Kentucky Retirement Systems
KRS selects Medicare Advantage provider
Kentucky Retirement Systems Selects Humana as Medicare Advantage Provider
Frankfort, Kentucky, June 15, 2015: The KRS Board of Trustees announced the selection of Humana as the provider of Medicare Advantage coverage for KRS Medicare eligible retirees. Humana has been providing Medicare Advantage coverage for KRS since January 2013. The new contract period will last from January 1, 2016 through December 31, 2018 with three (3) optional one-year renewals.
The decision to recommend Humana was reached after working with AON Hewitt, KRS’ health care consultant, to evaluate the responses to the KRS Medicare Advantage Request for Proposal (RFP). The AON representatives presented the results of their review and scoring of the responses by three (3) bidders. Humana submitted the lowest cost proposal overall; offered the largest network of providers, hospitals and facilities; and provided flexibility in drug coverage not offered by the other carriers.
“We are very pleased to announce that with the selection of Humana our KRS Medicare eligible retirees will not have a premium increase during the 2016 plan year contract period,” said Thomas K. Elliott, Chairperson of the KRS Board of Trustees. “This is very good news for our retirees and we welcome the opportunity to continue our Humana partnership and to provide excellent health insurance and health services to our members.”
Medicare Advantage (MA) is a program that gives beneficiaries the opportunity to select private health plans to provide their Medicare coverage. Expanded to offer more choices in 2006 under The Medicare Prescription Drug, Improvement,
and Modernization Act, MA plans are designed to promote coordinated care, improved transitions and preventive care. A 2012 American Journal of Managed Care study showed that the Medicare Advantage hospital readmission rate was 13 to 20 percent lower than under original Medicare
With more than 2.4 million MA members, Humana is one of the country’s largest administrators of Medicare Advantage plans. The company is able to deliver its “15 Percent Solution” for MA, which is Humana’s comprehensive clinical model. The model is designed to provide medical benefits for at least 15 percent less than it costs the federal government for comparable benefits in original Medicare, with the same or better quality. Humana MA includes additional services and benefits or programs such as:
• Care coordination and chronic condition management
• In-home and social services support and prevention
• 24-hour, on-call nurses
• Behavioral and social care
• Follow-up phone calls, in-home visits and meal delivery after a hospital stay
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