Humana 2008 Annual Report Download - page 6

A Road Map for the Future
This is a bold vision, but it is supported
in two important ways. First, it is
based on intensive consumer research;
directionally, it’s very much in line with
consumers’ evolving tastes, desires and
capabilities. And second, it builds on
a foundation that is as solid as it’s
ever been in our 48-year history as
a company. The elements of this
foundation are these:
A readiness to lead in the new
political environment. We have long
said that our nation’s health care system
is not really a system at all, but rather
a disjointed collection of disparate
businesses in need of fundamental
reform. The new administration and
the new Congress appear ready to
embrace this view. We, in turn, are
ready and eager to work with them
on assuring health care coverage for all
Americans, and on consumer-focused
improvements that leverage Humana’s
ability to organize, manage, standardize,
simplify, integrate, and increase
coordination of care.
Differentiated value propositions.
In our Government and Commercial
businesses, Humana’s offerings are
characterized by compelling value
propositions that meet consumers
and employers where they are, and
stand out from industry competitors
through our non-commodity approach
to benefi ts, ancillary products, and
customer service. Our unique Humana
Guidance Solution integrates four key
elements – product and network design,
clinical programs and forecasting,
fi nancial analysis and forecasting, and
consumer education – while consumer
offerings from other companies
generally begin and end with the fi rst
of the four. This proprietary approach
leads to lower costs and a superior
health plan experience for Humana’s
primary customers: employers,
employees, seniors, military retirees,
and working-age individuals.
A focus on achieving low-cost
positions. Our ability to save money for
seniors and for the Medicare program
through our Medicare Advantage
offerings is increasingly essential as
Medicare in its current form continues to
progress toward insolvency. Similarly, our
Commercial products are achieving
low-cost positioning through
consumer guidance-driven utilization
management, clinical initiatives, and
a Commercial network development
strategy that leverages our Medicare
expansion by executing provider
contracts as strong as or stronger
than those of our competitors. In
the context of a troubled economic
environment, this approach represents
a distinct competitive advantage.
Our ability to save money
for seniors and for the
Medicare program through
our Medicare Advantage
offerings is increasingly essential.
4 2008 Annual Report