Dive Brief:
Humana’s chief financial officer is stepping down as the insurer continues to manage high medical costs in Medicare Advantage that challenge its finances.
CFO Susan Diamond will step down from her role effective Jan. 11, Humana said Tuesday. The insurer has chosen Celeste Mellet, currently finance chief at an infrastructure investment fund, to succeed her.
Diamond, who has held the top finance spot at Humana since 2021, will stay on at the insurer through the end of next year in an advisory role.
Dive Insight:
Diamond is leaving the insurer to “pursue personal and professional goals” after 18 years at Humana, a company spokesperson told Healthcare Dive.
Celeste Mellet
Permission granted by Humana
Her replacement Mellet comes to Humana from Global Infrastructure Partners. Previously, Mellet worked at investment banks Evercore and Morgan Stanley as well as mortgage financier Fannie Mae.
“Celeste is a highly accomplished CFO and brings first-hand experience navigating dynamic and highly regulated industries,” Humana CEO Jim Rechtin said in a statement. “She has a proven track record of working with cross-functional teams to drive improved performance throughout the complex organizations where she has served as a leader.”
Rechtin himself is relatively new to the insurer. He officially stepped up to the chief executive role this summer, after joining Humana as president and chief operating officer in early 2024.
The latest executive change-up follows months of financial tumult at Humana, the nation’s second largest MA insurer.
The company pulled its profit outlook for 2025 in April, citing declining payment rates in MA as payers in the privatized Medicare program managed increased medical spending among beneficiaries.
Humana is also facing a significant drop in MA star ratings for next year, health plan quality assessments that analysts estimated could represent a $1 billion to $3 billion hit to the insurer in 2026. In late October, the company sued the HHS over its star ratings, arguing federal regulators calculated its scores in an arbitrary and capricious manner.
But the payer made some progress improving its financial position in the third quarter, posting better results than analysts anticipated and boosting its 2025 earnings guidance.
On Tuesday, Humana reiterated its adjusted profit guidance for this year, expecting at least $16 per share. The insurer also expects adjusted profit for 2025 will be “at least in line with final 2024 results.”
