Health insurer Humana’s chief executive says enrollment growth in the firm’s Medicare Advantage plans is partly due to an improved regulatory environment for the program, under which approved companies are paid by the government to provide benefits.
The Centers for Medicare and Medicaid Services, which oversees the national insurance program for beneficiaries age 65 and older, announced earlier this year that rates for Medicare Advantage would increase by 0.45 percent next year. Humana said the decision would result in a 3 percent rate increase for its own plans.
“This is a result of the growing support for Medicare Advantage,” CEO Bruce Broussard told investors. “There is a clear recognition that the Medicare Advantage program provides affordable coverage,” reduces overall healthcare costs and improves clinical outcome, he said.
Membership in Humana’s Medicare Advantage plans climbed 6 percent to 3 million for the quarter that ended on March 31. Net income fell 56 percent to $491 million for the period.
Medicare Services Administrator Seema Verma announced last month that the agency would release data on Medicare Advantage and the nearly 19 million individuals that utilize the program.
