We have become aware of a massive change affecting all agencies carrying books of business with Humana which will take place in October of 2023. Humana will be terminating their involvement with all Employer Group Medical Products, including self-funded, fully insured, and Federal Employee Health Benefit medical plans.
If your independent insurance agency is located in Arizona, Florida, Georgia, Illinois, Kansas, Mississippi, Tennessee, or Texas, the team at Springtree Group is ready to present your agency for sale in advance of this disruptive event. As you are no doubt aware, buyers will likely avoid purchasing your agency—or will present you with a reduced offer—once they are faced with a massive stack of open enrollment in October. Therefore, we recommend listing your agency as promptly as possible.
Should you be considering whether or not you want to undertake the Herculean task of ushering each of your Humana clients through the process of switching to alternative products from different carriers, we urge you to reflect on the complex dynamics this will entail.
First, you may decide that you must diversify your product offerings to fully prepare for your client’s needs. As one of the largest insurance providers in the United States, Humana has dominated group health plans, so you understandably may not already have a comparable product ready to roll out.
If you do take on a new product range, your staff will require training on the intricacies of these new policies. This will take time and patience, so the sooner you begin, the better.
Consider too that your clients have been accustomed to Humana and may decide to explore offerings from competing providers. While you may feel prepared to bridge the transition between Humana and a new provider, there is no guarantee that your clients will decide to remain with your agency.
Unfortunately, there is a substantial risk of your Humana books disintegrating.
Rather than undertaking this risky, time-consuming task, Springtree Group will partner with you to offer your agency for sale. Springtree Group’s extensive buyer network will provide your agency with the most advantageous offers available anywhere in the private insurance sphere. We will present your business to motivated, fully funded buyers who are currently searching for private insurance agencies to purchase in your area.
Once you have secured an offer from a buyer you like who (at a minimum) meets the price you need to ensure that you can safely exit your business, our highly experienced team will facilitate each step involved with the sale.
Once more, we urge you not to hold off on selling your agency if you are not willing or able to shepherd each of your Humana accounts through the massive impending transition. Contact Springtree Group today for more information specific to your agency’s situation. We are here to help!