Humana 2014 Annual Report Download - page 6

32014 Annual Report
State-based contract
membership growth
more than tripled to
approximately
300,000
members
This transformative work is consistent with
Humana’s own ongoing transformation.
From a traditional health insurer with an
episodic, claims-based relationship with
our customers, we’re becoming a health
company dedicated to co-creating improved
health with our members through a closer
relationship with them. We’re working
to better understand the challenges of
managing chronic conditions – such as
diabetes and congestive heart failure –
to help people modify their lifestyles and
improve their lives. Additionally, we’re
putting technologically driven tools at our
members’ disposal – and in the hands of our
hundreds of thousands of physician-partners –
along with sophisticated data analytics to
help them achieve their best health.
At the center of this new clinical model is
not the health plan, but the person. To that
end, Humana is committed to becoming
a consumer-focused health company,
providing integrated care that makes it
easy for people to achieve their best health
through outstanding clinical capabilities and
a personalized consumer experience.
Results so far
How are we doing, in light of our
commitment? Humana’s consumer-
focused strategy and integrated care
delivery model facilitated a number of
accomplishments this past year, while we
simultaneously invested in new growth
areas. These accomplishments included:
Wellness and prevention
• 62 percent of our new Medicare
Advantage members for 2014
had wellness screenings via a
Health Risk Assessment
• 1.3 million of our medical members
received their preventive care on schedule
Primary care engagement
• We continued to make meaningful
progress in improving our Star quality
ratings, with 92 percent of individual
Medicare Advantage members in 4 Star
or greater rated plans, up from 60
percent in the previous year
• We increased the number of primary
care providers in value-based
relationships by 26 percent to over
42,000 at the end of 2014
Home health
• We grew the number of our members
engaged in the Humana Chronic Care
Program by 50 percent, significantly
outpacing our total Medicare Advantage
membership growth of 18 percent
• Our Chronic Care Program enabled
newly-managed members to have
496,000 more days at home by reducing
hospitalizations
Associate engagement and health
• We achieved world-class associate
engagement for the first time, with
results in the 91st percentile
• Forty percent of our associates have
improved their health profile since 2012,
reducing their modifiable health risks
such as high body mass index (BMI),
blood pressure, and glucose levels,
and losing an aggregate of 97 tons
The beneficial effect of these and other
consumer-focused components of our
strategy allowed us to maintain stable
member benefits and premiums for many
of our members across the nation. At
the same time, we entered into two new
areas of growth for 2014 and the future:
healthcare exchanges and state-based
contracts. Because of these initiatives,
medical membership grew substantially
and our financial metrics improved.
Membership growth
• Total Medicare Advantage
membership increased 18 percent
to 2.9 million members
• Total Medicare stand-alone Prescription
Drug Plan membership increased 22
percent to 4.0 million members
• HumanaOne membership more
than doubled to approximately
1 million members
• State-based contract membership
growth more than tripled to
approximately 300,000 members
Financial results
• Healthcare Services segment revenues
grew 26 percent to $20 billion
• Consolidated pretax earnings increased
13 percent though net income was
challenged by a dramatic rise in our
income tax rate due to the non-
deductibility of the health insurance
industry fee
• We rededicated ourselves to focusing
on return on invested capital (ROIC)
across all our lines of business,
enhancing our alignment with
the interests of our investors
Total Medicare
stand-alone
Prescription Drug
Plan membership
increased
22
%
to 4.0 million
members
Total Medicare
Advantage
membership
increased
18
%
to 2.9 million
members
HumanaOne
membership more
than doubled to
approximately
1
million
members