Humana CEO Not Sure Where They Will Stand on Insurance Exchanges And Speaks of Concerns With Employer Continuation of Benefits

In a recent presentation the CEO of Humana sounded pretty candid about what direction health insurance will go. He openly states that big companies are doing their math and as exchanges come into play, he’s not sure how his company will enter into that market or if they will or when and where. Recently in Massachusetts smaller employers have dropped coverage as they can’t afford it.

Small Employers in Massachusetts Dropping Health Insurance Coverage – Sending Workers to Apply for State Subsidized Plan

Here and there we read in the press about some big companies looking at where their stand will be. BD

Until now, inertia has kept many large companies from canceling their health insurance coverage entirely, says Michael McCallister, CEO of Louisville-based Humana.

But that could soon change. Corporations will be doing the math to see whether it will be more cost-effective to continue offering coverage or to cancel it, absorb a penalty and letting employees go the state insurance exchanges that will go into effect in 2014 as part of health care reform.

The "bias and pressure," he told a crowd of more than 250 Tuesday at a Cincinnati USA Regional Chamber seminar at Xavier, is likely to be toward sending people to the exchanges, because health care costs are rising much faster than inflation.

McCallister said he is not yet sure whether Humana will sell products to the insurance exchanges, which will be a clearinghouse with plans for the uninsured, the self-employed and small businesses.

Humana CEO: More companies could drop insurance - Business Courier of Cincinnati