Jim Rechtin to become Humana CEO on July 1
Rechtin has worked in close partnership with Humana's current CEO, Bruce Broussard, on the transition.
Current Humana CEO Bruce Broussard, left, will step down July 1 and hand over the reins to Jim Rechtin, right, who will become CEO.
Photos courtesy of Humana
Jim Rechtin will assume the role of president and chief executive officer of Humana effective July 1, the insurer announced this week.
Rechtin joined Humana in January as part of a long-planned CEO transition. Since then, he has worked in close partnership with Humana's current CEO, Bruce Broussard, to immerse himself in the company's operations.
The organization said he'll help shape the company's future strategic direction.
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Expanding access, ending disparities, empowering communities.
Broussard will resign from the Humana Board of Directors effective July 1. He will serve as a strategic advisor to the company into 2026, helping the company continue to navigate through the current industry environment. Rechtin will join the board that same day.
WHAT'S THE IMPACT?
Rechtin joined Humana after helming Envision Healthcare, where he served as president and CEO. According to Humana, he has more than 22 years of healthcare experience with a focus on the delivery of value-based care in various medical group settings, including a deep understanding of Medicare Advantage.听
Before joining Envision, Rechtin served as president of OptumCare, part of UnitedHealth Group. Prior to OptumCare, Rechtin was with DaVita Medical Group, which he joined in 2014, playing the dual roles of senior vice president of corporate strategy and president of DaVita's California market.
He's also a 14-year veteran of Bain & Company, where he gained experience in mergers and the overall healthcare sector.
A Kentucky native, Rechtin started his career running operations for a nonprofit health and human services clinic in Indianapolis, and served in the United States Peace Corps in the Congo. He received a Master of Business Administration degree from Harvard Business School and a Bachelor of Arts degree from DePauw University. He serves as a board member for the DePauw Board of Visitors.
THE LARGER TREND
Humana raised its 2024 individual Medicare Advantage annual membership growth by 50,000 to now anticipate annual growth of approximately 150,000, or 2.8%, the company said last month during its Q1 earnings report.
However, Humana expects membership may take a hit from future Medicare Advantage pricing resulting from the Centers for Medicare and Medicaid Services payment rate notice released in April.
Humana's first quarter 2024 net profit was $741 million, which is a 40% decrease from the first quarter of 2023, according to . Humana shares dipped roughly 4% in early trading, WSJ said.
Humana warned of higher-than-expected medical costs impacting its results into 2024 and beyond, the report said.
ON THE RECORD
"I am incredibly excited to be named CEO of Humana and humbled to have the opportunity to lead 65,000 dedicated teammates as we seek to provide better health outcomes at lower costs for our members and customers," said Rechtin. "I appreciate the trust and confidence shown to me by the Humana Board, Bruce and the entire leadership team. As an enterprise, we have tremendous growth prospects, driven by a differentiated value proposition and attractive market fundamentals. I am committed to innovating and improving our operations even further, finding better ways of working and providing equitable access to high quality healthcare while generating long-term shareholder value."
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