Humana is making bold moves in behavioral health with a new focus on substance use disorder (SUD) treatment and expanded tele-behavioral care options. The insurance giant recently announced a $5 million investment to support pregnant women with SUD and their families, while also signaling its continued commitment to virtual care coverage in 2021 and beyond.
These initiatives highlight the company’s belief that solving the nation’s behavioral health challenges requires innovation, collaboration, and a whole-person approach. As Chief Medical Officer William Shrank explained, “None of us can solve these really, really big problems alone. It requires partnerships with those providing care on the ground. It requires partnerships across financing. It requires creativity as we think about how to solve problems across an entire population.”
Humana’s $5 Million Investment in Family-Focused Recovery
At the heart of Humana’s recent announcement is its investment in an outcomes-based fund backed by Quantified Ventures, a B Corporation known for using capital to drive transformative social and health initiatives. The $5 million contribution will help scale Volunteers of America’s Family Focused Recovery (FFR) program, which provides specialized support to pregnant mothers struggling with SUD and their children.
The FFR model is comprehensive, offering wraparound services designed to address both immediate treatment needs and long-term stability. Programs can include:
- Medication-assisted treatment (MAT)
- Targeted case management
- Outpatient services
- Housing support
- Long-term follow-up care
By investing in FFR, Humana is acknowledging the importance of treating not just the individual, but the family unit as a whole. Addiction rarely affects only one person—when a mother struggles with SUD, her child’s health and future are also at risk. By providing holistic services, FFR aims to break cycles of addiction while promoting stability, safety, and healthier outcomes for both mother and child.
Why This Matters for Pregnant Women With SUD
Pregnant women face unique challenges when it comes to substance use disorder treatment. Many hesitate to seek help due to fear of stigma, legal consequences, or losing custody of their children. Traditional treatment options may not provide adequate resources to meet both maternal and child health needs simultaneously.
Humana’s support of Volunteers of America’s FFR program signals a recognition that funding streams for these types of programs are often too inconsistent to reach scale. As Shrank explained, the goal is to create a scalable, predictable model that payers, providers, and entire communities can adopt to better support mothers struggling with addiction.
Importantly, the program is not Humana-exclusive—it is designed as a consumer-focused initiative that invites other insurers and community partners to join. By doing so, Humana hopes to increase participation, visibility, and ultimately, outcomes for families across the country.
Tele-Behavioral Health in 2021 and Beyond
Beyond its investment in family-focused SUD treatment, Humana is preparing for the future of behavioral health care delivery through telehealth. During the COVID-19 pandemic, Humana waived copays for both physical and behavioral telehealth services, ensuring that members could continue to access care despite social distancing requirements.
While details about the company’s 2021 tele-behavioral policies are still emerging, Shrank made it clear that Humana is committed to virtual care long-term. “At a high level, we are deeply committed to endorsing and paying for all telehealth services,” he said. For commercial and Medicare Advantage plans, coverage is certain to continue. For Medicaid, arrangements must be made state by state, but Humana intends to pursue expanded telehealth wherever possible.
The commitment to tele-behavioral care is significant. Virtual services lower barriers to treatment, particularly for individuals in rural areas or those who face transportation, childcare, or financial challenges. For SUD and mental health care in particular, telehealth has become an essential tool, allowing patients to maintain consistent access to providers and support networks.
The Push for Value-Based Payments
Another area where Humana is innovating is in value-based care. Even before the pandemic, the company was working on contracts that reward providers not only for quality of care but also for addressing social determinants of health. These contracts encourage providers to collect data and intervene in areas such as housing insecurity, food access, and employment—factors that directly influence a patient’s ability to recover and maintain long-term wellness.
During the COVID-19 crisis, Shrank noted that providers operating under progressive value-based arrangements were among the most resilient. Their holistic approach to care, backed by financial models that supported flexibility, allowed them to continue serving members effectively even as traditional fee-for-service providers struggled.
This resilience has led to increased interest among providers in adopting value-based contracts. For Humana, the experience reinforced the importance of tying reimbursement to outcomes rather than volume. In behavioral health, this shift could mean stronger support for integrated care models that combine physical, mental, and social health interventions.
A Broader Commitment to Behavioral Health
While Humana’s $5 million investment may seem modest compared to its overall revenues, it reflects a larger shift within the company. Over the past several years, Humana has increasingly prioritized behavioral health, recognizing its central role in overall wellness. The COVID-19 pandemic has only underscored the urgency of this focus, with mental health struggles and substance use on the rise nationwide.
By investing in scalable, outcomes-based initiatives like the FFR program, Humana is signaling its intent to be more than just a payer. It is positioning itself as a partner in addressing the root causes of behavioral health challenges, whether they are clinical, social, or structural.
The Future of SUD Care Under Humana’s Model
Looking ahead, Humana’s approach to SUD treatment and behavioral health suggests several key trends that could shape the industry:
- Greater emphasis on family-centered care – Programs like FFR acknowledge that recovery extends beyond the individual, requiring support for families and children.
- Expansion of tele-behavioral services – Virtual care will remain a permanent and essential feature of treatment, reducing barriers to access and improving continuity of care.
- Focus on value-based contracts – Providers will be incentivized to address social determinants of health and deliver measurable improvements, not just services.
- Collaboration across payers and providers – Humana is inviting other insurers to join its initiatives, demonstrating the need for collective action to scale effective programs.
Conclusion
Humana’s investment in Volunteers of America’s Family Focused Recovery program, combined with its commitment to tele-behavioral health and value-based care, reflects a forward-looking approach to behavioral health. By addressing substance use disorder among pregnant women and families, supporting virtual care access, and pushing for innovative payment models, the company is aligning itself with the future of health care.
As Shrank emphasized, solving today’s behavioral health crises requires collaboration, creativity, and a willingness to see the bigger picture. Humana’s initiatives may represent only part of the solution, but they are an important step toward building a more holistic, equitable, and accessible behavioral health system.
