Humana 2001 Annual Report Download

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2001 Annual Report
Understanding Our C u s t o m e r s T h r ough innovative products and services, we will supply

Table of contents

  • Page 1
    Understanding Our C u s t o m e r s T h rough innovative products and services, we will supply 2001 Annual Report

  • Page 2
    ...Basic earnings per common share Diluted earnings per common share E a rnings before interest expense, income taxes, depreciation and amortization ( E B I T D A ) Medical expense ratio 2001... membership consumers with real-time, actionable information - delivered electronically - so that, in coor

  • Page 3
    ... and Pu e rto Rico. Humana offers coordinated health insurance c overage and related serv i c e s - t h rough traditional and Internet-based plans - to employer groups and gove r n m e n t - s p o n s o red plans. rdination with their doctors, they can make informed decisions at the medical care...

  • Page 4
    ...- d i rected, technologyenabled health benefits pro d u c t s and services. To address the rising f rustration of consumers and physicians, Humana pioneered a n ew direction in health benefits in 2 0 0 1 , helping employers c o n t rol costs thro u g h expanded employee benefit options, dramatically...

  • Page 5
    ... g completed our financial turna round, Humana is now focused on crafting technology-driven p roducts and services that allow us to serve as a high-tech, high-touch " i n f o - m e d i a ry" for our members. consumers are asking for in their health plans - plans that give them more choices, respond...

  • Page 6
    ...new service now in place in e v e ry Humana market assigns a single nurse to telephonically interact with seriously ill members to help them navigate the healthcare system and educate them about benefits, claims payment, and prescription drug options while supporting the member between doctor visits...

  • Page 7
    Consumers - in consultation with their doctors - can make informed decisions about their care, with the Understanding Our C u s t o m e r s T h rough innovative products and services, we will supply potential to save money for themselves and to help reduce overall premium costs. 5

  • Page 8
    ... themselves and their employers. We will then help employers and consumers make the most of the healthcare system, replacing the "cloud of unknowing" with value-added knowledge, navigation and guidance. consumers with real-time, actionable information - delivered electronically - so that, in coor...

  • Page 9
    ... "basics" of health insurance, ensuring security and privacy of personal health information, and less hassle and more help with healthcare decisions, without dictating choices for consumers. We've developed industr y-leading electronic self-service capabilities and an expansive range of products. Pr...

  • Page 10
    ... can e n roll, add or delete dependents, and access information about claims and prescription drugs, all online. Em p l oyers have convenient We b - b a s e d e n rollment and other self-service options to more easily administer their health benefits. These simplified processes save time, reduce the...

  • Page 11
    I N S H O RT, W E ' R E d e p l o y i n g technology to smooth and speed the transactional side of healthcare delivery while enabling physicians and patients to better manage the clinical side. . This is what we mean by creating a health plan experience, or overall environment, that 9

  • Page 12
    ...is responding with a set of Internet tools - including physician and hospital a s s e s s m e n t s - that give members a source for some of the information they seek. In t e r a c t i ve Voice Re s p o n s e / Voice Ap p l i c a t i o n Technology: Mo re Humana customers are carry i n g out routine...

  • Page 13
    In 2001, InformationWeek named Humana 17th among all U.S. companies and first among all insurers for information technology innovation. lth. Understanding Our C u s t o m e r s T h rough innovative products and services, we will supply 11

  • Page 14
    ... Humana's new health benefits products provide more choice, service, speed and flexibility to healthcare consumers and the physicians who serve them. The new products and programs are the initial offerings developed by the Humana Innovation Center, a fully integrated organization that is guiding...

  • Page 15
    ...experiences in 2001. Innovative products and exciting online tools, all built around consumer choice, technology, cost predictability and flexibility, are at the heart of Humana's business strategy. We've set out to create health benefit plans that provide choice, customization and a clear-eyed view...

  • Page 16
    ... of the surveys is to gauge overall satisfaction with Humana. The re s u l t s a re helping us determine how we can enhance our customer serv i c e . Claims processing: We're implementing new technology in our customer service centers to i m p rove claims-processing speed. We're also w o rking to...

  • Page 17
    ... relationship with our members. For yo u r c o n venience, Humana has created a tool for you to easily re v i ew your claims, plan benefits, pre s c r i p t i o n d rug coverage and a listing of doctors, hospitals, or pharmacies in your network. For more information and to use these options, go to...

  • Page 18
    ... decisions. By responding to and guiding our customers, Humana can enhance uses process, products and technology to enable consumers to take control of their own heal 16 peace of mind for them, providing financial pro t e c tion and knowledge that will empower our members, with their physicians...

  • Page 19
    ..., from 5.3 million in 2000 . 24% Commercial and TRICARE ASO 27% TRICARE at risk 6% Medicare+ Choice 7% Medicaid 36% Commercial fully insured Medical Membership Mix as of December 31, 2001 lth. Understanding Our C u s t o m e r s T h rough innovative products and services, we will supply 17

  • Page 20
    ...Balance Sheets ( I n t ho u s a nd s , e x ce p t s h a r e a m o u nt s ) De c e m b er 3 1 , 2001 2000 Assets Current assets: Cash and cash equivalents Investment securities Premiums receivable, less allowance for doubtful accounts of $38,539 in 2001...,619 shares in 2001, and 1,823,348 shares in ...

  • Page 21
    ... r s e n d e d De c e m be r 3 1 , 2001 2000 1999 Revenues: Premiums Administrative services fees Investment and other income Total revenues Operating expenses: Medical Selling...benefit) for income taxes Net income (loss) Basic earnings (loss) per common share Diluted earnings (loss) per common share...

  • Page 22
    ...Shares Amount Capital In Excess of Par Value Retained Earnings Accumulated Other Comprehensive Income (Loss) Unearned Restricted Stock Compensation Treasury Stock Total Stockholders' Equity Balances... option exercises Stock option tax benefit Balances, December 31, 2001 167,540 $ 27,923 ...

  • Page 23
    ... (loss) to net cash provided by operating activities: Depreciation and amortization Amortization of restricted stock Gain on sale of property and equipment, net Gain on sale of investment securities, net Provision for deferred income taxes Provision for doubtful accounts Payment of government audit...

  • Page 24
    ...o rt of Independent Accountants To the Board of Directors and Stockholders Humana Inc. We have audited, in accordance with auditing standards generally accepted in the United States of America, the consolidated balance sheets of Humana Inc. and its subsidiaries as of December 31, 2001 and 2000, and...

  • Page 25
    ... Green Street Properties, LLC David A. Jones Chairman of the Board, Humana Inc. Michael B. McCallister President and Chief Executive Officer, Humana Inc. Michael E. Gellert General Partner, Windcrest Partners, private investment partnership David A. Jones, Jr. Vice Chairman, Humana Inc. Chairman...

  • Page 26
    ... Murray Chief Operating Officer - Service Operations James H. Bloem Senior Vice... Goodman Senior Vice President and Chief Information Officer Bonita C. Hathcock Senior Vice ... President and Chief Clinical Strategy and Innovation Officer Heidi S. Margulis Senior Vice President...- Government Programs 24

  • Page 27
    ....38 $ 6.13 4.75 5.25 10.50 Corp ora te H eadqu art e r s Humana Inc. The Humana Building 500 West Main Street Louisville, Kentucky 40202 (502) 580-1000 F inanci al Sta tement s This summary annual report contains condensed financial statements. The full financial statements and related notes can...

  • Page 28
    uses process, products and technology to enable consumers to take control of their own health. The Humana Building 500 West Main Street Louisville, Kentucky 40202 (502) 580-1000 www.humana.com