Humana Inc., headquartered in Louisville, Kentucky, is a leading health and well-being company that operates primarily through its Insurance and CenterWell segments. The company provides a wide range of health insurance products, including medical, dental, hearing, vision, and prescription drug coverage, with a significant emphasis on Medicare Advantage, Medicaid, and Military offerings . Additionally, Humana offers health services through its CenterWell segment, which includes pharmacy solutions, primary care, and home health services, along with strategic partnerships to develop senior-focused primary care centers .
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Insurance - Offers a comprehensive range of health insurance products, focusing on Medicare Advantage, Medicaid, and Military offerings, as well as dental, hearing, vision, and prescription drug coverage .
- Medicare Advantage - Provides enhanced health insurance plans for seniors, focusing on comprehensive care and additional benefits.
- Medicaid and Military - Delivers health insurance solutions tailored for Medicaid recipients and military personnel.
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CenterWell - Delivers health services, including pharmacy solutions, primary care, and home health services, with a focus on senior care through strategic partnerships .
- Pharmacy Solutions - Offers medication management and pharmacy services to improve patient outcomes.
- Primary Care - Provides primary healthcare services with an emphasis on senior-focused care centers.
- Home Health Services - Offers in-home healthcare services to support patient recovery and well-being.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Bruce D. Broussard ExecutiveBoard | CEO (until July 1, 2024) | Board Member at HP Inc.; Trust for the National Mall; AHIP | CEO since 2013, leading Humana's integrated care delivery model. Transitioning out of the role on July 1, 2024. | |
James A. Rechtin ExecutiveBoard | President and CEO (effective July 1, 2024) | None | Joined Humana as President and COO in January 2024. Will succeed Bruce Broussard as CEO on July 1, 2024. Previously CEO of Envision Healthcare. | |
Celeste Mellet Executive | CFO | None | Appointed CFO in January 2025. Previously CFO at Global Infrastructure Partners and Evercore. | |
George Renaudin II Executive | President, Medicare & Medicaid | None | President of Medicare & Medicaid since February 2024. | |
John-Paul W. Felter Executive | Chief Accounting Officer & Controller | None | Elected Chief Accounting Officer in August 2022. | |
Joseph C. Ventura Executive | Chief Legal Officer | None | Chief Legal Officer since February 2019. | |
Samir M. Deshpande Executive | Chief Information Officer | None | Joined Humana in 2017. Previously Chief Technology and Risk Officer. | |
Timothy S. Huval Executive | Chief Administrative Officer | None | Joined Humana in 2012. Previously Chief Human Resources Officer. | |
Vishal Agrawal, M.D. Executive | Chief Strategy and Corporate Development Officer | None | Joined Humana in December 2018. Previously President and Chief Growth Officer at Ciox Health. | |
William K. Fleming Executive | Chief Corporate Affairs Officer | None | Joined Humana in 1994. Previously Segment President, Pharmacy Solutions. | |
Brad D. Smith Board | Independent Director | President of Marshall University; Board Member at Amazon and Intuit | Independent Director since 2022. Former CEO and Executive Chairman of Intuit. | |
Frank A. D’Amelio Board | Independent Director | Board Member at Zoetis, Hewlett Packard Enterprises, and Catalent | Independent Director since 2003. Chair of the Audit Committee. | |
John W. Garratt Board | Independent Director | Board Member at Papa John’s, Cracker Barrel, and Federal Reserve Bank of Atlanta | Independent Director since 2020. Former CFO of Dollar General. | |
Jorge S. Mesquita Board | Independent Director | Board Member at Mondelez International | Independent Director since 2021. Former executive at Johnson & Johnson and Procter & Gamble. | |
Karen W. Katz Board | Independent Director | Board Member at Under Armour and The RealReal | Independent Director since 2019. Former CEO of Neiman Marcus Group. | |
Kurt J. Hilzinger Board | Chairman of the Board | Partner at Court Square Capital Partners; Board Member at Outlook Therapeutics | Chairman of Humana's Board since 2014. Previously President and COO of AmerisourceBergen. | |
Marcy S. Klevorn Board | Independent Director | Board Member at Northern Trust Corporation and Cerence Inc. | Independent Director since 2021. Former Chief Transformation Officer at Ford Motor Company. |
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Given the higher inpatient admissions observed in the latter half of the second quarter and continuing into July, can you provide more details on the specific steps you are taking to mitigate this pressure, and how confident are you that these measures will effectively offset the inpatient cost overruns going forward?
