Humana Inc.

What does Humana own?
Humana owns a portfolio of health insurance and healthcare service brands organized under the Humana master brand and the CenterWell service brand. The portfolio includes Humana Medicare (Medicare Advantage plans), Humana Medicaid (managed care in 13 states), Humana Marketplace (ACA exchange plans), Humana Pharmacy (prescription drug services), CenterWell (senior primary care clinics, pharmacy, and home health), Humana Group Plans (employer-sponsored specialty products), and Humana Individual Plans (individual and family coverage).

Is Humana publicly traded?
Yes. Humana Inc. trades on the New York Stock Exchange under ticker symbol HUM. The company has been publicly traded since its corporate restructuring in the 1990s and is a component of major healthcare sector indices. Its market capitalization fluctuates with earnings performance and Medicare Advantage policy developments.

Who founded Humana?
Humana was founded in 1961 by David A. Jones Sr. and Wendell Cherry in Louisville, Kentucky, originally as a nursing home company called Extendicare Inc. The company pivoted to hospital management in the 1970s and then to health insurance in 1993, when it spun off its hospital operations. Jones served as CEO for decades and remained chairman until his retirement.

Where is Humana headquartered?
Humana is headquartered in Louisville, Kentucky, USA. The company has maintained its headquarters in Louisville since its founding in 1961. Humana operates major offices and care delivery facilities across the United States to support its national Medicare Advantage and Medicaid operations.

How many brands does Humana own?
Humana owns 8 major brands and product lines across its health insurance and healthcare services portfolio. These include Humana Medicare, Humana Medicaid, Humana Marketplace, Humana Pharmacy, Humana Healthcare Services, CenterWell, Humana Group Plans, and Humana Individual Plans. The company uses a focused brand strategy rather than a broad multi-brand portfolio.

Who owns Humana?
Humana is publicly owned with shares trading on the NYSE under ticker HUM. Ownership is distributed among institutional investors, mutual funds, and individual shareholders. No single shareholder holds a controlling interest. Major institutional holders include Vanguard Group, BlackRock, and State Street Corporation. The company operates independently without any parent organization.

What is Humana's revenue?
Humana reported FY2025 revenue of $129.7 billion, up from $117.8 billion in FY2024. For FY2026, the company guided to total revenue of at least $160 billion. The Insurance segment generated $124.6 billion in FY2025 revenue, representing 96.3% of consolidated premiums and services revenue. The company's revenue is heavily concentrated in Medicare Advantage, which accounted for 82.6% of Insurance segment premiums in FY2025.

Is Humana involved in any legal proceedings?
Yes. Humana is appealing a federal court's October 2025 decision rejecting its challenge to CMS Star Ratings methodology. The company also faces an ongoing DOJ investigation into Medicare Advantage risk adjustment practices. Additionally, Humana is subject to routine litigation related to claim denials and coverage decisions, which is typical for large health insurers. The company discloses material legal matters in its SEC filings.

Humana began in 1961 when David A. Jones Sr. and Wendell Cherry founded Extendicare Inc. in Louisville, Kentucky, as a nursing home company. The timing coincided with the post-war expansion of American healthcare infrastructure and the creation of Medicare and Medicaid in 1965. Extendicare grew rapidly through acquisitions, becoming the largest nursing home operator in the United States by 1968.

In 1972, Jones and Cherry sold the nursing home business and pivoted to hospital management. The company was renamed Humana Inc. in April 1974. Through the 1970s and 1980s, Humana built one of the largest hospital chains in the United States, operating more than 90 hospitals at its peak. The company gained national attention in 1986 when it performed the first artificial heart implant at Humana Hospital Audubon in Louisville, using the Jarvik-7 device.

The shift from hospitals to insurance came in 1993, when Humana spun off its hospital operations into a separate company called Galen Health Care (later acquired by Columbia/HCA). Humana retained the insurance business and repositioned itself as a managed care company. This was a defining strategic decision. The company exited a capital-intensive, low-margin business to focus on insurance products where it saw better long-term economics.

Through the late 1990s and 2000s, Humana expanded its Medicare Advantage footprint. The company was an early participant in the Medicare Advantage program after the Medicare Modernization Act of 2003 created the framework for private plan alternatives to traditional Medicare. Humana invested in benefit design, network development, and care coordination for seniors, building the foundation for its current market position.

In 2015, Humana agreed to be acquired by Aetna for approximately $37 billion. The deal was challenged by the U.S. Department of Justice on antitrust grounds, and in January 2017, a federal judge blocked the merger. The companies terminated the agreement, and Humana received a $1 billion breakup fee from Aetna. Humana then pivoted to a standalone strategy focused on Medicare Advantage and integrated care delivery.

