Humana 2007 Annual Report Download - page 14

Our Products
As more fully described in the products discussion that follows, we provide health insurance benefits under
health maintenance organization, or HMO, Private Fee-For-Service, or PFFS, and preferred provider organization,
or PPO, plans. In addition, we provide other benefits with our specialty products including dental, vision, and
other supplementary benefits. The following table presents our segment membership at December 31, 2007, and
premiums and administrative services only, or ASO, fees by product for the year ended December 31, 2007:
Medical
Membership
Specialty
Membership Premiums ASO Fees
Total
Premiums and
ASO Fees
Percent of
Total
Premiums
and ASO
Fees
(dollars in thousands)
Government:
Medicare Advantage:
HMO ...................... 453,100 — $ 5,378,804 $ — $ 5,378,804 21.7%
PFFS ...................... 615,800 — 5,146,955 — 5,146,955 20.7%
PPO ....................... 74,100 — 647,658 — 647,658 2.6%
Total Medicare Advantage . . . 1,143,000 — 11,173,417 — 11,173,417 45.0%
Medicare stand-alone PDP ..... 3,442,000 — 3,668,425 — 3,668,425 14.8%
Total Medicare ............ 4,585,000 — 14,841,842 — 14,841,842 59.8%
Medicaid insured ............. 384,400 — 555,594 — 555,594 2.3%
Medicaid ASO ............... 180,600 — — 8,556 8,556 — %
Total Medicaid ............ 565,000 — 555,594 8,556 564,150 2.3%
Military services insured ....... 1,719,100 — 2,839,790 — 2,839,790 11.4%
Military services ASO ......... 1,146,800 — — 65,103 65,103 0.3%
Total military services ....... 2,865,900 — 2,839,790 65,103 2,904,893 11.7%
Total Government .......... 8,015,900 — 18,237,226 73,659 18,310,885 73.8%
Commercial:
Fully-insured:
PPO ....................... 1,215,800 — 3,664,019 — 3,664,019 14.7%
HMO ...................... 592,800 — 1,998,981 — 1,998,981 8.1%
Total fully-insured .......... 1,808,600 — 5,663,000 — 5,663,000 22.8%
ASO......................... 1,643,000 — — 307,823 307,823 1.2%
Specialty ..................... — 6,783,800 534,121 10,033 544,154 2.2%
Total Commercial .......... 3,451,600 6,783,800 6,197,121 317,856 6,514,977 26.2%
Total .................... 11,467,500 6,783,800 $24,434,347 $391,515 $24,825,862 100.0%
Our Products Marketed to Government Segment Members and Beneficiaries
Medicare
We have participated in the Medicare program for private health plans for over 20 years. Since recent
significant changes were made to the Medicare program for health plans like those offered by us, we have
expanded from a regional to a national presence, now offering at least one type of Medicare plan in all 50 states.
The resulting growing membership base provides us with greater leverage to expand our network of PPO and
HMO providers. We employ strategies including health assessments and programs such as Personal Nurse®,a
case management and disease management program, and a fitness program for seniors to guide Medicare
beneficiaries in making cost-effective decisions with respect to their health care, including cost savings that occur
from making positive behavior changes that result in living healthier.
4