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Humana (HUM) Ties Up To Offer Value-Based Care to MA Members
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Humana Inc. (HUM - Free Report) recently teamed up with the largest independent primary care network in the United States – Aledade. By virtue of the decade-long tie-up, the Medicare Advantage members of Humana under value-based care agreements will be entitled to receive uninterrupted primary care from in-network Aledade-enabled physicians.
The latest partnership is expected to strengthen the existing ties between Humana and Aledade, who have been working in unison since 2019 to bring about better patient health outcomes. The success of their collaboration can be substantiated across those limited markets in which they have jointly catered to and brought about higher primary care visits, lower inpatient hospitalizations and reduced readmissions.
The recent announcement of collaborating with one of the largest value-based care providers of Humana (Aledade) reflects HUM’s intensified focus to bring more patients under the ambit of value-based care agreements. Enrollment in such deals fetches multiple benefits for patients, some of which are increased preventive screenings that result in the early diagnosis and treatment of a disease, improved patient engagement and a decline in emergency room visits.
Value-based care agreements also assure to bring down the healthcare expenses of patients. And Aledade seems to be the apt partner to complement Humana’s endeavor of minimizing the out-of-pocket expenses of its members. Aledade is backed by a solid history of enabling primary care clinicians to render quality care to patients and managing to generate healthcare cost savings of over $1.2 billion in the past eight years.
Encouraged by such tailwinds, more individuals are likely to be motivated to opt for physician care under value-based care agreements. Consequently, the count of patients in Humana’s network that receive care under a value-based agreement with an Aledade-enabled physician practice, which stood at 100,000-plus at 2022-end, is expected to receive a boost with the latest move.
A growing customer base might fortify premiums and the nationwide presence of Humana. The healthcare provider seems prudent to bolster its Medicare Advantage business through the tie-up. Among approximately 8.6 million members served through its Medicare business, Medicare Advantage members of around 5.6 million form a significant portion. Also, the thought of effectively catering to the Medicare Advantage plan is time opportune, considering the growing aging population in the United States.
HUM’s management anticipates individual Medicare Advantage membership to witness minimum membership growth of 625,000 in 2023, up from the earlier projection of an increase in the range of 325,000-400,000.
To grow its Medicare business, Humana pursues alliances with physicians and well-established healthcare organizations. HUM has also taken the help of such initiatives to devise Medicare Advantage plans, similar to the one named Humana USAA Honor with Rx that Humana developed by teaming up with USAA Life for the benefit of the U.S. veteran community. Other factors such as contract wins and renewals have also provided an impetus to Humana’s Medicare business.
Shares of Humana have gained 12.3% in a year against the industry’s 3.9% decline. HUM currently carries a Zacks Rank #3 (Hold).
Lantheus’ earnings surpassed estimates in each of the last four quarters, the average surprise being 50.00%. The Zacks Consensus Estimate for LNTH’s 2023 earnings indicates a rise of 13.5%, while the same for revenues suggests an improvement of 24.3% from the respective year-earlier actuals. The consensus mark for LNTH’s 2023 earnings has moved 12.7% north in the past seven days.
The bottom line of Avanos Medical outpaced estimates in each of the trailing four quarters, the average being 11.01%. The Zacks Consensus Estimate for AVNS’s 2023 earnings indicates a rise of 1.8% from the year-earlier actual. The consensus mark for AVNS’s 2023 earnings has moved 2.4% north in the past 30 days.
UnitedHealth Group’s earnings surpassed estimates in each of the last four quarters, the average beat being 4.38%. The Zacks Consensus Estimate for UNH’s 2023 earnings indicates a rise of 12.3%, while the same for revenues suggests an improvement of 10.7% from the respective year-earlier actuals. The consensus mark for UNH’s 2023 earnings has moved 0.2% north in the past 60 days.
The Lantheus stock has gained 40.3% in a year. However, shares of Avanos Medical and UnitedHealth Group have lost 17.6% and 4.2%, respectively, in the same time frame.
