Humana 2005 Annual Report Download - page 37

ITEM 2. PROPERTIES
Our principal executive office is located in the Humana Building, 500 West Main Street, Louisville,
Kentucky 40202. In addition to this property, our other principal operating facilities are located in Louisville,
Kentucky, Green Bay, Wisconsin, Tampa Bay, Florida, Cincinnati, Ohio and San Juan, Puerto Rico, all of which
are used for customer service, enrollment, and claims processing. Our Louisville and Green Bay facilities also
house other corporate functions.
We own or lease these principal operating facilities in addition to other administrative market offices and
medical centers. We no longer operate most of these medical centers but, rather, lease them to their provider
operators. The following table lists the location of properties we owned or leased, including our principal
operating facilities, at December 31, 2005:
Medical Centers
Administrative
Offices
Owned Leased Owned Leased Total
Florida ....................................... 2 49 6 66 123
Texas ........................................ — — 3 32 35
Kentucky ..................................... 1 — 16 9 26
Georgia ...................................... — — — 15 15
Illinois ....................................... 6 1 — 6 13
Puerto Rico ................................... — — — 12 12
Louisiana ..................................... — — — 11 11
Ohio......................................... — — — 9 9
Tennessee .................................... — — — 8 8
Alabama ..................................... — — — 7 7
Indiana ....................................... — — — 7 7
Mississippi .................................... — — — 7 7
Wisconsin .................................... — — 1 6 7
Oklahoma .................................... — — — 5 5
Others ....................................... — 1 — 53 54
Total .................................... 9 51 26 253 339
ITEM 3. LEGAL PROCEEDINGS
Managed Care Industry Purported Class Action Litigation
Since 1999, we have been involved in several purported class action lawsuits that were part of a wave of
generally similar actions targeting the health care payer industry and particularly managed care companies. These
included a lawsuit against us and originally nine of our competitors that purported to be brought on behalf of
physicians who treated our members since January 1, 1990. The plaintiffs asserted that we and other defendants
paid providers’ claims incorrectly by paying lesser amounts than they submitted. These cases were consolidated
in the United States District Court for the Southern District of Florida (the “Court”), and styled In re Managed
Care Litigation.
On October 17, 2005, we and representatives of over 700,000 physicians and several state medical societies
reached an agreement (“Settlement Agreement”) to settle the lawsuit by payment of $40 million for the
physicians and an amount up to $18 million for the plaintiffs’ attorneys, subject to approval by the Court. The
Settlement Agreement recognizes that we have undertaken certain initiatives to facilitate relationships with, and
payments to, physicians and provides for additional initiatives over its four-year term. The Court preliminarily
approved the Settlement Agreement on October 19, 2005, and set a Settlement Hearing for March 6, 2006.
Three other defendants, Aetna Inc., Cigna Corporation, and The Prudential Insurance Company of America
previously entered into settlement agreements that have been approved by the Court. Health Net, Inc. announced
a settlement agreement on May 2, 2005, and Wellpoint, Inc. (formerly WellPoint Health Networks, Inc. and
Anthem, Inc.) announced a settlement agreement on July 11, 2005.
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