Humana and Microsoft ink a 7-year deal to upgrade digital tools for Medicare Advantage

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Humana signed a seven-year strategic partnership with Microsoft giving it access to the tech giant's Azure cloud computing network, AI, and voice technologies, which will enable Humana to modernize its health IT infrastructure and develop innovative healthcare solutions with an eye toward the needs of a growing Medicare-age population. And as it stands, Humana covers 4 million people under its Medicare Advantage MA plans.

Humana pegged MA as an area for growth and it appears to be paying off in the form of strong membership growth and improved cash flow. In its Q2 2019 earnings calls, Humana boasted 16 individual MA membership growth in 2019, which the payer notes is above the market growth rate and is the highest net membership increase for Humana in a decade.

Despite strong market entries from insurtechs like Clover Health and Oscar Health, which plans to expand into MA Humana split 67 of the total new MA enrollment with other legacy payers UnitedHealthcare and Aetna between 2014 and 2018. Robust MA growth in Q2 even prompted Humana to raise its full-year operations cash flow projections from 3.1 billion to 3.3 billion. And a strong MA sector should propel Humana's long-term revenue as well, as MA enrollees are targeted to comprise over 40 of all Medicare beneficiaries by 2028, up from 34 in 2018. See the rest of the story at Business InsiderSee Also:Microsoft is launching an ambient voice assistant project with NuanceA new study reveals doctors fear the US opioid epidemic will be replaced by a new prescription drug crisisPayPal and Synchrony are teaming up to launch a Venmo credit card in 2020

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