Skip to main content
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Blogs
    • AI
    • Deals
    • Layoff Tracker
    • HIMSS 2023
  • Opinion
    • Breaking Bias
    • Commentaries
    • Letters
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - AI and Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Sponsored Video Series - One on One
    • Sponsored Video Series - Checking In with Dan Peres
  • Data & Insights
    • Data & Insights Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Finance
April 20, 2017 12:00 AM

Humana to focus on Medicare Part D and Medicare Advantage patients in 2017

Alex Kacik
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    AP PHOTO

    Humana will continue to focus its efforts on the growing population of aging seniors in the U.S., the insurance company said during its annual shareholder meeting Thursday.

    The Louisville, Kentucky-based insurer is celebrating a good fiscal year despite its very public breakup with Aetna and its decision to pull out of the individual insurance marketplace next year.

    Humana CEO Bruce Broussard said during the meeting that it was "quite remarkable" how the company performed during the two years of merger talks, citing growth in revenue and membership for its primary demographic Medicare Part D and Medicare Advantage patients.

    The country's aging baby boomer population represents a significant opportunity for healthcare companies. In 2016, about 41 million Medicare beneficiaries, or 71% of all Medicare beneficiaries nationwide, were enrolled in Part D plans, while 17.6 million beneficiaries – 31% of the Medicare population – were enrolled in a Medicare Advantage plan, according to a 2016 study published by the Henry J. Kaiser Family Foundation.

    A merger between Humana and Aetna would've accounted for 25% of Medicare Advantage enrollment nationwide – more than UnitedHealthcare, which covered 21% of the Medicare Advantage population in 2016, according to another 2016 study published by the Kaiser Family Foundation.

    Humana and Etna called off their proposed $37 billion merger in February after working on the deal for close to two years. They decided not to appeal a federal court's decision to block the deal based on antitrust purposes. Humana announced hours later that it would not sell health coverage on the ACA exchanges next year.

    When asked about the possibility of taking an active role in shaping new healthcare policy, Broussard said the company will focus on improving the health of the country's aging population.

    "Our engagement with the administration and Congress is really around how can we advance taking care of seniors and our engagement is not around non-Medicare Advantage or non-Medicare businesses because we find that's really not where we can best serve the society as a whole," Broussard said during the meeting.

    Humana expects some financial fallout from its decision to exit the exchanges. The company had an operating loss of $1.37 per diluted common share in 2016 for its individual commercial business due to the company's planned exit. Diluted earnings per common share dropped from $8.44 in 2015 to $4.07 in 2016, according to generally accepted accounting principles.

    Humana projects an operating loss of approximately $45 million pretax, or $0.17 per diluted common share, for its individual commercial business in fiscal year 2017 stemming from its decision to pull out of exchanges.

    Also during the meeting, shareholders voted to elect the board of director's nominees, affirm PricewaterhouseCoopers as its accounting firm, approve executive compensation agreements as well as a proxy access proposal.

    The California Public Employees' Retirement System and the New York City Pension Funds proposed the proxy access plan including ownership of at least 3% of Humana's outstanding stock, three years of continuous ownership and the right to nominate up to a quarter of the company's board. The systems have a combined $480 billion in assets and own 846,000 shares of Humana stock.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Copy of finance_arrows_down_WEB_i_i_i.jpg
    Dozens of hospitals, health systems see credit rating downgrades
    Copy of states hospital costs_WEB_i.jpg
    Mark Cuban-backed study finds price discrepancies in hospital services
    Most Popular
    1
    Centene to lay off 2,000 workers
    2
    How health systems are battling price-gouging allegations
    3
    Senate advances bill to temporarily aid hospitals, health centers
    4
    Elevance, Blue Cross Louisiana halt $2.5B proposed deal
    5
    Tower Health to sell urgent care centers, close others
    Sponsored Content
    Daily Finance Newsletter: Sign up to receive daily news and data that has a direct impact on the business and financing of healthcare.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Help Center
    • Advertise with Us
    • Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Blogs
      • AI
      • Deals
      • Layoff Tracker
      • HIMSS 2023
    • Opinion
      • Breaking Bias
      • Commentaries
      • Letters
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - AI and Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Sponsored Video Series - One on One
      • Sponsored Video Series - Checking In with Dan Peres
    • Data & Insights
      • Data & Insights Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing