David Jones + Wendell Cherry found Heritage House of America Feb 1961 in Louisville KY as nursing home operator with $1,000 each; renamed Extendicare 1968. Pivots to hospitals 1972 (Humana Hospitals), then health insurance 1993 — most dramatic strategic pivot in US health insurance history.

Humana spins off hospital business Sep 1993 — Galen Health Care (later merged with Columbia Hospital Corp / HCA). Humana pivots to pure-play health insurance — completing 32-year transformation from nursing homes (1961) → hospitals (1972) → insurance (1993). One of the boldest strategic pivots in healthcare.

Michael McCallister becomes Humana CEO 2000 (CEO 2000-2013) — turns Humana from troubled HMO into Medicare Advantage leader. Bet: aging US population + government MA subsidies = decade of growth. Humana stock 8x's 2000-2010.

Aetna-Humana $37B merger announced Jul 2015 — blocked by DOJ antitrust lawsuit Jul 2016; merger officially terminated Feb 14 2017. Humana pays $50M breakup fee + retains $1B+ premium from Aetna. CEO Bruce Broussard pivots to standalone Medicare Advantage growth strategy.

Humana stock crashes Jan 2024 — Medicare Advantage 2024 cost overruns + 2025 CMS payment cuts (effective Jan 2025) drive Humana to cut FY2024 EPS guidance 30%. Stock falls from $475 (Sep 2023) to $260 (May 2024). Triggers MA industry-wide reset; Humana, Centene, CVS-Aetna all cut MA exposure 2024-2025.

Jim Rechtin becomes Humana CEO Jul 1 2024 replacing Bruce Broussard (CEO 2014-2024). Rechtin comes from Envision Healthcare + UnitedHealthcare. Inherits Medicare Advantage cost crisis: 2024 EPS guidance cut 30%, 2025 MA membership down 250K. Refocuses on pricing discipline + plan rationalization.

Humana Q1 2025 — Jim Rechtin CEO continues MA repricing discipline; medical loss ratio improving. 2025 MA membership down 250K (~5%) on plan exits but profitability per member up. Stock recovers from $200 (Q1 2025) to $245+ by Q1 2026.

Humana Q3 2025 — Jim Rechtin CEO (CEO since Jul 2024 replacing Bruce Broussard) executes Medicare Advantage repricing strategy. Humana 2025 MA membership down 250K (~5%) on plan exits but MLR improving. Stock $245+ (recovered from $200 trough Q1 2025). Humana remains #2 US MA insurer behind UNH.

Humana FY2025 — Jim Rechtin CEO reports $115B revenue; MA membership 5.2M (down 250K). MA segment medical loss ratio improving but still elevated vs pre-2024. Stock $280 (recovered from $200 Q1 trough). Humana focuses on pricing discipline + Stars ratings + CenterWell (clinic) growth.