Humana 2013 Annual Report Download - page 138

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Humana Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Our segment results were as follows for the years ended December 31, 2013, 2012, and 2011:
Retail
Employer
Group
Healthcare
Services
Other
Businesses
Eliminations/
Corporate Consolidated
(in millions)
2013
Revenues—external customers
Premiums:
Medicare Advantage ........ $22,481 $ 4,710 $ 0 $ 0 $ 0 $27,191
Medicare stand-alone PDP .... 3,025 8 0 0 0 3,033
Total Medicare ......... 25,506 4,718 0 0 0 30,224
Fully-insured .............. 1,160 5,117 0 0 0 6,277
Specialty .................. 210 1,095 0 0 0 1,305
Military services ............ 0 0 0 25 0 25
Medicaid and other ......... 328 0 0 670 0 998
Total premiums ........ 27,204 10,930 0 695 0 38,829
Services revenue:
Provider .................. 0 19 1,223 0 0 1,242
ASO and other ............. 16 338 0 454 0 808
Pharmacy ................. 0 0 59 0 0 59
Total services revenue . . . 16 357 1,282 454 0 2,109
Total revenues—external customers .... 27,220 11,287 1,282 1,149 0 40,938
Intersegment revenues
Services ...................... 0 51 11,848 0 (11,899) 0
Products ...................... 0 0 2,803 0 (2,803) 0
Total intersegment revenues .......... 0 51 14,651 0 (14,702) 0
Investment income .................. 74 42 0 59 200 375
Total revenues ................. 27,294 11,380 15,933 1,208 (14,502) 41,313
Operating expenses:
Benefits ...................... 22,914 9,124 0 935 (409) 32,564
Operating costs ................. 2,963 1,832 15,237 446 (14,123) 6,355
Depreciation and amortization ..... 134 102 147 20 (70) 333
Total operating expenses ..... 26,011 11,058 15,384 1,401 (14,602) 39,252
Income (loss) from operations ......... 1,283 322 549 (193) 100 2,061
Interest expense .................... 0 0 0 0 140 140
Income (loss) before income taxes ..... $ 1,283 $ 322 $ 549 $ (193) $ (40) $ 1,921
Premium and services revenues derived from our contracts with the federal government, as a percentage of
our total premium and services revenues, were approximately 75% for 2013, 75% for 2012, and 76% for 2011.
Benefits expense for Other Businesses for 2013 includes $243 million for reserve strengthening associated
with our closed block of long-term care insurance policies as discussed more fully in Note 17.
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