Humana 2010 Annual Report Download - page 62

Ending membership was as follows at December 31, 2009 and 2008:
Change
2009 2008 Members Percentage
Medical Membership:
Government segment:
Medicare Advantage .......................... 1,508,500 1,435,900 72,600 5.1%
Medicare stand-alone PDP ..................... 1,927,900 3,066,600 (1,138,700) (37.1)%
Total Medicare .......................... 3,436,400 4,502,500 (1,066,100) (23.7)%
Military services ............................. 1,756,000 1,736,400 19,600 1.1%
Military services ASO ........................ 1,278,400 1,228,300 50,100 4.1%
Total military services .................... 3,034,400 2,964,700 69,700 2.4%
Medicaid ................................... 401,700 385,400 16,300 4.2%
Medicaid ASO .............................. — 85,700 (85,700) (100.0)%
Total Medicaid .......................... 401,700 471,100 (69,400) (14.7)%
Total Government .................... 6,872,500 7,938,300 (1,065,800) (13.4)%
Commercial segment:
Fully-insured ................................ 1,839,500 1,978,800 (139,300) (7.0)%
ASO ...................................... 1,571,300 1,642,000 (70,700) (4.3)%
Total Commercial ........................ 3,410,800 3,620,800 (210,000) (5.8)%
Total medical membership ......................... 10,283,300 11,559,100 (1,275,800) (11.0)%
Specialty Membership:
Commercial segment (a) ........................... 7,109,900 6,621,800 488,100 7.4%
(a) The Commercial segment provides a full range of insured specialty products including dental, vision, and
other supplemental products. Members included in these products may not be unique to each product since
members have the ability to enroll in multiple products.
These tables of financial data should be reviewed in connection with the discussion that follows.
Summary
Net income was $1,039.7 million, or $6.15 per diluted common share, in 2009 compared to $647.2 million,
or $3.83 per diluted common share, in 2008. The year-over-year increase primarily reflects higher operating
earnings in our Government segment as a result of significantly lower prescription drug claims expenses
associated with our Medicare stand-alone PDP products.
Premium Revenues and Medical Membership
Premium revenues increased $1.8 billion, or 6.6%, to $29.9 billion for 2009, compared to $28.1 billion for
2008 primarily due to higher premium revenues in the Government segment. Premium revenues reflected
changes in membership and increases in average per member premiums. Items impacting average per member
premiums included changes in premium rates as well as changes in the geographic mix of membership, the mix
of product offerings, and the mix of benefit plans selected by our membership.
Government segment premium revenues increased $1.8 billion, or 8.8%, to $22.8 billion for 2009 compared
to $21.0 billion for 2008 primarily attributable to higher average Medicare Advantage membership and an
increase in per member premiums partially offset by a decrease in our Medicare stand-alone PDP membership.
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