LOUISVILLE, Ky. - Humana Inc . (NYSE: NYSE:HUM), a prominent health and well-being company, has announced an expansion of its Medicare Advantage Institutional Special Needs Plan (I-SNP), Humana Together in Health, to eight additional states. Starting in 2025, eligible residents in long-term care facilities in Indiana, Iowa, Kentucky, Louisiana, New Mexico, Tennessee, Washington, and West Virginia will have access to these specialized healthcare services.
The expansion comes through a collaboration with Longevity Health, a clinical services company that has a history of partnering with long-term care facilities to transition to a value-based care model. This model is designed to improve clinical outcomes and provide patient-centered healthcare. George Renaudin, Humana’s Insurance Segment President, highlighted Longevity Health's role in enhancing the health outcomes of Humana members through its experience and approach to care.
Humana Together in Health plans offer a range of benefits, including dental, vision, and hearing coverage, transportation for medical appointments, and care manager support. A new feature to be introduced in 2025 is music therapy sessions for eligible members with chronic conditions, aiming to boost engagement and alleviate anxiety.
Dr. René Lerer, CEO of Longevity Health, expressed pride in the growing partnership and the opportunity to bring exceptional care to more residents of senior living facilities. This move is seen as a reflection of the trust Humana places in Longevity’s expertise.
Humana Inc. emphasizes its commitment to health through its insurance services and CenterWell healthcare services, striving to facilitate better health outcomes for a wide range of individuals, including those with Medicare and Medicaid.
The expansion of Humana Together in Health to additional states is a strategic move to reach and serve members requiring specialized care in long-term care settings. This information is based on a press release statement from Humana Inc.
In other recent news, Humana Inc. has welcomed Gordon Smith, an Operating Advisor at Clayton, Dubilier & Rice LLC, to its Board of Directors. Smith's extensive experience in managing complex organizations is expected to provide valuable insights to Humana, particularly in expanding its Medicare Advantage and CenterWell healthcare services businesses. Concurrently, Humana and Cigna (NYSE:CI) are reportedly exploring merger possibilities, a move that could significantly reshape the U.S. health insurance industry.
Recent developments also show a decline in Humana's Medicare Advantage Star Ratings for 2025. In response, KeyBanc initiated coverage on Humana with a Sector Weight rating, while Jefferies and Piper Sandler downgraded their ratings due to potential effects on future earnings. RBC Capital revised its price target for Humana to $265 from $400, maintaining an Outperform rating.
Meanwhile, CarePlus Health Plans, Inc. announced enhancements to its Medicare Advantage offerings for 2025, aiming to improve healthcare access for Medicare-eligible Floridians. These updates and more reflect the dynamic nature of the health insurance industry, with companies adapting to changes in policy, market conditions, and consumer needs.
InvestingPro Insights
As Humana Inc. (NYSE: HUM) expands its Medicare Advantage Institutional Special Needs Plan to eight additional states, it's worth examining some key financial metrics and insights from InvestingPro to understand the company's current position.
Humana's market capitalization stands at $31.14 billion, reflecting its significant presence in the healthcare sector. The company's revenue growth of 13.48% over the last twelve months as of Q2 2024 aligns with its strategic expansion efforts, demonstrating a robust trajectory in line with its growth initiatives.
An InvestingPro Tip highlights that Humana has raised its dividend for 7 consecutive years, showcasing a commitment to shareholder returns. This consistent dividend growth could be attractive to investors, especially considering the company's expansion plans which may require capital allocation decisions.
Another relevant InvestingPro Tip notes that Humana is a prominent player in the Healthcare Providers & Services industry. This status is evident in the company's strategic moves, such as the expansion of its specialized Medicare Advantage plans and partnerships with companies like Longevity Health.
It's worth noting that Humana's P/E ratio (adjusted) stands at 13.99, which may indicate a relatively attractive valuation compared to industry peers. This could be particularly interesting for investors considering the company's growth initiatives and market position.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into Humana's financial health and market position. There are 8 more InvestingPro Tips available for Humana, which could be valuable for investors looking to make informed decisions in light of the company's recent expansion announcement.
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