“Our board’s organization and compensation committee made certain changes to our cash incentive program to align all leaders to our shared enterprise vision, one of which was the inclusion of consumer health metrics as a performance target,” says Mark Mathis, director of corporate communications for Humana.
The company will tie 20% of executive bonuses to member health metrics in fiscal 2016, and the remainder will be based on whether Humana hits its financial targets. announced in May 2016, in a filing with the Securities and Exchange Commission, that it would be instituting a new payment model for executives that is tied to both company fiscal performance as well as the health outcomes of members. Many companies already hold executives accountable for financial performance, but extending that accountability to the health of members may not be far away. It seems reasonable to assume that, at some point, this trend will reach payers, too. There’s even a call from some payers to tie pharmaceutical payments to medication efficacy. Healthcare dollars are tight, and payments to physicians and hospitals are increasingly being linked to health outcomes and patient satisfaction scores.
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