Taxes and Fees

Humana credits GOP tax bill for boost to employee benefits, wages

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Health insurer Humana said it will be raising the hourly minimum wage for all of its employees as a result of the GOP tax bill.

The legislation signed by President Trump last month slashed the corporate tax rate in an attempt to boost wages and add new jobs in the U.S.

The lower corporate rate “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 company said in a statement provided to The Hill.

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The company will accelerate the timing for employees to start an annual performance-based incentive program. Instead of beginning in 2019, it will start in 2018. Payouts will occur in March 2019.

Humana also said it intends to raise the minimum hourly wage for all full- and part-time employees to $15.

A spokesperson did not say what the previous minimum wage was, nor how many employees will be eligible for the bonuses.

Humana employs 51,600 people nationwide, but late last year announced layoffs and buyouts of 2,700 employees in an effort to trim costs. Company executives at the time said the decision was part of an effort to offset the costs of the ObamaCare health insurance tax.

The company is based in Louisville, Ky. The news about the benefits was first made public in a floor speech by Senate Majority Leader Mitch McConnell (R-Ky.).

Humana also said it was considering “additional investments designed to benefit members and the communities we serve,” as well as creating more money for shareholders.

Tags Donald Trump Health care Humana Minimum wage Mitch McConnell Tax reform
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