FORM 10-Q
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ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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HUMANA INC.
(Exact name of registrant as specified in its charter)
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Delaware
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61-0647538
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Large accelerated filer
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ý
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
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¨
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Emerging growth company
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¨
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Class of Common Stock
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Outstanding at
March 31, 2019 |
$0.16 2/3 par value
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135,035,018 shares
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Page
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Part I: Financial Information
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Item 1.
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Financial Statements (Unaudited)
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Certifications
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March 31,
2019 |
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December 31,
2018 |
||||
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(in millions, except share amounts)
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||||||
A
SSETS
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||||
Current assets:
|
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||||
Cash and cash equivalents
|
$
|
3,877
|
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$
|
2,343
|
|
Investment securities
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9,876
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|
10,026
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||
Receivables, less allowance for doubtful accounts of $78 in 2019
and $79 in 2018 |
1,955
|
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|
1,015
|
|
||
Other current assets
|
3,965
|
|
|
3,564
|
|
||
Total current assets
|
19,673
|
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|
16,948
|
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||
Property and equipment, net
|
1,754
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|
1,735
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||
Long-term investment securities
|
422
|
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|
411
|
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||
Equity method investment in Kindred at Home
|
1,048
|
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|
1,047
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||
Goodwill
|
3,897
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|
3,897
|
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||
Other long-term assets
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1,555
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|
1,375
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Total assets
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$
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28,349
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$
|
25,413
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L
IABILITIES
AND
S
TOCKHOLDERS
’ E
QUITY
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||||
Current liabilities:
|
|
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||||
Benefits payable
|
$
|
6,024
|
|
|
$
|
4,862
|
|
Trade accounts payable and accrued expenses
|
3,719
|
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|
3,067
|
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||
Book overdraft
|
154
|
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|
171
|
|
||
Unearned revenues
|
312
|
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|
283
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|
||
Short-term debt
|
1,718
|
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|
1,694
|
|
||
Total current liabilities
|
11,927
|
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|
10,077
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Long-term debt
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4,376
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4,375
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Future policy benefits payable
|
213
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|
219
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Other long-term liabilities
|
992
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|
581
|
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Total liabilities
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17,508
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15,252
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Commitments and contingencies (Note 14)
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Stockholders’ equity:
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||||
Preferred stock, $1 par; 10,000,000 shares authorized; none issued
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—
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—
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Common stock, $0.16 2/3 par; 300,000,000 shares authorized;
198,594,841 shares issued at March 31, 2019 and 198,594,841 shares issued at December 31, 2018 |
33
|
|
|
33
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||
Capital in excess of par value
|
2,722
|
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|
2,535
