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?
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| 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.
- Adjusted EPS was $3.24, beating consensus by 11% but down 22% year-over-year.
- Revenues grew 11.4% to $32.65 billion, led by premiums up 9.9% to $30.7 billion and services revenues up 45.1% to $1.6 billion.
- Net income declined 59.6% year-over-year to $194 million, while total medical membership fell 8.3% to approximately 15 million, with Medicare Advantage membership expected to decrease by about 425,000 in 2025.
- The company reaffirmed 2025 adjusted EPS guidance of around $17, citing cost-control measures and a focus on Medicare business growth by 2028.
- Humana delivered solid Q3 performance and reaffirmed full-year 2025 adjusted EPS outlook of approximately $17.
- Individual Medicare Advantage pretax margin target of at least 3% over time; new sales at the high end of expected AEP range with focus on maximizing customer lifetime value and retention.
- Operational initiatives, including technology improvements to improve call accuracy and response times, expected to generate over $100 million in savings, and progress on selling non-core assets and acquiring The Villages Health.
- Capital strategy: no additional share repurchases planned beyond Q2 buybacks, debt-to-cap ratio at 40.3%, and prudent capital deployment prioritizing small- to mid-sized provider M&A.
- Solid Q3 performance with results in line with expectations and reaffirmation of full-year adjusted EPS outlook of ~$17 for 2025
- Medicare AEP new individual sales at the high end of expectations; management focusing on customer retention and lifetime value, with dynamic controls to manage growth and protect member experience
- STARS update: Bonus year 2027 results disappointing but as planned; bonus year 2028 shows meaningful improvement, including 600,000 more care gaps closed, on track to return to top-quartile by 2028
- Operational and capital actions: partnerships with Genpact and AI initiatives targeting >$100 M in savings; sale of non-core assets and planned acquisition of The Villages Health; debt-to-capital at 40.3% and no additional share repurchases in 2025
- Financial trends: medical cost trends in line with expectations; invested an incremental $150 M in Q3 into transformation and clinical excellence
- Reaffirmed full-year 2025 adjusted EPS outlook of ~$17 while committing ~$150 million in incremental investments to accelerate transformation and Stars improvements.
- Continued operational momentum as Q4 2024 gains carried into 2025, closing 600,000 more care gaps year-over-year, and targeting a return to top-quartile Stars by bonus year 2028.
- Entered a partnership with Genpact and deployed an agentic AI platform to streamline finance and call-center operations, expected to yield >$100 million in savings over the coming years.
- Executed capital allocation moves, including the sale of Enclara Pharmacia and pending acquisition of The Villages Health; ended Q3 with a 40.3% debt-to-capital ratio (down from 40.7%), targeting ~40%, and no additional share repurchases beyond Q2 2025.
- Humana delivered Q3 2025 GAAP EPS of $1.62 and Adjusted EPS of $3.24, with YTD Adjusted EPS of $21.10
- Revised FY 2025 GAAP EPS guidance to approximately $12.26 (from $13.77), while affirming Adjusted EPS guidance of approximately $17.00
- Q3 2025 Insurance segment benefit ratio was 91.1%, in line with guidance, and FY 2025 benefit ratio guidance remains 90.1%–90.5%
- Updated FY 2025 individual Medicare Advantage membership decline guidance to approximately 425,000 members, improved from a prior expectation of up to 500,000
- CenterWell Primary Care grew by 56,600 patients (nearly 15%) compared to December 31, 2024, and CenterWell Pharmacy volumes exceeded expectations
- Humana reported 3Q25 GAAP EPS of $1.62 and Adjusted EPS of $3.24; YTD GAAP EPS was $16.43 and Adjusted EPS was $21.10.
- Updated FY 2025 GAAP EPS guidance to approximately $12.26 (down from $13.77) and affirmed Adjusted EPS guidance of approximately $17.00; Insurance segment benefit ratio expected at 90.1%–90.5%.
- Now anticipate a decline of approximately 425,000 Medicare Advantage members in 2025 (versus prior guidance of up to 500,000), driven by stronger retention and better sales.
- CenterWell saw 56,600 new patients (nearly 15% growth vs. Dec 31, 2024) and continued robust pharmacy volume increases in 3Q25.
- Grabar Law Office is investigating whether certain Humana officers and directors breached fiduciary duties through false or misleading statements about the company’s business and operations.
- Shareholders who acquired HUM shares before July 27, 2022 and still hold them may seek corporate reforms, return of funds, and a court-approved incentive award at no cost.
- The complaint alleges Humana downplayed pressures on adjusted EPS from increased medical costs driven by pent-up demand as COVID concerns abated.
- SohoMD opened a public investment round on Wefunder to accelerate its virtual mental health platform nationwide.
- Patients report 95% feel better, 41% average symptom reduction, and attend 12 visits per patient (four times the national standard) across 850,000 visits in 15+ states.
- The company has generated $115 million in lifetime revenue, including $20 million in 2024, achieving 173% growth over the past five years.
- SohoMD is in-network with major insurers such as Aetna, Blue Cross Blue Shield, Cigna, Optum, and Humana, enhancing care affordability.
- It forecasts reaching $102 million in annual revenue by 2030, driven by AI advancements, expanded reimbursement, and scaling within a $92 billion U.S. behavioral health market.
- Grabar Law Office is investigating whether certain Humana officers and directors breached their fiduciary duties in a federal securities fraud class action complaint.
- The complaint alleges Humana downplayed pressures on adjusted EPS from pent-up healthcare demand, understating the resulting increase in utilization and medical costs.
- Shareholders who purchased Humana shares before July 27, 2022 and still hold them can seek corporate reforms, fund recovery, and a court-approved incentive award at no cost.
- Grabar Law Office is investigating whether Humana Inc.’s officers and directors breached their fiduciary duties, alleging they made materially false and misleading statements about the company’s business and operations.
- The complaint asserts Humana downplayed medical cost pressures on its adjusted EPS driven by pent-up demand for healthcare procedures as COVID concerns eased.
- Shareholders who purchased Humana shares prior to July 27, 2022 and still hold them can seek corporate reforms, recovery of funds, and a court-approved incentive award at no cost.