Humana 2012 Annual Report Download - page 7

2012 Annual Report 6
These priorities are interrelated –
success in one will support success in
another. Besides further preparing us
for 2014, we believe they will position
us well for years to come, regardless of
any government agenda. They are:
1. Grow our Medicare
membership – Our Medicare
value proposition is compelling;
through our integrated care delivery
model, we believe it offers lower
costs (through our 15 Percent
Solution*), better quality and better
health outcomes than original
Medicare. It also dovetails perfectly
with demographic factors that
are favorable to further Medicare
membership growth. Along with
the progress we are able to make
improving our members’ health, we
also acquaint them with a variety
of other Humana products and
services. As of January 1, 2013, for
800,000 of our Medicare members,
this includes the HumanaVitality®
customized incentives-and-rewards
well-being program that has proven
popular and effective with our
commercial membership.
2. Expand our provider contracts
built on quality and cost
incentives – Providers in Humana’s
global risk arrangements are able to
take care of our individual Medicare
Advantage members for an average
of 71 percent of the cost to original
Medicare, compared to an average
of 91 percent for providers without
aligned incentives. Beyond cost
savings, these arrangements allow
us to offer our members better
benefits. At the end of 2012, we
had approximately 26.5 percent of
our individual Medicare Advantage
members in such arrangements;
our goal is to increase that number
to 50 percent by 2017.
3. Enhance our chronic care
capabilities – Humana members
living with multiple chronic
conditions joined our chronic care
programs in 2012 at a significantly
higher rate than in 2011. By the end
of the year the total had reached
150,000. We anticipate that number
will expand again in 2013, with the
timing of the expansion weighted,
importantly, toward the first part
of the year. Humana’s growing
chronic care expertise enables an
increasing number of our Medicare
members to avoid hospitalizations
and age with grace in their homes.
4. Grow our dual-eligible
business – The 2012 dual-eligible
milestone described above points
the way toward further expansion
in selected geographies in 2013.
2013 will be a year of
continued focus on
building our integrated
care delivery model
through capabilities,
resources and efficiencies.
Looking Ahead
As we plan and execute the next phase
of our strategic development, we have
identified eight priorities that will drive
our efforts in 2013 and beyond.
Grow Medicare
membership
Expand incentive-
based provider
contracts
Enhance chronic-
care capabilities
Grow dual-eligible
business
Enhance member
experience
Manage our
portfolio
Achieve operating
cost efficiencies
Build talent
* The 15 Percent Solution is Humana’s
comprehensive clinical model designed
to provide medical benefits for at least
15 percent less than it costs the federal
government for comparable benefits in original
Medicare, with the same or better quality.