Humana 2014 Annual Report Download - page 11

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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 and well-being company focused on making it
easy for people to achieve their best health with clinical excellence through coordinated care. Our strategy integrates
care delivery, the member experience, and clinical and consumer insights to encourage engagement, behavior change,
proactive clinical outreach and wellness for the millions of people we serve across the country. As of December 31,
2014, we had approximately 13.8 million members in our medical benefit plans, as well as approximately 7.7 million
members in our specialty products. During 2014, 73% of our total premiums and services revenue were derived from
contracts with the federal government, including 15% derived from our individual Medicare Advantage contracts in
Florida with the Centers for Medicare and Medicaid Services, or CMS, under which we provide health insurance
coverage to approximately 542,400 members as of December 31, 2014.
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 2014 Form 10-K, contains both historical and forward-looking information.
See Item 1A. – Risk Factors in this 2014 Form 10-K for a description of a number of factors that may adversely affect
our results or business.
Health Care Reform
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 Care Reform Law) enacted significant reforms to various aspects of the
U.S. health insurance industry. Implementation dates of the Health Care Reform Law began in September 2010 and
will continue through 2018, and many aspects of the Health Care Reform Law are already effective and have been
implemented by us. Certain significant provisions of the Health Care Reform Law include, among others, mandated
coverage requirements, mandated benefits and guarantee issuance associated with commercial medical insurance,
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 designed to spread risk among
insurers, an annual insurance industry premium-based assessment, and a three-year commercial reinsurance fee. The