With the domestic health insurer earning $600 million+ in additional revenue, leading to a third-quarter profit of $1.3 billion, Humana is enjoying the benefits of its decision to bet on value-based primary care. The venture of Humana into improved primary care comes during a time when healthcare costs are rising, and insurers are looking for ways to reduce medical claims expenses.
Research has demonstrated long-term cost benefits as more cash is reserved initially for primary care, including screenings and preventive care. In Medicare Advantage schemes, Humana recipients skew toward veterans who spend more than younger, healthy patients, so the commitment pays off. Better treatment and better performance, a crucial factor in building value, has also contributed to more member retention.
Instead of billing doctors for each service they provide, which insurers have traditionally done, Humana pays a fixed annual rate per patient for primary care practices. This practice is gaining adoption especially after the epidemic of coronavirus prevented patients from receiving routine treatment and emptied medical practice revenue. Various value-based practices were already collecting fees when people started attending the clinics of their physicians.
To read more, please visit https://www.businessinsider.com/humana-ceo-lays-out-approach-to-primary-care-clinics-2020-11.
Founded in 2020 by veteran healthcare leaders with a proven track record of success, NeighborMD provides an innovative model integrated with robust technology that delivers high-quality results and outcomes. We are dedicated to making the healthcare experience easy for you to use and we understand the value of community-based, patient-centered primary care. We offer utilization management, analytics, clinical innovations, and value-based solutions. For more information on us or MSO services, please call 888-501-1105.