Another health insurer has come out with earnings, and that company seems to be repeating a familiar refrain: The old-rule, transitional policies are more of an immediate concern than the new public exchange policies.
Executives from Humana Inc. (NYSE:HUM) talked about their company’s Patient Protection and Affordable Care Act (PPACA) exchange plan business and other commercial health insurance operations while going over third-quarter results with analysts.
Like many other publicly traded health insurers, the company has been bringing in more revenue and somewhat lower profits, and spending more time thinking about the intricacies of the PPACA “three R’s” risk management programs.
For more on what has been happening at Humana, read on.
1. The company and its commercial health insurance operations did well.
The company as a whole is reporting $1 billion in net income for the latest quarter on $36 billion in revenue, compared with $1.3 billion in net income on $31 billion in revenue for the third quarter of 2013.
The company ended the quarter providing or administering health coverage for 14 million people, or 11 percent more than it was covering a year earlier.
Full insured employer group enrollment increased 1.1 percent, to 1.2 million, and enrollment in group plans the company administered fell 4.2 percent, to 1.1 million.
Enrollment in individual medical plans — including the qualified health plans (QHPs) sold through the PPACA exchange system — jumped to 1.1 million, from 493,000 a year earlier, before the exchange system opened.
Unlike most competitors, Humana is breaking out enrollment results for on-exchange and off-exchange business, as well as for “legacy” individual policies that do not comply with all of the PPACA requirements that now apply to new major medical policies.
The company has about 601,400 enrollees in on PPACA exchange QHPs, 128,400 enrollees in PPACA-compliant policies sold off the exchange, and 358,000 people in legacy policies. Enrollment in the legacy policies is down from 493,000 a year earlier.