Examples of Payer Value-Based Incentives with Providers

Is the next wave of health outcomes moving to tie C-Level compensation to their pay?

A recent filing by Humana with the Securities and Exchange Commission indicates the insurer is instituting a new compensation model in which bonuses are not just tied to company financial performance, but also to enrollee’s health outcomes.

Humana will base 20% of executives’ bonuses on consumer health metrics, Louisville Business First reports, including the completion of risk assessments, pharmacy usage, engagement in the Humana at Home Chronic Care Program and participation in the Humana Vitality program, which provides rewards for healthy behaviors. The remainder of the bonuses will depend on whether Humana achieves its earnings objectives. The remaining 80 percent will be based on whether the company meets its earnings objectives.

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