University of Louisville Study Outlines Humana’s Economic and Community Impact on Kentucky

Rhea-AI Summary

The University of Louisville's College of Business released a study analyzing Humana's economic and community impact on Kentucky. With more than 10,000 employees in the state, Humana significantly contributes to the economy and community.

The study, covering 2017-2023, shows Humana annually drives $13.9 billion in GDP, $2.6 billion in tax revenues, and supports over 60,000 jobs. Humana's community investments total about $51 million per year, including partnerships addressing health issues and disaster responses.

The report highlights Humana's involvement in housing stability, substance use disorder programs, and mental health support, underscoring its commitment to health equity and community well-being.

Positive

• Humana drives $13.9 billion annually to Kentucky's GDP.
• The company generates $2.6 billion in tax revenues each year.
• Humana supports over 60,000 jobs in Kentucky, including 10,000 direct jobs.
• Community investments total about $51 million per year.
• The company is involved in substantial disaster response and recovery efforts.
• Humana's national affordable housing strategy includes investments in Kentucky.
• Strategic partnerships with non-profits, like Volunteers of America, expand supportive programs.

Negative

• The study does not address potential economic risks or challenges Humana might face.
• There is no mention of how Humana's contributions will adapt to future economic changes.
• The report lacks detail on the sustainability of Humana's community investments.
• There is no information on the long-term impact on shareholders or stock performance.

• More than 10,000 Humana jobs throughout the state support approximately 50,000 more jobs statewide
• Humana’s financial impact to the state’s gross domestic output averages $13.9 billion
• Community investments from Humana, its employees and the Humana Foundation total about $51 million per year

LOUISVILLE, Ky.--(BUSINESS WIRE)-- The University of Louisville’s College of Business recently released the results of a study that evaluated Humana’s economic and community impact on Kentucky.

Thomas Lambert, PhD, applied economist for the University of Louisville College of Business, conducted an economic research analysis of Humana's impact in Kentucky. With more than 10,000 employees, Humana makes significant contributions to the Commonwealth's economy. (Graphic: Business Wire)

The study, which examined gross contributions and multiplier effects from 2017-2023, demonstrated the company’s value both as an employer and through ripple effects across industries and localities. Each year, Humana drove an average of $13.9 billion in GDP, $2.6 billion in tax revenues, $75.5 million in charitable contributions, and more than 60,000 jobs throughout the Commonwealth.

Headquartered in Louisville since 1961, Humana is a leading integrated health and wellness company that serves as an active community partner and positive economic driver for both its corporate hometown and the state overall. Together, the company’s Medicare Advantage, Medicaid, TRICARE and specialty insurance and its CenterWell health care services employ about 63,000 people nationwide, with more than 10,000 of them working in Kentucky. The positions cover a wide range of career fields from customer care specialists and business management in the corporate headquarters to physicians and nurses in the six CenterWell Senior Primary Care centers in Louisville, Frankfort and Lexington. For one of those locations, Humana’s CenterWell Senior Primary Care partnered with the Louisville Urban League to open a center on the city’s west side – an area that has suffered from significant underinvestment.

According to UofL’s report, an employment multiplier effect means the more than 10,000 Humana jobs in Kentucky support another approximate 50,000 jobs in the Commonwealth. The multiplier effect also applies when assessing financial impact, meaning the average $4.5 billion Humana contributes to the state’s gross domestic output adds an additional $9.4 billion to Kentucky’s output.

“Humana has a profound impact on Louisville and statewide,” Thomas Lambert, PhD, University of Louisville Applied Economist who led the study, noted in the report. “Our state domestic output and Louisville area output would shrink quite a bit if they did not exist. Big effects.”

Community Support

Humana’s investment in Louisville and Kentucky reaches far beyond its payroll. The company also supports its local community through non-profit investments and partnerships. Humana Healthy Horizons, the company’s Medicaid business, partners with numerous organizations dedicated to improving the region’s most pressing health issues – such as food and housing insecurity, chronic disease management, behavioral health, maternal health, and much more.

“Our Kentucky roots run deep. Humana was founded in Louisville, and our presence here is not only important to our history, but also our future,” said Jeb Duke, President, Humana Healthy Horizons – Kentucky, which currently serves about 160,000 of the state’s most vulnerable individuals. “We are proud to contribute to the fabric of our community, and work directly with the community-based organizations that serve our members at the ground level. By fostering these local connections, we can meet our members where they are and increase positive health outcomes for all Kentuckians.”

One example of this work includes responding to natural disasters, such as the devastating tornadoes in Western Kentucky. This involved support for a rapid-response free health clinic, expanded broadband infrastructure to support community hotspots and telehealth, and collaboration with community organizations on workforce development initiatives. Based on learnings from this disaster and others that Humana has responded to in Kentucky, Humana Healthy Horizons continues to build strong relationships with community-based organizations that support disaster readiness and now offers a meal benefit to members when the governor declares a state of emergency due to disasters.

