Mr. Broussard said he feels the reforms aren’t working right now, despite federal officials likely assertions that they have had an impact. However, he still predicts a healthcare industry shift over the next few years, according to the report. Reform should start a discussion about paying for performance rather than reimbursing providers based on volume, he said at the event.
Healthcare system reforms have put pressure on Humana — one of the nation’s biggest insurers — to cut costs, according to the report. Humana earns approximately $40 billion annually in revenue, with Medicare Advantage, or private Medicare plans, accounting for $25 billion of that amount. Last month, the company reported a second-quarter net income increase of 18 percent, from $356 million in 2012 to $420 million this year.
Despite economic pressures, investors believe the company has the expertise to reduce costs and still perform well, according to the report.
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