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||
Retained earnings
|
15,563
|
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15,072
|
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Accumulated other comprehensive loss
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(10
|
)
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(159
|
)
|
||
Treasury stock, at cost, 63,559,823 shares at March 31, 2019 and
63,028,169 shares at December 31, 2018 |
(7,467
|
)
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|
(7,320
|
)
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||
Total stockholders’ equity
|
10,841
|
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|
10,161
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Total liabilities and stockholders’ equity
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$
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28,349
|
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$
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25,413
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Three months ended
March 31, |
||||||
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2019
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|
2018
|
||||
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(in millions, except per share results)
|
||||||
Revenues:
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|
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|
||||
Premiums
|
$
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15,651
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$
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13,811
|
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Services
|
355
|
|
|
327
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||
Investment income
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101
|
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141
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Total revenues
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16,107
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14,279
|
|
||
Operating expenses:
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|
||||
Benefits
|
13,493
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11,670
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||
Operating costs
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1,660
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1,749
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Depreciation and amortization
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107
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100
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Total operating expenses
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15,260
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13,519
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Income from operations
|
847
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|
760
|
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Interest expense
|
62
|
|
|
53
|
|
||
Other expense, net
|
39
|
|
|
—
|
|
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Income before income taxes and equity in net earnings
|
746
|
|
|
707
|
|
||
Provision for income taxes
|
183
|
|
|
216
|
|
||
Equity in net earnings of Kindred at Home
|
3
|
|
|
—
|
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Net income
|
$
|
566
|
|
|
$
|
491
|
|
Basic earnings per common share
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$
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4.18
|
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$
|
3.56
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Diluted earnings per common share
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$
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4.16
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|
$
|
3.53
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Dividends declared per common share
|
$
|
0.55
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$
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0.50
|
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Three months ended
March 31, |
||||||
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2019
|
|
2018
|
||||
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(in millions)
|
||||||
Net income
|
$
|
566
|
|
|
$
|
491
|
|
Other comprehensive income:
|
|
|
|
||||
Change in gross unrealized investment
gains/losses |
196
|
|
|
(203
|
)
|
||
Effect of income taxes
|
(45
|
)
|
|
52
|
|
||
Total change in unrealized
investment gains/losses, net of tax |
151
|
|
|
(151
|
)
|
||
Reclassification adjustment for net
realized gains |
—
|
|
|
(29
|
)
|
||
Effect of income taxes
|
—
|
|
|
7
|
|
||
Total reclassification adjustment, net
of tax |
—
|
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(22
|
)
|
||
Other comprehensive income (loss), net
of tax |
151
|
|
|
(173
|
)
|
||
Comprehensive loss attributable to equity method investment in Kindred at Home
|
(2
|
)
|
|
—
|
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||
Comprehensive income
|
$
|
715
|
|
|
$
|
318
|
|
|
Common Stock
|
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Capital In
Excess of Par Value |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Treasury
Stock |
|
Total
Stockholders’ Equity |
|||||||||||||||
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Issued
Shares |
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Amount
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|
||||||||||||||||||||||
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(dollars in millions, share amounts in thousands)
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|||||||||||||||||||||||||
