Humana 2010 Annual Report Download - page 5

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This net gain also reflected a significant
focus on member retention. For
example, of the 115,000 Humana
private fee-for-service members who
needed to actively enroll in an HMO
or PPO offering during the enrollment
season, approximately 70 percent chose
Humana network offerings for 2011.
As for stand-alone PDP products,
enrollment in our innovative
Humana Walmart-Preferred Rx Plan
also outstripped projections. The
plan was precedent-setting in an
important respect: it represented the
first time in the five-year history of
PDP that any carrier offered a single
member-premium and benefit design
nationwide. This produced simplicity
and ease of understanding, made
all the more compelling by the fact
that the premium was the lowest
of any national plan. January 2011
PDP membership increased by more
than 630,000 versus December 31,
2010, primarily driven by new sales
associated with the Humana Walmart
Plan. Medicare Advantage and PDP
membership growth has positively
impacted our pharmacy operations
and will continue to do so for the
remainder of 2011 and beyond.
Taken as a whole, we continue to
believe it is prudent policy to target a
five percent pretax operating margin
for our Medicare business on a long-
term basis. To the extent we surpass
that goal in any given year, we pass the
incremental savings on to our Medicare
members in the form of lower
premiums, richer benefits, or both.
Just as important, we continue to
strive diligently in our members’
interest to improve outcomes while
lowering costs – for them, for the
company, and for the country.
2010AnnualReport 4
Our operational
team worked tirelessly
to ensure changes
in Medicare were as
smooth and seamless as
possible for our current
members and for those
interested in enrolling
in our products.
Medicare Advantage Membership
Non-network PFFS HMO PPO ASO
In Thousands
2,000
1,500
1,000
500
0
Dec. 2009 Dec. 2010 Jan. 2011
Stand-alone PDP Membership
In Thousands
Dec. 2009 Dec. 2010 Jan. 2011
500
1,000
1,500
2,000
2,500
0