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You mentioned that achieving normalized margins in your Medicare Advantage business will take multiple years due to regulatory constraints and TBC limitations; can you elaborate on the specific challenges you face and what strategies you have in place to accelerate margin recovery before 2027? ,
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With the planned exits from certain markets due to unprofitable plans, how do you anticipate these exits will impact your overall membership growth and earnings in 2025, especially considering the potential retention of members through other plan options? ,
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Regarding your cost management efforts, you've highlighted investments in automation and technology, including partnerships with Google for AI initiatives; can you provide specific examples of how these investments are translating into measurable cost reductions and operational efficiencies, and what is the expected timeline for realizing these benefits? ,
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There have been concerns that extensive cost-cutting measures might have affected your ability to respond swiftly to emerging cost pressures, such as the higher inpatient costs attributed to the two-midnight rule; how do you address this concern, and what safeguards are in place to ensure essential capabilities are not compromised by cost reductions?
Research analysts who have asked questions during HUMANA earnings calls.
Andrew Mok
Barclays
4 questions for HUM
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George Hill
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Joshua Raskin
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Justin Lake
Wolfe Research, LLC
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Sarah James
Cantor Fitzgerald
4 questions for HUM
Albert Rice
UBS
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Benjamin Hendrix
RBC Capital Markets
3 questions for HUM
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Bank of America
3 questions for HUM
Stephen Baxter
Wells Fargo & Company
3 questions for HUM
David Windley
Jefferies Financial Group Inc.
2 questions for HUM
Erin Wilson Wright
Morgan Stanley
2 questions for HUM
Michael Ha
Robert W. Baird & Co.
2 questions for HUM
Whit Mayo
Leerink Partners
2 questions for HUM
A.J. Rice
UBS Group AG
1 question for HUM
Ben Hendrix
RBC Capital Markets
1 question for HUM
Benjamin Mayo
Leerink Partners
1 question for HUM
Dave Windley
Jefferies LLC
1 question for HUM
Erin Wright
Morgan Stanley
1 question for HUM
Hua Ha
Robert W. Baird & Co. Incorporated
1 question for HUM
Kevin Fischbeck
Bank of America
1 question for HUM
Lance Wilkes
Sanford C. Bernstein & Co., LLC
1 question for HUM
Lisa Gill
JPMorgan Chase & Co.
1 question for HUM
Ryan Langston
TD Cowen
1 question for HUM
Scott Fidel
Stephens Inc.
1 question for HUM
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Centers for Medicare & Medicaid Services (Florida Medicare Advantage) | Provides Medicare Advantage coverage to approximately 924,800 members | Medicare Advantage | Contributed 14% of 2024 total premiums and services revenue |
Department of Defense (TRICARE T2017 East Region) | Provided TRICARE coverage to approximately 6 million beneficiaries in 32 states | Military Services | Contributed 1% of 2024 total premiums and services revenue |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Primary Care Organization (PCO) | 2024 | Humana’s PCO acquisition involved acquiring up to 50 centers with a plan to consolidate some locations in the first half of 2025 to drive synergy and accelerate growth, targeting a patient panel of 350,000–360,000 by year-end. |
Intrepid | 2024 | The Intrepid acquisition was completed in Q3 2024, adding 30 net new branch locations in certificate of need states and over 200 field clinicians, along with key referral and patient relationships that enhance Humana’s Home business. |
Health and Wellness-related Businesses | 2023 | In 2023, Humana acquired various health and wellness-related businesses for approximately $223 million in net cash consideration, increasing goodwill by $398 million (recorded using Level 3 inputs), though individually these deals did not materially impact overall financial results. |
Health and Wellness-related Businesses | 2022 | The 2022 acquisitions involved various health and wellness businesses for roughly $293 million (net of cash received), with integrated operations into Humana’s financial statements and partial goodwill amortization for tax purposes, while not materially affecting financial performance. |
Recent press releases and 8-K filings for HUM.
- Diluted EPS guidance of $13.77 and adjusted EPS guidance of $17.00 for fiscal 2025 reaffirmed.
- 20% of Medicare Advantage members enrolled in plans rated four stars or higher for 2026, with an average star rating of 3.61.
- Projects a doubling of individual Medicare Advantage pre-tax margin in 2026 (excluding star impacts) and membership growth via a plan diversification strategy targeting higher‐rated plans in 2027.
- Shares rallied following the outlook confirmation and star rating alignment with company assumptions.
- Preliminary 2026 Medicare Advantage Star Ratings show ~1.2 million members (20%) in plans rated 4 stars+, average rating 3.61, and 14% of members in 4.5 star plans (vs 3% in 2025).
- These preliminary ratings align with assumptions in the Company’s multiyear financial plan, so no change to 2025–2028 incremental earnings potential.
- Humana expects a return to Top Quartile MA Star Ratings in 2027, driven by operational improvements and a MA contract diversification strategy to increase enrollment in 4 star+ plans.