Three months ended March 31, 2019
|
||||||||||||||||||||||||||
Balances, December 31, 2018
|
198,595
|
|
|
$
|
33
|
|
|
$
|
2,535
|
|
|
$
|
15,072
|
|
|
$
|
(159
|
)
|
|
$
|
(7,320
|
)
|
|
$
|
10,161
|
|
Net income
|
|
|
|
|
|
|
566
|
|
|
|
|
|
|
566
|
|
|||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
149
|
|
|
|
|
|
149
|
|
||||||
Common stock repurchases
|
|
|
|
|
150
|
|
|
|
|
|
|
|
(160
|
)
|
|
(10
|
)
|
|||||||||
Dividends and dividend
equivalents |
|
|
|
|
—
|
|
|
(75
|
)
|
|
|
|
|
|
|
(75
|
)
|
|||||||||
Stock-based compensation
|
|
|
|
|
33
|
|
|
|
|
|
|
|
|
|
33
|
|
||||||||||
Restricted stock unit vesting
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
|
|
|
|
|
13
|
|
|
—
|
|
|||||||
Stock option exercises
|
—
|
|
|
—
|
|
|
17
|
|
|
|
|
|
|
—
|
|
|
17
|
|
||||||||
Balances, March 31, 2019
|
198,595
|
|
|
$
|
33
|
|
|
$
|
2,722
|
|
|
$
|
15,563
|
|
|
$
|
(10
|
)
|
|
$
|
(7,467
|
)
|
|
$
|
10,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Three months ended March 31, 2018
|
||||||||||||||||||||||||||
Balances, December 31, 2017
|
198,572
|
|
|
$
|
33
|
|
|
$
|
2,445
|
|
|
$
|
13,670
|
|
|
$
|
19
|
|
|
$
|
(6,325
|
)
|
|
$
|
9,842
|
|
Net income
|
|
|
|
|
|
|
491
|
|
|
|
|
|
|
491
|
|
|||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
(4
|
)
|
|
(173
|
)
|
|
|
|
|
(177
|
)
|
||||||
Common stock repurchases
|
|
|
|
|
200
|
|
|
|
|
|
|
|
(251
|
)
|
|
(51
|
)
|
|||||||||
Dividends and dividend
equivalents |
|
|
|
|
—
|
|
|
(71
|
)
|
|
|
|
|
|
|
(71
|
)
|
|||||||||
Stock-based compensation
|
|
|
|
|
35
|
|
|
|
|
|
|
|
|
|
35
|
|
||||||||||
Restricted stock unit vesting
|
—
|
|
|
—
|
|
|
(66
|
)
|
|
|
|
|
|
|
66
|
|
|
—
|
|
|||||||
Stock option exercises
|
13
|
|
|
—
|
|
|
12
|
|
|
|
|
|
|
—
|
|
|
12
|
|
||||||||
Balances, March 31, 2018
|
198,585
|
|
|
$
|
33
|
|
|
$
|
2,626
|
|
|
$
|
14,086
|
|
|
$
|
(154
|
)
|
|
$
|
(6,510
|
)
|
|
$
|
10,081
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
|
(in millions)
|
||||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
566
|
|
|
$
|
491
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
||||
Net realized capital losses (gains)
|
2
|
|
|
(29
|
)
|
||
Equity in net earnings of Kindred at Home
|
(3
|
)
|
|
—
|
|
||
Stock-based compensation
|
33
|
|
|
35
|
|
||
Depreciation
|
118
|
|
|
109
|
|
||
Amortization
|
18
|
|
|
30
|
|
||
(Benefit) provision for deferred income taxes
|
(21
|
)
|
|
83
|
|
||
Changes in operating assets and liabilities, net of effect of
businesses acquired and dispositions: |
|
|
|
||||
Receivables
|
(940
|
)
|
|
(422
|
)
|
||
Other assets
|
(102
|
)
|
|
(1,164
|
)
|
||
Benefits payable
|
1,162
|
|
|
293
|
|
||
Other liabilities
|
16
|
|
|
885
|
|
||
Unearned revenues
|
29
|
|
|
3,328
|
|
||
Other
|
18
|
|
|
47
|
|
||
Net cash provided by operating activities
|
896
|
|
|
3,686
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Acquisitions, net of cash acquired
|
—
|
|
|
(169
|
)
|
||
Purchases of property and equipment
|
(139
|
)
|
|
(134
|
)
|
||
Purchases of investment securities
|
(2,175
|
)
|
|
(1,711
|
)
|
||
Maturities of investment securities
|
397
|
|
|
217
|
|
||
Proceeds from sales of investment securities
|
2,062
|
|
|
1,392
|
|
||
Net cash provided by (used in) investing activities
|
145
|
|
|
(405
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Receipts from contract deposits, net
|
554
|
|
|
1,401
|
|
||
Proceeds from issuance of commercial paper, net
|
17
|
|
|
245
|
|
||
Change in book overdraft
|
(17
|
)
|
|
(17
|
)
|
||
Common stock repurchases
|
(10
|
)
|
|
(51
|
)
|
||
Dividends paid
|
(68
|
)
|
|
(57
|
)
|
||
Proceeds from stock option exercises and other, net
|
17
|
|
|
11
|
|
||
Net cash provided by financing activities
|
493
|
|
|
1,532
|
|
||
Increase in cash and cash equivalents
|
1,534
|
|
|
4,813
|
|
||
Cash and cash equivalents at beginning of period
|
2,343
|
|
|
4,042
|
|
||
Cash and cash equivalents at end of period
|
$
|
3,877
|
|
|
$
|
8,855
|
|
Supplemental cash flow disclosures:
|
|
|
|
||||
Interest payments
|
$
|
29
|
|
|
$
|
22
|
|
Income tax (refunds) payments, net
|
$
|
(22
|
)
|
|
$
|
4
|
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
(in millions)
|
||||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and other U.S. government
corporations and agencies: |
|
|
|
|
|
|
|
||||||||
U.S. Treasury and agency obligations
|
$
|
478
|
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
$
|
479
|
|
Mortgage-backed securities
|
3,142
|
|
|
21
|
|
|
(22
|
)
|
|
3,141
|
|
||||
Tax-exempt municipal securities
|
2,096
|
|
|
12
|
|
|
(5
|
)
|
|
2,103
|
|
||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential
|
84
|
|
|
1
|
|
|
—
|
|
|
85
|
|
||||
Commercial
|
510
|
|
|
2
|
|
|
(3
|
)
|
|
509
|
|
||||
Asset-backed securities
|
1,037
|
|
|
1
|
|
|
(6
|
)
|
|
1,032
|
|
||||
Corporate debt securities
|
2,959
|
|
|
14
|
|
|
(24
|
)
|
|
2,949
|
|
||||
Total debt securities
|
$
|
10,306
|
|
|
$
|
53
|
|
|
$
|
(61
|
)
|
|
$
|
10,298
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and other U.S. government
corporations and agencies: |
|
|
|
|
|
|
|
||||||||
U.S. Treasury and agency obligations
|
$
|
419
|
|
|
$
|
1
|
|
|
$
|
(3
|
)
|
|
$
|
417
|
|
Mortgage-backed securities
|
2,595
|
|
|
3
|
|
|
(54
|
)
|
|
2,544
|
|
||||
Tax-exempt municipal securities
|
2,805
|
|
|
3
|
|
|
(37
|
)
|
|
2,771
|
|
||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential
|
55
|
|
|
—
|
|
|
—
|
|
|
55
|
|
||||
Commercial
|
537
|
|
|
—
|
|
|
(14
|
)
|
|
523
|
|
||||
Asset-backed securities
|
991
|
|
|
1
|
|
|
(7
|
)
|
|
985
|
|
||||
Corporate debt securities
|
3,239
|
|
|
1
|
|
|
(98
|
)
|
|
3,142
|
|
||||
Total debt securities
|
$
|
10,641
|
|
|
$
|
9
|
|
|
$
|
(213
|
)
|
|
$
|
10,437
|
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and other U.S.