The late 2010s saw Humana build out its care delivery capabilities. The company launched CenterWell as its primary care brand, opening senior-focused clinics in markets with high Medicare Advantage concentration. Humana also expanded its pharmacy operations through the acquisition of CenseiHealth in 2018 and later rebranded its pharmacy services under the CenterWell name. In 2021, Humana acquired Kindred at Home, the largest home health and hospice provider in the United States, for approximately $8.1 billion, including assumed debt. This acquisition made Humana the largest home health operator in the country.

In 2023, Humana announced the exit of its employer group commercial medical products business, completing the wind-down by the end of FY2024. The company determined that the employer group business was not generating sufficient returns relative to its Medicare-focused strategy. This exit removed approximately $551 million in revenue from FY2024 comparisons.

In 2024, Bruce Broussard retired as CEO after more than a decade in the role. Jim Rechtin succeeded him, joining from Optum where he had been CEO of Optum Health. Rechtin inherited a company facing a significant Star Ratings challenge: the number of Humana Medicare Advantage plans rated 4-star or higher declined sharply for 2025, which would reduce quality bonus payments from CMS in Bonus Year 2026.

In October 2025, Humana filed a lawsuit seeking to vacate its 2025 Star Ratings. A federal court rejected the challenge on October 14, 2025. Humana appealed the decision. If the appeal fails, the Star Ratings decline will negatively impact 2026 quality bonus payments and may adversely affect revenues and operating results, as disclosed in the company's 10-K.

In 2026, Humana reported strong first-half results. YTD 2026 revenue reached $80.5 billion through June 30, 2026, with net income of $1.88 billion. The company affirmed its FY2026 guidance for individual Medicare Advantage membership growth of approximately 25% over 2025, driven by new sales and improved retention. The company also expanded its Medicaid footprint to 13 states, with Georgia and Texas expected to launch in 2027.

Humana publishes an annual ESG report covering environmental impact, social responsibility, and governance practices. The company has set a goal to achieve carbon neutrality for its direct operations (Scope 1 and Scope 2) by 2030. Humana is not a Certified B Corporation, and none of its subsidiaries carry B Corp certification.

On the social dimension, Humana focuses on health equity and access. The company operates the Humana Foundation, which funds community health programs in underserved areas. Humana has also invested in social determinants of health screening tools that identify food, housing, and transportation needs among its Medicare Advantage members.

The company's governance practices include a Quality and Compliance committee of the board, which oversees clinical quality, regulatory compliance, and patient safety. Humana maintains a corporate compliance program aligned with federal healthcare program requirements, including those of CMS, the Office of Inspector General, and state insurance regulators.

Humana has not faced material greenwashing criticism, as its ESG reporting is relatively modest compared to consumer goods companies. The company's primary ethical exposure relates to healthcare compliance and regulatory matters, which are covered in the Controversy section below.

Humana has received recognition from third-party organizations for workplace culture and healthcare innovation. The company has been named to Fortune's World's Most Admired Companies list in the insurance and managed care category. Humana has also appeared on the Forbes Best Employers list and has received Great Place to Work certification in multiple years.

The company's CenterWell senior primary care model has received recognition from the American Medical Group Association for quality measures in chronic care management. Humana Pharmacy has received URAC accreditation for pharmacy benefit management and specialty pharmacy services.

These awards are industry-specific and do not carry the same consumer-facing weight as recognition for consumer goods companies. Humana does not appear on Interbrand or YouGov BrandIndex rankings, as its brands are not consumer retail brands.

Humana's most significant regulatory challenge is the Star Ratings dispute. In 2025, the number of Humana Medicare Advantage plans rated 4-star or higher by CMS declined sharply. This matters because Star Ratings determine quality bonus payments: plans rated 4 stars or higher receive higher rebate percentages and benchmark payments from CMS. Humana filed a lawsuit seeking to vacate the 2025 Star Ratings, arguing that CMS methodology was flawed. On October 14, 2025, a federal court rejected Humana's challenge. The company appealed. If the appeal fails, the Star Ratings decline will reduce 2026 quality bonus payments and may adversely affect revenues, operating results, and cash flows, according to the company's 10-K filing.

Humana has also faced scrutiny over Medicare Advantage risk adjustment practices. In 2023, the Department of Justice investigated whether Humana submitted inaccurate diagnoses to increase risk-adjusted payments from CMS. The company has denied wrongdoing and has stated that its risk adjustment practices comply with CMS requirements. This investigation is ongoing.

The company faces routine litigation related to claim denials, coverage decisions, and provider disputes, which is typical for large health insurers. Humana maintains reserves for such matters and discloses material cases in its SEC filings.

In 2024, Humana completed the exit of its employer group commercial medical products business. This decision followed a strategic review that determined the business was not meeting profitability targets. The exit affected approximately 1 million commercial members and removed $551 million in revenue from FY2024 comparisons.