Executives from Humana Inc. say they are eager to talk to brokers about the company’s Medicare Advantage plans.
Bruce Broussard, the Louisville, Kentucky-based carrier’s CEO, talked about the company’s eagerness to work with Medicare Advantage brokers on Wednesday during a conference call with securities analysts.
(Related: Aetna and Humana Break Up)
Aetna Inc. ended efforts to acquire Humana on Valentine’s Day. While deal talks were still under way, “there was just a lot of confusion in the marketplace that some brokers were creating,” Broussard said.
Some people hurt Humana by conveying the message that Humana would pump up enrollment in a local market and then leave the market, Broussard said.
Humana is now trying to eliminate that confusion by making efforts to reach out to brokers, Broussard said.
“In the last six weeks, we’ve had a number of one-on-one meetings and group meetings with our distribution channels,” he said. “Basically, we’re saying that we’re back in action, that we have some great products, and that the Humana you knew two years ago is even better than ever. I think our continued touching with them will be important.”
Humana will be “very competitive on the compensation side,” Broussard added.
Broussard said Humana will also offer brokers more marketing support and other types of support.
The company has already ended sales of individual major medical coverage outside of the Affordable Care Act public exchange system, and it expects to end ACA exchange sales at the end of the year, Broussard said.
Humana held the call, which was streamed live over the web, to go over its first-quarter earnings.
Humana says it expects to report $1.7 billion in net pretax income for the first quarter because it will record a $947 million net gain related to an Aetna deal breakup payment.
Pretax operating income adjusted for unusual gains and charges will increase to $751 million, from $567 million in the first quarter of 2016.
A recording of the call is available on Humana’s website.
— Read Humana Completes $1 Billion Note Offering on ThinkAdvisor.