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Humana (HUM) Ties Up To Offer Value-Based Care to MA Members
Humana Inc. (HUM - Free Report) recently teamed up with the largest independent primary care network in the United States – Aledade. By virtue of the decade-long tie-up, the Medicare Advantage members of Humana under value-based care agreements will be entitled to receive uninterrupted primary care from in-network Aledade-enabled physicians.
The latest partnership is expected to strengthen the existing ties between Humana and Aledade, who have been working in unison since 2019 to bring about better patient health outcomes. The success of their collaboration can be substantiated across those limited markets in which they have jointly catered to and brought about higher primary care visits, lower inpatient hospitalizations and reduced readmissions.
The recent announcement of collaborating with one of the largest value-based care providers of Humana (Aledade) reflects HUM’s intensified focus to bring more patients under the ambit of value-based care agreements. Enrollment in such deals fetches multiple benefits for patients, some of which are increased preventive screenings that result in the early diagnosis and treatment of a disease, improved patient engagement and a decline in emergency room visits.
Value-based care agreements also assure to bring down the healthcare expenses of patients. And Aledade seems to be the apt partner to complement Humana’s endeavor of minimizing the out-of-pocket expenses of its members. Aledade is backed by a solid history of enabling primary care clinicians to render quality care to patients and managing to generate healthcare cost savings of over $1.2 billion in the past eight years.
Encouraged by such tailwinds, more individuals are likely to be motivated to opt for physician care under value-based care agreements. Consequently, the count of patients in Humana’s network that receive care under a value-based agreement with an Aledade-enabled physician practice, which stood at 100,000-plus at 2022-end, is expected to receive a boost with the latest move.
A growing customer base might fortify premiums and the nationwide presence of Humana. The healthcare provider seems prudent to bolster its Medicare Advantage business through the tie-up. Among approximately 8.6 million members served through its Medicare business, Medicare Advantage members of around 5.6 million form a significant portion. Also, the thought of effectively catering to the Medicare Advantage plan is time opportune, considering the growing aging population in the United States.
HUM’s management anticipates individual Medicare Advantage membership to witness minimum membership growth of 625,000 in 2023, up from the earlier projection of an increase in the range of 325,000-400,000.
To grow its Medicare business, Humana pursues alliances with physicians and well-established healthcare organizations. HUM has also taken the help of such initiatives to devise Medicare Advantage plans, similar to the one named Humana USAA Honor with Rx that Humana developed by teaming up with USAA Life for the benefit of the U.S. veteran community. Other factors such as contract wins and renewals have also provided an impetus to Humana’s Medicare business.
Shares of Humana have gained 12.3% in a year against the industry’s 3.9% decline. HUM currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the Medical space are Lantheus Holdings, Inc. (LNTH - Free Report) , Avanos Medical, Inc. (AVNS - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) . While Lantheus sports a Zacks Rank #1 (Strong Buy), Avanos Medical and UnitedHealth Group carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lantheus’ earnings surpassed estimates in each of the last four quarters, the average surprise being 50.00%. The Zacks Consensus Estimate for LNTH’s 2023 earnings indicates a rise of 13.5%, while the same for revenues suggests an improvement of 24.3% from the respective year-earlier actuals. The consensus mark for LNTH’s 2023 earnings has moved 12.7% north in the past seven days.
The bottom line of Avanos Medical outpaced estimates in each of the trailing four quarters, the average being 11.01%. The Zacks Consensus Estimate for AVNS’s 2023 earnings indicates a rise of 1.8% from the year-earlier actual. The consensus mark for AVNS’s 2023 earnings has moved 2.4% north in the past 30 days.
UnitedHealth Group’s earnings surpassed estimates in each of the last four quarters, the average beat being 4.38%. The Zacks Consensus Estimate for UNH’s 2023 earnings indicates a rise of 12.3%, while the same for revenues suggests an improvement of 10.7% from the respective year-earlier actuals. The consensus mark for UNH’s 2023 earnings has moved 0.2% north in the past 60 days.
The Lantheus stock has gained 40.3% in a year. However, shares of Avanos Medical and UnitedHealth Group have lost 17.6% and 4.2%, respectively, in the same time frame.