Humana 2012 Annual Report Download - page 13

Forward-Looking Statements
Some of the statements under “Business,” “Management’s Discussion and Analysis of Financial Condition
and Results of Operations,” and elsewhere in this report may contain forward-looking statements which reflect
our current views with respect to future events and financial performance. These forward-looking statements are
made within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934, or the Exchange Act. We intend such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and
we are including this statement for purposes of complying with these safe harbor provisions. We have based
these forward-looking statements on our current expectations and projections about future events, trends and
uncertainties. These forward-looking statements are not guarantees of future performance and are subject to
risks, uncertainties and assumptions, including the information discussed under the section entitled
“Risk Factors” in this report. In making these statements, we are not undertaking to address or update them in
future filings or communications regarding our business or results. Our business is highly complicated,
regulated and competitive with many different factors affecting results.
PART I
ITEM 1. BUSINESS
General
Headquartered in Louisville, Kentucky, Humana Inc. and its subsidiaries, referred to throughout this
document as “we,” “us,” “our,” the “Company” or “Humana,” is a leading health care company that offers a wide
range of insurance products and health and wellness services that incorporate an integrated approach to lifelong
well-being. As of December 31, 2012, we had approximately 12.1 million members in our medical benefit plans,
as well as approximately 8.1 million members in our specialty products. During 2012, 75% of our total premiums
and services revenue were derived from contracts with the federal government, including 15% derived from our
Medicare Advantage contracts in Florida with the Centers for Medicare and Medicaid Services, or CMS, under
which we provide health insurance coverage to approximately 384,200 members as of December 31, 2012.
Humana Inc. was organized as a Delaware corporation in 1964. Our principal executive offices are located
at 500 West Main Street, Louisville, Kentucky 40202, the telephone number at that address is [phone],
and our website address is www.humana.com. We have made available free of charge through the Investor
Relations section of our web site our annual reports on Form 10-K, quarterly reports on Form 10-Q, current
reports on Form 8-K, proxy statements, and, if applicable, amendments to those reports filed or furnished
pursuant to Section 13(a) of the Exchange Act, as soon as reasonably practicable after we electronically file such
material with, or furnish it to, the Securities and Exchange Commission.
This Annual Report on Form 10-K, or 2012 Form 10-K, contains both historical and forward-looking
information. See Item 1A. – Risk Factors in this 2012 Form 10-K for a description of a number of factors that
may adversely affect our results or business.
Health Insurance Reform
In March 2010, the President signed into law The Patient Protection and Affordable Care Act and The
Health Care and Education Reconciliation Act of 2010 (which we collectively refer to as the Health Insurance
Reform Legislation) which enact significant reforms to various aspects of the U.S. health insurance industry.
There are many provisions of the legislation that will require additional guidance and clarification in the form of
regulations and interpretations in order to fully understand the impacts of the legislation on our overall business,
which we expect to occur over the next several years.
Certain significant provisions of the Health Insurance Reform Legislation include, among others, mandated
coverage requirements, rebates to policyholders based on minimum benefit ratios, adjustments to Medicare
Advantage premiums, the establishment of federally facilitated or state-based exchanges coupled with programs
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