Humana to increase some Medicare Advantage premiums

Sept. 21--Humana plans to raise premiums next year for some of the private Medicare plans the insurer sells in Cook County, according to data released Monday by the Obama administration.

The increases for Humana's Medicare Advantage plans that offer prescription drug benefits are small, ranging from 2.5 percent to 3.4 percent. But they buck the national trend.

On average, Medicare Advantage plans, which cover about 30 percent of all elderly Americans, will cost an average of $32.60 per month next year, 31 cents lower than this year, according to the Centers for Medicare and Medicaid Services. A majority of Medicare Advantage enrollees, about 59 percent, won't see their premiums increase, the agency said.

A Humana spokeswoman said the company resets premiums each year based on the costs to administer benefits, anticipated future cost trends and benefit changes.

Medicare is a growth market for private insurers. They are an alternative to traditional fee-for-service Medicare by offering more comprehensive insurance that can include drug coverage, vision and dental benefits. The trade-off in some of these plans is that the network of health providers and services may be limited.

Enrollment in Medicare Advantage plans has tripled in the past decade. The rapid growth has largely come from beneficiaries in traditional fee-for-service Medicare switching to managed care.

In Illinois, though, only 18 percent of beneficiaries are enrolled in Medicare Advantage plans in 2015, lower than the national average, according to the Kaiser Family Foundation. But enrollment grew 14 percent over 2014, to 371,007 members.

In Cook County, Humana is the leading player in Medicare Advantage, with about 43,000 members, or 32 percent of the market, according to the Kaiser Family Foundation. The Louisville-based insurance company sells six plans, including two zero-premium plans.

Blue Cross and Blue Shield of Illinois, the largest commercial health insurer in the state, has about 8 percent of the Medicare Advantage market in Illinois after re-entering the business in 2013.

Blue Cross will offer five plans next year and its premiums will stay the same, according to federal data.

"The plans recognize there is opportunity in Cook County because the penetration is lower," said David Goodson, vice president of enterprise Medicare at Blue Cross. "There is a good fit for this product in this market and there may be an underserved need."

Blue Cross and other health plans cannot comment on the details of their 2016 Medicare Advantage offerings until Oct. 1 because of federal regulations.

asachdev@tribpub.com

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