If Walmart Buys Humana, Retailer Taps Booming Medicare Market Of Seniors

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A monitor displays Walmart Inc. signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Feb. 26, 2018.  Photographer: Michael Nagle/Bloomberg

News Walmart is in talks to buy Humana would give the retail giant a health insurer and provider of medical care established in the booming market of senior citizens eligible for Medicare.

Humana has one of the best-known brands among health insurers offering Medicare Advantage plans , a fast-growing form of coverage popular among seniors. In addition, Humana has been acquiring an array of doctor practices and outpatient assets in fast-growing retirement markets in the southern U.S. like Florida and Texas where Walmart is strong and seniors abound.

The Wall Street Journal reported Thursday night that Walmart was in “preliminary talks to buy” Humana, citing “people familiar with the matter.” The newspaper described such a deal as “a dramatic shift for the retail behemoth.”

But the shift wouldn’t be all that dramatic given Walmart has a long history of trying to get into healthcare . Walmart has pharmacies, retail clinics staffed by nurse practitioners, and, at various times in the last decade or so, has tried to buy and develop doctor practices and outpatient facilities. And the retailer already has a relationship with Humana.

"Walmart and Humana have been killing it since the launch of the Medicare drug benefit over a decade ago," Gorman Health Group executive chairman John Gorman said. "WalMart has pharmacies in hundreds of its stores and Humana is investing in a new line of primary care clinics. Imagine the two alongside each other in every WalMart. It's a deal aimed squarely at the senior market, and nobody does it better than Humana."

A purchase of Humana would allow Walmart to tap into the health insurance and drug benefit business while at the same time acquiring a company that is growing a brand of doctor practices and outpatient facilities. Humana is particularly strong in offering health insurance and services to seniors. There are more than 10,000 Americans turning 65 and becoming eligible for Medicare every day.

Health plans like Humana are already on the hunt to buy doctor practices with the staff, technology, information systems and providers to effectively manage the complex care of elderly Medicare beneficiaries, particularly as value-based care takes hold. Practices that provide effective treatment upfront in the doctor’s office leave more of the premium dollar for an insurance company to profit from or share with the providers.

Increasingly, seniors are choosing Medicare Advantage plans like those offered by Humana. Currently, just under 35% of Medicare beneficiaries, or about 20 million Americans, are enrolled in MA plans.

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A monitor displays Walmart Inc. signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Feb. 26, 2018.  Photographer: Michael Nagle/Bloomberg

News Walmart is in talks to buy Humana would give the retail giant a health insurer and provider of medical care established in the booming market of senior citizens eligible for Medicare.

Humana has one of the best-known brands among health insurers offering Medicare Advantage plans , a fast-growing form of coverage popular among seniors. In addition, Humana has been acquiring an array of doctor practices and outpatient assets in fast-growing retirement markets in the southern U.S. like Florida and Texas where Walmart is strong and seniors abound.

The Wall Street Journal reported Thursday night that Walmart was in “preliminary talks to buy” Humana, citing “people familiar with the matter.” The newspaper described such a deal as “a dramatic shift for the retail behemoth.”

But the shift wouldn’t be all that dramatic given Walmart has a long history of trying to get into healthcare . Walmart has pharmacies, retail clinics staffed by nurse practitioners, and, at various times in the last decade or so, has tried to buy and develop doctor practices and outpatient facilities. And the retailer already has a relationship with Humana.

"Walmart and Humana have been killing it since the launch of the Medicare drug benefit over a decade ago," Gorman Health Group executive chairman John Gorman said. "WalMart has pharmacies in hundreds of its stores and Humana is investing in a new line of primary care clinics. Imagine the two alongside each other in every WalMart. It's a deal aimed squarely at the senior market, and nobody does it better than Humana."

A purchase of Humana would allow Walmart to tap into the health insurance and drug benefit business while at the same time acquiring a company that is growing a brand of doctor practices and outpatient facilities. Humana is particularly strong in offering health insurance and services to seniors. There are more than 10,000 Americans turning 65 and becoming eligible for Medicare every day.

Health plans like Humana are already on the hunt to buy doctor practices with the staff, technology, information systems and providers to effectively manage the complex care of elderly Medicare beneficiaries, particularly as value-based care takes hold. Practices that provide effective treatment upfront in the doctor’s office leave more of the premium dollar for an insurance company to profit from or share with the providers.

Increasingly, seniors are choosing Medicare Advantage plans like those offered by Humana. Currently, just under 35% of Medicare beneficiaries, or about 20 million Americans, are enrolled in MA plans.

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Read Again https://www.forbes.com/sites/brucejapsen/2018/03/30/if-walmart-buys-humana-retailer-taps-booming-medicare-market-of-seniors/

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