Bruce Broussard has served as president of Louisville, Ky.-based Humana since 2011 and as CEO since January 2014. Humana recorded $48.5 billion in revenue last year, making it the fourth-largest publicly traded health insurance company by revenue. The company is one of the nation's largest Medicare Advantage insurers, with more than 3 million Advantage members representing about three-quarters of the company's revenue. Broussard previously served as CEO of McKesson Specialty Health, and chairman and CEO of US Oncology Holdings. Modern Healthcare reporter Bob Herman spoke with Broussard at the recent Healthcare Information and Management Systems Society conference about his company's use of mobile health information technology to help providers manage patients' care, the movement toward greater consumer choice in healthcare, and recent CMS payment and policy changes for the Medicare Advantage program. This is an edited transcript.
Modern Healthcare: What is Humana doing to engage patients through mobile technology?
Bruce Broussard: We look at three parts of healthcare that need to change: One is around value-based reimbursement, the second is around consumer choice, and the third is around integration of information. Mobile devices play a key part in all three—whether it's engaging with the patient around a health outcome, being able to service them and give them the transparency of choice, or the ability for physicians to make a decision about care on the fly with a mobile device. We see all three of those as part of the mobile evolution we're undertaking.
MH: What is Humana doing to further those goals?
Broussard: Transcend Insight is a great example of an application that can help physicians manage their patients with a mobile device, iPad or mobile phone. They can see gaps in care and data analytics, allowing them to recommend the next best action for their patients. Transcend and Transcend Insights are geared toward physicians. It really gets down to helping the physicians with their workflow and care coordination, and ultimately helping them with population health.
MH: The CMS recently said it wants to move more payments toward value-based care. What is Humana doing on that?
Broussard: Today, about 55% of our members are on value-based payments. We want to see that continue to grow. We are excited about what HHS is doing in bringing population health and value-based reimbursement to the industry. We want to be a partner with providers. Transcend provides the assistance in allowing providers to transition from a fee-for-service to a value-based reimbursement.
MH: How much of that 55% represents capitation?
Broussard: We believe physicians and hospital systems need to walk before they run. So they start out with a reimbursement relationship with us that's around quality and cost bonus payments. Over time, that transitions to a full-risk capitation level. We have about 30% of our members today in a full-risk relationship with a provider, and we see that growing as people become more comfortable moving from a quality-bonus relationship to a deeper relationship around risk.
MH: How does Humana as an insurer coordinate care between the patient and doctor?
Broussard: We have a very strong Humana at Home platform, and we employ about 10,000 nurses. We assist people when they transition outside of the hospital to the home.