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Dive Temporary:
Humana’s chief monetary officer is stepping down because the insurer continues to handle excessive medical prices in Medicare Benefit that problem its funds.
CFO Susan Diamond will step down from her function efficient Jan. 11, Humana stated Tuesday. The insurer has chosen Celeste Mellet, presently finance chief at an infrastructure funding fund, to succeed her.
Diamond, who has held the highest finance spot at Humana since 2021, will keep on on the insurer by the tip of subsequent yr in an advisory function.
Dive Perception:
Diamond is leaving the insurer to “pursue private {and professional} targets” after 18 years at Humana, an organization spokesperson instructed Healthcare Dive.
Celeste Mellet
Permission granted by Humana
Her alternative Mellet involves Humana from International Infrastructure Companions. Beforehand, Mellet labored at funding banks Evercore and Morgan Stanley in addition to mortgage financier Fannie Mae.
“Celeste is a extremely completed CFO and brings first-hand expertise navigating dynamic and extremely regulated industries,” Humana CEO Jim Rechtin stated in an announcement. “She has a confirmed observe file of working with cross-functional groups to drive improved efficiency all through the complicated organizations the place she has served as a frontrunner.”
Rechtin himself is comparatively new to the insurer. He formally stepped as much as the chief government function this summer season, after becoming a member of Humana as president and chief working officer in early 2024.
The newest government change-up follows months of monetary tumult at Humana, the nation’s second largest MA insurer.
The corporate pulled its revenue outlook for 2025 in April, citing declining fee charges in MA as payers within the privatized Medicare program managed elevated medical spending amongst beneficiaries.
Humana can also be dealing with a major drop in MA star rankings for subsequent yr, well being plan high quality assessments that analysts estimated might symbolize a $1 billion to $3 billion hit to the insurer in 2026. In late October, the corporate sued the HHS over its star rankings, arguing federal regulators calculated its scores in an arbitrary and capricious method.
However the payer made some progress enhancing its monetary place within the third quarter, posting higher outcomes than analysts anticipated and boosting its 2025 earnings steerage.
On Tuesday, Humana reiterated its adjusted revenue steerage for this yr, anticipating a minimum of $16 per share. The insurer additionally expects adjusted revenue for 2025 can be “a minimum of in step with closing 2024 outcomes.”
