Humana Inc. (NYSE: HUM)

Humana is one of the largest health insurance companies in the United States, with a dominant position in Medicare Advantage—the privately administered version of Medicare. The company serves over 17 million members and is the second-largest Medicare Advantage insurer behind UnitedHealth Group. Humana also operates CenterWell, a growing healthcare services division that includes primary care clinics, pharmacy, and home health services.

Humana earns revenue from insurance premiums (primarily Medicare Advantage), pharmacy benefit management, and healthcare services through CenterWell. The Medicare Advantage model receives per-member payments from the federal government, with profitability driven by managing medical costs below the premium received.

David Jones and Wendell Cherry founded Humana in 1961 as a nursing home company before pivoting to health insurance. The company became a Medicare Advantage specialist in the 2000s, riding the growth of private Medicare plans. Humana's attempted merger with Aetna in 2015 was blocked by the DOJ on antitrust grounds.