Humana offers cap on health insurance

Humana Inc. is dangling the prospect of a guaranteed rate cap to win new business from companies weary of fluctuating, rapidly rising health care costs.

This month the Louisville-based managed care company introduced SmartAssurance, a health plan that caps any rate increase at 9.9 percent in the second year. Analysts said skyrocketing costs had prevented managed care companies from offering multiyear contracts for years and that Humana's willingness to resurrect the practice could push others to follow.