Humana CEO to step down, hand reins to replacement in 2024

Current Humana CEO Bruce Broussard, left, will step down next year and hand over the reins to Jim Rechtin, right, who will become CEO.

Photo courtesy of Humana

Health insurer Humana has named healthcare industry veteran Jim Rechtin as its president and chief operating officer, effective January 8, 2024, as part of a long-planned CEO transition. He will report to CEO Bruce Broussard until the latter half of 2024, at which time Broussard will step down and Rechtin will assume the CEO role.

Broussard joined Humana in 2011 and assumed the role of CEO in 2013. In looking at the past decade, the insurer said Broussard was responsible for integrating health insurance with healthcare delivery, helping to transform the company from an insurer to a broader company.

Rechtin will lead Humana into its next chapter as part of a multiyear succession plan, with Broussard to remain as a strategic advisor to the company into 2025.

WHAT'S THE IMPACT?

Rechtin joins Humana from Envision Healthcare, where he serves 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. 

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.

In a statement, Broussard said he has been honored to lead the company.

"I look forward to partnering with Jim," he said. "He brings a collaborative, thoughtful and innovative leadership style to our organization, making him a natural fit for the culture of today and the future."

THE LARGER TREND

Humana logged a strong second quarter this year, due in part to "better-than-expected" membership growth in Medicare Advantage. The insurer collected earnings of about $956 million, a 37.8% increase over the $697 million it earned during the same period last year.

Humana's Medicare Advantage numbers were somewhat surprising given the company's lower expectations. The insurer now expects that 2023 MA numbers will see an 18% increase over last year, with approximately 825,000 new members.
 

Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com