Humana 2011 Annual Report Download - page 63
Download and view the complete annual report
Please find page 63 of the 2011 Humana annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53 -
54 -
55 -
56 -
57 -
58 -
59 -
60 -
61 -
62 -
63 -
64 -
65 -
66 -
67 -
68 -
69 -
70 -
71 -
72 -
73 -
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
 |
 |
ratio compared to the 2010 ratio include the beneficial effect of higher favorable prior-period medical
claims reserve development in 2011 versus 2010 and lower utilization of benefits in our commercial
group products in 2011. Fully-insured group Medicare Advantage members represented 10.4% of total
Employer Group segment medical membership at December 31, 2011 compared to 9.1% at
December 31, 2010. Favorable reserve development decreased the Employer Group segment benefit
ratio by approximately 60 basis points in 2011 versus 40 basis points in 2010.
Operating costs
• The Employer Group segment operating cost ratio of 17.8% for 2011 increased 30 basis points from
17.5% for 2010 primarily reflecting the impact of lower premiums revenue due to the minimum benefit
ratio regulatory requirements which became effective in 2011.
Health and Well-Being Services Segment
Change
2011 2010 Dollars Percentage
(in millions)
Revenues:
Services:
Primary care services .................................. $ 880 $ 21 $ 859 nm
Integrated wellness services ............................. 12 13 (1) (7.7)%
Pharmacy solutions .................................... 11 0 11 100%
Total services revenues ............................. 903 34 869 nm
Intersegment revenues:
Pharmacy solutions .................................... 9,886 8,410 1,476 17.6%
Primary care services .................................. 185 170 15 8.8%
Integrated wellness services ............................. 175 167 8 4.8%
Home care services .................................... 84 39 45 115.4%
Total intersegment revenues ......................... 10,330 8,786 1,544 17.6%
Total services and intersegment revenues ............... $11,233 $8,820 $2,413 27.4%
Income before income taxes $ 353 $ 219 $ 134 61.2%
Operating cost ratio ........................................ 96.1% 97.2% (1.1)%
nm – not meaningful
Pretax results
• Health and Well-Being Services segment pretax income increased $134 million, or 61.2%, from 2010
to $353 million in 2011 primarily due to growth in our pharmacy solutions business together with the
addition of the Concentra business, acquired on December 21, 2010.
Services revenue
• Primary care services revenue increased $859 million from 2010 to $880 million in 2011 primarily due
to the acquisition of Concentra on December 21, 2010.
Intersegment revenues
• Intersegment revenues increased $1.5 billion, or 17.6%, from 2010 to $10.3 billion for 2011 primarily
due to growth in our pharmacy solutions business as it serves our growing membership, particularly
Medicare stand-alone PDP.
53