Humana 2003 Annual Report Download - page 11

PART I
ITEM 1. BUSINESS
General
Headquartered in Louisville, Kentucky, Humana Inc. referred to throughout this document as “we,” “us,”
“our,” the “Company” or “Humana,” is one of the nation’s largest publicly traded health benefits companies,
based on our 2003 revenues of $12.2 billion. We offer coordinated health insurance coverage and related services
through a variety of traditional and Internet-based plans for employer groups, government-sponsored programs,
and individuals. As of December 31, 2003, we had approximately 6.8 million members in our medical insurance
programs, as well as approximately 1.7 million members in our specialty products programs. We have
approximately 463,300 contracts with physicians, hospitals, dentists, and other providers to provide health care to
our members. In 2003, approximately 70% of our premiums and administrative services fees resulted from
members located in Florida, Illinois, Texas, Kentucky, and Ohio. We derived approximately 42% of our
premiums and administrative services fees from contracts with the federal government in 2003. Under two
federal government contracts with the Department of Defense, we provide health insurance coverage to the
TRICARE members, accounting for approximately 20% of our total premiums and administrative services fees
in 2003. Under one federal government contract with the Centers for Medicare and Medicaid Services, or CMS,
we provide health insurance coverage to approximately 229,100 Medicare+Choice members in Florida,
accounting for approximately 15% of our total premiums and administrative services fees in 2003.
We were organized as a Delaware corporation in 1964. Our principal executive offices are located at
500 West Main Street, Louisville, Kentucky 40202, and the telephone number at that address is [phone].
We file annual, quarterly, and current reports, proxy statements, and other documents with the Securities and
Exchange Commission, or SEC, under the Securities Exchange Act of 1934, or the Exchange Act.
We have made available free of charge on or through our Internet web site (http://www.humana.com) our
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Proxy Statements, and all of our other reports,
and, if applicable, amendments to those reports filed or furnished pursuant to Section 13(a) of the Exchange Act,
as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. Also
available on our Internet web site is information about our Board of Directors, including a determination of
independence for each member, the various committees of our Board of Directors, the charters of these
committees, the name(s) of the Directors designated as a financial expert under Section 11 of the Securities Act
of 1933, the process for designating a lead director to act at executive sessions of the non-management Directors,
the pre-approval process of non-audit services, the process by which stockholders can communicate with
Directors, the process by which stockholders can make Director nominations, the Company’s Corporate
Governance guidelines, the Humana Principles of Business Ethics, and the Code of Ethics for the Chief
Executive Officer and Senior Financial Officers. Any waivers or amendments for Directors or Executive Officers
to the Principles of Business Ethics and the Code of Ethics for the Chief Executive Officer and Senior Financial
Officers will be promptly displayed on our web site. The Company will provide any of these documents in print
without charge to any stockholder who makes a written request to: Joan O. Lenahan, Corporate Secretary,
Humana Inc., 500 West Main Street, 27th Floor, Louisville, Kentucky 40202. Additional information about these
items can be found in, and is incorporated by reference to, the Company’s Proxy Statement for the Annual
Meeting of Stockholders scheduled to be held on April 22, 2004.
This Annual Report on Form 10-K contains both historical and forward-looking information. See the
“Cautionary Statements” section in Item 7—Management’s Discussion and Analysis of Financial Condition and
Results of Operations for a description of a number of factors that could adversely affect our results.
Business Segments
We manage our business with two segments: Commercial and Government. The Commercial segment
consists of members enrolled in products marketed to employer groups and individuals, and includes three lines
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