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HUM · Humana

50 filings

10-Q

HUM 10-Q Quarterly Reports

Humana - 50 quarterly reports

Filing record · 2016–202610-K1110-Q328-K199

HUM filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 199 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’17May ’17
  2. Material agreement8-K · Aug ’19Aug ’19
  3. Leadership change8-K · Mar ’22Mar ’22
  4. Leadership change8-K · Dec ’25Dec ’25
  1. 2026-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2026

    Humana Inc. reported net income attributable to Humana of $694 million, or $5.73 per diluted common share, for the three months ended June 30, 2026, compared with $545 million, or $4.51 per diluted share, in the 2025 quarter. For the six months, net income attributable to Humana was $1,880 million, or $15.55 per diluted share, versus $1,789 million, or $14.81 per diluted share, a year earlier. Total revenues rose to $40.87 billion in the quarter from $32.39 billion, driven mainly by premiums revenue of $38.83 billion, up from $30.72 billion, reflecting Medicare membership growth. The benefit ratio increased to 91.1% from 89.7% in the quarter, which management attributes to the BY 2026 Star Ratings revenue headwind and higher-cost new individual Medicare Advantage members, partly offset by pricing and clinical efforts. Medicare membership expanded sharply, with total Medicare membership of 11,127,300 at June 30, 2026, up 35.3% from a year earlier, led by stand-alone PDP growth of 62.6%. Total medical membership reached 17,912,200. Balance sheet changes include total assets of $57.20 billion, benefits payable of $12.88 billion, and short-term debt of $2.27 billion, including $1.32 billion of commercial paper. Cash and cash equivalents rose to $6.89 billion from $4.20 billion at year-end, supported by operating cash flow of $3.22 billion, which the filing says benefited from the timing of a $1.05 billion Medicaid state-directed payment that settled shortly after June 30, 2026. The company also acquired MaxHealth for approximately $908 million net of cash acquired and issued $1.0 billion of 6.625% junior subordinated notes due 2056. The filing highlights ongoing legal and regulatory matters, including the Final RADV Rule litigation, now on appeal at the Fifth Circuit after the court vacated the rule, a Star Ratings challenge also pending on appeal, a securities class action, and a DOJ False Claims Act complaint. The company states that it cannot estimate losses in excess of accruals for these matters. Remaining share repurchase authorization was $2.7 billion as of July 28, 2026.

    Jul 29, 2026
  2. 2026-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2026

    Humana Inc. reported first-quarter 2026 net income attributable to Humana of $1.19 billion, or $9.83 per diluted common share, compared with $1.24 billion, or $10.30 per diluted common share, in the 2025 quarter. Total revenues rose to $39.6 billion from $32.1 billion, driven primarily by premiums revenue of $37.7 billion, up from $30.5 billion, reflecting Medicare membership growth and higher per member premiums. Earnings were held back by a higher benefit ratio of 89.4% versus 87.0%, which management attributed mainly to the Bonus Year 2026 Star Ratings revenue headwind and growth in individual Medicare Advantage membership. Income from operations fell to $1.75 billion from $2.01 billion. Put/call valuation adjustments and value creation initiative charges ($98 million in 2026) affected comparability. Membership grew sharply: total medical membership reached 17.7 million, up 19.4%, with stand-alone PDP membership up 58.7% and individual Medicare Advantage membership up 22.6%. The CenterWell segment's external services revenue rose 32.0%, largely from primary care, including the MaxHealth acquisition completed February 13, 2026 for approximately $908 million net of cash acquired. Cash flow from operations was $1.25 billion versus $331 million a year earlier, and cash and equivalents rose to $4.95 billion. Leverage increased during the quarter. Humana issued $1.0 billion of 6.625% junior subordinated notes due 2056 with net proceeds of about $990 million, and short-term debt rose to $1.72 billion, including $700 million of commercial paper. The company also disclosed ongoing RADV audit and Final RADV Rule litigation, a pending Star Ratings appeal, and several DOJ and class action matters, none of which carry an estimate of loss beyond amounts accrued.

    Apr 29, 2026
  3. 2025-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2025

    Humana Inc. reported net income attributable to Humana of $195 million, or $1.62 per diluted common share, for the three months ended September 30, 2025, compared with $480 million, or $3.98 per diluted share, in the 2024 quarter. For the nine months ended September 30, 2025, net income attributable to Humana was $1.98 billion, or $16.43 per diluted share, versus $1.90 billion, or $15.72 per diluted share, a year earlier. Total revenues rose to $32.6 billion in the quarter from $29.4 billion, and to $97.1 billion for the nine months from $88.5 billion. The company attributes the comparisons to put/call valuation adjustments on non-consolidating minority interest investments, value creation initiative charges ($267 million in the quarter, $320 million year to date), a $63 million loss on sale of a business, a $32 million indefinite-lived intangible impairment, and a $15 million litigation settlement expense. The benefit ratio rose to 91.1% in the quarter from 89.9%, and the operating cost ratio rose to 12.6% from 11.5%. Cash and cash equivalents increased to $5.4 billion at September 30, 2025 from $2.2 billion at December 31, 2024, and operating cash flow for the nine months was $2.6 billion versus $3.5 billion, which the filing attributes mainly to unfavorable working capital. Long-term debt rose to $12.6 billion from $11.1 billion after new senior notes were issued in March 2025. The company's Medicare Advantage individual membership declined 7.5% year over year, while Medicare stand-alone PDP and state-based contract membership grew. The filing also discloses that on September 25, 2025, a court vacated CMS's Final RADV Rule, and that a Star Ratings lawsuit was rejected by the court on October 14, 2025, with Humana considering its options. The company reported $1.9 billion of parent-company cash at quarter end and a remaining share repurchase authorization of $2.8 billion as of November 4, 2025. Management states it believes existing resources are adequate for at least the next twelve months.

    Nov 5, 2025
  4. 2025-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2025

    Humana Inc. reported net income attributable to Humana of $545 million, or $4.51 per diluted common share, for the three months ended June 30, 2025, compared with $679 million, or $5.62 per diluted share, in the 2024 quarter. For the six months ended June 30, 2025, net income attributable to Humana was $1.789 billion, or $14.81 per diluted share, versus $1.420 billion, or $11.74 per diluted share, a year earlier. The filing states that these comparisons were significantly affected by put/call valuation adjustments on non-consolidating minority interest investments ($200 million in the quarter, $363 million for the six months), a $32 million impairment of indefinite-lived intangible assets, and $29 million and $53 million of value creation initiative charges for the quarter and six months, respectively. Total revenues rose 9.6% in the quarter to $32.39 billion, driven by premiums revenue of $30.72 billion, while the consolidated benefit ratio increased to 89.7% from 89.0%. Balance sheet and liquidity: cash and cash equivalents rose to $4.04 billion at June 30, 2025 from $2.22 billion at year-end 2024, and operating cash flow for the six months was $1.60 billion. Long-term debt increased to $12.59 billion, following the March 2025 issuance of $1.5 billion in net proceeds from new senior notes that repaid $577 million of notes maturing April 1, 2025. The company repurchased $100 million of common stock in the six months and had a remaining authorization of $2.8 billion as of July 29, 2025. The filing states that the company's debt-to-capitalization ratio was 40.7% against a 60% covenant under its $5.0 billion revolving credit agreement, which had no borrowings outstanding at June 30, 2025. The filing also discloses material legal and regulatory exposure. It describes CMS's Final RADV Rule, which eliminates the FFS Adjuster and plans extrapolated audit recoveries beginning with payment year 2018, with the company stating these matters could have a material adverse effect. Humana also reports a pending lawsuit over the 2025 Star Ratings, refiled July 21, 2025, a securities class action, a derivative action, and a qui tam complaint in which DOJ partially intervened on May 1, 2025. The company states that it cannot estimate a loss beyond amounts already accrued.

    Jul 30, 2025
  5. 2025-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2025

    Humana Inc. reported first-quarter 2025 net income attributable to Humana of $1.244 billion, or $10.30 per diluted common share, compared with $741 million, or $6.11 per diluted share, in the first quarter of 2024. Total revenues rose 8.4% to $32.112 billion, driven by premiums revenue of $30.514 billion (up 8.0%), primarily due to higher per member Medicare premiums, largely from an increased direct subsidy under the Inflation Reduction Act, and growth in state-based contracts and stand-alone PDP membership. Income from operations increased 62.9% to $2.014 billion. The filing attributes the results partly to put/call valuation adjustments tied to non-consolidating minority interest investments and charges from value creation initiatives, which the company says significantly affected comparisons. The benefit ratio improved to 87.0% from 88.9%, while the operating cost ratio rose to 10.6% from 10.4%. The balance sheet strengthened in liquidity terms: cash and cash equivalents rose to $4.250 billion from $2.221 billion at December 31, 2024, and total debt increased with long-term debt reaching $12.729 billion after $1.481 billion in net proceeds from March 2025 senior note issuances used to repay $577 million of notes due April 2025. Operating cash flow was $331 million, down from $423 million, reflecting unfavorable working capital items. Management notes that Medicare receivables rose due to the IRA subsidy and that its authorized share repurchase capacity was $2.9 billion as of April 29, 2025, with no open-market repurchases in the quarter. The filing also discloses material legal and regulatory exposure. Humana is litigating the CMS Final RADV Rule, which eliminated the FFS Adjuster and could have a material adverse effect, and has sued over the 2025 Star Ratings. A securities class action and related derivative suits are pending, and the company faces ongoing Department of Justice information requests on Medicare Part C risk adjustment practices. Medicare represented approximately 83% of premiums and services revenue in the quarter.

    Apr 30, 2025
  6. 2024-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2024

    Humana Inc. reported net income attributable to Humana of $480 million, or $3.98 per diluted share, for the three months ended September 30, 2024, down from $832 million, or $6.71 per diluted share, in the 2023 quarter. For the nine months ended September 30, 2024, net income attributable to Humana was $1.90 billion, or $15.72 per diluted share, versus $3.03 billion, or $24.26 per diluted share, a year earlier. Total revenues rose to $29.40 billion for the quarter and $88.55 billion for the nine months, driven primarily by higher premiums. The decline in earnings reflects a benefit ratio of 89.9% for the quarter versus 86.6% a year earlier, which the filing attributes mainly to elevated Medicare Advantage and state-based contracts medical cost trends. Membership and segment trends show growth in Individual Medicare Advantage (5,659,200 members, up 5.3%) and state-based contracts, offset by sharp declines in Medicare stand-alone PDP (down 19.8%) and commercial fully-insured membership (down 93.7%) as Humana exits its Employer Group Commercial Medical Products business, which the company expects to finalize in the first half of 2025. Insurance segment income from operations fell to $274 million in the quarter from $722 million, while CenterWell income from operations was $382 million versus $400 million. Operating cash flow for the nine months was $3.49 billion, compared with $11.12 billion in the prior-year period, which included an early receipt of a $7.1 billion Medicare premium remittance in September 2023. The filing also highlights legal and regulatory matters. Humana settled the Steven Scott qui tam suit on August 15, 2024 for $90 million. The company is challenging CMS's Final RADV Rule in litigation and, in October 2024, filed suit over the 2025 Star Ratings. Management states that about 25% of Medicare Advantage members are in plans rated 4-star or higher for 2025, compared with 94% based on 2024 Star Ratings, which could significantly affect revenues and cash flows if the lawsuit is unsuccessful. The company also repurchased $750 million of common stock during the nine months and had a remaining authorization of $2.93 billion as of October 29, 2024.

