
It’s been a tough year for Humana (No. 39 on the Fortune 500), the health-insurance giant that primarily serves seniors enrolled in Medicare Advantage plans. Rising medical costs and a drop in the quality ratings that are used to calculate bonus payments have made an impact. On Nov. 5, Humana reported a drop in net income to $1.62 a share, from $3.98 a share the year prior, and lowered its full-year earnings guidance.
CEO Jim Rechtin, who has been in the role since July 2024, spoke to Fortune prior to the release of earnings, and discussed how he’s navigating a tough climate and trying to transform Humana.