The implementation of Obamacare and the fiduciary rule will continue to have an impact on the health insurance market, which is one of the biggest challenges confronting Humana. One of the goals of the Affordable Care Act is to safeguard consumers by bringing down healthcare costs while also guaranteeing more options and higher standards of care. The Act has called for new rules where insurance companies will be required to cover all Americans regardless of pre-existing conditions in order to achieve the objective. ACA has also caused market disruption by addressing previous flaws such as raising premiums, limiting coverage to high-risk groups, and misuse of contributed premium on administration matters (Blackman 225).
Another challenge facing Humana is a low number of new subscribers. An underlying problem is the changing demographic profile, where the American population is aging. The issue is exacerbated by growing number of disadvantaged groups, who cannot afford to pay premiums, as well as joblessness among joblessness among the Millennials (Greenberg, Gullotta and Bloom 15).
Despite the challenges in the business environment, all firms have been given a reprieve following endless opportunities arising from the digital economy. While the traditional market has been dwindling, health insurers can tap the limitless opportunities in the 21st century, including artificial intelligence (Morrison 178).
Recommendations to solve the Problem and Exploit the Opportunities
While the future of the Humana is threatened by the current pricing wars, business consolidation, and low membership, the company can utilize technology to create unique products and enhance its goal of establishing value-based relationships with the consumers, payers, and health care providers. The move can help the firm not only in transforming to paperless and simplified service delivery but also managing cost.
Humana Inc. also needs to repopulate its aging sales force by recruiting young talents to drive the future of the organization. Exceptional talents in the labor force will induce not only creative thinking but also IT perspectives in its business (Smith 287).
Works Cited
Blackman, Josh. Unraveled: Obamacare. 1st ed. Cambridge University Press, 2016. Print.
Greenberg, Alva G, Thomas P Gullotta, and Martin Bloom. Social Capital And Community Well-Being: The Serve Here Initiative. 1st ed. New York: Springer, 2015. Print.
Morrison, Eileen E. Ethics In Health Administration: A Practical Approach For Decision Makers; Third Edition. 1st ed. Burlington: Jones and Bartlett Learning, 2016. Print.
Smith, Tobin. Beyond Sputnik: U.S. Science Policy In The Twenty-First Century. 1st ed. University of Michigan Press, 2010. Print.