    Oct 30, 2024
  7. 2024-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2024

    Humana Inc. reported net income attributable to Humana of $679 million, or $5.62 per diluted share, for the three months ended June 30, 2024, down from $959 million, or $7.66 per diluted share, a year earlier. For the six months, net income attributable to Humana was $1.4 billion, or $11.74 per diluted share, compared with $2.2 billion, or $17.54 per diluted share, in the 2023 period. Total revenues rose to $29.54 billion in the quarter from $26.75 billion, driven mainly by premiums revenue of $28.14 billion, which the filing attributes to higher per member Medicare premiums and membership growth in Medicare Advantage and state-based contracts. The decline in earnings reflects a consolidated benefit ratio of 89.0% versus 86.3%, which the filing attributes to elevated Medicare Advantage medical cost trends and a smaller favorable impact from prior-period claims reserve development. Partly offsetting this, the operating cost ratio improved to 10.8% from 11.8%. Results were also affected by put/call valuation adjustments of $68 million and value creation initiative charges of $68 million in the quarter. Balance sheet and cash flow items show a change in timing. Cash and cash equivalents were $5.5 billion at June 30, 2024, and net cash provided by operating activities was $1.6 billion for the six months, compared with $9.9 billion in the prior-year period. The filing states that the 2023 period was significantly affected by the early receipt of a $7.0 billion Medicare premium remittance and a $2.2 billion CMS mid-year settlement, and that the 2024 mid-year settlement of approximately $2.3 billion was received in July 2024. In March 2024 Humana issued $2.25 billion of senior notes, with net proceeds of $2.2 billion. Total debt was $12.9 billion of senior notes at carrying value, with no commercial paper outstanding at June 30, 2024. The filing also describes ongoing legal and regulatory risk, including a lawsuit challenging the Final RADV Rule, a qui tam suit, and a securities class action filed in June 2024, and it states that these matters could have a material adverse effect on results of operations, financial position, or cash flows.

    Jul 31, 2024
  8. 2024-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2024

    Humana Inc. reported net income attributable to Humana of $741 million, or $6.11 per diluted common share, for the three months ended March 31, 2024, compared with $1,239 million, or $9.87 per diluted share, in the 2023 quarter. Total revenues rose to $29.611 billion from $26.742 billion, driven by premiums revenue of $28.261 billion, up $2.711 billion, or 10.6%. The earnings decline reflects a benefit ratio of 88.9%, up from 85.5%, as higher Medicare Advantage medical cost trends outpaced pricing, partly offset by favorable prior-period reserve development of $535 million and an operating cost ratio that improved to 10.4% from 11.2%. The filing also notes that the quarter was significantly affected by put/call valuation adjustments on non-consolidating minority interest investments of $131 million. Balance sheet and liquidity changed meaningfully. Cash and cash equivalents rose to $5.910 billion from $4.694 billion at year-end 2023, while long-term debt increased to $12.390 billion from $10.213 billion after the company issued $2.2 billion in net proceeds of senior notes in March 2024. Operating cash flow was $423 million, down from $6.687 billion a year earlier, which the filing attributes mainly to the early receipt of a $6.6 billion Medicare premium remittance in March 2023. The company repurchased $702 million of common stock during the quarter and had $2.96 billion remaining under its repurchase authorization as of April 23, 2024. Membership trends show individual Medicare Advantage growing 395,900 members, or 7.7%, to 5,548,900, while Medicare stand-alone PDP membership fell 609,300, or 20.6%, and commercial fully-insured and ASO membership declined sharply as the company exits its Employer Group Commercial Medical Products business. The filing also flags ongoing risks, including the Final RADV Rule, which Humana is challenging in litigation and which the company states could have a material adverse effect on results.

    Apr 24, 2024
  9. 2023-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2023

    Humana Inc.'s Form 10-Q for the quarter ended September 30, 2023 reports net income attributable to Humana of $832 million, or $6.71 per diluted share, for the three months ended September 30, 2023, versus $1.195 billion, or $9.39 per diluted share, a year earlier. For the nine months, net income attributable to Humana was $3.030 billion, or $24.26 per diluted share, compared with $2.821 billion, or $22.16 per diluted share. Total revenues rose to $26.423 billion for the quarter from $22.799 billion, driven by premiums revenue of $25.099 billion, up from $21.468 billion. The filing notes the benefit ratio rose to 86.6% for the quarter from 85.6%, citing Medicare Advantage investments in benefit design, elevated utilization trends and higher COVID-19 admissions, while the 2023 quarter also included put/call valuation adjustments, value creation charges and an accrual for anticipated litigation expenses. Membership and segment trends were mixed. Individual Medicare Advantage membership grew 810,200 members, or 17.8%, to 5,374,400, while Medicare stand-alone PDP membership fell 683,300 members, or 19.1%, and commercial fully-insured membership fell 28.8% as the company exits its Employer Group Commercial Medical Products business. The Insurance segment's income from operations was $722 million for the quarter, down from $873 million, while CenterWell's rose to $400 million from $300 million. Cash and cash equivalents increased to $15.148 billion at September 30, 2023 from $5.061 billion at year-end 2022, largely reflecting an early receipt of a $7.1 billion Medicare premium remittance and $11.115 billion of operating cash flow for the nine months. The filing also discloses regulatory and legal exposure. Humana and a subsidiary sued HHS and the Secretary on September 1, 2023 seeking to set aside the Final RADV Rule, which eliminates the FFS Adjuster, and the company states that the rule could have a material adverse effect on results, financial position or cash flows. A qui tam suit over Basic PDP actuarial equivalence remains pending, and the company has accrued certain anticipated expenses for it.

    Nov 1, 2023
  10. 2023-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2023

    Humana Inc. reported strong second-quarter 2023 results in this Form 10-Q, with net income of $956 million, or $7.66 per diluted share, for the three months ended June 30, 2023, compared with $697 million, or $5.48 per diluted share, a year earlier. For the six months, net income was $2.19 billion, or $17.54 per diluted share, versus $1.63 billion, or $12.77 per diluted share. Total revenues rose to $26.75 billion for the quarter from $23.66 billion, driven by premiums revenue of $25.50 billion, up from $22.27 billion, reflecting individual Medicare Advantage membership growth and higher per-member premiums. The consolidated benefit ratio was 86.3% for the quarter versus 85.8% a year earlier, and the operating cost ratio improved to 11.8% from 13.4%. Results were affected by a $90 million accrual for certain anticipated litigation expenses in the 2023 quarter, and the filing notes $232 million of favorable prior-period medical claims reserve development. Balance sheet and cash flow strengthened significantly. Cash and cash equivalents rose to $16.21 billion at June 30, 2023 from $5.06 billion at December 31, 2022, and operating cash flow for the six months was $9.86 billion, versus $1.26 billion a year earlier. The filing states that this increase was significantly affected by the early receipt of a $7.0 billion Medicare premium remittance in June 2023, which also raised unearned revenues to $7.38 billion, and by a $2.2 billion CMS mid-year settlement received in June 2023. Total debt rose modestly, with senior notes of $9.72 billion in long-term debt after a March 2023 issuance of $1.25 billion in new notes. Humana also repurchased $601 million of common shares in the six months and held a remaining repurchase authorization of $2.2 billion as of August 1, 2023. The filing highlights several forward-looking risks. Humana is exiting its Employer Group Commercial Medical Products business over 18 to 24 months from February 2023. The company discloses a Final RADV Rule issued by CMS on January 30, 2023, which eliminates the fee-for-service adjuster and, Humana says, could have a material adverse effect on results, financial position and cash flows. Humana is also considering its legal options regarding this rule, and a qui tam suit and a Department of Justice information request relating to Medicare risk adjustment remain pending.

    Aug 2, 2023
  11. 2023-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2023

    Humana Inc. reported first-quarter 2023 net income attributable to Humana of $1.239 billion, or $9.87 per diluted common share, compared with $930 million, or $7.29 per diluted common share, in the first quarter of 2022. Total revenues rose 11.6% to $26.742 billion, driven by premiums revenue growth of 12.5% to $25.550 billion, reflecting individual Medicare Advantage and state-based contracts membership growth and higher per member individual Medicare Advantage premiums. The benefit ratio improved to 85.5% from 86.4%, aided by $522 million of favorable prior-period medical claims reserve development, and the operating cost ratio fell to 11.2% from 12.0%, partly due to the August 2022 sale of a 60% interest in Gentiva Hospice. Cash and cash equivalents increased to $13.735 billion at March 31, 2023, largely because of a $6.6 billion Medicare premium remittance received early in March and $6.934 billion in unearned revenues. The filing also discloses Humana's planned exit from the Employer Group Commercial Medical Products business, to be phased over the next 18 to 24 months, and the expiration of the Public Health Emergency timeline. Membership in individual Medicare Advantage rose 13.5% to 5,153,000 members, while Medicare stand-alone PDP membership fell 18.0%. The company disclosed a pending regulatory and legal risk: CMS's Final RADV Rule, published January 30, 2023, eliminates the FFS Adjuster, which Humana says could have a material adverse effect on results, and a Department of Justice information request and a qui tam suit remain pending. Liquidity appears strong, with $3.0 billion of net proceeds from senior notes issued in March 2023 and $2.8 billion of remaining share repurchase authorization as of April 25, 2023. Management states that cash, investments and credit facilities are adequate for at least the next twelve months.

    Apr 26, 2023
  12. 2022-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2022

    Humana Inc. reported third-quarter 2022 net income attributable to Humana of $1.195 billion, or $9.39 per diluted share, versus $1.531 billion, or $11.84 per diluted share, in the 2021 quarter. For the nine months ended September 30, 2022, net income attributable to Humana was $2.821 billion, or $22.16 per diluted share, versus $2.947 billion, or $22.77 per diluted share, a year earlier. Total revenues rose to $22.799 billion for the quarter and $70.431 billion for the nine months, driven by premiums growth in individual Medicare Advantage and the consolidation of Kindred at Home operations acquired in August 2021. The filing notes the quarter's results include a $240 million pre-tax gain on the August 11, 2022 sale of a 60% interest in KAH Hospice, and $82 million and $285 million of charges for value creation initiatives in the three- and nine-month periods, respectively. The benefit ratio improved to 85.6% for the quarter from 87.1% a year earlier, reflecting higher per member individual Medicare Advantage premiums and lower inpatient utilization, while the operating cost ratio rose to 13.5% from 12.6%. Cash and cash equivalents increased to $13.558 billion at September 30, 2022 from $3.394 billion at December 31, 2021, largely because unearned revenues rose to $6.012 billion from $254 million, reflecting an early receipt of the Medicare premium remittance of $5.8 billion in September 2022. Operating cash flow for the nine months was $9.714 billion. Medicare products accounted for approximately 81% of premiums and services revenue for the nine months, and the filing states that all material CMS contracts have been renewed for 2023. The filing also describes an ongoing Department of Justice information request on Medicare Part C risk adjustment practices and a qui tam suit in which the court denied both parties' motions for summary judgment on March 31, 2022. The company's board declared a quarterly cash dividend of $0.7875 per share in October 2022, and the remaining share repurchase authorization was $2 billion as of November 1, 2022. The filing states that no estimate of possible loss in excess of amounts accrued can be made for the matters specifically described, and that the outcome of litigation and investigations could have a material adverse effect on results, financial position and cash flows.

