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Humana expects to exit Medicare Advantage markets in 2025, company executives told investors.
"We expect benefit levels, plan stability and choice for seniors to be negatively impacted by the final MA rate notice, which is not sufficient to address the current medical cost trend environment and regulatory changes," CEO Bruce Broussard said.
CMS published its final MA rate notice for 2025 earlier this month. The agency slightly cut benchmark payments and continued phasing in coding changes. Humana previously said the agency's rates were lower than its expectations. Other payers have signaled they will likely cut benefits to accommodate the rate notice.
CFO Susan Diamond said the company will expect to see membership decline as it exits markets.
"We are anticipating net membership declines in 2025, largely because we do plan to exit certain plans and counties," Ms. Diamond said. "Whether that is incrementally larger or smaller based on the other plans will be very dependent on what we see across the competitive landscape."
Humana will share more information on the size and scope of plan exits after bids are submitted in early June, Ms. Diamond said.
Though the company is anticipating a decline in 2025 membership, the company upped its 2024 membership guidance. Humana expects to add 150,000 Medicare Advantage members in 2024.
[EXTERNAL LINK] - Humana plans to leave some Medicare Advantage markets in 2025
"We expect benefit levels, plan stability and choice for seniors to be negatively impacted by the final MA rate notice, which is not sufficient to address the current medical cost trend environment and regulatory changes," CEO Bruce Broussard said.
CMS published its final MA rate notice for 2025 earlier this month. The agency slightly cut benchmark payments and continued phasing in coding changes. Humana previously said the agency's rates were lower than its expectations. Other payers have signaled they will likely cut benefits to accommodate the rate notice.
CFO Susan Diamond said the company will expect to see membership decline as it exits markets.
"We are anticipating net membership declines in 2025, largely because we do plan to exit certain plans and counties," Ms. Diamond said. "Whether that is incrementally larger or smaller based on the other plans will be very dependent on what we see across the competitive landscape."
Humana will share more information on the size and scope of plan exits after bids are submitted in early June, Ms. Diamond said.
Though the company is anticipating a decline in 2025 membership, the company upped its 2024 membership guidance. Humana expects to add 150,000 Medicare Advantage members in 2024.
[EXTERNAL LINK] - Humana plans to leave some Medicare Advantage markets in 2025
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