Humana 2011 Annual Report Download - page 20

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HumanaVitality, LLC, a joint venture with Discovery Holdings Ltd., provides our members with access to a
science-based, actuarially driven wellness and loyalty program that features a wide range of well-being tools and
rewards that are customized to an individual’s needs and wants. HumanaVitality®became available to certain of
our members in mid-2011. A key element of the program includes a sophisticated health-behavior-change model
supported by an actuarially sound incentive program.
Home care services
Humana Cares®provides innovative and holistic care coordination services for individuals living with
multiple chronic conditions, individuals with disabilities, fragile and aging-in-place members and their care
givers.
Other Businesses
Products and services offered by our Other Businesses are described in the discussion that follows. The
following table presents our premiums and services revenue for our Other Businesses for the year ended
December 31, 2011:
Other Businesses
Premiums and
Services Revenue
Percent of
Consolidated
Premiums and
Services Revenue
(dollars in millions)
Premiums:
Military services ........................... $3,616 9.9%
Medicaid ................................. 919 2.5%
LI-NET ................................... 253 0.7%
Closed-block long-term care .................. 39 0.1%
Total premiums ........................ 4,827 13.2%
Services ...................................... 85 0.3%
Total premiums and services revenue ....... $4,912 13.5%
Military Services
Under our TRICARE South Region contract with the United States Department of Defense, or DoD, we
provide health insurance coverage to the dependents of active duty military personnel and to retired military
personnel and their dependents. Currently, three health benefit options are available to TRICARE beneficiaries.
In addition to a traditional indemnity option, participants may enroll in a HMO-like plan with a point-of-service
option or take advantage of reduced copayments by using a network of preferred providers, similar to a PPO.
We have participated in the TRICARE program since 1996 under contracts with the Department of Defense.
Our current TRICARE South Region contract, which we were awarded in 2003, covers approximately 3.0 million
eligible beneficiaries as of December 31, 2011 in Florida, Georgia, South Carolina, Mississippi, Alabama,
Tennessee, Louisiana, Arkansas, Texas, and Oklahoma. The South Region is one of the three regions in the United
States as defined by the Department of Defense. Of these eligible beneficiaries, 1.3 million were TRICARE ASO
members representing active duty beneficiaries and seniors over the age of 65 for which the Department of Defense
retains all of the risk of financing the cost of their health benefit. We have subcontracted with third parties to
provide selected administration and specialty services under the contract. The original 5-year South Region contract
expired on March 31, 2009 and was extended through March 31, 2012. On February 25, 2011, the Department of
Defense TRICARE Management Activity, or TMA, awarded the new TRICARE South Region contract to us,
which we expect to take effect on April 1, 2012. The new 5-year South Region contract, which expires March 31,
2017, is subject to annual renewals on April 1 of each year during its term at the government’s option.
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