    Nov 2, 2022
  13. 2022-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2022

    Humana Inc. reported a strong second quarter of 2022, with net income of $697 million, or $5.48 per diluted common share, versus $588 million, or $4.55, a year earlier. For the six months ended June 30, 2022, net income was $1.627 billion, or $12.77 per diluted share, compared with $1.416 billion, or $10.94. Total revenues rose to $23.66 billion for the quarter from $20.65 billion, driven by premiums growth in individual Medicare Advantage and the consolidation of Kindred at Home operations within Healthcare Services. Management noted that results were significantly affected by items including a $203 million charge tied to its value creation initiatives, a $167 million deferred tax liability related to the pending KAH Hospice sale, and put/call valuation adjustments on equity method investments. The balance sheet shows total assets of $46.82 billion and cash and cash equivalents of $5.15 billion at June 30, 2022. Total liabilities rose to $31.31 billion, and benefits payable increased to $9.65 billion from $8.29 billion at year-end 2021. Goodwill fell to $8.91 billion from $11.09 billion, reflecting $2.33 billion reclassified to held-for-sale for KAH Hospice. Operating cash flow was $1.26 billion for the six months, compared with negative $477 million a year earlier. The company repurchased $1.03 billion of stock in the period and paid dividends of $191 million. The pending divestiture of a 60% interest in the Hospice and Personal Care divisions of Kindred at Home to Clayton, Dubilier & Rice is expected to close in the third quarter of 2022, with cash proceeds of approximately $2.8 billion. The filing also discloses ongoing government scrutiny of Medicare Advantage risk adjustment practices, including RADV audits, a Department of Justice information request, and a qui tam suit (Scott v. Humana) that remains pending, with no estimate of possible loss beyond amounts accrued.

    Jul 27, 2022
  14. 2022-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2022

    Humana Inc. reported net income of $930 million, or $7.29 per diluted common share, for the three months ended March 31, 2022, compared with $828 million, or $6.39, in the 2021 quarter. Total revenues rose to $23.97 billion from $20.67 billion, driven by premiums of $22.70 billion (up from $20.12 billion) and services revenue of $1.26 billion (up from $466 million, primarily reflecting Kindred at Home revenues from external customers). The filing notes that the comparison was significantly affected by put/call valuation adjustments on equity method investments, transaction and integration costs, and changes in the fair value of publicly-traded equity securities. The benefit ratio rose to 86.4% from 85.9%, and the operating cost ratio rose to 12.0% from 9.7%, largely due to the consolidation of Kindred at Home operations. Favorable prior-period medical claims reserve development was $360 million, versus $555 million in the 2021 quarter. Cash and cash equivalents increased to $4.86 billion at March 31, 2022 from $3.39 billion at December 31, 2021, with operating cash flow of $302 million, compared with an outflow of $837 million a year earlier. Humana issued $750 million of 3.700% senior notes due 2029 and repurchased $1.02 billion of common stock in the quarter, including a $1 billion accelerated share repurchase program. Remaining repurchase authorization was $2 billion as of April 26, 2022. On April 21, 2022, Humana agreed to sell a 60% interest in the Hospice and Personal Care divisions of its Kindred at Home subsidiary (KAH Hospice) to Clayton, Dubilier & Rice at an enterprise valuation of $3.4 billion, with expected cash proceeds of approximately $2.8 billion and expected closing in the third quarter of 2022. Membership trends were mixed: individual Medicare Advantage membership grew 246,900 members (5.8%) to 4,538,200, while fully-insured commercial group medical membership fell 96,900 (13.4%) and Medicare stand-alone PDP membership declined 59,200 (1.6%). The filing also discloses ongoing government scrutiny, including a Department of Justice information request concerning Medicare Part C risk adjustment practices and a qui tam suit (Steven Scott v. Humana) in which the Court denied the parties' motions for summary judgment on March 31, 2022. The company states that it cannot estimate possible losses in excess of amounts accrued for these matters, and that an adverse outcome could have a material adverse effect on its results.

    Apr 27, 2022
  15. 2021-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2021

    Humana Inc. reported third-quarter 2021 net income of $1,531 million, or $11.84 per diluted share, compared with $1,340 million, or $10.05, in the third quarter of 2020. For the nine months ended September 30, 2021, net income was $2,947 million, or $22.77 per diluted share, versus $3,641 million, or $27.37, a year earlier. Results were significantly affected by a $1,129 million non-taxable gain on the remeasurement of its previously held Kindred at Home equity method investment, and by declines in the fair value of publicly traded equity securities. Excluding these items, the filing attributes margin pressure to the elimination of the non-deductible health insurance industry fee, which was repealed beginning in 2021, and to COVID-19 utilization disruption affecting Medicare Advantage risk adjustment. The benefit ratio rose to 87.1% in the third quarter from 82.6% a year earlier, and to 86.3% for the nine months from 81.4%. On August 17, 2021, Humana acquired the remaining 60% interest in Kindred at Home for an enterprise value of $8.2 billion, with a net purchase price of approximately $5.8 billion. The acquisition added $6.4 billion of goodwill and other intangible assets to the balance sheet, and total assets rose to $45,320 million at September 30, 2021 from $34,969 million at December 31, 2020. Long-term debt increased to $11,466 million from $6,060 million, funded in part by $2,984 million of net proceeds from August 2021 senior notes. Membership grew in individual Medicare Advantage, which reached 4,397,300 members, up 11.7%, while stand-alone PDP and fully-insured group membership declined. Cash flow from operations was $2,358 million for the nine months, down from $5,356 million, which the filing attributes mainly to working capital changes tied to prior-year COVID-19 disruptions. Management reported that cash and cash equivalents stood at $4,304 million at quarter end. The filing also notes that a $2.0 billion term loan agreement was entered into on October 29, 2021, and that the Board declared a quarterly dividend of $0.70 per share in October 2021.

    Nov 3, 2021
  16. 2021-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2021

    Humana Inc. reported net income of $588 million, or $4.55 per diluted common share, for the three months ended June 30, 2021, compared with $1.8 billion, or $13.75 per diluted share, in the 2020 quarter. For the six months ended June 30, 2021, net income was $1.4 billion, or $10.94 per diluted share, versus $2.3 billion, or $17.31, a year earlier. The filing attributes the comparison largely to put/call valuation adjustments tied to equity method investments, fair value changes in publicly traded equity securities, and transaction costs for the pending Kindred at Home acquisition. Excluding those items, the filing cites the 2020 deferral of non-essential care and COVID-19 testing and treatment costs as materially affecting comparisons. The consolidated benefit ratio rose to 85.8% in the 2021 quarter from 76.4%, and total revenues grew 8.2% to $20.6 billion. The company agreed on April 27, 2021 to acquire the remaining 60% interest in Kindred at Home for an enterprise value of $8.1 billion, including its existing $2.4 billion equity value, with closing expected in the third quarter of 2021. The approximate $5.7 billion net cash transaction is to be funded through parent company cash, debt financing, and assumed KAH indebtedness. The filing notes that a mark-to-market gain of approximately $1 billion on the existing 40% stake will be recorded at closing. Liquidity remained solid, with cash and cash equivalents of $3.4 billion, commercial paper of $1.1 billion, and new revolving credit facilities totaling $4.0 billion in committed capacity, as well as a $500 million delayed draw term loan. Membership trends were mixed. Individual Medicare Advantage membership grew 12.0% year over year to 4,341,600, while stand-alone PDP membership declined 6.1%. The filing also discloses ongoing regulatory exposure, including Medicare Advantage risk adjustment audits (RADV), the transition from RAPS to EDS risk score data, a Department of Justice information request, and the qui tam suit under the False Claims Act concerning Basic PDP actuarial equivalence.

    Jul 28, 2021
  17. 2021-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2021

    Humana Inc. reported first-quarter 2021 net income of $828 million, or $6.39 per diluted common share, compared with $473 million, or $3.56 per diluted share, in the first quarter of 2020. Total revenues rose 9.2% to $20.67 billion, driven by premiums growth of 9.6% to $20.12 billion, reflecting individual Medicare Advantage and state-based Medicaid membership growth. The filing notes that the comparison was significantly affected by put/call valuation adjustments on equity method investments and a $85 million net recognized loss on equity securities; excluding these items, management attributes improved results to membership growth, better profitability in Group and Specialty and Healthcare Services, and the termination of the non-deductible health insurance industry fee in 2021. The benefit ratio rose to 85.9% from 85.1%, while the operating cost ratio fell to 9.7% from 11.3%. Cash flow from operations was negative, at $(837) million, driven mainly by working capital changes. The most significant strategic development is the April 27, 2021 agreement to acquire the remaining 60% interest in Kindred at Home, the nation's largest home health and hospice provider, for an enterprise value of $8.1 billion, which includes Humana's existing $2.4 billion equity value. Humana expects to fund the approximate $5.7 billion net transaction through parent company cash and debt, with closing expected in the third quarter of 2021 subject to regulatory approvals. The filing also details ongoing regulatory risk, including CMS risk-adjustment audits (RADV), a pending qui tam suit concerning Basic PDP actuarial equivalence, and a Department of Justice information request, none of which has an estimable loss range beyond amounts accrued. Balance sheet capacity remains solid, with cash and equivalents of $3.88 billion, investment securities of $14.37 billion at amortized cost, and long-term debt of $6.06 billion. Commercial paper rose to $1.20 billion, and the company had $2.0 billion of undrawn revolver capacity. Management reports a debt-to-capitalization ratio of 34% against a 50% covenant, and the $3 billion share repurchase authorization was unchanged as of April 27, 2021.

    Apr 28, 2021
  18. 2020-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2020

    Humana Inc. reported third-quarter 2020 net income of $1,340 million, or $10.05 per diluted share, versus $689 million, or $5.14, in the 2019 quarter. Nine-month net income was $3,641 million, or $27.37 per diluted share, versus $2,195 million, or $16.24. The filing states these results were significantly impacted by a $643 million change in fair value of publicly-traded equity securities (largely Oak Street Health, Inc. following its IPO), a $578 million net receipt of commercial risk corridor receivables previously written off, and put/call valuation adjustments. Excluding these items, the company cites the ongoing COVID-19 impact, including utilization rebounding to approximately 95% of historic baseline levels by the end of the quarter, COVID-19 testing and treatment costs, and the reinstated non-deductible health insurance industry fee of $1.2 billion paid in September 2020. Total revenues were $20,075 million for the quarter, up from $16,241 million, with total premiums of $18,904 million. The consolidated benefit ratio improved to 82.6% from 85.0%, while the operating cost ratio rose to 13.0% from 11.7%. Retail individual Medicare Advantage membership grew 382,600 members, or 10.8%, to 3,935,100, while stand-alone PDP membership declined 11.1%. Group and Specialty segment results swung to a $160 million loss for the quarter. Liquidity strengthened, with cash and cash equivalents of $7,985 million at September 30, 2020, up from $4,054 million at year-end 2019, supported by $1,088 million in net senior note proceeds and a $1 billion term loan draw. Management states that the company had $2.0 billion of remaining borrowing capacity under its credit agreement and that its investment-grade ratings were BBB+ (S&P) and Baa3 (Moody's). The filing also highlights ongoing regulatory and legal exposure, including CMS risk adjustment and RADV audit methodology, the Proposed Rule and its potential impact on payments, the Department of Justice information request regarding Medicare Part C risk adjustment practices, and the Scott qui tam suit under the False Claims Act. Management states it cannot estimate losses in excess of amounts accrued and that outcomes could have a material adverse effect on results, financial position, and cash flows.

