Walmart Health | Humana Due Diligence

Are you curious why Humana would be interested in purchasing Walmart Health's recently closed facilities, and expanding into dentistry? We will look at some of the potential factors weighing into this decision, and in particularly, look at the context of Medicare Advantage (MA) plans, and why that might be a good business decision for them:

1. Integrated Healthcare Approach:

Holistic Care: Incorporating dental services into MA plans allows Humana to offer more comprehensive, integrated care, which can improve overall patient health. Oral health is closely linked to general health, and poor dental care can exacerbate chronic conditions like diabetes and heart disease.

2. Market Demand:

Growing Senior Population: As the senior population grows, the demand for dental services within MA plans increases. Many seniors prioritize dental care, and including it in MA plans can make these plans more attractive.
Consumer Expectations: Patients increasingly expect their healthcare plans to cover a broad range of services, including dental care. Offering dental coverage can differentiate Humana's MA plans from competitors.

3. Cost Management:

Preventive Care Savings: By including dental coverage, Humana can encourage preventive dental care, potentially reducing the need for more expensive medical treatments related to poor oral health. This can help manage overall healthcare costs within their MA plans.

4. Competitive Advantage:

Differentiation in the Market: Offering dental benefits as part of MA plans can give Humana a competitive edge in the crowded Medicare market, attracting more enrollees.
Bundled Services: By bundling dental care with other health services, Humana can create more appealing and comprehensive packages, increasing customer loyalty and retention.

5. Regulatory Incentives:

CMS Encouragement: The Centers for Medicare & Medicaid Services (CMS) has been encouraging MA plans to include more supplemental benefits, like dental care, which align with the focus on whole-person care. Humana's expansion into dentistry supports this regulatory direction.

6. Revenue Streams:

New Revenue Opportunities: Expanding into dental services can create new revenue streams for Humana. By owning more of the care continuum, they can capture more value from each patient.

In summary, Humana's expansion into dentistry through MA plans is a strategic move aimed at enhancing patient care, meeting market demand, managing costs, staying competitive, and capitalizing on new revenue opportunities.

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