Humana buys stake in Healthpilot to expand Medicare Advantage portfolio
Humana is buying a stake in Healthpilot, a company that helps Medicare beneficiaries to choose coverage and find health plans. The “minority investment” expands Humana’s footprint in Medicare Advantage services. However, the company said in an announcement Healthpilot will continue to recommend plans from competitors.
The financial terms of the deal were not disclosed. Healthpilot will remain an independent company.
Healthpilot's digital platform uses artificial intelligence (AI) to recommend insurance plans to members, in addition to Medicare supplementary care, options for prescription drug coverage and more, based on the health needs and preferences of those seeking coverage.
“Healthpilot is seeking to redefine the Medicare plan shopping experience with a customer-centric approach that leverages leading, AI-powered technology and an elegant user-interface,” Seth Teich, CEO of Healthpilot, said in the announcement.
“We are pleased to have the opportunity to collaborate more closely with Humana. Their financial investment will fuel our ambitious goals of improving our customer product experience, growing our brand online, accelerating data analytics, and enhancing our AI capabilities. These advancements will allow us to better serve the millions of seniors in need of a simplified digital shopping experience,” Teich added
Healthpilot was founded in 2020 amid growing demand for Medicare Advantage plans in lieu of traditional medicare coverage. The company’s AI gathers details from patients, including cost preferences, their primary and specialty care doctors, personal health details, and drug utilization to help them select coverage, without the need to speak to a human representative.
Medicare Advantage plans under fire
Despite the growing popularity and utilization of Medicare Advantage plans, they have been under a lot of scrutiny in recent years, as the prior authorization to get care coverage can be time consuming and confusing, leading to delays in care.
The American Medical Association has called for insurers to make the prior authorization process easier for providers, forming a coalition to advocate for reforms to speed up patient care and improve the coverage options of the plans.
Earlier this month, a report linked insurers to over $50 billion in fraud related to Medicare Advantage plans, where patients and the government were billed for unnecessary and sometimes bogus care between 2019 and 2021.
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