Humana 2006 Annual Report Download - page 21
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As part of our PPO products, we offer HumanaOne, a major medical product marketed directly to
individuals. We offer this product in select markets where we can generally underwrite risk and utilize our
existing networks and distribution channels. This individual product includes provisions mandated by law to
guarantee renewal of coverage for as long as the individual chooses.
For the year ended December 31, 2006, employer and individual commercial PPO premium revenues
totaled approximately $3.7 billion, or 17.4% of our total premiums and ASO fees.
ASO
In addition to fully insured consumer-choice, HMO and PPO products, we also offer ASO products to
employers who self-insure their employee health plans. We receive fees to provide administrative services which
generally include the processing of claims, offering access to our provider networks and clinical programs, and
responding to customer service inquiries from members of self-funded employers. These products may include
all of the same benefit and product design characteristics of our fully insured PPO, HMO or consumer-choice
products described previously. Under ASO contracts, self-funded employers 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, 2006, commercial ASO fees totaled $291.8 million, or 1.4% of our total premiums and ASO fees.
Specialty Products
We additionally offer various specialty products including dental, life, and short-term disability. At
December 31, 2006, we had approximately 1.9 million specialty members, including 1.5 million dental members.
For the year ended December 31, 2006, specialty product premium revenues were approximately $411.0 million,
or 2.0% of our total premiums and ASO fees.
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