    Nov 3, 2020
  19. 2020-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2020

    Humana Inc. reported net income of $1.83 billion, or $13.75 per diluted share, for the three months ended June 30, 2020, up from $940 million, or $6.94 per diluted share, in the 2019 quarter. For the six months ended June 30, 2020, net income was $2.30 billion, or $17.31 per diluted share, versus $1.51 billion, or $11.10 per diluted share, a year earlier. The filing states that the comparisons were significantly affected by put/call valuation adjustments on equity method investments, which increased earnings by $227 million in the 2020 quarter. Excluding those adjustments, management attributes the improvement to the temporary deferral of non-essential care during the COVID-19 pandemic, partly offset by COVID-19 testing and treatment costs, pandemic relief efforts, and the reinstated non-deductible health insurance industry fee. Total revenues rose 17.5% in both periods, and the consolidated benefit ratio fell to 76.4% in the quarter from 84.4%, while the operating cost ratio rose to 12.4% from 10.6%. The balance sheet expanded materially over the first half. Cash and cash equivalents increased to $7.16 billion from $4.05 billion at year-end 2019, and total assets grew to $38.46 billion from $29.07 billion. Total debt rose as the company issued $1.1 billion of senior notes in March 2020 and drew a $1 billion term loan, with short-term debt at $1.72 billion and long-term debt at $6.06 billion. The company also completed the approximately $709 million acquisition of Enclara Healthcare and entered a strategic partnership with Welsh, Carson, Anderson & Stowe to expand primary care centers. Stockholders' equity reached $14.42 billion. Medicare products accounted for approximately 83% of premiums and services revenue for the six months. The filing also flags material ongoing regulatory and legal matters. Humana states it is pursuing payment of a $609 million Court of Federal Claims judgment on risk corridor payments, with timing uncertain, and it has not recognized any receivable for that amount. The company continues to face a Department of Justice information request on Medicare risk adjustment practices, a qui tam suit in the Western District of Kentucky, and CMS RADV audit and Proposed Rule matters, any of which could have a material adverse effect. The company also disclosed that it expects to pay the federal government $1.2 billion in September 2020 for the annual health insurance industry fee attributed to calendar year 2020.

    Aug 5, 2020
  20. 2020-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2020

    Humana Inc. reported first-quarter 2020 net income of $473 million, or $3.56 per diluted share, compared with $566 million, or $4.16 per diluted share, in the first quarter of 2019. The filing says put/call valuation adjustments on certain equity method investments reduced earnings by $297 million in 2020, versus $39 million in 2019. Total revenues rose to $18.94 billion from $16.11 billion, driven mainly by premiums, which the filing attributes primarily to higher Retail segment premiums from Medicare Advantage and state-based contract growth. The consolidated benefit ratio improved to 85.1% from 86.2%, while the operating cost ratio rose to 11.3% from 10.4%, which the company attributes mainly to the reinstated non-deductible health insurance industry fee and COVID-19 related costs, including a $50 million contribution to the Humana Foundation. The company said the net impact of COVID-19 was not material to first-quarter results, but it noted lower hospital admissions and utilization in the second half of March and expects utilization to recover as deferred procedures resume. Liquidity increased significantly in March 2020 with $1.1 billion of senior notes issued and a $1 billion term loan draw. Cash and cash equivalents were $6.05 billion at March 31, 2020, and parent company cash and short-term investments were $2.4 billion. The company also completed the approximately $709 million acquisition of Enclara Healthcare and entered a strategic primary care partnership with Welsh, Carson, Anderson & Stowe.

    Apr 29, 2020
  21. 2019-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2019

    Humana Inc. reported third-quarter 2019 net income of $689 million, or $5.14 per diluted share, up from $644 million, or $4.65, in the third quarter of 2018. For the nine months ended September 30, 2019, net income was $2.2 billion, or $16.24 per diluted share, compared with $1.3 billion, or $9.58, a year earlier. Total revenues for the quarter were $16.2 billion, up from $14.2 billion. The filing attributes the earnings increase mainly to the Medicare Advantage business and Healthcare Services segment, productivity initiatives that produced operating cost efficiencies, and the suspension of the health insurance industry fee in 2019. Partial offsets included higher compensation accruals, lower Group and Specialty earnings, and workforce optimization charges. The 2018 period also included the loss on the sale of KMG. The quarterly benefit ratio rose to 85.0% from 82.0%, and the operating cost ratio fell to 11.7% from 13.5%. Individual Medicare Advantage membership grew by 508,700 members, or 16.7%, to 3,552,500 at September 30, 2019, while stand-alone PDP membership declined by 636,100 members, or 12.7%. Cash and cash equivalents rose to $5.5 billion from $2.3 billion at year-end 2018, and net cash from operating activities was $4.8 billion for the nine months. Humana issued $1.0 billion of senior notes in August 2019, repaid a $650 million term loan and a $400 million senior note, and executed a $1 billion accelerated stock repurchase agreement with Citibank, with final settlement expected in the fourth quarter of 2019. The filing also flags continuing regulatory and legal exposures. These include the proposed CMS RADV audit rule, which the company says could have a material adverse effect, a Department of Justice information request on Medicare risk adjustment practices, a qui tam suit regarding the Basic PDP plan, and a claim of approximately $611 million in risk corridor payments that has not been recognized as a receivable.

    Nov 6, 2019
  22. 2019-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2019

    Humana Inc. reported net income of $940 million, or $6.94 per diluted common share, for the three months ended June 30, 2019, compared with $193 million, or $1.39 per diluted share, in the 2018 quarter. For the six months, net income was $1,506 million, or $11.10 per diluted share, versus $684 million, or $4.93, in the prior-year period. The filing attributes the year-over-year improvement mainly to the loss on the sale of KMG recognized in the second quarter of 2018 and to the suspension of the health insurance industry fee in 2019, along with stronger Retail and Healthcare Services segment results and lower share counts from repurchases. Total revenues rose 13.9% in the quarter to $16.2 billion, led by 15.0% growth in premiums, while the consolidated benefit ratio increased to 84.4% from 84.1% and the operating cost ratio fell to 10.6% from 12.5%. Individual Medicare Advantage membership grew 457,300 members, or 15.1%, to 3,484,500 at June 30, 2019, and Retail segment earnings rose 73.6% to $856 million for the quarter. Group and Specialty segment earnings fell 93.8% to $5 million, driven by a higher benefit ratio of 86.3% and lower military services earnings. Operating cash flow for the six months was $2.3 billion, and cash and cash equivalents increased to $4.8 billion. Following the period end, the Board replaced its prior repurchase authorization with a new authorization of up to $3 billion expiring June 30, 2022, and Humana announced its intent to enter a $1 billion accelerated stock repurchase program. The filing also highlights ongoing regulatory and legal exposure. CMS's proposed RADV extrapolation rule and the Medicare risk-adjustment practices are described as potentially having a material adverse effect, a Department of Justice information request concerns Medicare Part C risk adjustment, and a qui tam suit concerns Basic PDP actuarial equivalence. Humana has not recognized any receivable for approximately $611 million of unpaid risk corridor payments it is seeking from the federal government.

    Jul 31, 2019
  23. 2019-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2019

    Humana Inc. reported first-quarter 2019 net income of $566 million, or $4.16 per diluted share, up from $491 million, or $3.53, in the first quarter of 2018. Net income rose 15.3% and diluted EPS rose 17.8%. The filing attributes the growth mainly to improvement in the Retail segment and to the temporary 2019 suspension of the health insurance industry fee. Total revenues rose 12.8% to $16.11 billion, driven by premiums, which increased 13.3% to $15.65 billion. The benefit ratio rose to 86.2% from 84.5%, while the operating cost ratio fell to 10.4% from 12.4%. Retail segment earnings increased 74.2% to $465 million, supported by growth in individual Medicare Advantage membership, which rose by 414,800 members (13.7%) to 3,433,300. Group and Specialty segment earnings declined 21.8% to $165 million, mainly due to a higher benefit ratio and lower military services earnings. Healthcare Services segment earnings were $175 million. Stand-alone PDP membership fell 11.8%, which the company attributes to its pricing discipline and to no longer being the low-cost plan in any market for 2019. Cash and cash equivalents increased to $3.88 billion from $2.34 billion at year-end 2018. Operating cash flow was $896 million, compared with $3.69 billion in the prior-year quarter, which was boosted by the early receipt of a $3.3 billion Medicare premium remittance. Benefits payable rose to $6.02 billion from $4.86 billion. The company expects a 2.2 percent rate increase for its individual Medicare Advantage business in 2020, compared with CMS's sector estimate of 2.53 percent. The filing also discusses ongoing RADV audits, a Department of Justice information request, a qui tam suit, and a $611 million risk corridor claim for which no receivable has been recorded.

    May 1, 2019
  24. 2018-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2018

    Humana Inc. reported third-quarter 2018 net income of $644 million, or $4.65 per diluted share, compared with $499 million, or $3.44 per diluted share, in the third quarter of 2017. For the nine months ended September 30, 2018, net income was $1.33 billion, or $9.58 per diluted share, versus $2.26 billion, or $15.44 per diluted share, a year earlier. The nine-month comparison was affected by a $786 million pretax loss on the sale of KMG (a $430 million tax benefit was recorded on it) and by the $947 million net merger termination gain recorded in 2017. Consolidated total revenues rose to $42.74 billion for the nine months from $40.58 billion, driven mainly by Retail segment premiums, which increased 7.2% to $36.1 billion. Profitability ratios were mixed. The consolidated benefit ratio was 83.5% for the nine months, up 40 basis points, and the operating cost ratio was 12.8%, up 110 basis points. The filing attributes the operating cost increase largely to the reinstated non-deductible health insurance industry fee, which it says impacted the operating cost ratio by 180 basis points in both the 2018 quarter and period. Segment earnings declined in Retail (down 12.2% for the nine months) and Healthcare Services (down 21.2%), while Group and Specialty earnings rose 1.9%. Cash and cash equivalents were $4.14 billion at quarter end, and the company repurchased $294 million of stock during the nine months. The balance sheet and strategic activity show new investments in care delivery. Humana acquired a 40% equity-method interest in Kindred at Home and a 40% interest in Curo Health Services for about $1.1 billion in total cash in July 2018, and it acquired MCCI and Family Physicians Group for $354 million in cash. The filing also discloses pending legal and regulatory matters, including a False Claims Act qui tam suit, $611 million of risk corridor receivables that have not been recognized, and a CMS proposed rule on RADV audits that management says could have a material adverse effect.