government corporations and agencies: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and agency
obligations |
$
|
25
|
|
|
$
|
—
|
|
|
$
|
214
|
|
|
$
|
(1
|
)
|
|
$
|
239
|
|
|
$
|
(1
|
)
|
Mortgage-backed
securities |
255
|
|
|
(1
|
)
|
|
1,152
|
|
|
(21
|
)
|
|
1,407
|
|
|
(22
|
)
|
||||||
Tax-exempt municipal
securities |
30
|
|
|
—
|
|
|
924
|
|
|
(5
|
)
|
|
954
|
|
|
(5
|
)
|
||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||||
Commercial
|
42
|
|
|
(1
|
)
|
|
170
|
|
|
(2
|
)
|
|
212
|
|
|
(3
|
)
|
||||||
Asset-backed securities
|
755
|
|
|
(5
|
)
|
|
70
|
|
|
(1
|
)
|
|
825
|
|
|
(6
|
)
|
||||||
Corporate debt securities
|
70
|
|
|
—
|
|
|
1,486
|
|
|
(24
|
)
|
|
1,556
|
|
|
(24
|
)
|
||||||
Total debt securities
|
$
|
1,177
|
|
|
$
|
(7
|
)
|
|
$
|
4,031
|
|
|
$
|
(54
|
)
|
|
$
|
5,208
|
|
|
$
|
(61
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and other U.S.
government corporations and agencies: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury and agency
obligations |
$
|
179
|
|
|
$
|
(1
|
)
|
|
$
|
153
|
|
|
$
|
(2
|
)
|
|
$
|
332
|
|
|
$
|
(3
|
)
|
Mortgage-backed
securities |
956
|
|
|
(16
|
)
|
|
1,019
|
|
|
(38
|
)
|
|
1,975
|
|
|
(54
|
)
|
||||||
Tax-exempt municipal
securities |
809
|
|
|
(9
|
)
|
|
1,648
|
|
|
(28
|
)
|
|
2,457
|
|
|
(37
|
)
|
||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||||
Commercial
|
372
|
|
|
(8
|
)
|
|
133
|
|
|
(6
|
)
|
|
505
|
|
|
(14
|
)
|
||||||
Asset-backed securities
|
824
|
|
|
(7
|
)
|
|
40
|
|
|
—
|
|
|
864
|
|
|
(7
|
)
|
||||||
Corporate debt securities
|
1,434
|
|
|
(35
|
)
|
|
1,439
|
|
|
(63
|
)
|
|
2,873
|
|
|
(98
|
)
|
||||||
Total debt securities
|
$
|
4,574
|
|
|
$
|
(76
|
)
|
|
$
|
4,447
|
|
|
$
|
(137
|
)
|
|
$
|
9,021
|
|
|
$
|
(213
|
)
|
|
Three months ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
|
(in millions)
|
||||||
Gross realized gains
|
$
|
10
|
|
|
$
|
32
|
|
Gross realized losses
|
(12
|
)
|
|
(3
|
)
|
||
Net realized capital (losses) gains
|
$
|
(2
|
)
|
|
$
|
29
|
|
|
Amortized
Cost |
|
Fair
Value |
||||
|
(in millions)
|
||||||
Due within one year
|
$
|
829
|
|
|
$
|
828
|
|
Due after one year through five years
|
2,514
|
|
|
2,511
|
|
||
Due after five years through ten years
|
1,655
|
|
|
1,652
|
|
||
Due after ten years
|
535
|
|
|
540
|
|
||
Mortgage and asset-backed securities
|
4,773
|
|
|
4,767
|
|
||
Total debt securities
|
$
|
10,306
|
|
|
$
|
10,298
|
|
|
Fair Value Measurements Using
|
||||||||||||||
|
Fair
Value |
|
Quoted Prices
in Active Markets (Level 1) |
|
Other
Observable Inputs (Level 2) |
|
Unobservable
Inputs (Level 3) |
||||||||
|
(in millions)
|
||||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
3,582
|
|
|
$
|
3,582
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Debt securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and other U.S. government
corporations and agencies: |
|
|
|
|
|
|
|
||||||||
U.S. Treasury and agency obligations
|
479
|
|
|
—
|
|
|
479
|
|
|
—
|
|
||||
Mortgage-backed securities
|
3,141
|
|
|
—
|
|
|
3,141
|
|
|
—
|
|
||||
Tax-exempt municipal securities
|
2,103
|
|
|
—
|
|
|
2,103
|
|
|
—
|
|
||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential
|
85
|
|
|
—
|
|
|
85
|
|
|
—
|
|
||||
Commercial
|
509
|
|
|
—
|
|
|
509
|
|
|
—
|
|
||||
Asset-backed securities
|
1,032
|
|
|
—
|
|
|
1,032
|
|
|
—
|
|
||||
Corporate debt securities
|
2,949
|
|
|
—
|
|
|
2,949
|
|
|
—
|
|
||||
Total debt securities
|
10,298
|
|
|
—
|
|
|
10,298
|
|
|
—
|
|
||||
Total invested assets
|
$
|
13,880
|
|
|
$
|
