Humana 2009 Annual Report Download - page 5

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program of health benefi ts for military
retirees, military families, and some
active-duty members of the military.
In mid-2009, we learned that the DoD
had awarded the third generation
TRICARE contract for the South Region
to another contractor. However, we were
encouraged later in the year when the
Government Accountability Offi ce (GAO)
upheld Humana Military’s protest of that
contract award. In December 2009, the
DoD’s TRICARE Management Activity
(TMA) notifi ed the GAO of its intent to
take corrective action with respect to
the GAO’s decision, though we cannot
determine what specifi c actions TMA will
take and whether such actions would
change the award of the contract. In
the meantime, we continue to deliver
outstanding service under the current
contract – which TMA has notifi ed us
will be extended through March 2011.
Commercial Segment
With respect to our Commercial
Segment, the ongoing external pressures
noted previously resulted in a downturn
in our results for 2009 versus the prior
year. However, we believe that effective
monitoring of medical cost data allowed
us to begin raising premiums early
enough in 2009 to overcome these
issues for 2010. In addition, growth
in our ancillary and specialty products,
together with our enterprise-wide
administrative cost savings initiatives,
position us favorably for stabilization in
Commercial earnings moving into 2010.
On the whole, we’re taking a deliberate,
strategic, long-term approach to creating
the effi cient and agile infrastructure we’ll
need to take advantage of future growth
opportunities, in this segment and
throughout the enterprise.
Positive developments within our
Commercial Segment this past year
include growth in our individual
and specialty benefi ts businesses.
HumanaOne individual membership
grew 13 percent during 2009 and now
totals more than 367,000 members.
Specialty benefi ts membership also grew
this past year, totaling approximately
7.2 million members at the end of 2009,
7 percent more than at the end of 2008.
2009AnnualReport 4