Humana 2011 Annual Report Download - page 68
Download and view the complete annual report
Please find page 68 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
 |
 |
higher average membership in products that generally carry higher benefit ratios, partially offset by
favorable prior-period medical claims reserve development. This favorable development decreased the
Retail segment benefit ratio by approximately 100 basis points in 2010.
Operating costs
• The Retail segment operating cost ratio of 11.1% for 2010 increased 30 basis points from 10.8% for
2009. The $147 million write-down of deferred acquisition costs in 2010 increased the operating cost
ratio 80 basis points. Excluding the impact of the write-down of deferred acquisition costs, the decrease
in the operating cost ratio year-over-year primarily reflects efficiency gains associated with servicing
higher average individual Medicare Advantage membership as well as our continued focus on
administrative cost reductions, partially offset by increased Medicare investment spending for our 2011
offerings.
Employer Group Segment
Change
2010 2009 Members Percentage
Membership:
Medical membership:
Fully-insured commercial group .......... 1,252,200 1,442,100 (189,900) (13.2)%
ASO ................................ 1,453,600 1,571,300 (117,700) (7.5)%
Group Medicare Advantage .............. 273,100 101,900 171,200 168.0%
Medicare Advantage ASO ............... 28,200 0 28,200 100.0%
Total group Medicare Advantage ..... 301,300 101,900 199,400 195.7%
Group Medicare stand-alone PDP ......... 2,400 2,500 (100) (4.0)%
Total group Medicare ............... 303,700 104,400 199,300 190.9%
Total group medical members ........ 3,009,500 3,117,800 (108,300) (3.5)%
Group specialty membership (a) .............. 6,517,500 6,761,900 (244,400) (3.6)%
(a) Specialty products include dental, vision, and other supplemental health and financial protection products.
Members included in these products may not be unique to each product since members have the ability to
enroll in multiple products.
Change
2010 2009 Dollars Percentage
(in millions)
Premiums and Services Revenue:
Premiums:
Fully-insured commercial group ............. $5,169 $5,547 $ (378) (6.8)%
Group Medicare Advantage ................ 3,021 1,080 1,941 179.7%
Group Medicare stand-alone PDP ............5500.0%
Total group Medicare ................. 3,026 1,085 1,941 178.9%
Group specialty .......................... 885 834 51 6.1%
Total premiums ...................... 9,080 7,466 1,614 21.6%
Services .................................... 395 370 25 6.8%
Total premiums and services revenue ..... $9,475 $7,836 $1,639 20.9%
Income (loss) before income taxes $ 288 $ (13) $ 301 nm
Benefit ratio ..................................... 82.4% 84.2% (1.8)%
Operating cost ratio ............................... 17.5% 19.5% (2.0)%
nm – not meaningful
58