Oh my goodness. I've just been informed that we will not be getting merit or COLA raises if we are eligible for / receive the AIP (Associate Incentive Program) bonus.
WTAF.
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What was the AIP multiplier this year (2025/2026)? Last year it was 100%…
The company will be sold. There is no other way. It is not diversified like United/Optum, CVS Health, Cigna/Express Scripts, etc. Any big hit to MA is devastating.
@q7 possibly C suite had insider information this was going to happen. I wouldn't say it's unrelated that the Medicare rates are only going up 0.9% instead of 4-5% as expected. It's a massive difference.
This is in way anything to do with the market drop this week, that is due to the CMS rate notice that was released on 1/28 that caused the maket to drop. Leadership was informed of no rasies last week, some told teams last week, some told teams this week, some never told teams. It was asked that is not be widely shared (that made me laugh when I heard that). We were told it was so they could pay new C-level positions and those leaving with early retirement (remember another wave of retirement is 1/30/2026 and then we have February retirement group leaving). This no raise impacts us more in long run as we lose a year of pay increase which over time will impact people more in the long term then getting a one time AIP bonus. It is crazy what we are paying C-level, contractor companies and then the employees keep getting let go or now no pay raises.
The last company the now Humana CEO was with filed for bankruptcy. That’s not the news you like to find out.
@fe the decision for no raises was made before the latest stock tumble. I heard about it late last week. Unless someone at Humana was made aware of the lower rate before then, that has little to do with the decision for no raises. I think they are trying to find ways to pay those who took early retirement at this last time.
No raises for the worker bees.
There have never been COLA raises. We are told when we are hiring as leaders that we pay based on market labor cost and we don’t do any COLA increases ever.
@fe Humana Stock has been free falling in the last 3-4 years ….it has never recovered since 2023.
Year | Year Close | Approx. Annual % Change
• 2021: ~$446 (+14%)
• 2022: ~$496 (+11%)
• 2023: ~$446 (≈ –10%)
• 2024: ~$250 (≈ –44%)
• 2025: ~$256 (≈ +2%)
• 2026 (to date): ~$271 (≈ +4%) (through early 2026)
Former CEO Bruce Broussard also received compensation ($12.1 M) for his portion of the year before the leadership transition on the top of the other pay.
James A. Rechtin, who became CEO in mid-2024, earned about $15.6 million in total compensation for that fiscal year.
*Sweet Deal baby !
@fe Someone look at our stock price over lunch and decided there would be no raises? Right.
Probably this is a big reason for no raises. The stock has dropped more than 20% today.
https://www.wsj.com/health/healthcare/shock-and-dismay-among-health-insurers-after-medicare-holds-line-on-2027-payments-3c5bb085
Anybody know if this is enterprise-wide or just the insurance segment? I know CenterWell has done well, but this is the one time during the year where they go out of their way to insist we are all one company and the suffering usually is shared. I assume yes but didn’t know if any leaders here had already confirmed.
I did not know that a lot of other companies are doing likewise,,, which begs the question... when real inflation is about 100% over the last few years, how is it that everyone is denied the paltry little 1-3% wage increases that they (used to) give out grudgingly?
There have been hundreds of nurses hired over the past several months. Hired in at rates higher than exceptionally loyal associates who have been at the company for a decade or more, hired in at rates higher than leadership.
Many organizations are doing similar based on over incentivizing employees in the past on salaries and they are now are not able to keep up the based on economic states.
However, this news comes on the tail end of new building enhancements to include large viewing areas with TVs allowing virtual walk arounds with indoor lounging cushions and mini huddle rooms. While this can be seen as positive for growth, the fact of the matter is the ratio of people who are in the office on a normal basis isn’t equivalent for the amount of money being spent for unnecessary bells and whistles that are not used by the majority.
There are many articles about Humana investing $21 million on upgrades to their two office locations in Louisville, KY alone.
CEOs get 200% AIP based on the pay tier for which they fall into. That leaves what for the remainder? AIP is taxed on a bonus level making it less desirable than a raise.
The reduction in forces that occurred last year and even some into 2026, coupled with early retirement packages offered to many eliminated many jobs, some which were filled by offshore contractors, others not backfilled at all.
There has been a work harder and make less trend occurring on a yearly basis over the last three consecutive years, and 2025 EOY into 2026, which appears to be a coup des grâce to encourage employees to make their own mass exodus.
@ag nah just following suit of all the other companies out there doing the same (while executives pat their backs for a job well done). I doubt there's any company out there that would be able to purchase them without getting smacked down...then again, tank the value enough and maybe...
We're definitely in interesting times.
You would think the executives will refrain from getting bonuses and raise . But i doubt it. Their bonuses is already part of their 100 page work contract written by a lawyer and financial advisers.
Poor worker ….. your expectations for raise and bonuses is a fake dream not a job contract.
Probably to lower expenses for a future buyer. Didn't they do this when we were going to be purchased by Aetna?