Humana Health Insurance Company Review

Doctor and little girl patient in hospital
••• Aping Vision / STS / Getty Images

It's not always easy to choose a health insurance company. You want to be sure you choose a provider that is well-established and has an excellent reputation within the insurance industry.

Humana Health Insurance Company is based in Louisville, Kentucky. It's one of the largest health insurers in the U.S. It provides insurance for millions of people, with annual revenues in the tens of billions.

You can buy a health insurance policy from Humana in all 50 states and the District of Columbia, as well as Puerto Rico. The company sells individual insurance, Medicare plans, and group health insurance plan to businesses.

Key Takeaways

  • Humana is one of the largest health insurance companies in the U.S.; it's available in all 50 states, the District of Columbia, and Puerto Rico.
  • The insurer has received an award for “Highest Member Satisfaction Among Commercial Health Plans in Texas” from J.D. Power and Associates.
  • Humana offers the option of contributing to a health savings account (HSA), which provides tax benefits.
  • Humana provides traditional indemnity plans, a PPO option, and an HMO option. It also has supplemental options for Medicare.

Humana's Beginnings

In the beginning, Humana was not an insurance company at all. Instead, it was a nursing home company. It began in 1961; in 1974, it became known as “Humana.” Humana was active in the field of health care research. It also contributed to Jarvick and DeVries’ artificial heart research. Even today, Humana maintains its interest in hospitals and health care research.

The company administers the TRICARE health insurance program for the U.S. military. It's also is a provider to the PGA and Champions golf tours. Humana has been a leader in insurance industry innovative technology as well, receiving the “Stevie Awards” for its mobile application, MyHumana Mobile. In 2011, it was the People’s Choice Winner in the category of “best new product or service of the year.”

Note

United Healthcare tried unsuccessfully to acquire Humana in 1998, but the merger failed.

Financial Strength and Customer Satisfaction

Humana has an “A−" (Excellent) rating through AM Best insurance rating organization. Moody’s rating of Humana is “Baa3,” while the Fitch rating is “A.”

Humana has also received several distinguished recognitions and awards. These include the Dorland Health Award for exceptional services in the Medicare Advantage category for customers over 55.

The company received a J.D. Power and Associates Award for “Highest Member Satisfaction Among Commercial Health Plans in Texas.” Humana received this same award for the states of North Carolina, South Carolina, and Georgia.

Health Insurance Options

To buy a health insurance policy through Humana, you can buy a policy through local agents who represent Humana. With Humana health care insurance, you have the option of contributing to an HSA or health care savings account.

Through the HSA account, you can save up money to apply to your medical deductible. This is important if you feel you may have trouble coming up with the money to pay for a large deductible. There are also co-pay options with a preferred provider organization, or a PPO. And there's a plan that pays 100% after you have met your deductible for the year. You can add extensions to your health insurance plan; these could include pharmacy, dental, or vision plans to supplement your coverage.

Tip

Check the Humana website for further information regarding available supplement plans and restrictions to plans in certain states.

You generally have three options through Humana’s health insurance plans:

  • HMOs: If you use an HMO, you will be limited to only using health care providers and facilities within the provider network. There are a fairly large number of choices available. This is the least expensive option for health care coverage through Humana.
  • PPOs: With this option, you have a little more flexibility. You have the option of using an out-of-network provider; however, if you do, your insurance will cover less of the costs. You save money if you use the hospitals, clinics, and doctors that are within the network.
  • Traditional Indemnity Plans: With a traditional indemnity health care plan, you have the freedom to choose a facility or doctor you choose. But this plan is much more costly than an HMO or PPO plan.

Employer Health Insurance Plans

For employers, Humana offers a high-deductible plan. This helps companies keep health insurance costs low for employees. Many employees benefit by using the HSA to save money toward any deductible requirements. It also allows them to enjoy lower premiums.

Humana does have a basic health insurance option that covers only hospitalization costs and basic health care expenses. It's called “Coverage First.”

This is the low-cost health insurance option for those needing to stay within a budget. The “Point-of-Service” plan offers a choice of using either in-network or out-of-network providers.

Medicare Coverage

For Medicare recipients, Humana has several supplemental options. These include prescription drugs and Medicare Advantage plans.

Humana has also partnered with Walmart pharmacies to offer a preferred prescription drug plan, or PDP. You can buy prescriptions through this plan for only $15 per month. This may be ideal for patients who must take regular prescription medications.

Company Contact Information

To find out more about Humana’s health insurance products, or to find a local agent, you can visit the Humana website. There are many points of contact for Humana, depending on whether you are a current customer or you're looking to buy a health insurance policy.

You can find these contacts on the Humana Contact Us page.