    Nov 7, 2018
  25. 2018-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2018

    Humana Inc. reported net income of $193 million, or $1.39 per diluted common share, for the three months ended June 30, 2018, compared to $650 million, or $4.46 per diluted share, in the 2017 quarter. For the six months, net income was $684 million, or $4.93 per diluted share, versus $1.8 billion, or $11.98 per diluted share, a year earlier. Results were affected by a $790 million pretax loss tied to the expected sale of KMG America (recorded as a loss on business held-for-sale, with a $430 million deferred tax benefit), the absence of the $947 million net Aetna merger termination gain recorded in 2017, and the reinstated health insurance industry fee in 2018. Consolidated total revenues rose 5.4% in the quarter to $14.26 billion, while the benefit ratio rose to 84.1% from 82.5% and the operating cost ratio rose to 12.5% from 10.8%. The balance sheet expanded substantially, with cash and cash equivalents of $8.05 billion at June 30, 2018 versus $4.04 billion at December 31, 2017, and total assets of $34.27 billion. Unearned revenues rose to $3.63 billion from $378 million, reflecting early receipt of Medicare premiums. Humana acquired MCCI and Family Physicians Group in 2018 for total cash consideration of $354 million, and after quarter end it completed its 40% minority interest investments in Kindred at Home and Curo Health Services for approximately $1.1 billion in total cash. The company also disclosed a pending suit seeking about $611 million in risk corridor payments from the federal government, which has not been recognized as a receivable, and an ongoing Department of Justice information request and qui tam litigation related to Medicare risk adjustment. Membership trends were mixed: individual Medicare Advantage membership grew 6.6% to 3,027,200, and Group Medicare Advantage grew 13.8%, while stand-alone PDP membership fell 4.4%. Military services membership rose to 5.93 million under the TRICARE T2017 East Region contract. Humana repurchased only 78,423 shares in June 2018 and had approximately $2 billion remaining under its repurchase authorization.

    Aug 1, 2018
  26. 2018-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2018

    Humana Inc. reported net income of $491 million, or $3.53 per diluted common share, for the quarter ended March 31, 2018, compared with $1.1 billion, or $7.49 per diluted share, in the 2017 quarter. The 2017 comparison was inflated by the $1 billion Aetna merger termination fee (net gain of about $947 million), so the decline largely reflects that one-time item, the reinstated health insurance industry fee in 2018, the exit of the Individual Commercial business, and the Tax Reform Law. Total revenues rose 3.8% to $14.28 billion, premiums rose 3.1% to $13.81 billion, and the benefit ratio was unchanged at 84.5%, while the operating cost ratio rose 1.0 percentage point to 12.4%. Segment results were mixed. Retail pretax income fell 27.8% to $267 million on investments in 2018 Medicare Advantage benefit design, lower prior-period reserve development, and a more severe flu season. Group and Specialty pretax income rose 23.4% to $211 million, and Healthcare Services pretax income fell 29.1% to $173 million as chronic care management programs were optimized. Individual Medicare Advantage membership grew 6.3% year over year, while stand-alone PDP membership declined 3.0%. Balance sheet and cash flow changed significantly in the quarter. Cash and cash equivalents rose to $8.86 billion from $4.04 billion, driven largely by the early receipt of the April 2018 Medicare premium remittance of $3.3 billion, which is reflected in unearned revenues. Operating cash flow was $3.69 billion, and the company completed its $1.0 billion accelerated share repurchase, with about $2 billion of repurchase authorization remaining as of May 1, 2018. Pending transactions include a 40% interest in Kindred at Home (about $800 million), a 40% interest in Curo Health Services (about $1.4 billion purchase price), and the sale of KMG America for an expected net loss of about $350 million.

    May 2, 2018
  27. 2017-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2017

    Humana Inc. reported net income of $499 million, or $3.44 per diluted share, for the quarter ended September 30, 2017, up from $450 million, or $2.98 per diluted share, a year earlier. Quarterly total revenues declined to $13.28 billion from $13.69 billion, mainly because Individual Commercial premiums fell to $224 million from $882 million. For the nine months, net income was $2.26 billion, or $15.44 per diluted share, compared with $1.02 billion, or $6.73 per diluted share, in the prior-year period. The nine-month result includes a net gain of $947 million from the terminated Aetna Merger Agreement, primarily the $1 billion break-up fee received in February 2017. The filing also states that the company recorded $124 million in estimated charges, or $0.54 per diluted share, for voluntary and involuntary workforce reduction programs in the third quarter. The company agreed on November 6, 2017 to sell its KMG America Corporation subsidiary, which holds its closed block of commercial long-term care insurance policies, to Continental General Insurance Company. Humana expects a net loss of about $400 million, or $2.75 per diluted share, from the sale, including a pretax loss of about $900 million offset by an expected tax benefit of about $500 million. The transaction is expected to close by the third quarter of 2018, subject to regulatory approval. Humana also plans to exit its Individual Commercial medical business on January 1, 2018. Liquidity improved significantly, with cash and cash equivalents rising to $9.87 billion at September 30, 2017 from $3.88 billion at December 31, 2016. Operating cash flow for the nine months was $6.96 billion, aided by the Merger break-up fee and the early receipt of the October 2017 Medicare premium remittance. Humana repurchased $1.82 billion of stock in the nine months, and its remaining repurchase authorization was approximately $239 million as of November 3, 2017. On November 2, 2017, the company sued the federal government in the U.S. Court of Federal Claims to recover approximately $611 million in risk corridor payments for 2014 through 2016.

    Nov 8, 2017
  28. 2017-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2017

    Humana Inc. reported second-quarter 2017 net income of $650 million, or $4.46 per diluted common share, compared with $311 million, or $2.06 per diluted share, in the 2016 quarter. Total revenues were $13.53 billion versus $14.01 billion a year earlier, with premiums of $13.20 billion. For the six months ended June 30, 2017, net income was $1.77 billion, or $11.98 per diluted share, which includes a net gain of about $947 million (or $4.31 per diluted share) from the terminated Aetna Merger Agreement, primarily the $1 billion breakup fee received February 16, 2017. The filing also reports a $54 million Penn Treaty guaranty fund assessment recorded in operating costs in the first quarter of 2017. The company is exiting its Individual Commercial medical business effective January 1, 2018, and the segment earned pretax income of $118 million in the 2017 quarter. The Retail segment pretax income rose to $607 million in the quarter from $514 million, driven by individual Medicare Advantage earnings, while Group and Specialty and Healthcare Services pretax income declined. The 2017 suspension of the health insurer industry fee lowered operating costs and the effective tax rate, with the effective rate at 37.6% for the quarter versus 51.1% a year earlier. Liquidity improved substantially: cash and cash equivalents rose to $8.14 billion from $3.88 billion at year-end 2016, aided by $4.1 billion of operating cash flow, including an early $3.1 billion Medicare premium remittance and the breakup fee. Share repurchases of $1.58 billion in the six months included a $1.5 billion accelerated share repurchase agreement, and the company issued $1 billion of senior notes in March 2017. Quarterly dividends were raised to $0.40 per share from $0.29 beginning in April 2017.

    Aug 2, 2017
  29. 2017-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2017

    Humana Inc. reported first-quarter 2017 net income of $1.115 billion, or $7.49 per diluted share, compared with $254 million, or $1.68 per diluted share, in the first quarter of 2016. The result was driven largely by a net gain of about $947 million from the terminated Aetna Merger Agreement, consisting primarily of a $1 billion breakup fee received February 16, 2017. Total revenues were $13.76 billion, roughly flat year over year, with premiums of $13.40 billion, down $42 million. Retail segment pretax income rose to $370 million from $141 million, while the benefit ratio improved to 84.5% from 84.8% and the operating cost ratio fell to 11.4% from 12.7%, helped by the one-year suspension of the health insurance industry fee for 2017. Cash and cash equivalents rose to $8.43 billion at March 31, 2017 from $3.88 billion at year-end 2016, largely because of $3.14 billion in unearned revenues, including an early Medicare premium remittance of $3.1 billion received in March. Humana repurchased 5.83 million shares for $1.2 billion under a $1.5 billion accelerated share repurchase agreement, with a further $300 million held back pending final settlement expected by the end of the third quarter of 2017. The company also issued $1 billion of senior notes, raising long-term debt to $4.78 billion, and announced it will exit the individual commercial medical business on January 1, 2018. The filing also flags ongoing risks, including the Star ratings decline for the 2018 bonus year, the Final Rate Notice implying a 0.45% rate increase for Humana versus 0.85% for the sector, pending Medicare Advantage RADV audits, and a government investigation related to risk adjustment practices. Shareholders' equity was $10.23 billion, and the company stated its $9.5 billion minimum net worth covenant was met.

    May 3, 2017
  30. 2016-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2016

    Humana Inc. reported third-quarter 2016 results with net income of $450 million, or $2.98 per diluted share, versus $314 million, or $2.09 per diluted share, in the third quarter of 2015. For the nine months ended September 30, 2016, net income was $1.015 billion, or $6.73 per diluted share, compared with $1.175 billion, or $7.77 per diluted share, a year earlier; the prior-year period included a $267 million gain on the sale of Concentra. Total revenues were $13.69 billion for the quarter and $41.50 billion for the nine months. The benefit ratio improved to 81.5% in the quarter from 83.9%, while the 2016 nine-month period was affected by an $208 million increase in the premium deficiency reserve for the individual commercial medical business. The pending Aetna merger remains the dominant issue. Under the Merger Agreement, each Humana share would convert into 0.8375 of an Aetna share plus $125 in cash, with a total transaction estimated at about $37 billion including assumed Humana debt. The Department of Justice filed an antitrust complaint on July 21, 2016, and trial is scheduled to begin December 5, 2016. To address the DOJ's Medicare Advantage concerns, Humana agreed to sell certain Medicare Advantage assets to Molina Healthcare for approximately $117 million in aggregate. The filing states that the company cannot predict when the merger may close, and the End Date was extended to December 31, 2016. Cash and cash equivalents rose to $6.77 billion from $2.57 billion at year-end 2015, driven by operating cash flow of $4.71 billion. That figure was boosted by the early receipt of a $3.0 billion October 2016 Medicare premium remittance and by a $2.0 billion CMS settlement collected on November 1, 2016. Total stockholders' equity was $11.29 billion, and the company paid $133 million in dividends during the nine months. Share repurchases were suspended under the Merger Agreement, and the quarterly dividend is capped at $0.29 per share. Management also reported that 2018 bonus-year Star ratings show only about 37% of July 31, 2016 Medicare Advantage membership in 4-Star plans or higher, versus about 78% a year earlier, and that the company intends to seek reconsideration.

    Nov 4, 2016
  31. 2016-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2016

    Humana Inc.'s second-quarter 2016 Form 10-Q reports net income of $311 million, or $2.06 per diluted share, for the three months ended June 30, 2016, down from $431 million, or $2.85 per diluted share, in the 2015 quarter. For the six months, net income was $565 million, or $3.75 per diluted share, compared with $861 million, or $5.67 per diluted share, a year earlier. The decline is driven mainly by a $208 million increase in the premium deficiency reserve for the individual commercial medical business compliant with the Health Care Reform Law, and by the absence of the $267 million pretax gain from the June 2015 sale of Concentra. Total revenues rose 2.0% in the quarter to $14.0 billion, led by a 4.1% increase in Retail premiums, while the consolidated benefit ratio was 84.3% versus 85.2% a year earlier. The pending merger with Aetna dominates the outlook. On July 21, 2016, the U.S. Department of Justice and several states filed an antitrust complaint seeking to block the merger, and the filing states that the litigation could extend beyond December 31, 2016, the extended end date under the merger agreement. On August 2, 2016, Humana agreed to sell certain Medicare Advantage assets to Molina Healthcare for approximately $117 million in the aggregate, as a proposed remedy. The filing says the timing of the merger's closing cannot be predicted. Humana also reported cash and cash equivalents of $2.4 billion, total stockholders' equity of $10.9 billion, and long-term debt of $3.8 billion at June 30, 2016. The company expects to pay about $912 million in the 2016 health insurance industry fee, which is not tax-deductible and raises its effective tax rate, which the filing expects to be approximately 49.0% to 51.0% for full-year 2016 excluding Merger transaction costs. The filing also notes that CMS has selected five Medicare Advantage contracts for a RADV audit covering contract year 2013, and that the company expects 2017 Medicare Advantage funding to decrease by approximately 1.3% on average.

