Dive Brief:
- A recent filing by Humana with the Securities and Exchange Commission indicates the insurer is instituting a new compensation model in which bonuses are not just tied to company financial performance, but also to enrollee's health outcomes.
- Humana will base 20% of executives' bonuses on consumer health metrics, Louisville Business First reports, including the completion of risk assessments, pharmacy usage, engagement in the Humana at Home Chronic Care Program and participation in the Humana Vitality program, which provides rewards for healthy behaviors.
- The remainder of the bonuses will depend on whether Humana achieves its earnings objectives.
Dive Insight:
By incentivizing health outcomes, Humana's move puts the insurer in step with the provider transition toward value-based care.
That is assuming they even get bonuses; as Louisville Business First notes, Humana executives did not receive them in 2015 because the insurer failed to meet its goals for the year, which were intentionally set high compared to 2014 results to require "exemplary performance" to earn a reward.
The new “consumer health participation performance metric" (CHP) will help align compensation with “the company’s strategic vision of improving the health of the communities we serve 20% by 2020," Humana spokesman Tom Noland told Insider Louisville.