If you’re an employer with a Humana group insurance plan, you have probably heard the news. On February 23, 2023, Humana announced that they are exiting the Employer Group Commercial Medical Products business.
Humana is exiting group insurance. What does that mean?
All fully insured, self-funded, and Federal Employee Health Benefit medical plans are going to be phased out over the next 18 to 24 months. Humana will no longer offer group health insurance effective January 1st of 2024.
They are going to work with each individual state’s Department of Insurance to determine when the last of their renewals will be issued, but they are intending to continue renewing plans throughout most of 2023 – which means many groups can continue with their Humana plans until their 2024 renewal.
To quote Humana:
“…Please be assured that there is nothing you need to do at this time and there is no change in the short term. We will let you know in advance whether anything is required of you…”
What Employers with Humana Medical Plans Should Do
You don’t need to do anything at this time!
Dates are going to vary by state and by product. This is going to be a gradual transition for employers. As a benefits broker, our team at ABS is disappointed that Humana has decided to no longer offer group health insurance for employers but we are not exactly surprised. Humana has not been as competitive as other carriers in recent years for many of their group medical options.
If your medical plan renewal is before 11/1/2023, you may not be impacted until late 2024. Contact your benefits administrator or get in touch with our team to review all the options available for your group. Now is the time to mark dates and stay informed for the future of your company. There are many other products available on the market to offer your employees and meet the needs of your company and the goals of your employees.
In short? If you’re an employer, here are three steps for the time being:
- Do not panic. Nothing is changing for the immediate future regarding your group medical plan.
- Prepare. Make sure you have a benefits broker or provider you trust to look at all your options for the future.
- Decide. Communicate to your benefits broker or provider the most important elements of a group medical plan to ensure they’re putting your needs first.
We are Here to Help
The group insurance market is always changing. We stay on top of the latest news and trends like Humana’s exit from group insurance so you, as a busy employer, don’t have to.