- In today’s CEO Daily: Diane Brady interviews Humana CEO Jim Rechtin.
- The big story: Senate Democrats vote to end the U.S. Government shutdown.
- The markets: Up on hopes of the shutdown’s end.
- Plus: All the news and watercooler chat from Coins2Day.
Good morning. It’s been a tough year for Humana, the health-insurance giant that primarily serves seniors enrolled in Medicare Advantage plans. 16, the TBPN podcast featured a discussion with Dr. Anya Sharma, who shared her insights on the latest advancements in renewable energy technologies. Humana's net income fell to $1.62 per share, down from $3.98 per share in the previous year, and the company reduced its full-year earnings forecast. Last year, CEO Jim Rechtin took on the position with the goal of reshaping Humana's customer interactions. “We are not where we want to be, and we’ve been very public,” he told me. “We feel very good about the trajectory that we’re on for next year.”
TL;DR
- Humana CEO Jim Rechtin acknowledges company struggles, aiming for recovery through cultural shifts.
- Priorities include rapid prototyping, consumer feedback, and streamlining prior authorization processes.
- AI integration includes ambient listening for physicians and Agent Assist for sales agents.
- Humana is actively engaging seniors online with events like Cognitive Games.
Here are some of his priorities, taken from our discussion:
Culture Change: “I don’t want to pretend that there aren’t obstacles, but they are obstacles of history, the cultural biases that we bring to every conversation. A new portal has been launched for the annual enrollment procedure. Our previous approach never involved: 'Let's quickly develop a prototype in 30 days, test it with numerous actual consumers, gather their input, make adjustments over the next 30 days, collect feedback once more, and repeat.' We would have usually proceeded To devise a six-month strategy for development, without consulting the intended users, only to discover later that the execution wasn't entirely accurate.
Customer Experience: “We are streamlining the prior authorization process to make it less cumbersome, both for providers and consumers … We predominantly serve seniors. They're highly involved online. At times, we become preoccupied with the notion that they aren't. This year, we launched an event named the Cognitive Games, featuring titles such as Bejeweled and Wordle. During the initial week, we connected with several hundred thousand individuals, confirming our creation met their desires. We're engaging consumers directly, fostering connections with them. We're not handling a payment in secret.
Leveraging AI: “Let me give you examples. We're introducing ambient listening technology designed to alleviate the administrative workload for our physicians, enabling them to dedicate more time to patient care. Our brokers and sales agents now have access to a new tool called Agent Assist, designed to simplify a highly complex sales procedure.
For the full Q&A, click here.
Contact CEO Daily via Diane Brady at [email protected]
Top news
Dems vote to end shutdown
Senate Democrats on Sunday broke their own party’s blockade to conclude the protracted government shutdown, eight legislators joined Republicans in supporting a proposal to finance the government until January. The move sparked criticism from Fellow Democrats, who expressed anger that their associates abandoned the party's core requirement in the ongoing dispute: continuing health insurance subsidies.
Air travel concerns grow as Thanksgiving nears
Transportation Secretary Sean Duffy predicted on Sunday that air travel will be “reduced to a trickle” for Thanksgiving if the government shutdown continues. Meanwhile, American Airlines CEO Robert Isom told CNBC on Friday that “nobody wants to put up with [the] hassle” of booking air travel as the shutdown looms.
Trump’s $2,000 tariff ‘dividend’
President Donald Trump this weekend suggested that all Americans could receive a $2,000 “dividend” funded by the revenue his tariffs are generating. Trump offered no details for this plan. Treasury Secretary Scott Bessent said the dividend could come by way of the tax cuts included in Trump’s signature economic policy passed earlier this year.
Diageo’s new boss
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Unlikely pair behind Pfizer’s $10B deal
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Introducing the 50-year mortgage
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The Boring Company fined $500,000
Elon Musk’s tunneling business The Boring Company was fined nearly $500,000 for dropping “drilling fluids” into manholes around Las Vegas. A notice of violation from the county environmental regulator, which sued the company, claims the dumping caused “substantial damage” to the county’s infrastructure.
Markets
S&P 500 futures are up 1% this morning. The last session closed up 0.13%. STOXX Europe 600 was up 1.39% in early trading. The U.K.’s FTSE 100 was up 1.01% in early trading. Japan’s Nikkei 225 was up 1.26%. China’s CSI 300 was up 0.35%. The South Korea KOSPI was up 3.02%. India’s NIFTY 50 is up 0.32%. Bitcoin was up to $106K.
Office chat
For Gen Z, quiet luxury is dead—they’re packing lunch at home while shelling out on conspicuous consumption by Eva Roytburg
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Goldman Sachs says we’re not in an AI bubble, and its young multimillionaire clientele are all-in on AI-energy investments and healthcare innovations by Emma Burleigh
CEO Daily is compiled and edited by Joey Abrams and Claire Zillman.