3,582
|
|
|
$
|
10,298
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
2,024
|
|
|
$
|
2,024
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Debt securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and other U.S. government
corporations and agencies: |
|
|
|
|
|
|
|
||||||||
U.S. Treasury and agency obligations
|
417
|
|
|
—
|
|
|
417
|
|
|
—
|
|
||||
Mortgage-backed securities
|
2,544
|
|
|
—
|
|
|
2,544
|
|
|
—
|
|
||||
Tax-exempt municipal securities
|
2,771
|
|
|
—
|
|
|
2,771
|
|
|
—
|
|
||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential
|
55
|
|
|
—
|
|
|
55
|
|
|
—
|
|
||||
Commercial
|
523
|
|
|
—
|
|
|
523
|
|
|
—
|
|
||||
Asset-backed securities
|
985
|
|
|
—
|
|
|
985
|
|
|
—
|
|
||||
Corporate debt securities
|
3,142
|
|
|
—
|
|
|
3,142
|
|
|
—
|
|
||||
Total debt securities
|
10,437
|
|
|
—
|
|
|
10,437
|
|
|
—
|
|
||||
Total invested assets
|
$
|
12,461
|
|
|
$
|
2,024
|
|
|
$
|
10,437
|
|
|
$
|
—
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
Risk
Corridor Settlement |
|
CMS
Subsidies/ Discounts |
|
Risk
Corridor Settlement |
|
CMS
Subsidies/ Discounts |
|||||||||
|
(in millions)
|
||||||||||||||
Other current assets
|
$
|
10
|
|
|
$
|
333
|
|
|
$
|
15
|
|
|
$
|
172
|
|
Trade accounts payable and accrued expenses
|
(63
|
)
|
|
(1,285
|
)
|
|
(103
|
)
|
|
(503
|
)
|
||||
Net current liability
|
(53
|
)
|
|
(952
|
)
|
|
(88
|
)
|
|
(331
|
)
|
||||
Other long-term assets
|
26
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||
Other long-term liabilities
|
(134
|
)
|
|
—
|
|
|
(89
|
)
|
|
—
|
|
||||
Net long-term liability
|
(108
|
)
|
|
—
|
|
|
(82
|
)
|
|
—
|
|
||||
Total net liability
|
$
|
(161
|
)
|
|
$
|
(952
|
)
|
|
$
|
(170
|
)
|
|
$
|
(331
|
)
|
|
Retail
|
|
Group and Specialty
|
|
Healthcare
Services |
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Balance at March 31, 2019
|
$
|
1,535
|
|
|
$
|
261
|
|
|
$
|
2,101
|
|
|
$
|
3,897
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Weighted
Average Life |
|
Cost
|
|
Accumulated
Amortization |
|
Net
|
|
Cost
|
|
Accumulated
Amortization |
|
Net
|
||||||||||||
|
|
|
($ in millions)
|
||||||||||||||||||||||
Other intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Customer contracts/
relationships |
8.7 years
|
|
$
|
646
|
|
|
$
|
450
|
|
|
$
|
196
|
|
|
$
|
646
|
|
|
$
|
434
|
|
|
$
|
212
|
|
Trade names and
technology |
6.4 years
|
|
84
|
|
|
84
|
|
|
—
|
|
|
84
|
|
|
83
|
|
|
1
|
|
||||||
Provider contracts
|
11.7 years
|
|
70
|
|
|
39
|
|
|
31
|
|
|
68
|
|
|
37
|
|
|
31
|
|
||||||
Noncompetes and
other |
7.3 years
|
|
29
|
|
|
28
|
|
|
1
|
|
|
29
|
|
|
28
|
|
|
1
|
|
||||||
Total other intangible
assets |
8.7 years
|
|
$
|
829
|
|
|
$
|
601
|
|
|
$
|
228
|
|
|
$
|
827
|
|
|
$
|
582
|
|
|
$
|
245
|
|
Maturity of Lease Liabilities
|
|
March 31, 2019
|
||
|
|
(in millions)
|
||
2019 (excluding the three months ended March 31, 2019)
|
|
$
|
108
|
|
2020
|
|
117
|
|
|
2021
|
|
97
|
|
|
2022
|
|
78
|
|
|
2023
|
|
36
|
|
|
After 2023
|
|
69
|
|
|
Total lease payments
|
|
505
|
|
|
Less: Interest
|
|
55
|
|
|
Present value of ROU lease liabilities
|
|
$
|
450
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in millions)
|
||||||||||
Rent expense
|
$
|
167
|
|
|
$
|
204
|
|
|
$
|
179
|
|
Sublease rental income
|
(32
|
)
|
|
(33
|
)
|
|
(26
|
)
|
|||
Net rent expense
|
$
|
135
|
|
|
$
|
171
|
|
|
$
|
153
|
|
|
Minimum
Lease Payments |
|
Sublease
Rental Receipts |
|
Net Lease
Commitments |
||||||
|
(in millions)
|
||||||||||
For the years ending December 31,:
|
