Humana, USAA launch Medicare Advantage plan aimed at veterans

Photo: Marko Geber/Getty Images

Major insurer Humana, along with USAA Life Insurance Company, will be rolling out a new Medicare Advantage plan aimed at veterans, which aims to complement the healthcare benefits received through the Department of Veterans Affairs.

This new co-branded Humana USAA Honor with Rx plan, available to anyone eligible for Medicare, is being offered in eight states starting in 2023 and provides flexibility for veterans to see in-network local doctors and fill prescriptions at pharmacies close to home, outside the VA system. It's the only Medicare Advantage plan developed in partnership with USAA.

The new plan is available throughout Pennsylvania and in select markets in Texas, Michigan, Ohio, Indiana, Arizona, California and Hawaii.

Humana introduced its Honor Medicare Advantage plans in 2020; this is the first time an Honor plan includes prescription drug coverage. Humana's Honor plans are available to anyone eligible for Medicare, but they are designed in a way that may work alongside the benefits a veteran receives through VA healthcare, the insurer said.

WHAT'S THE IMPACT?

Humana touted a number of features of the plan, including a $0 monthly premium. It will also boast a Part B premium giveback, ranging from $40 to $75 (depending on the plan), to go into the individual's Social Security check every month.

The plan also features no copays for Tier 1 and $5-or-less copays for Tier 2 prescriptions at any in-network retail pharmacy for a one-month supply, with no deductibles; a USAA Health Flex Card with $250 or more a year to use toward covered dental, vision and hearing services in select markets; and preventive dental coverage with two free cleanings a year, plus $1,000 or more annually to cover many dental bills, including cleanings and exams.

Veterans and Medicare households have access to Humana Customer Care specialists who collaborated with USAA to receive special training, the companies said.

Humana Honor Medicare Advantage plans are available in more than 2,000 counties and all include Part B premium giveback as well as dental, vision and hearing coverage. Most plans also have an allowance to help buy approved OTC products ranging from $100-$1,200 a year.

THE LARGER TREND

The annual enrollment period for Medicare-eligible individuals runs from October 15 through December 7.

In a move meant to simplify its organizational structure, Humana said in July that it will pare itself down into two main units, Insurance Services and CenterWell, while launching an executive search for president of insurance and enterprise services.

Executives said separating the company into the two units will encourage collaboration and accelerate the work being done to centralize and integrate operations. The Insurance Services unit will comprise what is currently the retail, group and specialty segments, while CenterWell will encompass healthcare services. The executive search will focus on candidates with experience running complex organizations.

The restructuring follows on the heels of other organizational changes. In April, Humana signed a definitive agreement with private investment firm Clayton, Dubilier & Rice to divest a majority interest in Humana's Kindred at Home subsidiary, KAH Hospice. Under the agreement, Humana will divest a 60% interest in KAH Hospice and receive cash proceeds of approximately $2.8 billion.

The division includes patient-centered services for hospice, palliative, community and personal care. Humana had previously indicated its intent to divest a majority stake in these non-core businesses when it acquired the remaining interest in Kindred at Home in April 2021.

The strategy has always been to partner, rather than own, these lines of business, according to Humana. This is aligned with the company's previously stated intent to divest the majority interest in the Hospice and Personal Care divisions, while maintaining a strategic minority interest.
 

Twitter: @JELagasse
Email the writer: jeff.lagasse@himssmedia.com