Humana Exit From Employer Coverage Illuminates Medicare’s Lure

The exit of Humana Inc. from the employer health insurance market may foreshadow difficult decisions ahead for large insurers as they face greater scrutiny on costs from companies while being lured by the more lucrative Medicare Advantage market.

Humana announced Feb. 23 that it will phase out its commercial business with employer health plans over the next 18 to 24 months to focus on its core government business, primarily operating private Medicare plans known as Medicare Advantage.

Pressure on health insurers continues to grow as employers seek to curb soaring health-care costs, demanding access to their claims data and in ...