Humana has revealed its intentions of withdrawing from the Colorado employer group market with coverage ceasing by June 30, 2024. Continue reading to find out more about Humana’s plans for future business.
Humana, which provides health insurance to small businesses in Colorado, intends to withdraw from the Colorado employer group market within the next 18 months, Colorado Politics has learned.
The company has not formally announced its withdrawal. Humana did not return inquiries from Colorado Politics.
Humana announced its intention to leave the state market in a letter sent to Colorado brokers and agents, who sell its policies.
Humana plans to continue offering its Medicare, dental and vision insurance, the letter said.
The state Division of Insurance, which normally announces new health insurance rates for 2023 in mid-October, has yet to release information about the new rates. Open enrollment for 2023 begins on Nov. 1.
The Humana letter, dated Sept. 19, carried this headline: “Discontinuance of employer group medical plans in Colorado.”
It includes answers to questions brokers might have about the decision.
Humana said the decision was made “only after thoughtful actuarial and financial review of our medical market experience.”
“Based on this review, we have determined we can no longer offer competitive fully insured employer group medical insurance and self-funded (LFP) and Administrative Services only (ASO) plans with meaningful value in Colorado,” the company said.
“All employer group medical plans for fully insured and self-funded (LFP and ASO) will be discontinued, which includes medical PPO, HMO, NPOS, and Indemnity plans for community rated and non-community rated,” the group said.
The letter said the withdrawal does not affect other business Humana offers, including Medicare, employer group dental, vision and life plans, as well as individual dental and vision plans.
The announcement noted that Colorado requires a 180-day notification period, which will begin on Jan. 1, 2023.
All coverage will cease by June 30, 2024.
The company intends to notify employer members by Dec. 15 about its exit. Quoting for new businesses ceased as Sept. 20, the letter said, adding no new coverage will be issued to groups starting on Oct. 1.
The company has about 183,000 members in Colorado, according to a 2019 press release from Humana. Investopedia rated Humana best for customer services for small business owners in 2022.
Gov. Jared Polis, through a spokesman, downplayed the news.
“Colorado’s small and large group health insurance markets, where Humana offers coverage, are highly competitive markets. As of the most recent data reported to the Division of Insurance, Humana only had approximately 3% of the small group market and 0.5% of the large group market for a combined total of approximately 18,000 lives. As reflected by that low market share and as Humana stated in their announcement, Humana simply was not able to compete in Colorado’s highly competitive market,” the spokesman said. “We have a competitive health insurance market, this company has a small market share and we will monitor this development as saving people money on and expanding access to health care is a top priority for the governor.”
The figures cited by Polis’ spokesman excluded 165,000 Coloradans enrolled in the federally-regulated self-insured market. Those people are set to lose their insurance coverage as well.
Humana is the second company to announce it is leaving the Colorado market in the past month.
Bright Health announced on Oct. 11 it, too, is withdrawing from the individual health insurance market. The company announced earlier this year it was also leaving the small group market. The company covered 55,000 customers, all but 1,000 in the small group market, according to an announcement from the Division of Insurance.
Original article published on healthleadersmedia.com