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Humana (HUM) to Support Eligible Medicaid Members in Ohio

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Humana Inc. (HUM - Free Report) recently announced that the Ohio Department of Medicaid (ODM) will provide medical care coverage to the Medicaid beneficiaries residing in Ohio. Scheduled to start in early 2022, the contract includes an initial two-year term of service with an option of renewal later.

Through this pact, adults and children in the state of Ohio are expected to benefit from better health outcomes as a result of Humana’s holistic, value-based approach.

The leading health insurer is one of atleast six health plans chosen as part of a statewide Medicaid managed care procurement issued last year.
This latest contract win is not only likely to improve health outcomes of the Ohio residents but also strengthen the company’s presence across the state where it already boasts a robust Medicaid business.

In this regard, it should be noted that more than 566,000 Ohioans have health coverage through Humana Medicare Advantage plans, Medicare prescription drug plans, commercial group health plans and the TRICARE military health care program as administered by Humana.

The company also flaunts a position as a community partner in Ohio via which it addresses social determinants of health through Bold Goal program.

Further, Humana intends to focus on population health programs and establish sound value-based care relationships with local providers. Such initiatives bode well for the company, which in turn, are likely to bolster its top line in the days ahead.

These deal wins poise the company well for growth. Other factors, such as its rising telehealth services and strategic initiatives also contribute to its overall progress.

Its peers, namely UnitedHealth Group Incorporated’s (UNH - Free Report) is also recently chosen by the state of Hawaii for administering its QUEST Integration Medicaid program across the state. The list includes the islands of Hawaii, Kauai, Lanai, Maui, Molokai and Oahu. Moreover, Centene Corporation (CNC - Free Report) informed that its Hawaii subsidiary Ohana Health Plan received a contract from the Hawaii Department of Human Services.

Zacks Rank and Price Performance

Shares of Humana have gained 17.3% in a year’s time, underperforming its industry’s increase of 33.5%.


Humana currently holds a Zacks Rank #4 (Sell).

A better ranked stock in the same space is Select Medical Holdings Corporation (SEM - Free Report) , which has soared 109.3% in the same time frame and currently sports a Zacks Rank #1 (Strong buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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