Another is Humana’s national affordable housing strategy. As part of its $90 million commitment to housing stability, the company has invested in four residential communities in Kentucky. The investments go well beyond simply a financial investment, with Humana continuing to work with these residential communities to provide needed services. At Zion Manor in West Louisville, Humana recently hosted a health fair that included free health screenings and educational resources to help the residents achieve their best health.

Humana has a longstanding strategic partnership with Volunteers of America (VOA). VOA began its family first recovery program (FFR) in Kentucky, which creates a focused treatment program that supports mothers recovering from substance use disorder and addresses underlying physical, mental, and behavioral health challenges. With Humana’s continued financial and operational support, VOA is scaling this program to additional states like Georgia, Oklahoma and Ohio.

The company’s community impact is not limited to the support provided through its Medicaid business. Humana, its employees and the Humana Foundation regularly give time and financial support to aid community-based organizations, especially during times of need.

At a critical moment in 2023, the Humana Foundation quickly committed $1 million to bolster mental health resources in its hometown, following the aftermath of mass shootings in downtown Louisville. The donation continues to support victims and families, along with others in the community struggling from ongoing hardship and trauma that the city has endured in recent years. The donation is part of the Humana Foundation’s commitment to health equity and creating healthy emotional connections for the communities it serves.

The Humana Foundation can deliver on its commitments because of the dedication, support and wide expanse of Humana employees. In valuing the volunteer hours and financial donations from the Humana workforce, corporate donations and grants from the Humana Foundation, the study found an average of around $51 million annually is estimated to have been given in support of Kentucky communities.

The full report can be found on the University of Louisville’s website: Humana Impact Report : University of Louisville – College of Business .

About the University of Louisville

Founded in 1798 as one of the nation’s first city-owned, public universities, the University of Louisville (UofL) is a vital ecosystem that creates thriving futures for students, our community and society. One of only 84 universities in the United States to earn recognition by the Carnegie Foundation as both a Research 1 and a Community Engaged university, we impact lives in areas of student success and research and innovation, while our dynamic connection with our local and global communities provides unparalleled opportunities for students and citizens both.

The UofL College of Business, founded in 1953, fosters intellectual and economic vitality in our city, region, and the global business landscape. Our academic programs, research, community outreach initiatives, and commitment to student success inspire lives and businesses to flourish through entrepreneurship, innovation, critical thinking, diversity, and the power of people.

About Humana Healthy Horizons

Humana manages Medicaid benefits for nearly 1.2 million members nationally under the Humana Healthy Horizons^TM brand, which reflects our expertise in managing complex populations, our commitment to creating solutions that lead to a better quality of life for our members, and our efforts to deliver human care that makes the healthcare experience easier, more personalized and more caring.

During more than two decades of serving people with Medicaid, Humana and Humana Healthy Horizons have developed a wide range of capabilities to serve children, parents, childless adults, and beneficiaries that are aged, blind or disabled. We integrate physical health, behavioral health, pharmacy, long-term care, and social services for a whole-person approach to improve the health and well-being of our members and the communities we serve.

Humana Healthy Horizons is a Medicaid Product offered by affiliates of Humana Inc.

About Humana

Humana Inc. (NYSE: HUM) is committed to putting health first – for our teammates, our customers, and our company. Through our Humana insurance services, and our CenterWell health care services, we strive to make it easier for the millions of people we serve to achieve their best health – delivering the care and service they need, when they need it. These efforts are leading to a better quality of life for people with Medicare, Medicaid, families, individuals, military service personnel, and communities at large. Learn more about what we offer at Learn more about what we offer at Humana.com and CenterWell.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240612803639/en/

Angie Weiss

Humana Corporate Communications

e-mail: aweiss3@humana.com

Source: Humana Inc.

FAQ

What is Humana's economic impact on Kentucky?

Humana drives an average of $13.9 billion annually to Kentucky's GDP and generates $2.6 billion in tax revenues each year.

How many jobs does Humana support in Kentucky?

Humana supports over 60,000 jobs in Kentucky, including more than 10,000 direct jobs.

What is Humana's annual community investment in Kentucky?

Humana's community investments total about $51 million per year.

What kind of community initiatives does Humana support?

Humana supports initiatives addressing health issues, disaster responses, housing stability, substance use disorder programs, and mental health support.

How does Humana contribute to disaster response in Kentucky?

Humana supports disaster response with rapid-response health clinics, expanded broadband for telehealth, and workforce development initiatives.

What is Humana's involvement in addressing substance use disorders?

Humana partners with Volunteers of America to support recovery programs for mothers with substance use disorders and expands this program to other states.

How does Humana's impact extend beyond its payroll?

Humana invests in community partnerships, non-profits, and disaster readiness, reflecting a broader commitment to community well-being.