Humana 2014 Annual Report Download - page 60
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52
Healthcare Services Segment
Change
2014 2013 Dollars Percentage
(in millions)
Revenues:
Services:
Provider services $ 1,076 $ 1,125 $ (49) (4.4)%
Home based services 107 94 13 13.8 %
Pharmacy solutions 99 59 40 67.8 %
Integrated behavioral health services — 2 (2) (100.0)%
Total services revenues 1,282 1,280 2 0.2 %
Intersegment revenues:
Pharmacy solutions 16,905 13,079 3,826 29.3 %
Provider services 1,110 1,080 30 2.8 %
Home based services 585 326 259 79.4 %
Integrated behavioral health services 133 126 7 5.6 %
Total intersegment revenues 18,733 14,611 4,122 28.2 %
Total services and intersegment revenues $ 20,015 $ 15,891 $ 4,124 26.0 %
Income before income taxes $ 739 $ 521 $ 218 41.8 %
Operating cost ratio 95.5% 95.8% (0.3)%
Pretax results
• Healthcare Services segment pretax income of $739 million for 2014 increased $218 million from 2013. The
increase is primarily due to a decline in the operating cost ratio in 2014 on a revenue base that reflects growth
from our pharmacy solutions and home based services businesses as they serve our growing Medicare
membership.
Script Volume
• Humana Pharmacy Solutions® script volumes for the Retail and Employer Group segment membership
increased to approximately 329 million in 2014, up 20% versus scripts of approximately 274 million in 2013.
The increase primarily reflects growth associated with higher average medical membership for 2014 than in
2013.
Services revenue
• Services revenue for 2014 were relatively unchanged from 2013, increasing $2 million, or 0.2% , to $1.3
billion for 2014.
Intersegment revenues
• Intersegment revenues increased $4.1 billion, or 28.2%, from 2013 to $18.7 billion for 2014 primarily due to
growth in our Medicare membership which resulted in higher utilization of our pharmacy solutions and home
based services businesses.