Humana is much smaller in size and 75% of their entire business is Medicare Advantage and I am reading this to be a contract that is not imageMedicare Advantage in the fact that this contract covered 5,000 employees of the Business Health Group.  I might make a guess and say that price had something to do with this as just common sense Humana might not be able to compete here.  I say “too big to fail here” as that’s what’s happening with one insurer outsizing the rest in the country and having 15 pages of subsidiary companies at the SEC listed, although you might not see that today as many have been now absorbed by the Optum division, but they are still there along with the huge number of government contracts United has by comparison to the other major insurers in the US.  United makes 1/3 of their profits from software, consulting and things outside selling policies today, and that’s the other 2/3rd of the business.

In a major loss to Humana’s Wisconsin business and a possible blow to the Business Health Care Group, Northwestern Mutual has changed its employee health plan from Humana to UnitedHealthcare.

A spokeswoman for Northwestern Mutual, which has 5,000 employees locally, said Monday the change is effective with the start of the company’s open-enrollment process this fall.

“Northwestern Mutual has chosen UnitedHealthcare to administer our medical plans as we desire to continue to guide our participants to higher quality care and better outcomes at a reasonable cost,” Northwestern Mutual spokeswoman Betsy Hoylman said. “UHC provides many easy-to-use tools and resources to help our employees make informed choices based on having more background about health care providers, including information about outcomes and cost of services.”


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