Humana 2010 Annual Report Download - page 15

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. On January 1, 2011, most of our members enrolled in PFFS plans transitioned to
networked-based PPO type 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, 2010, and premiums and administrative services only, or ASO, fees by product for the year ended
December 31, 2010:
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.................... 638,200 0 $ 8,288,434 $ 0 $ 8,288,434 25.0%
PPO..................... 648,400 0 6,277,358 0 6,277,358 18.9%
PFFS .................... 447,200 0 4,720,329 0 4,720,329 14.2%
Total Medicare
Advantage .......... 1,733,800 0 19,286,121 0 19,286,121 58.1%
Medicare ASO ................ 28,200 0 0 16,111 16,111 0.0%
Medicare stand-alone PDP ....... 1,758,800 0 2,320,060 0 2,320,060 7.0%
Total Medicare ........ 3,520,800 0 21,606,181 16,111 21,622,292 65.1%
Medicaid insured .............. 572,400 0 723,563 0 723,563 2.2%
Military services insured ........ 1,755,200 0 3,462,544 0 3,462,544 10.4%
Military services ASO .......... 1,272,600 0 0 99,081 99,081 0.3%
Total military services . . 3,027,800 0 3,462,544 99,081 3,561,625 10.7%
Total Government ......... 7,121,000 0 25,792,288 115,192 25,907,480 78.0%
Commercial:
Fully-insured:
PPO..................... 1,013,900 0 2,887,860 0 2,887,860 8.7%
HMO.................... 649,500 0 3,026,182 0 3,026,182 9.1%
Total fully-insured ..... 1,663,400 0 5,914,042 0 5,914,042 17.8%
ASO ........................ 1,453,600 0 0 376,513 376,513 1.1%
Specialty ..................... 0 7,076,100 1,005,993 16,539 1,022,532 3.1%
Total Commercial .......... 3,117,000 7,076,100 6,920,035 393,052 7,313,087 22.0%
Total .................... 10,238,000 7,076,100 $32,712,323 $508,244 $33,220,567 100.0%
Our Government Segment Products
Medicare
We have participated in the Medicare program for private health plans for over 20 years and have
established a national presence, offering at least one type of Medicare plan in all 50 states. The resulting growing
membership base provides us with greater ability to expand our network of PPO and HMO providers. We
employ strategies including health assessments and clinical guidance programs such as lifestyle and fitness
programs 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.
Medicare is a federal program that provides persons age 65 and over and some disabled persons under the
age of 65 certain hospital and medical insurance benefits. CMS, an agency of the United States Department of
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