Humana 2010 Annual Report Download - page 20
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ASO
We also offer ASO products to employers who self-insure their employee health plans. We receive fees to
provide administrative services which generally include the processing of claims, offering access to our provider
networks and clinical programs, and responding to customer service inquiries from members of self-funded
employers. These products may include all of the same benefit and product design characteristics of our fully-
insured PPO or HMO products described previously. Under ASO contracts, self-funded employers retain the risk
of financing substantially all of the cost of health benefits. However, most ASO customers purchase stop loss
insurance coverage from us to cover catastrophic claims or to limit aggregate annual costs. For the year ended
December 31, 2010, commercial ASO fees totaled $376.5 million, or 1.1% of our total premiums and ASO fees.
Specialty
We also offer various specialty products and services, including dental, vision, and other supplemental
products as well as disease management services under Corphealth, Inc. (d/b/a LifeSynch), mail-order pharmacy
benefit administration services for our members under Humana Pharmacy, Inc. (d/b/a RightSourceRxSM), and
patient services under Concentra Inc. During 2007, we made investments which significantly expanded our
specialty product offerings with the acquisitions of CompBenefits Corporation and KMG America Corporation.
These acquisitions significantly increased our dental membership and added new product offerings, including
vision and other supplemental health and life products. The supplemental health plans cover, for example, some
of the costs associated with cancer and critical illness. Other supplemental health products also include a closed
block of approximately 36,000 long-term care policies acquired in connection with the KMG acquisition. No new
policies have been written since 2005 under this closed block. As a result of our December 21, 2010 acquisition
of Concentra Inc., we provide patient services including primary and workplace care through our over 300
medical centers and 240 worksite medical facilities. At December 31, 2010, we had approximately 7.1 million
specialty members, including 3.9 million dental members and 2.2 million vision members. For the year ended
December 31, 2010, specialty product premiums and ASO fees were approximately $1,022.5 million, or 3.1% of
our total premiums and ASO fees.
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