    Aug 3, 2016
  32. 2016-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2016

    Humana Inc.'s first-quarter 2016 results show lower profitability. Total revenues were $13.80 billion, compared with $13.83 billion in the first quarter of 2015. Net income fell to $234 million, or $1.56 per diluted share, from $430 million, or $2.82 per diluted share. The filing attributes the decline primarily to lower Retail segment pretax results, which fell to $154 million from $375 million, a decrease of 58.9%. The consolidated benefit ratio rose to 84.8% from 83.1%, while the operating cost ratio improved to 12.9% from 14.2%. The quarter also included $34 million, or $0.21 per diluted share, of transaction and integration costs tied to the pending Aetna merger. The merger agreement, signed July 2, 2015, provides that each Humana share converts into 0.8375 of an Aetna share plus $125 in cash, with a total transaction value estimated at about $37 billion including assumed Humana debt. The filing states the merger is expected to close in the second half of 2016. Until closing, Humana is restricted in its share repurchases, which remain suspended, and its quarterly dividend cannot exceed $0.29 per share. Humana declared a $0.29 dividend in April 2016. Cash flow and liquidity improved. Operating cash flow was $482 million, versus $107 million a year earlier, driven mainly by the timing of working capital items, including the early receipt of $213 million in commercial reinsurance recoveries. Cash and cash equivalents rose to $2.80 billion. Membership grew in individual Medicare Advantage (2,807,200 members, up 4.5% year over year) and stand-alone PDP, while individual commercial medical membership declined 13.7%. The filing also notes a premium deficiency reserve of $189 million for the individual commercial medical business compliant with the Health Care Reform Law, and it discusses ongoing CMS RADV audits and government investigations that could affect results.

    May 4, 2016
  33. 2015-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2015

    Humana Inc. reported third-quarter 2015 net income of $314 million, or $2.09 per diluted share, compared with $290 million, or $1.85, in the third quarter of 2014. Total revenues rose to $13.36 billion from $12.24 billion, driven mainly by premiums, which reached $12.99 billion, up 11.9%. The benefit ratio increased to 83.9% from 83.3%, while the operating cost ratio declined to 12.8% from 15.6%. For the nine months, net income was $1.18 billion, or $7.77 per diluted share, and includes a $267 million pretax gain on the June 1, 2015 sale of Concentra Inc. for approximately $1,055 million in cash. The pending merger with Aetna Inc. dominates the filing. Under the July 2, 2015 Merger Agreement, each Humana share will convert into 0.8375 of an Aetna share plus $125 in cash, a transaction estimated at approximately $37 billion including assumed debt. Humana stockholders approved the merger on October 19, 2015, and the merger is expected to close in the second half of 2016. Share repurchases are suspended, and the quarterly dividend is capped at $0.29 per share. Retail segment pretax income declined 6.1% in the quarter, reflecting higher Medicare Advantage and individual commercial medical benefit ratios, while the Group and Healthcare Services segments improved. Liquidity is adequate, with cash and cash equivalents of $1.60 billion at September 30, 2015 and a $3.82 billion carrying value of long-term debt. Operating cash flow fell to $531 million from $1.43 billion in the prior-year nine-month period. The filing also flags uncertainty around Medicare risk adjustment audits, risk corridor receivables, and several shareholder lawsuits related to the merger, which the parties have agreed in principle to settle.

    Nov 6, 2015
  34. 2015-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2015

    Humana Inc. reported net income of $431 million, or $2.85 per diluted common share, for the three months ended June 30, 2015, compared to $344 million, or $2.19 per diluted share, in the 2014 quarter. For the six months, net income was $861 million, or $5.67 per diluted share, versus $712 million, or $4.54 per diluted share, a year earlier. Results include a $267 million pretax gain on the June 1, 2015 sale of Concentra Inc. for about $1,055 million in cash, which contributed $1.53 per diluted share. Excluding the sale, the filing describes a year-over-year decline in Retail segment pretax results, partially offset by improvement in the Group and Healthcare Services segments. The benefit ratio rose to 85.2% for the quarter from 83.1%, and operating cash flow was negative $501 million for the six months, compared with positive $471 million a year earlier. On July 2, 2015, Humana entered into a Merger Agreement with Aetna Inc. Each Humana share would convert into 0.8375 of an Aetna share plus $125 in cash, a transaction estimated at approximately $37 billion including assumed Humana debt. The merger is expected to close in the second half of 2016 and is subject to stockholder, antitrust, state insurance and CMS conditions. The agreement restricts Humana's share repurchases, which have been suspended, caps the quarterly dividend at $0.29 per share, and requires a $1.314 billion termination fee in certain circumstances. Litigation has been filed by putative stockholders in Kentucky and Delaware seeking to enjoin the merger. The filing also flags ongoing risks in Medicare Advantage and individual commercial medical. Individual commercial medical membership in plans compliant with the Health Care Reform Law rose to 879,600 members, while total individual commercial medical membership declined 4.3%. Humana expects to pay the federal government $866 million for the 2015 health insurance industry fee in September 2015, and management says the Medicare Risk Adjustment (RADV) audits and related Department of Justice inquiries could have a material adverse effect that cannot yet be determined.

    Jul 29, 2015
  35. 2015-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2015

    Humana Inc. reported first-quarter 2015 net income of $430 million, or $2.82 per diluted common share, compared with $368 million, or $2.35 per diluted share, in the first quarter of 2014. Total revenues rose to $13.83 billion from $11.71 billion, driven mainly by Retail segment premiums, which increased $2.1 billion, or 22.4%, on higher Medicare Advantage and individual commercial medical membership. The benefit ratio rose to 83.1% from 82.3%, and the operating cost ratio fell to 14.2% from 15.4%. The quarter included a deferred tax asset of approximately $53 million, or $0.35 per diluted share, tied to the held-for-sale classification of Concentra Inc., which lowered the effective tax rate to 42.2%. Humana signed an agreement on March 22, 2015 to sell Concentra to MJ Acquisition Corporation for approximately $1,055 million in cash, expected to close in the second quarter of 2015. The company said it expects to record a gain of approximately $1.00 to $1.10 per diluted share at closing. Operating cash flow was $107 million, down from $671 million a year earlier, reflecting working capital timing. The company expects to pay the federal government $882 million in September 2015 for the annual non-deductible health insurance industry fee. Balance sheet and capital return items include cash and cash equivalents of $1.95 billion, total stockholders' equity of $10.04 billion, and long-term debt of $3.82 billion at March 31, 2015. Share repurchase authorization remaining was $1.23 billion as of April 28, 2015, and the Board declared a $0.29 per share dividend in April 2015. The filing also notes ongoing Medicare Risk Adjustment Data Validation audits, a U.S. Attorney's Office matter in Florida, and a Department of Justice information request on Medicare Part C risk adjustment practices, none of which the company can currently quantify as to potential loss.

    Apr 29, 2015
  36. 2014-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2014

    Humana Inc. reported third-quarter 2014 net income of $290 million, or $1.85 per diluted common share, versus $368 million, or $2.31, in the third quarter of 2013. For the nine months ended September 30, 2014, net income was $1.00 billion, or $6.39 per diluted share, compared with $1.26 billion, or $7.90, a year earlier. Management attributes the declines mainly to investments in health care exchanges and state-based contracts and higher specialty prescription drug costs tied to a new Hepatitis C treatment, partially offset by membership growth in Medicare Advantage, Medicare stand-alone PDP and individual commercial medical. Total revenues rose to $12.24 billion for the quarter and $36.17 billion for the nine months, driven largely by premium growth, while the consolidated benefit ratio held at 83.3% in the quarter. The 2014 industry fee of $562 million, which is not tax-deductible, pushed the effective tax rate to 47.5% for the quarter and 46.8% for the nine months. Balance sheet and capital activity were significant in the period. Cash and cash equivalents rose to $2.71 billion from $1.14 billion at December 31, 2013, after the company issued $1.73 billion of net proceeds from new senior notes in September 2014. Total long-term debt, including the current portion, reached $4.34 billion. Operating cash flow fell to $1.43 billion for the nine months from $1.73 billion, reflecting lower earnings and timing of working capital items tied to the Health Care Reform Law's risk-sharing provisions. The company also replaced its prior $1 billion repurchase authorization with a $2 billion program, has repurchased $100 million of shares since October 1, 2014, and announced an intended $500 million accelerated stock repurchase. It also disclosed that CMS is continuing Risk-Adjustment Data Validation audits that could have a material adverse effect, and that the company cannot determine that outcome. The filing also describes the 2015 outlook in several places. Management expects 2015 Medicare Advantage funding cuts of approximately 2%, a 41% increase in the industry fee in 2015 absent changes in market share, and a decline in group ASO membership of approximately 400,000 to 425,000 members on January 1, 2015. Management also expects operating cash flows for full-year 2014 to decline from 2013.

    Nov 7, 2014
  37. 2014-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2014

    Humana Inc. reported net income of $344 million, or $2.19 per diluted share, for the three months ended June 30, 2014, compared with $420 million, or $2.63 per diluted share, in the 2013 quarter. For the six months, net income was $712 million, or $4.54 per diluted share, versus $893 million, or $5.58 per diluted share, a year earlier. Management attributes the declines primarily to investments in health care exchanges and new state-based contracts, and higher specialty prescription drug costs tied to a new Hepatitis C treatment, partly offset by membership growth in Medicare Advantage, Medicare stand-alone PDP and individual commercial medical. Total revenues rose to $12.22 billion for the quarter and $23.93 billion for the six months, driven by premiums, while the consolidated benefit ratio improved and the operating cost ratio rose. The Health Care Reform Law is a major driver of 2014 results. Humana expects to pay approximately $560 million in the annual health insurance industry fee in September 2014, and the fee is not tax-deductible, which lifted the effective tax rate to 46.7% for the quarter and 46.5% for the six months. The company also expects to build a receivable under the commercial risk adjustment, risk corridor and reinsurance provisions in 2014 that will be collected in 2015, and it expects operating cash flows to decline from 2013. Operating cash flow was $471 million for the six months, compared with $585 million a year earlier. Balance sheet and capital activity remained solid. Total assets were $23.12 billion and stockholders' equity was $10.00 billion at June 30, 2014. Long-term debt was $2.60 billion, and the company had no borrowings under its $1.0 billion credit agreement. Humana repurchased 0.91 million shares for $112 million in the first half and paid $86 million in dividends. A new $1 billion share repurchase authorization had $899 million remaining as of July 30, 2014. The filing also discloses ongoing RADV audit exposure and qui tam litigation, for which the company stated it cannot determine whether the audits will have a material adverse effect.

