The Public Employees Insurance Agency has renewed its relationship with Humana.
Humana been awarded a new, four-year contract with PEIA effective this coming Jan. 1. Humana will continue to provide health insurance coverage for the state’s 54,000 Medicare-eligible retirees and their Medicare-eligible dependents.
PEIA has been a client of Humana’s since 2010, when the company was initially selected to provide health insurance to the state’s retirees.
The Medicare Advantage Prescription Drug program contract went to Humana in a 2015 bid. Humana won a five-year contract with two options to renew for additional years. It’s roughly a $100 million contract.
So PEIA actually put the contract out for bid with the possibility of one more yearly extension. But the insurance agency for public employees wound up coming back to Humana anyway.
“The personal approach that Humana brings will allow us to ensure the health and well-being of our retirees for years to come,” stated PEIA Executive Director Ted Cheatham.
The plan is for Medicare-eligible retirees to cover medical and prescription drugs. Medicare covers roughly a thousand dollars a person per month. PEIA supplements that.
Over the years Humana has operated the plan, rates have gone down 10 percent.
“We are honored that Humana has again been selected to provide health insurance to retirees in the PEIA plan for another four years,” said Tim Snyder, a Humana senior vice president.
“We remain committed to providing outstanding service and value to retirees who dedicated their careers to serving West Virginia and its residents.”
West Virginia Education Association president Dale Lee said members of the union have expressed satisfaction with Humana. Lee was pleased that the company’s contract was renewed.
“The retirees that I talk to are very happy with Humana,” Lee said in a telephone interview. “When something is working, stick with it. It was the right move.
“Of course, I understand the bidding process also, and it makes me feel good that Humana values the business in West Virginia and values our people and wants to continue with the service to them. The service they’ve given our members has been very good and our people wanted that to continue, and we’re very happy that it will.”