep you fully informed as more details emerge from Humana about how they plan to go forward with the transition," Booth-Henry wrote in the email obtained by The Courier Journal. "In the meantime, you do not need to take any action. Providing you with continuous and reliable health insurance benefits is a top priority for Metro Human Resources, and we will always do so with your best interests at heart."

Billy Kobin contributed to this story. Reach Lucas Aulbach at laulbach@courier-journal.com.

This article originally appeared on Louisville Courier Journal: Humana to exit commercial employer insurance business in next 2 years