|
|
|
|
|
||||||
2019
|
$
|
147
|
|
|
$
|
(13
|
)
|
|
$
|
134
|
|
2020
|
113
|
|
|
(12
|
)
|
|
101
|
|
|||
2021
|
96
|
|
|
(10
|
)
|
|
86
|
|
|||
2022
|
79
|
|
|
(9
|
)
|
|
70
|
|
|||
2023
|
34
|
|
|
(9
|
)
|
|
25
|
|
|||
Thereafter
|
50
|
|
|
(23
|
)
|
|
27
|
|
|||
Total
|
$
|
519
|
|
|
$
|
(76
|
)
|
|
$
|
443
|
|
|
|
For the three months ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in millions)
|
||||||
Balances, beginning of period
|
|
$
|
4,862
|
|
|
$
|
4,668
|
|
Less: Reinsurance recoverables
|
|
(95
|
)
|
|
(70
|
)
|
||
Balances, beginning of period, net
|
|
4,767
|
|
|
4,598
|
|
||
Incurred related to:
|
|
|
|
|
||||
Current year
|
|
13,760
|
|
|
11,947
|
|
||
Prior years
|
|
(267
|
)
|
|
(267
|
)
|
||
Total incurred
|
|
13,493
|
|
|
11,680
|
|
||
Paid related to:
|
|
|
|
|
||||
Current year
|
|
(8,725
|
)
|
|
(7,775
|
)
|
||
Prior years
|
|
(3,595
|
)
|
|
(3,619
|
)
|
||
Total paid
|
|
(12,320
|
)
|
|
(11,394
|
)
|
||
Reinsurance recoverable
|
|
84
|
|
|
77
|
|
||
Balances, end of period
|
|
$
|
6,024
|
|
|
$
|
4,961
|
|
|
|
For the three months ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in millions)
|
||||||
Future policy benefits:
|
|
|
|
|
||||
Individual Commercial
|
|
$
|
—
|
|
|
$
|
(16
|
)
|
Other Businesses
|
|
—
|
|
|
6
|
|
||
Total future policy benefits
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
|
For the three months ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in millions)
|
||||||
Balances, beginning of period
|
|
$
|
4,338
|
|
|
$
|
3,963
|
|
Less: Reinsurance recoverables
|
|
(95
|
)
|
|
(70
|
)
|
||
Balances, beginning of period, net
|
|
4,243
|
|
|
3,893
|
|
||
Incurred related to:
|
|
|
|
|
||||
Current year
|
|
12,606
|
|
|
10,739
|
|
||
Prior years
|
|
(283
|
)
|
|
(187
|
)
|
||
Total incurred
|
|
12,323
|
|
|
10,552
|
|
||
Paid related to:
|
|
|
|
|
||||
Current year
|
|
(8,032
|
)
|
|
(7,119
|
)
|
||
Prior years
|
|
(3,133
|
)
|
|
(3,082
|
)
|
||
Total paid
|
|
(11,165
|
)
|
|
(10,201
|
)
|
||
Reinsurance recoverable
|
|
84
|
|
|
77
|
|
||
Balances, end of period
|
|
$
|
5,485
|
|
|
$
|
4,321
|
|
|
|
For the three months ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(in millions)
|
||||||
Balances, beginning of period
|
|
$
|
517
|
|
|
$
|
568
|
|
Incurred related to:
|
|
|
|
|
||||
Current year
|
|
1,271
|
|
|
1,307
|
|
||
Prior years
|
|
16
|
|
|
(34
|
)
|
||
Total incurred
|
|
1,287
|
|
|
1,273
|
|
||
Paid related to:
|
|
|
|
|
||||
Current year
|
|
(803
|
)
|
|
(802
|
)
|
||
Prior years
|
|
(462
|
)
|
|
(463
|
)
|
||
Total paid
|
|
(1,265
|
)
|
|
(1,265
|
)
|
||
Balances, end of period
|
|
$
|
539
|
|
|
$
|
576
|
|
Reconciliation of the Disclosure of Incurred and Paid Claims Development to Benefits Payable, net of reinsurance
|
||||
|
March 31,
|
|||
|
2019
|
|||
Net outstanding liabilities
|
(in millions)
|
|||
Retail
|
$
|
5,401
|
|
|
Group and Specialty
|
539
|
|
||
Benefits payable, net of reinsurance
|
5,940
|
|
||
|
|
|||
Reinsurance recoverable on unpaid claims
|
|
|||
Retail
|
84
|
|
||
Total benefits payable, gross
|
$
|
6,024
|
|
|
Three months ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(dollars in millions, except per common share results; number of shares in thousands)
|
||||||
Net income available for common stockholders
|
$
|
566
|
|
|
$
|
491
|
|
Weighted average outstanding shares of common stock
used to compute basic earnings per common share |
135,383
|
|
|
137,903
|
|
||
Dilutive effect of:
|
|
|
|
||||
Employee stock options
|
130
|
|
|
213
|
|
||
Restricted stock
|
