Kilpatrick

Carrier News

Humana Will Fully Exit Individual Commercial Medical Market in 2018

Humana announced that they will exit the individual commercial medical market in 2018. Read their broker communication for details. The termination applies to all commercial medical plans in all markets in all states including:

  • Grandfathered plans – Coverage purchased prior to the ACA’s enactment on Mar 23, 2010
  • Transitional plans – Coverage purchased from Mar 23, 2010 to Dec 31, 2013 prior to the ACA’s market reforms
  • ACA compliant plans purchased on-exchange
  • ACA compliant plans purchased off-exchange

Humana will offer plans on and off exchange through the remainder of the 2017 Special Enrollment Period. Those plans will terminate at the end of the year. Their Medicare and individual dental and vision plans will not be impacted.

Humana began selling individual commercial medical plans in 2002. At the end of 2016, Humana had 655,000 active policies. Today, only 1.5 months later, they have 152,000 active policies with 90,000 of those being grandfathered and traditional plans. Humana’s announcement coincides with an official announcement that Aetna and Humana will end their merger agreement and a proposed rule filed by HHS to implement reforms intended to stabilize the individual health market. Humana is losing money in the individual market, but Humana’s CEO implied the structure of the market is the reason for the exit—not the losses.

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