Humana Inc. (HUM - Free Report) announced the launch of a new Medicare Advantage Health Maintenance Organization (HMO) plan in rural communities of 31 counties across the Knoxville, Memphis, Nashville areas. The extension is part of its Tennessee expansion in 2021.
The health insurance giant will also provide Humana Honor plan in every county in the Tennessee region, which is available for all individuals eligible for Medicare. Notably, it may be a helpful option for military veterans seeking to complement their Veterans Affairs (VA) benefits, such as covering medical care services at non-VA (civilian) facilities, etc.
These Medicare Advantage plan options can be availed of during 2020’s Medicare Advantage and Prescription Drug Plan Annual Election Period, which runs from Oct 15 to Dec 7, 2020, for the plan coverage effective Jan 1, 2021.
This move is to expand the choices of people living in the rural areas so that more Tennesseans can access medical care without any hindrance. People with Medicare in these counties will be able to avail of an affordable alternative to the original Medicare only or original Medicare paired with a Medicare Supplement plan. The plan also includes a $0 premium, no or low copays for the doctor’s visits, a quarterly $150 over-the-counter allowance as well as hearing, dental, vision and prescription drug coverage.
The Humana Honor plan, a $0 premium Medicare Advantage option, is now offered across the state in 2021. It should be noted that the Humana Medicare Advantage plans are now recommended by the USAA, which is a leader in customer satisfaction.
The Medicare Advantage plans include SilverSneakers that adds memberships at participating fitness centers and provides access to classes designed with the Medicare beneficiary in mind as well as Humana Well Dine that caters nutritious food to qualified Medicare members recovering from an inpatient stay in a skilled nursing facility or hospital.
Undoubtedly, this move is in line with the health insurance giant’s commitment to enhance benefits for its Medicare members.
Earlier this month, Humana announced an array of 2021 Medicare product offerings, such as Medicare Advantage and Prescription Drug Plans, etc. Beneficiaries will now be able to choose from 69 new MAPD plans across various additional counties.
Humana will provide people under Medicare coverage with Humana Honor Medicare Advantage plans and even dispense the required health coverage to veterans for the second consecutive year. The company explored new locations for 2021 and even enabled safe enrolment for the beneficiaries.
Medicare Business and Its Scope
The health insurance giant always showed consistency when it comes to widening the scope of Medicare business.
Constant tie-ups to enrich medical care facilities are one of its key major commitments. The health care provider flaunts a strong Medicare business across the United States where it has been offering at least one Medicare plan across 50 states. Notably, it has been providing private health plans falling under the Medicare program for more than three decades now.
The COVID-19 outbreak coupled with an aging population in the United States further spurred demand for the Medicare Advantage plans. In order to reduce the financial burden imposed by the pandemic on its Medicare Advantage members, the company even eliminated additional costs for in-network primary care, outpatient behavioral health and telehealth visits for the rest of this year.
The business line’s growth track is evident from the 54% Medicare membership rise from 2013 to 2018. Although the same dipped 1% in 2019, Individual Medicare membership climbed 17.1% year over year in the same time frame, which is a positive.
The 2020 individual Medicare Advantage membership is now anticipated to be around 330,000-360,000 members, up from the earlier projected range of 300,000-350,000 members.
Over the past decade, the company saw maximum growth in Individual Medicare Advantage during 2019, which is pretty impressive.
All these initiatives bode well for the business line.
Zacks Rank and Price Performance
Shares of this currently Zacks Rank #2 (Buy) company have surged 54.7% in a year compared with the industry’s growth of 29.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other companies in the same space, such as Centene Corporation (CNC - Free Report) , Anthem Inc. (ANTM - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) have also rallied 43.2%, 20.9% and 72%, respectively, in the same time frame.
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