Health insurance giant Humana (HUM) and Weight Watchers International (WTW) have partnered to help employers improve worker wellness and battle the nation’s costly obesity epidemic.
The deal could bring the Manhattan-based weight management specialist much needed access to more than 2 million customers. Weight Watchers has been in a slump with attendance down at its meetings, revenue and profits falling and the company’s stock losing about half its value in the last year alone.
Weight Watchers is battling an onslaught of new competition from digital tools and apps launched by well-funded companies and venture firms. Meanwhile, insurers and employers are creating competition in the wellness and fitness space by providing broader coverage for everything from wellness programs and gym memberships to personal trainers.
But the Humana deal is the latest high-profile announcement in Weight Watchers comeback attempt. Weight Watchers advertised for the first time on the Super Bowl as part of the company’s new “Help with the Hard Part,” campaign it launched this winter. (see video below)
The Humana deal will provide Weight Watchers to qualified health plan members for six months with “no out of pocket” costs and then members get a “discounted rate thereafter,” the insurer told Forbes. Humana will pay Weight Watchers an undisclosed per participant per month rate.
Weight Watchers has access to 2.3 million Humana customers in “qualified health plans” with enrollees fully insured by their employer. Those with benefits administered by Humana in “ASO” plans must opt to purchase the program.
“The key to this program is the active connection we’re making among our members, the Weight Watchers offering, and Humana’s existing health and wellness initiatives,” Humana chief executive officer Bruce Broussard said in a statement to Forbes. “The discount is important, because it provides an incentive to get started and removes financial barriers that many people face.”
Unlike other deals Weight Watchers has through individual agreements with employers, insurers or statewide programs, the Humana deal is different because it is national in scope, the insurer said. “Our mission to ‘change people’s relationship with food for good’ directly aligns with Humana’s mission to support lifelong well-being,” Weight Watchers International chief executive Jim Chambers said.
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