449
|
|
|
714
|
|
||
Shares used to compute diluted earnings per common share
|
135,962
|
|
|
138,830
|
|
||
Basic earnings per common share
|
$
|
4.18
|
|
|
$
|
3.56
|
|
Diluted earnings per common share
|
$
|
4.16
|
|
|
$
|
3.53
|
|
Number of antidilutive stock options and restricted stock
excluded from computation |
703
|
|
|
645
|
|
Record
Date |
|
Payment
Date |
|
Amount
per Share |
|
Total
Amount |
||||
|
|
|
|
|
|
(in millions)
|
||||
2018 payments
|
|
|
|
|
|
|
||||
12/29/2017
|
|
1/26/2018
|
|
$
|
0.40
|
|
|
$
|
55
|
|
3/30/2018
|
|
4/27/2018
|
|
$
|
0.50
|
|
|
$
|
69
|
|
6/29/2018
|
|
7/27/2018
|
|
$
|
0.50
|
|
|
$
|
69
|
|
9/28/2018
|
|
10/26/2018
|
|
$
|
0.50
|
|
|
$
|
69
|
|
2019 payments
|
|
|
|
|
|
|
||||
12/31/2018
|
|
1/25/2019
|
|
$
|
0.50
|
|
|
$
|
68
|
|
3/29/2019
|
|
4/26/2019
|
|
$
|
0.55
|
|
|
$
|
74
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
(in millions)
|
||||||
Short-term debt:
|
|
|
|
||||
Commercial paper
|
$
|
669
|
|
|
$
|
645
|
|
Term note
|
650
|
|
|
650
|
|
||
Senior note:
|
|
|
|
||||
$400 million, 2.625% due October 1, 2019
|
399
|
|
|
399
|
|
||
Total Short-term debt
|
$
|
1,718
|
|
|
$
|
1,694
|
|
|
|
|
|
||||
Long-term debt:
|
|
|
|
||||
Senior notes:
|
|
|
|
||||
$400 million, 2.50% due December 15, 2020
|
$
|
398
|
|
|
$
|
398
|
|
$400 million, 2.90% due December 15, 2022
|
397
|
|
|
396
|
|
||
$600 million, 3.15% due December 1, 2022
|
597
|
|
|
596
|
|
||
$600 million, 3.85% due October 1, 2024
|
596
|
|
|
597
|
|
||
$600 million, 3.95% due March 15, 2027
|
595
|
|
|
594
|
|
||
$250 million, 8.15% due June 15, 2038
|
263
|
|
|
263
|
|
||
$400 million, 4.625% due December 1, 2042
|
396
|
|
|
396
|
|
||
$750 million, 4.95% due October 1, 2044
|
739
|
|
|
739
|
|
||
$400 million, 4.80% due March 15, 2047
|
395
|
|
|
396
|
|
||
Total long-term debt
|
$
|
4,376
|
|
|
$
|
4,375
|
|
|
Retail
|
|
Group and Specialty
|
|
Healthcare
Services |
|
Eliminations/
Corporate |
|
Consolidated
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Three months ended March 31, 2019
|
|
|
|
|
|
|
|||||||||||||
External revenues
|
|
|
|
|
|
|
|
|
|||||||||||
Premiums:
|
|
|
|
|
|
|
|
|
|
||||||||||
Individual Medicare Advantage
|
$
|
10,709
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,709
|
|
Group Medicare Advantage
|
1,632
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,632
|
|
|||||
Medicare stand-alone PDP
|
809
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
809
|
|
|||||
Total Medicare
|
13,150
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,150
|
|
|||||
Fully-insured
|
140
|
|
|
1,311
|
|
|
—
|
|
|
—
|
|
|
1,451
|
|
|||||
Specialty
|
—
|
|
|
373
|
|
|
—
|
|
|
—
|
|
|
373
|
|
|||||
Medicaid and other
|
677
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
677
|
|
|||||
Total premiums
|
13,967
|
|
|
1,684
|
|
|
—
|
|
|
—
|
|
|
15,651
|
|
|||||
Services revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Provider
|
—
|
|
|
—
|
|
|
120
|
|
|
—
|
|
|
120
|
|
|||||
ASO and other
|
5
|
|
|
194
|
|
|
—
|
|
|
—
|
|
|
199
|
|
|||||
Pharmacy
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
36
|
|
|||||
Total services revenue
|
5
|
|
|
194
|
|
|
156
|
|
|
—
|
|
|
355
|
|
|||||
Total external revenues
|
13,972
|
|
|
1,878
|
|
|
156
|
|
|
—
|
|
|
16,006
|
|
|||||
Intersegment revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Services
|
—
|
|
|
4
|
|
|
4,306
|
|
|
(4,310
|
)
|
|
—
|
|
|||||
Products
|
—
|
|
|
—
|
|
|
1,636
|
|
|
(1,636
|
)
|
|
—
|
|
|||||
Total intersegment revenues
|
—
|
|
|
4
|
|
|
5,942