    Jul 30, 2014
  38. 2014-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2014

    Humana Inc. reported net income of $368 million, or $2.35 per diluted common share, for the three months ended March 31, 2014, compared to $473 million, or $2.95 per diluted share, in the 2013 quarter. Total revenues rose to $11.71 billion from $10.49 billion, with premiums of $11.08 billion, up from $9.87 billion. The filing attributes the earnings decline primarily to lower results for Medicare stand-alone PDP plans, investment spending for Health Care Reform exchanges and new state-based contracts, and the non-deductible health insurance industry fee. The benefit ratio improved to 82.3% from 83.0%, while the operating cost ratio rose to 15.4% from 13.9%, and the effective tax rate increased to 46.4% from 35.2%. Membership growth was strong. Individual Medicare Advantage membership reached 2,330,800 at March 31, 2014, up 15.8% year over year, and individual commercial medical membership reached 834,000, up 52.1%. Operating cash flow was $671 million, compared with $412 million a year earlier, though management expects operating cash flows to decline for full-year 2014 as a receivable builds under the Health Care Reform risk programs. The company expects to pay approximately $548 million for the 2014 health insurance industry fee in September 2014. Balance sheet capacity remained solid, with cash and cash equivalents of $1.66 billion, investment securities of $10.0 billion in total, and stockholders' equity of $9.73 billion. In April 2014 the Board declared a $0.28 quarterly dividend and replaced the prior repurchase authorization with a new $1 billion program expiring June 30, 2016. The filing also discloses ongoing regulatory and litigation matters, including RADV audits, qui tam suits in Florida, and a Medicare Advantage contract selected for audit.

    May 7, 2014
  39. 2013-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2013

    Humana Inc. reported third-quarter 2013 total revenues of $10.32 billion, up from $9.65 billion in the 2012 quarter, but net income fell to $368 million ($2.31 per diluted share) from $426 million ($2.62 per diluted share). The filing attributes the decline mainly to a higher Retail segment benefit ratio, which rose 170 basis points to 84.1%, partly offset by improved results in the Employer Group and Healthcare Services segments. For the nine months, net income rose to $1.26 billion ($7.90 per diluted share) from $1.03 billion ($6.27 per diluted share), and the consolidated benefit ratio was 83.2%, compared with 83.7% a year earlier. Membership growth continued, with individual Medicare Advantage membership at 2,044,400 (up 6.9%) and Medicare stand-alone PDP membership at 3,255,100 (up 7.7%). The balance sheet remained strong, with cash and cash equivalents of $1.26 billion, investment securities of $8.26 billion current and $1.74 billion long-term, total assets of $20.90 billion, long-term debt of $2.60 billion, and stockholders' equity of $9.61 billion. Operating cash flow for the nine months was $1.73 billion, and the company repurchased 3.78 million shares for $301 million. The Board declared a quarterly dividend of $0.27 per share in October 2013, and $781 million remained under the current share repurchase authorization. The filing highlights several forward-looking risks. CMS's final announcement implies 2014 Medicare bid benchmark payment rates declining 2.8% in the aggregate, and the company expects government funding reductions of more than 4% in 2014 including the health insurance industry fee. The filing also notes that the annual health insurance industry fee, which is not tax-deductible, is $8 billion in 2014, and that Humana expects its effective tax rate to increase significantly in 2014. Additional risks include the Puerto Rico Medicaid contract non-renewal, RADV audits of Medicare Advantage contracts for 2011 (notified November 5, 2013), and the new health insurance exchanges.

    Nov 6, 2013
  40. 2013-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2013

    Humana Inc. reported net income of $420 million, or $2.63 per diluted common share, for the three months ended June 30, 2013, compared to $356 million, or $2.16 per diluted share, in the 2012 quarter. For the six months ended June 30, 2013, net income was $893 million, or $5.58 per diluted share, versus $604 million, or $3.65 per diluted share, a year earlier. Total revenues were $10.32 billion for the quarter and $20.81 billion for the six months. The improvement was driven mainly by Medicare Advantage membership growth in the Retail and Employer Group segments, favorable prior-year medical claims reserve development of $366 million in the six-month period, and a favorable DoD contract settlement in the first quarter of 2013. Results were partly offset by costs of $31.0 million from the loss of Puerto Rico Medicaid contracts, which the filing says contributed $0.12 per diluted share of expense. The benefit ratio improved to 83.2% for the six months from 84.5% a year earlier, and the Retail segment benefit ratio fell to 85.0%. Individual Medicare Advantage membership reached 2,029,700 at June 30, 2013, up 7.1% year over year, and Medicare stand-alone PDP membership reached 3,220,600, up 8.4%. Management estimates that 2014 Medicare bid benchmark payment rates will decline 2.8% in the aggregate, and the filing notes that Health Care Reform Law provisions and pending RADV audits could materially affect future results. Balance sheet liquidity remained solid, with cash and cash equivalents of $1.52 billion and total stockholders' equity of $9.34 billion at June 30, 2013. The company agreed to acquire American Eldercare Inc. on July 24, 2013, and in July 2013 it replaced its credit agreement with a new $1.0 billion revolving facility expiring July 2018. The company repurchased 2.83 million shares for $211 million in the six-month period and remains authorized to repurchase up to $871 million more.

    Jul 31, 2013
  41. 2013-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2013

    Humana Inc. reported net income of $473 million, or $2.95 per diluted common share, for the three months ended March 31, 2013, compared to $248 million, or $1.49 per diluted share, in the 2012 quarter. Total revenues rose to $10.49 billion from $10.22 billion, and total premiums were $9.87 billion. The company attributed the earnings improvement primarily to a lower benefit ratio (83.0% versus 85.4%) and a lower operating cost ratio in both the Retail and Employer Group segments. Favorable prior-period medical claims reserve development of $266 million, versus $141 million a year earlier, and a $48 million favorable settlement of contract claims with the Department of Defense also contributed. The filing notes that the Department of Defense settlement contributed $0.19 per diluted share. The balance sheet strengthened, with total assets of $20.97 billion and stockholders' equity of $9.16 billion at March 31, 2013. Cash and cash equivalents were $1.40 billion, and investment securities totaled $8.14 billion current and $1.82 billion long-term. Operating cash flow was $412 million, down from $2.35 billion in the prior-year quarter, which included the early receipt of a $2.0 billion April Medicare premium payment. The company repurchased 1.21 million shares for $81 million in the quarter, and in April 2013 the Board replaced the prior authorization with a new $1 billion repurchase program expiring June 30, 2015 and declared a $0.27 quarterly dividend. The filing highlights forward-looking risks. CMS's final 2014 Medicare Advantage benchmark rates are estimated by the company to decline 2.8% in aggregate, and the company expects government funding reductions of more than 4% in 2014 including the health insurance industry fee. The company also disclosed ongoing RADV audits, a Florida qui tam suit that was dismissed with prejudice in September 2012 (with an appeal deadline still pending), and a U.S. Attorney's Office information request, and stated that it cannot determine whether audits will have a material adverse effect.

    May 1, 2013
  42. 2012-Q3-A

    Humana Quarterly Report (Amendment) for Q3 Ended Dec 4, 2012

    This Amendment No. 1 to Humana Inc.'s Form 10-Q for the quarter ended September 30, 2012 is filed solely to correct a scrivener's error in Exhibit 12, the computation of ratio of earnings to fixed charges. The filing states that "Income before income taxes" for the nine months ended September 30, 2012 was incorrectly reported in Exhibit 12 only, which in turn caused incorrect "Total earnings" and "Ratio of earnings to fixed charges" figures for the same period. The corrected amounts are not stated in this filing. The amendment states that it speaks as of the original filing date, does not reflect later events, and does not modify or update any other disclosure in the original 10-Q. The company reports that its other financial statements in the original Form 10-Q, which were not affected, are unchanged. The registrant is identified as a large accelerated filer with 158,223,755 shares of $0.16 2/3 par value common stock outstanding as of September 30, 2012. For investors, the practical significance is limited to the corrected earnings-to-fixed-charges ratio and the related total earnings figure. The filing also lists the original certifications and XBRL exhibits, which it says were previously filed on November 5, 2012.

    Dec 4, 2012
  43. 2012-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2012

    Humana Inc. reported net income of $426 million, or $2.62 per diluted share, for the three months ended September 30, 2012, down from $445 million, or $2.67 per diluted share, a year earlier. For the nine months, net income was $1.03 billion, or $6.27 per diluted share, versus $1.22 billion, or $7.24 per diluted share, in the 2011 period. The decline was driven mainly by a higher benefit ratio in the Retail segment, which rose to 82.3% for the quarter and 84.6% for the nine months, primarily tied to individual Medicare Advantage products. Consolidated total revenues grew to $9.65 billion for the quarter and $29.57 billion for the nine months, supported by higher premiums and services revenue. Membership growth continued, with individual Medicare Advantage membership reaching 1,911,800 and individual Medicare stand-alone PDP membership reaching 2,947,200 at September 30, 2012. The Health and Well-Being Services segment improved, with pretax income of $411 million for the nine months, and the company completed the SeniorBridge and Arcadian acquisitions during 2012. On November 5, 2012, Humana announced a definitive agreement to acquire Metropolitan Health Networks, Inc. for an estimated transaction value of approximately $850 million, expected to close by the end of the first quarter of 2013. The filing also highlights ongoing legal and regulatory exposure, including an internal investigation of Florida subsidiary operations, a qui tam suit that was dismissed on September 28, 2012 (with the plaintiff seeking reconsideration), and CMS Risk-Adjustment Data Validation audits whose financial impact the company says it cannot yet determine. Cash and cash equivalents were $1.36 billion at September 30, 2012, and the company repurchased $513 million of common stock during the nine months.

    Nov 5, 2012
  44. 2012-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2012

    Humana Inc. reported a sharp decline in earnings for the second quarter and first half of 2012, driven primarily by a higher benefit ratio in its Retail segment. Net income for the three months ended June 30, 2012 was $356 million, or $2.16 per diluted share, compared with $460 million, or $2.71 per diluted share, in the 2011 quarter. For the six months, net income was $604 million, or $3.65 per diluted share, versus $775 million, or $4.57 per diluted share. The consolidated benefit ratio rose to 83.5% for the quarter and 84.5% for the six months, with the Retail segment's benefit ratio rising to 84.1% and 85.8%, respectively. Management attributed the increase largely to a planned increase in the target benefit ratio tied to positioning for Health Insurance Reform Legislation changes, and to a higher benefit ratio on new individual Medicare Advantage membership than assumed in its 2012 Medicare bids. The quarter also included a benefit expense of approximately $46 million for the settlement of the Sacred Heart litigation associated with the Military services business. Membership and revenue growth remained strong. Individual Medicare Advantage membership reached 1,895,800 at June 30, 2012, up 18.3% year over year, and individual Medicare stand-alone PDP membership reached 2,896,800, up 20.3%. Total premiums rose 3.6% in the quarter to $9.2 billion and 7.5% in the six months to $18.9 billion. Operating cash flow for the six months was $3.05 billion, aided by the early receipt of the July 2012 Medicare premium remittance of $2,133 million in June 2012. Cash and cash equivalents rose to $3.87 billion from $1.38 billion at year-end 2011. During the period the company completed the Arcadian Management Services acquisition, announced the acquisition of SeniorBridge Family Companies (closed July 6, 2012), and replaced its $1 billion share repurchase authorization with a new $1 billion authorization expiring June 30, 2014, with $874 million remaining as of July 31, 2012. The filing also flags several risk areas. The company disclosed an ongoing internal investigation of certain Florida subsidiary operations, self-reported to CMS, the U.S. Department of Justice, and the Florida Agency for Health Care Administration, as well as a qui tam suit under the False Claims Act. CMS's Risk-Adjustment Data Validation (RADV) audit methodology could result in extrapolated audit settlements, and the company stated it cannot yet determine whether these audits will have a material adverse effect. The Health Insurance Reform Legislation is expected to add significant non-deductible industry fees beginning in 2014. Management said it believes its liquidity is adequate for at least the next twelve months.

