New Report Finds Value-Based Care Agreements Benefited Humana Medicare Advantage Members with Reduced Hospitalizations, More Preventive Care During COVID-19 Pandemic
November 16 2021 - 9:00AM
Business Wire
Eighth annual Value-based Care Report shows
value-based care agreements helped Humana members spend 245,000
fewer days in the hospital compared to those with physicians not in
a value-based care agreement
Humana Inc. (NYSE: HUM) published its eighth annual Value-based
Care (VBC) Report today, showing that Humana individual Medicare
Advantage (MA) beneficiaries receiving care from primary care
physicians in value-based payment models experienced, on average,
better health outcomes, lower costs and more
preventive care, compared to non-value based models.
The report, comprised of data collected during 2020 and
representing the challenges providers and patients experienced
during the COVID-19 pandemic, reflects the outcomes and experiences
of 2.65 million Humana Medicare Advantage members seeking care from
67,800 primary care physicians who are in value-based
agreements.
Key Report Findings:
- Humana VBC MA members received more care and spent less time
in the hospital. Incidents of costly hospital admissions were
reduced by 7% and emergency room visits by 12% for members with VBC
providers compared to those with Humana non-VBC providers. On
average, hospital admission rates were 22% less than Original
Medicare in 2020.
- Rates of telemedicine use for primary care rose faster in
2020 among Humana value-based MA members. During the initial
wave of COVID cases, providers in VBC contracts used telehealth at
five times the rate compared to practitioners in non-value-based
agreements, according to a study of health maintenance organization
(HMO) members between March 1-Sept. 30 by Humana Healthcare
Research.
- Humana’s VBC agreements helped reduce total medical costs by
13.4%. More preventive care and lower rates of hospitalization
led to an estimated reduction in medical costs of 13.4%, or $3.1
billion that would have been incurred by value-based members had
they been enrolled in Original Medicare. These savings are often
reinvested into primary care services and other benefits for
patients.
- VBC agreements rewarded quality outcomes and strengthened
the pandemic response through reliable payment models for
physicians’ practices. Physician practices in value-based
agreements pivoted quickly and adapted to a new way of caring for
patients. Physicians in value-based contracts with Humana received
more of the overall healthcare dollar, earning 17.5 cents of every
dollar spent compared to 6.7 cents for non-value-based
physicians.
Report Details
The report – which can be found at valuebasedcare.humana.com –
details how Humana’s VBC contracted Medicare Advantage providers
were in a significantly stronger position to ensure seniors were
able to continue accessing essential care despite COVID-19
restrictions, lockdowns and nationwide deferral of care. Their
success in providing preventive, routine and urgent care throughout
2020 was due in large part to the innovative technologies,
capabilities and services that value-based agreements incentivize
and support. Despite the significant challenges of providing care
during the worst of the COVID-19 pandemic, providers in
value-based agreements were in a better position to adapt and focus
on patient needs, including social determinants of health
exacerbated by the pandemic, like increased social isolation and
food insecurity.
“During a year of unprecedented disruptions, we are grateful for
the dedication, care and ingenuity showed by physicians to continue
providing high-quality care for our Medicare Advantage members,”
said Humana President and Chief Executive Officer Bruce
Broussard. “As the population of Medicare Advantage
beneficiaries continues to grow, we will continue to collaborate
with providers and others on the best ways to address seniors’
critical needs and ensure a strong future for the Medicare
guarantee made to our seniors.”
The report tells how VBC providers connected patients to
at-home care services, increased their use of telemedicine and
addressed food security needs to continue providing
high-quality care during the pandemic. As a result, 86% of Humana
MA members saw their value-based primary care physicians at least
once in 2020, compared to 78% among non-value-based patients.
Humana’s 2021 Value-Based Care Report will be a timely and
important resource for those who will help the country navigate
through future pandemics such as providers, policymakers and others
focused on better health outcomes, increasing value and delivering
cost savings.
“Value-based providers had invested in the right infrastructure
before COVID-19, allowing them to be more flexible and in a better
position to leverage technology, drive more care to the home and be
more sensitive to the emerging needs of their patients and
communities,” said Humana Chief Medical Officer William Shrank,
MD, MPHS. “As we continue to navigate the uncertainties brought
on by COVID-19, one thing is clear – the pandemic reaffirmed the
imperative for value-based care.”
About Value-Based Care
Value-based care (VBC) is a contracting model that reimburses
and rewards healthcare providers for improved patient care and
health outcomes rather than paying them solely for the quantity of
services they provide, in contrast to a fee-for-service system.
Patients may not know their provider has a value-based agreement,
but the data shows that these patients are benefitting from the
increased time with their doctors and access to additional
programs, services and technologies designed to produce better
health outcomes.
About Humana
Humana Inc. is committed to helping our millions of medical and
specialty members achieve their best health. Our successful history
in care delivery and health plan administration is helping us
create a new kind of integrated care with the power to improve
health and well-being and lower costs. Our efforts are leading to a
better quality of life for people with Medicare, families,
individuals, military service personnel, and communities at
large.
To accomplish that, we support physicians and other health care
professionals as they work to deliver the right care in the right
place for their patients, our members. Our range of clinical
capabilities, resources and tools – such as in-home care,
behavioral health, pharmacy services, data analytics and wellness
solutions – combine to produce a simplified experience that makes
health care easier to navigate and more effective.
More information regarding Humana is available to investors via
the Investor Relations page of the company’s website at
www.humana.com, including copies of:
- Annual reports to stockholders
- Securities and Exchange Commission filings
- Most recent investor conference presentations
- Quarterly earnings news releases and conference calls
- Calendar of events
- Corporate Governance information
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211116005256/en/
Matt Wheeler Humana Corporate Communications
mwheeler10@humana.com
Humana (NYSE:HUM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Humana (NYSE:HUM)
Historical Stock Chart
From Apr 2023 to Apr 2024