Humana Inc. (NYSE: HUM) introduced Monday that Jim Rechtin would succeed Bruce Broussard within the position of CEO on July 1. On Tuesday, Broussard defined why.

Finally, the CEO succession plan at Humana had been in place for some time. Broussard has held the place of CEO since 2013 and Rechtin was appointed his successor in October final yr.

“When the board began the search, we actually checked out just a few issues, together with character traits and expertise. These have been clearly two key areas,” Broussard mentioned on the B of A Securities Healthcare Convention on Tuesday. “Jim actually match into each buckets.”

The board was searching for somebody with an amazing “capacity to take care of complexity,” Broussard mentioned.

“The power for him to take care of element fairly extensively, and likewise the power to actually pay attention,” he continued. “These have been actually vital qualities because the board seemed on the purpose-driven elements of the group, past simply the complexity and variety of the enterprise.”

A part of the expertise that stood out for Rechtin was his familiarity with Medicare Benefit (MA) and supplier companies.

Rechtin was the president and CEO of Envision Healthcare, and beforehand the president of OptumCare of UnitedHealth Group (NYSE: UNH). He additionally spent greater than a decade at Bain & Firm.

Louisville, Kentucky-based Humana is likely one of the nation's largest insurers. It has greater than 6 million MA members. Furthermore, it is likely one of the largest residence care suppliers within the nation. CenterWell Residence Well being, CenterWell Major Care and CenterWell Pharmacy comprise Humana's supplier division.

Rechtin – who at present serves as president and COO at Humana – can even be part of Humana's board on July 1. Broussard will stay a strategic advisor to the corporate till 2026.

“We're at a great breaking level,” Broussard mentioned. “We’re finalizing the bids, which will probably be submitted within the coming weeks. And we’re within the time of the executive course of, versus the decision-making of some weeks in the past, which we have been each a part of. As we enter daylight saving time, the cycle of strategic planning begins. We now have a board assembly in October. The administration workforce could have a gathering in mid-August by which the strategic processing elements will probably be mentioned. So it's a great breaking level.”

In a troublesome MA price atmosphere, Humana leaders mentioned they’re “pricing based mostly on profitability” and making some powerful choices on the subject of exiting choose markets.

Rechtin will take over in that tough atmosphere, but in addition at a time when Humana is far more than simply an insurer. CenterWell is at present one of many group's most vital strategic initiatives.

“The final we noticed is [Jim’s] capacity to actually dig deep and be a very good operator,” Broussard mentioned.

Broussard and Humana CFO Susan Diamond additionally mentioned that whereas changes could be made to the MA plans, it didn’t anticipate to lose vital membership – both to opponents or to conventional Medicare.