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Humana (HUM) Arm to Offer Original Medicare Members Holistic Care

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Humana Inc.’s (HUM - Free Report) CenterWell Senior Primary Care is taking part in a new federal population health program. This will  enable the unit to boost its care-team medical facilities for Original Medicare beneficiaries.

Notably, CenterWell is a leading provider of senior-focused healthcare and operates 67 payer-agnostic primary care centers across eight states. It comes under Humana’s Care Delivery Organization that involves around 100 Conviva Care Centers. Along with Conviva, CenterWell caters to more than 2,00,000 senior patients across the United States.

Both segments are progressing well, which is clear from CenterWell’s imminent expansion to its ninth state this year. It is part of the new Direct Contracting Model with the sole objective of providing improved health care and better patient experience for the Medicare beneficiaries.

The Medicare members will be able to enjoy enhanced healthcare at reasonable costs. This holistic view of treatments is expected to result in better health outcomes. While Humana has been so long addressing requirements of care under this health model for patients with Medicare Advantage, it is now extending the same facility to members with Original Medicare.

The move is aptly timed as every individual is today striving to get quality, value-based care. CenterWell’s reimbursement under this model is dependent on the standard of care it metes out. As a case in point, the financial burden of medical costs with be shared between Centers for Medicare & Medicaid Services (CMS) and CenterWell. Established by CMS’ Innovation Center, the Direct Contracting Model emboldens health organizations to undertake voluntarily transition from fee-for-service to value-based care.

This is definitely not the first time that Humana took measures to enrich the experience of its members. Earlier this year, the health insurer introduced a pilot named Humana Care Support, which offers a host of customized, integrated and coordinated care management services to a specific group of Medicare Advantage members.

The leading health insurance provider is steadily gaining from its Medicare business. In the first quarter of 2021, membership was up 12% year over year. For the full year, this currently Zacks Rank #3 (Hold) player expects individual Medicare Advantage membership growth of around 425,000-475,000 members, suggesting a rise of 11-12% from the year-ago reported figure. This, in turn, is expected to contribute to solid revenue growth.

Price Performance

Shares of Humana have gained 9.6% in a year’s time, underperforming its industry’s increase of 29.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.


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Stocks to Consider

Some better-ranked companies in the same space are Magellan Health, Inc. (MGLN - Free Report) , Select Medical Holdings Corporation (SEM - Free Report) and The Joint Corp. (JYNT - Free Report) , each presently holding a Zacks Rank #2 (Buy).

Magellan Health, Select Medical and Joint Corp. managed to pull off a trailing four-quarter surprise of 69.6%, 245.9% and 199.2%, respectively, on average.

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