    Aug 1, 2012
  45. 2012-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2012

    Humana Inc. reported net income of $248 million, or $1.49 per diluted common share, for the quarter ended March 31, 2012, down from $315 million, or $1.86 per diluted share, in the 2011 quarter. Total revenues rose 11.2% to $10.2 billion, driven by premiums growth of 11.5% to $9.8 billion, primarily from higher average Medicare Advantage membership in the Retail and Employer Group segments. The company attributed the earnings decline mainly to lower operating results in Retail and Employer Group, partly offset by Health and Well-Being Services. The consolidated benefit ratio rose to 85.4% from 83.8%, and favorable prior-period medical claims reserve development fell to about $0.03 per diluted share from $0.31 in the prior-year quarter. Cash and cash equivalents increased to $3.7 billion from $1.4 billion at December 31, 2011. The filing states that this was significantly affected by the early receipt of the $2.0 billion April 2012 Medicare premium remittance in March 2012, which also added to unearned revenues. Operating cash flow was $2.3 billion, compared with $796 million a year earlier. The company remained in compliance with its credit agreement covenants, reporting net worth of $8.2 billion against a $6.1 billion minimum. Capital return and strategic activity included a quarterly dividend increase to $0.26 per share, a new $1 billion share repurchase authorization replacing the prior one, and the acquisition of Arcadian Management Services, Inc. effective March 31, 2012. The company also began delivering services under a new five-year TRICARE South Region contract on April 1, 2012, which it accounts for net of healthcare costs similar to an administrative services only arrangement. The filing also notes pending regulatory matters, including CMS risk-adjustment data validation audits, an internal investigation of Florida subsidiary operations, and the health insurance reform legislation.

    Apr 30, 2012
  46. 2011-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2011

    Humana Inc. reported third-quarter 2011 net income of $444.8 million, or $2.67 per diluted common share, compared with $393.2 million, or $2.32 per diluted share, in the 2011 quarter's prior-year period. For the nine months ended September 30, 2011, net income was $1.22 billion, or $7.24 per diluted share, versus $992.1 million, or $5.84 per diluted share, a year earlier. Management attributes the increases primarily to improved operating performance in the Retail and Health and Well-Being Services segments, and the filing notes favorable prior-period medical claims reserve development of about $0.13 per diluted share in the quarter and $0.57 year to date. Total revenues rose 11.4% in the quarter to $9.30 billion, driven by premium growth in Retail Medicare Advantage and PDP membership and by the Concentra acquisition, completed December 21, 2010, which lifted services revenue to $356.2 million in the quarter. Operating costs rose 35.8% in the quarter, and the consolidated benefit ratio improved to 80.7%. Balance sheet and liquidity strengthened, with cash and cash equivalents rising to $4.02 billion from $1.67 billion at year-end 2010, and net cash from operating activities of $3.88 billion for the nine months. The filing states that the operating cash flow was significantly boosted by the early receipt of the October 2011 Medicare premium remittance of $1,795.6 million, which fell into September. Unearned revenues rose to $2.01 billion from $185.4 million. Humana began paying a quarterly dividend of $0.25 per share in 2011 and has repurchased shares under a $1 billion authorization, with $561.3 million remaining as of October 31, 2011. The filing highlights several risks. Management believes CMS's proposed Risk-Adjustment Data Validation (RADV) audit methodology is fundamentally flawed, and states that if implemented without changes it would have a material adverse effect on Medicare Advantage revenues. Humana is also conducting an internal investigation of certain Florida subsidiary operations that it has self-reported to regulators, and it is defending provider litigation involving TRICARE network reimbursements. The TRICARE South Region contract was upheld for Humana in a Court of Federal Claims ruling on October 14, 2011, though the competing bidder may still appeal.

    Oct 31, 2011
  47. 2011-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2011

    Humana Inc. reported net income of $460.3 million, or $2.71 per diluted common share, for the three months ended June 30, 2011, compared with $340.1 million, or $2.00 per diluted share, in the 2010 quarter. For the six months ended June 30, 2011, net income was $775.5 million, or $4.57 per diluted share, versus $598.8 million, or $3.52, a year earlier. The company attributes the increases primarily to improved operating performance in the Retail, Health and Well-Being Services, and Employer Group segments. Results also benefited from favorable prior-period medical claims reserve development of approximately $0.21 per diluted share in the 2011 quarter, compared with $0.44 in the 2010 quarter, and the 2010 periods included a $147.5 million write-down of deferred acquisition costs on individual major medical policies. Total revenues rose 8.1% in the quarter to $9.28 billion, driven by Retail segment premiums, which grew 12.0% on higher average individual Medicare Advantage membership and Medicare stand-alone PDP sales. The consolidated benefit ratio was 82.2% for the quarter and the operating cost ratio was 13.0%. Concentra, acquired December 21, 2010 for $804.7 million in cash, expanded services revenue, which rose to $343.5 million in the quarter. Cash flow from operations was $956.7 million for the six months, down from $1.08 billion in 2010, which the company attributed to the timing of working capital items. The board approved a quarterly dividend of $0.25 per share and replaced its $250 million repurchase authorization with a $1 billion program, of which $799.9 million remained as of August 1, 2011. Risk factors highlighted in the filing include the CMS Risk-Adjustment Data Validation (RADV) audit methodology, which the company believes is fundamentally flawed and which could have a material adverse effect on Medicare Advantage revenues if implemented as proposed. A protest over the TRICARE South Region contract award remains pending in the U.S. Court of Federal Claims, and an internal investigation of Florida subsidiary operations has been self-reported to regulators. The company also cited the Health Insurance Reform Legislation as a potential source of material adverse effects on pricing, Medicare payment rates, and future non-deductible fees.

    Aug 1, 2011
  48. 2011-Q1

    Humana Quarterly Report for Q1 Ended Mar 31, 2011

    Humana Inc. reported first-quarter 2011 net income of $315.2 million, or $1.86 per diluted common share, up from $258.8 million, or $1.52 per diluted share, in the first quarter of 2010. Total revenues rose to $9.19 billion from $8.38 billion, driven by a $604.4 million increase in premiums (to $8.77 billion) and a $201.9 million increase in services revenue (to $334.9 million), the latter mainly from the December 2010 acquisition of Concentra Inc. The company realigned its reporting into Retail, Employer Group, and Health and Well-Being Services segments, and the Retail segment's pretax income fell 18.0% to $217.0 million, while Employer Group pretax income rose 88.8% to $138.8 million. Earnings were helped by favorable prior-period medical claims reserve development of approximately $84 million, or $0.31 per diluted share. The benefit ratio was 83.8%, up 0.3 percentage points, and the operating cost ratio rose to 13.8%. Cash and cash equivalents increased to $1.76 billion, and operating cash flow was $795.5 million. In April 2011 the Board declared a quarterly dividend of $0.25 per share and replaced the prior $250 million repurchase authorization with a new $1 billion authorization expiring June 30, 2013. The filing highlights significant regulatory risk. CMS has proposed a Risk-Adjustment Data Validation (RADV) audit methodology that Humana believes is fundamentally flawed and could have a material adverse effect on Medicare Advantage revenues if implemented without changes. Humana also disclosed that the TRICARE South Region contract was awarded to it on February 25, 2011, but a competing offeror protested, and a stop work order was issued. Ongoing litigation, an internal investigation of Florida subsidiary operations, and the Health Insurance Reform Legislation are also flagged as potential sources of material adverse impact.

    May 3, 2011
  49. 2010-Q3

    Humana Quarterly Report for Q3 Ended Sep 30, 2010

    Humana Inc. reported net income of $393.2 million, or $2.32 per diluted common share, for the three months ended September 30, 2010, compared to $301.5 million, or $1.78 per diluted share, in the prior-year quarter. For the nine months, net income was $992.1 million, or $5.84 per diluted share, versus $789.0 million, or $4.67 per diluted share, a year earlier. Results were driven by the Government segment, where Medicare Advantage membership grew to 1,736,400 fully-insured members, and by Commercial segment improvement from lower utilization and pricing discipline. Prior-year favorable reserve releases not in the ordinary course of business contributed $193.4 million ($0.72 per diluted share) for the nine months, partly offset by a $147.5 million write-down of deferred acquisition costs on individual major medical policies recorded in the second quarter of 2010. The filing highlights several risks. Health Insurance Reform Legislation is expected to have effects that the company says it cannot yet fully predict, and CMS is conducting Medicare Advantage risk-adjustment audits that could result in retroactive payment adjustments the company believes would have a material adverse effect if imposed as described. The TRICARE South Region contract, which generated $2,597.9 million, or 10.4% of total premiums and ASO fees for the nine months, has been extended through March 31, 2011, with a possible one-year option under negotiation, and the company states that goodwill impairment could occur in 2011 if the contract is not extended. Shares outstanding and balance sheet metrics remained solid, with cash and investments totaling $11.5 billion, or 70.4% of total assets, and total stockholders' equity of $6.94 billion at September 30, 2010. Cash flow strengthened considerably, with net cash provided by operating activities of $2,289.2 million for the nine months compared with $1,147.5 million a year earlier. The company repurchased 1.99 million shares for $100.0 million during the period, and $150.0 million remained authorized as of November 1, 2010.

    Nov 1, 2010
  50. 2010-Q2

    Humana Quarterly Report for Q2 Ended Jun 30, 2010

    Humana Inc. reported net income of $340.1 million, or $2.00 per diluted share, for the three months ended June 30, 2010, compared to $281.8 million, or $1.67 per diluted share, in the 2009 quarter. For the six months ended June 30, 2010, net income was $598.8 million, or $3.52 per diluted share, versus $487.5 million, or $2.89 per diluted share, a year earlier. Total revenues for the quarter were $8.65 billion. The results were helped by growth in Medicare Advantage membership and favorable prior-year reserve releases of approximately $0.14 per diluted share in the quarter, partially offset by a $147.5 million ($0.55 per diluted share) write-down of deferred acquisition costs on individual major medical policies, recorded in SG&A. The Government segment drove the improvement, with pretax income of $528.4 million for the quarter, up 30.6%, while the Commercial segment's pretax income fell to $7.5 million, down 78.8%, largely due to that write-down. Fully-insured Medicare Advantage membership reached 1,732,400 at June 30, 2010, up 15.5% year over year. Operating cash flow for the six months rose to $1.08 billion from $207.4 million. At June 30, 2010, cash, cash equivalents and investment securities totaled $10.3 billion, and long-term debt was $1.67 billion. Management highlights significant uncertainty from the 2010 health insurance reform legislation, including minimum benefit ratios, Medicare Advantage rate changes, and a non-deductible federal premium tax. The filing also flags CMS Medicare Advantage risk-adjustment audits that could lead to retroactive payment adjustments, which management says could have a material adverse effect if imposed as described. The TRICARE South Region contract runs through March 31, 2011, and the company may record a goodwill impairment in the fourth quarter of 2010 if it does not secure an extension or the new contract.

    Aug 2, 2010