Humana 2007 Annual Report Download - page 5

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3Annual Report 2007
Growth and progress across
the enterprise
What follows is a summary of Humana’s chief
accomplishments in 2007.
• In our Government Segment, our Medicare
Advantage membership was stronger
than forecast, with ending membership of
1,143,000 representing growth of 14 percent
over the prior year. Medicare prescription
drug plan (PDP) membership was 3.4 million
at December 31, 2007, refl ecting a modest
and anticipated decline from 3.5 million a
year ago.
•Just as importantly, we made further
progress in engaging our senior
consumers, as evidenced by preliminary data
indicating their shift to more proactive care.
For instance, 34 percent of our new
senior members completed Humana health
assessments in 2007, compared to 24
percent of new members in 2006. This
is important because the health assessment
provides a vital roadmap for positive behavior
change through such programs as Personal
Nurse, which pairs chronically ill patients
with registered nurses who serve as long-
term mentors and guides, and
SilverSneakers, which provides our seniors
free memberships to fi tness centers.
Another example of our progress is with our
heart failure chronic care program. Between
February and August of 2007 our senior
members in this program raised their
drug compliance rate from 82 percent to
88 percent – a signifi cant stride forward.
These are just two examples in which care
coordination across all Medicare product
lines, including Private Fee-for-Service,
is beginning to gain traction and
improve clinical results for seniors, while
offering real hope for effective long-term cost
management within the Medicare program
as a whole.
•Also in our Government Segment, our
Military services unit is fully prepared to
respond to a formal RFP for the next
round of TRICARE contracts once it is
issued. We are confi dent that we will offer
a compelling proposal which highlights our
successful experience with this product,
including our exemplary service to
benefi ciaries during the past 12 years.
•Our Military services unit also
achieved success within its new Veterans
Administration group when it was chosen
over six competitors for all four contracts that
currently make up the Department
of Veterans Affairs’ fi rst-ever network
demonstration project, known as Project
HERO – Healthcare Effectiveness through
Resource Optimization. This development
offers Humana the opportunity to forge
a long-term relationship with a Government
customer whose importance will increase
over time.
Medicare Advantage membership
was stronger than forecast. Just
as importantly, we made further
progress in engaging our senior
consumers.
Medicare Advantage Membership
(in thousands)
HMO PPO PFFS
Dec
2004
Dec
2005
Dec
2006
Dec
2007
1,200
900
600
300
0