Humana 2008 Annual Report Download - page 13

Forward-Looking Statements
Some of the statements under “Business,” “Management’s Discussion and Analysis of Financial Condition
and Results of Operations,” and elsewhere in this report may contain forward-looking statements which reflect
our current views with respect to future events and financial performance. These forward-looking statements are
made within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-
looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this
statement for purposes of complying with these safe harbor provisions. We have based these forward-looking
statements on our current expectations and projections about future events, trends and uncertainties. These
forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and
assumptions, including, among other things, the information discussed under the section entitled “Risk Factors”
in this report. In making these statements, we are not undertaking to address or update them in future filings or
communications regarding our business or results. Our business is highly complicated, regulated and
competitive with many different factors affecting results.
PART I
ITEM 1. BUSINESS
General
Headquartered in Louisville, Kentucky, Humana Inc. and its subsidiaries, referred to throughout this
document as “we,” “us,” “our,” the “Company” or “Humana,” is one of the nation’s largest publicly traded health
and supplemental benefits companies, based on our 2008 revenues of $28.9 billion. We are a full-service benefits
solutions company, offering a wide array of health and supplemental benefit products for employer groups,
government benefit programs, and individuals. As of December 31, 2008, we had approximately 11.6 million
members enrolled in our medical benefit plans, as well as approximately 6.8 million members enrolled in our
specialty products. During 2008, 72% of our premiums and administrative services fees were derived from
contracts with the federal government, including 16% related to our contracts in Florida with the Centers for
Medicare and Medicaid Services, or CMS, and 12% related to our military services contracts. Under our CMS
contracts in Florida, we provide health insurance coverage to approximately 492,700 members as of
December 31, 2008.
Humana Inc. was organized as a Delaware corporation in 1964. Our principal executive offices are located
at 500 West Main Street, Louisville, Kentucky 40202, the telephone number at that address is [phone],
and our website address is www.humana.com. We have made available free of charge through the Investor
Relations section of our web site our annual reports on Form 10-K, quarterly reports on Form 10-Q, current
reports on Form 8-K, proxy statements, and, if applicable, amendments to those reports filed or furnished
pursuant to Section 13(a) of the Exchange Act, as soon as reasonably practicable after we electronically file such
material with, or furnish it to, the SEC.
This Annual Report on Form 10-K contains both historical and forward-looking information. See
Item 1A.—Risk Factors for a description of a number of factors that could adversely affect our results or
business.
Business Segments
We manage our business with two segments: Government and Commercial. The Government segment
consists of beneficiaries of government benefit programs, and includes three lines of business: Medicare,
Military, and Medicaid. The Commercial segment consists of members enrolled in our medical and specialty
products marketed to employer groups and individuals. We identified our segments in accordance with the
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