Humana 2005 Annual Report Download - page 20

retain the risk of financing substantially all of the cost of health benefits. However, most ASO customers
purchase stop loss insurance coverage from us to cover catastrophic claims or to limit aggregate annual costs. For
the year ended December 31, 2005, commercial ASO fees totaled $209.4 million, or 1.4% of our total premiums
and ASO fees.
Specialty Products
We additionally offer various specialty products including dental, group and individual life, and short-term
disability. At December 31, 2005, we had approximately 1.9 million specialty members, including 1.5 million
dental members. For the year ended December 31, 2005, specialty product premium revenues were
approximately $386.7 million, or 2.7% of our total premiums and ASO fees.
The following table summarizes our total medical membership at December 31, 2005, by market and
product:
Commercial Government
Total
Percent
of TotalHMO PPO ASO
Medicare
Advantage Medicaid TRICARE
(in thousands)
Florida .................... 161.4 150.9 101.9 295.4 54.8 — 764.4 10.8%
Texas ..................... 65.5 299.1 237.9 25.3 — — 627.8 8.9
Puerto Rico ................ 18.9 69.1 6.9 7.1 403.1 — 505.1 7.1
Illinois .................... 98.5 154.8 158.4 36.8 — — 448.5 6.3
Kentucky .................. 23.2 162.4 195.2 2.0 — — 382.8 5.4
Ohio...................... 98.9 60.3 188.8 4.1 — — 352.1 5.0
Wisconsin ................. 52.3 64.3 179.1 17.5 — — 313.2 4.4
Louisiana .................. 118.8 31.6 9.7 38.1 — — 198.2 2.8
Arizona ................... 17.6 52.4 31.1 19.7 — — 120.8 1.7
Missouri/Kansas ............ 27.4 27.2 12.8 24.2 — — 91.6 1.3
Indiana .................... 0.4 51.1 36.5 1.3 — — 89.3 1.3
Georgia ................... 21.7 29.2 1.9 13.1 — — 65.9 0.9
Michigan .................. — 58.3 1.7 1.8 — — 61.8 0.9
Colorado .................. — 43.1 — 0.5 — — 43.6 0.6
Tennessee ................. — 22.9 3.9 5.0 — — 31.8 0.4
South Carolina .............. — 1.4 0.2 17.1 — — 18.7 0.3
North Carolina .............. — 4.1 1.5 13.0 — — 18.6 0.3
Minnesota ................. — — 0.3 11.3 — — 11.6 0.2
TRICARE ................. — — — — — 1,750.9 1,750.9 24.7
TRICARE ASO ............. — — — — — 1,138.2 1,138.2 16.1
Others .................... — 13.0 3.2 24.5 — — 40.7 0.6
Totals ..................... 704.6 1,295.2 1,171.0 557.8 457.9 2,889.1 7,075.6 100.0%
Provider Arrangements
We provide our members with access to health care services through our networks of health care providers
with whom we have contracted, including hospitals and other independent facilities such as outpatient surgery
centers, primary care physicians, specialist physicians, dentists and providers of ancillary health care services and
facilities. We have approximately 559,000 contracts with health care providers participating in our networks,
which consist of approximately 336,300 physicians, 3,600 hospitals, and 219,100 ancillary providers and
dentists. These ancillary services and facilities include ambulance services, medical equipment services, home
health agencies, mental health providers, rehabilitation facilities, nursing homes, optical services, and
pharmacies. Our membership base and the ability to influence where our members seek care generally enable us
to obtain contractual discounts with providers.
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