Humana Will Increase Minimum Wage, Offer Incentive Pay Due to Tax Reform

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Humana has announced it plans to increase its minimum wage for workers as well as offer incentive pay thanks to the tax reform package signed into law in December, the Louisville Courier Journal reported.

"Like many U.S. companies, Humana will begin benefitting this year from a lower corporate income tax rate," the company said. "This provides Humana with the opportunity to make an investment in our employees, using the proceeds from tax reform to further the long-term financial health and well-being of our employee population."

The health insurer plans to increase its minimum wage to $15 for both full-time and part-time employees and has changed plans to start its incentive pay program now instead of waiting until 2019.

"They will have a minimum incentive target of 4 percent of their base salary for 2018 and will receive payouts in March 2019," the article said.

In addition to salary adjustments, the company is considering investing in health plan benefits as well as passing money back to shareholders.

"Executives announced in November that laying off 1,300 workers and having another 1,150 people accept buyout offers would trim payroll costs by hundreds of millions of dollars," the article states. "CEO Bruce Broussard and Brian Kane, the chief financial officer, told analysts then that the reduction would help offset an estimated $700 million in increased costs from a federal health insurance fee."