Humana Inks Dual Partnership Deals to Improve Healthcare
Humana Inc. (HUM) is making headlines in the health maintenance organization (:HMO) space with its recently announced partnerships. Yesterday, the industry giant made two collaborations, the first with Alignment Healthcare and UNC Health Care, and the second with The Bill, Hillary & Chelsea Clinton Foundation. Both these initiatives aim to improve healthcare outcomes.
While the first deal targets the provision of new improved Medicare Advantage HMO plan in the Raleigh, NC, the second one will cater to the people in Adams County, MS.
Humana’s association with Alignment Healthcare and UNC Health reflects the company’s immense efforts to improve healthcare for its Medicare members through a convenient and coordinated system. Through this partnership, Humana will offer a new plan through Humana Gold Plus to residents in the Raleigh area. Humana Gold Plus is a Medicare Advantage HMO plan that incorporates all the benefits of Original Medicare, prescription drug coverage and so on at an affordable price. Individuals who enroll in this new plan will be able to access a unique network of providers through UNC Health Care, which will make the overall healthcare experience more convenient by making it close to home. This network comprises UNC Physician Network, UNC Faculty Physicians and Rex-employed specialists, Rex Hospital and UNC Hospitals. In the wake of a move toward value-based system in healthcare from a pay-for services system, this deal is expected to help Humana cater to its members in more competently, thereby attracting new members as well.
On the other hand, the multi-year partnership with Clinton Foundation’s Health Matters Initiative (CHMI) is expected to address the challenges to an individual’s well-being, thereby generating improved healthcare for Mississippians. Dealing with the complexities of the hindrances to well-being is not easy and Humana and Clinton Foundation have therefore collaborated to collectively address the issue and come up with a sustainable solution. This deal is expected to improve the health of Adams County by 20% by 2020. Humana and Clinton Foundation had jointly announced in Jan 2014 that the two entities will choose a community to improve health. Going forward, Humana and Clinton Foundation have further plans to jointly bring in innovative solutions to various communities across the country and eventually worldwide.
As per the U.S. Census Bureau, in 2013, 64.2% of the insured population was covered by private health insurance. With the growing market for health coverages, Humana is slated to benefit from the above partnerships in enhancing its Medicare Advantage business as well as the overall heath maintenance operations.
Humana currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the health maintenance organization space include WellPoint Inc. (WLP), UnitedHealth Group Incorporated (UNH) and Centene Corp. (CNC). All of these have a Zacks Rank #2 (Buy).
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