Dive Brief:
- Humana has nailed down a firm date for its previously announced CEO transition: July 1.
- In October, CEO Bruce Broussard said he planned to step down after a decade leading the company, to be replaced by current chief operating officer Jim Rechtin. Rechtin joined Humana’s C-suite as president and COO in January, after serving as CEO of beleaguered physician staffing firm Envision Healthcare.
- Come July, Rechtin will officially step up as chief executive and join Humana’s board of directors, while Broussard will remain on as an advisor until early 2025. At that point, Broussard will continue work with Humana’s philanthropic foundation and advise the company on general matters like public policy in return for hourly wages, according to a filing with the Securities and Exchange Commission.
Dive Insight:
Broussard first joined Humana in 2011 as president before moving up to CEO in 2013.
Under Broussard, Humana has shifted away from commercial insurance to focus exclusively on more lucrative government programs like Medicaid and Medicare Advantage. Humana has grown to the second-largest MA payer after UnitedHealth, with 6.1 million members, and launched a health services business, called CenterWell, that includes a large network of primary care practices for seniors.
However, the insurer has struggled with MA headwinds cutting into earnings, including a dogged increase in seniors’ medical costs and less friendly regulations from Washington. Those include lower 2025 payment rates in the privately run Medicare program than Humana, and other MA payers, had wanted.
As a result of the challenges, Humana’s net income fell to $741 million in the first quarter, down from $1.2 billion same time last year. The insurer fully withdrew its earnings expectations for 2025 in April, citing significant uncertainty in MA including the lower rates.
In a release on the CEO transition, Humana touted Rechtin’s “deep understanding of Medicare Advantage,” along with more than two decades of experience in healthcare.
Before joining Envision in 2020, Rechtin was president of OptumCare, UnitedHealth’s value-based care delivery business, and worked in strategic and leadership roles at dialysis provider DaVita Medical Group.
Rechtin departed Envision for Humana as the physician staffing firm emerged from a bankruptcy.
Rechtin is joining the ranks of some of the most highly paid CEOs in the healthcare industry. Despite Humana’s recent financial troubles, Broussard received $16.3 million in total compensation in 2023, including salary and stock options, according to the company’s proxy statement.
Currently, Broussard is being paid a base salary of $750,000, half his previous base salary of $1.5 million, as he advises Rechtin through the transition.
After moving to temporary worker status in March 2025, Broussard will receive an hourly rate of $360.57 for additional advisory work, according to the documents.
