State Health Plan Awards Medicare Advantage Plan Contract to Humana

Friday, March 13, 2020

State Health Plan Awards Medicare Advantage Plan Contract to Humana

New Contract Generates $590 Million in Savings, Board to Vote on Premium-Free Coverage for Dependents

State Treasurer Dale R. Folwell, CPA, and the State Health Plan have announced that Humana has been awarded the contract for its Medicare Advantage Plan. The contract, awarded by the State Health Plan Board of Trustees (Board), will provide Medicare Advantage products to the Plan’s Medicare-eligible members with services starting January 1, 2021. The award of the contract was made to Humana after a required, competitive bidding process.

Eligible members will continue to enjoy premium-free coverage for the Medicare Advantage Base Plan. In addition, with this new contract, it will be recommended to the Board that all eligible dependents on the Medicare Advantage Base Plan be premium free as well. This means that any dependents will be premium free beginning January 1, 2021. Today, members pay $112 per month for spousal coverage and $224 for family coverage.

The Medicare Advantage Enhanced Plan will still be offered for a small premium for subscribers as well as reduced premium for any added dependents.

Members will also continue to have access to a passive network of providers, meaning you can go to your same medical provider and your coverage does not change. The potential cost savings under the new contract will be approximately $590 million over the course of the three-year contract.

What do you need to know?

  • It will be recommended that beginning January 1, 2021, the Medicare Advantage Base Plan will offer premium-free coverage for ALL eligible dependents.
  • Eligible members will continue to enjoy premium-free coverage for the Medicare Advantage Base Plan.
  • There are NO benefit changes for 2021 on the Medicare Base Plan.
  • Changes to the Medicare Advantage Enhanced Plan have not been finalized.
  • Both Medicare Advantage Plans will continue to offer a passive network of providers, which means you can continue to see the same providers.
  • Members will receive information on this transition prior to this fall’s Open Enrollment.

Questions? Click here to learn more about Humana.