- Affirms FY 2025 EPS guidance: GAAP EPS of $13.77 and Adjusted EPS of $17.00.
- Humana will reduce its Medicare Advantage footprint to 85% of U.S. counties in 2026 while expanding low-income dual-eligible offerings in select states.
- The company’s 2026 MA plans feature $0 copays for preventive care and prescription drugs, plus dental, vision, and hearing coverage, and new support for members with chronic kidney conditions in Oklahoma, Texas, North Carolina, and Virginia.
- CMS projects overall MA enrollment will decline to 48% of Medicare enrollees in 2026, down from 50% in 2025, reflecting market exits by insurers like Humana.
- Over 80% of Humana Medicare Advantage members will be in plans with stable benefits, including $0 copays for in-network preventive services and Tier 1 prescriptions, plus 100% of plans cover dental, vision and hearing at no extra cost.
- Preventive and diagnostic screenings for breast cancer, colon cancer and bone density are now included at no additional cost in all 2026 Medicare Advantage plans.
- About 83% of Humana’s stand-alone Prescription Drug Plans will feature a premium decrease for 2026, with a $2,100 maximum out-of-pocket limit for covered prescriptions.
- Humana’s Medicare Advantage offerings will expand to 46 states and Washington, D.C., covering 85% of U.S. counties, and will introduce new plan types in four states (Idaho, Illinois, Maine and New Jersey) across 177 additional counties.
- SPRY Therapeutics introduced an AI-driven Prior Authorization & Eligibility Solution that automates up to 80% of prior authorization workflows and cuts related denials by 75%, streamlining processes across major payers including Humana.
- The platform offers real-time, unlimited eligibility verification, reducing last-minute cancellations and supporting walk-in patient checks.
- FHIR-compatible APIs enable clinics to meet CMS’s 2026 electronic prior authorization mandate, with AI agents handling the end-to-end workflow from documentation review to approval.
- Early adopters report 99% of eligibility files processed in under one hour, 95%+ eligibility match rates, and a 95% reduction in authorization submission time.
- Continental General finalized an agreement to recapture a block of life and long-term care policies from Munich Re Life US, assuming 100% of the related assets, liabilities, and reserves.
- The transaction, effective July 1, 2025 and completed on August 29, 2025, returns all ceded risk to Continental General’s balance sheet.
- This recapture expands the company’s asset base and underscores its strategic goal to internalize long-term care policy management.
- The deal builds on Continental General’s prior 2023 acquisition of an LTC block from Elevance Health and will be administered by Continental General Services, LLC.
- Humana’s senior management will meet with investors and analysts between September 1 and September 30, 2025 to reaffirm its full-year 2025 diluted EPS guidance of $13.77 (GAAP) and $17.00 (adjusted).
- The adjusted EPS guidance of $17.00 reflects amortization of intangibles, valuation adjustments on minority interests, value creation initiatives, impairment charges, and related tax impacts.
- The Company will not comment on 2026 Medicare Advantage Star Ratings until CMS releases final ratings in October 2025.
- Humana will offer the Cologuard Plus™ colorectal cancer screening test in-network to eligible Medicare Advantage members nationwide beginning August 2025, covering approximately 5.8 million members.
- Cologuard Plus™, which launched in March 2025, has received FDA approval, Medicare coverage, and inclusion in the U.S. Preventive Services Task Force guidelines.
- The test incorporates novel biomarkers and enhanced processes to deliver up to 40% fewer false positives versus the original Cologuard, aiming to reduce unnecessary follow-up colonoscopies.
- Raised full-year 2025 adjusted EPS outlook to approximately $17 (from ~$16.25) based on solid Q2 and H1 performance.
- Outperformance driven by CenterWell Pharmacy and better-than-expected individual Medicare Advantage membership retention.
- Medical cost trends were in line with expectations, and membership decline is now forecast at up to 500,000 vs. previous 550,000 estimate.
- Capital deployment included $100 million in Q2 share repurchases to offset dilution and $200 million of 2027 debt repurchased, with no further buybacks planned for 2025.
- Medicaid footprint expanded to 10 active states (with 3 pending); Long-Term Services & Supports focus expected to mute impact from federal Medicaid changes.
- Humana will eliminate approximately one third of prior authorizations for outpatient services by January 1, 2026, removing requirements for colonoscopies, transthoracic echocardiograms and select CT scans and MRIs.
- The company targets decisions on at least 95% of complete electronic prior authorization requests within one business day by January 1, 2026 (up from over 85% currently).
- In 2026, Humana will roll out a national gold card program waiving prior authorization requirements for providers with proven high-quality outcomes for Humana members.