|
|
|
(5,946
|
)
|
|
—
|
|
|||||
Investment income
|
41
|
|
|
5
|
|
|
—
|
|
|
55
|
|
|
101
|
|
|||||
Total revenues
|
14,013
|
|
|
1,887
|
|
|
6,098
|
|
|
(5,891
|
)
|
|
16,107
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Benefits
|
12,327
|
|
|
1,287
|
|
|
—
|
|
|
(121
|
)
|
|
13,493
|
|
|||||
Operating costs
|
1,148
|
|
|
413
|
|
|
5,888
|
|
|
(5,789
|
)
|
|
1,660
|
|
|||||
Depreciation and amortization
|
73
|
|
|
22
|
|
|
38
|
|
|
(26
|
)
|
|
107
|
|
|||||
Total operating expenses
|
13,548
|
|
|
1,722
|
|
|
5,926
|
|
|
(5,936
|
)
|
|
15,260
|
|
|||||
Income from operations
|
465
|
|
|
165
|
|
|
172
|
|
|
45
|
|
|
847
|
|
|||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
62
|
|
|
62
|
|
|||||
Other expense, net
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
39
|
|
|||||
Income (loss) before income taxes and equity in net earnings
|
465
|
|
|
165
|
|
|
172
|
|
|
(56
|
)
|
|
746
|
|
|||||
Equity in net earnings of Kindred at Home
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||
Segment earnings
|
$
|
465
|
|
|
$
|
165
|
|
|
$
|
175
|
|
|
$
|
(56
|
)
|
|
$
|
749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Retail
|
|
Group and Specialty
|
|
Healthcare
Services |
|
Individual Commercial
|
|
Other
Businesses |
|
Eliminations/
Corporate |
|
Consolidated
|
||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
Three months ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
External revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individual Medicare Advantage
|
$
|
8,970
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,970
|
|
Group Medicare Advantage
|
1,524
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,524
|
|
|||||||
Medicare stand-alone PDP
|
896
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
896
|
|
|||||||
Total Medicare
|
11,390
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,390
|
|
|||||||
Fully-insured
|
125
|
|
|
1,392
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
1,512
|
|
|||||||
Specialty
|
—
|
|
|
347
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
347
|
|
|||||||
Medicaid and other
|
553
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
562
|
|
|||||||
Total premiums
|
12,068
|
|
|
1,739
|
|
|
—
|
|
|
(5
|
)
|
|
9
|
|
|
—
|
|
|
13,811
|
|
|||||||
Services revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Provider
|
—
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|||||||
ASO and other
|
2
|
|
|
219
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
223
|
|
|||||||
Pharmacy
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|||||||
Total services revenue
|
2
|
|
|
219
|
|
|
104
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
327
|
|
|||||||
Total external revenues
|
12,070
|
|
|
1,958
|
|
|
104
|
|
|
(5
|
)
|
|
11
|
|
|
—
|
|
|
14,138
|
|
|||||||
Intersegment revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Services
|
—
|
|
|
5
|
|
|
4,018
|
|
|
—
|
|
|
—
|
|
|
(4,023
|
)
|
|
—
|
|
|||||||
Products
|
—
|
|
|
—
|
|
|
1,535
|
|
|
—
|
|
|
—
|
|
|
(1,535
|
)
|
|
—
|
|
|||||||
Total intersegment revenues
|
—
|
|
|
5
|
|
|
5,553
|
|
|
—
|
|
|
—
|
|
|
(5,558
|
)
|
|
—
|
|
|||||||
Investment income
|
37
|
|
|
7
|
|
|
6
|
|
|
—
|
|
|
35
|
|
|
56
|
|
|
141
|
|
|||||||
Total revenues
|
12,107
|
|
|
1,970
|
|
|
5,663
|
|
|
(5
|
)
|
|
46
|
|
|
(5,502
|
)
|
|
14,279
|
|
|||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Benefits
|
10,552
|
|
|
1,273
|
|
|
—
|
|
|
(60
|
)
|
|
26
|
|
|
(121
|
)
|
|
11,670
|
|
|||||||
Operating costs
|
1,222
|
|
|
463
|
|
|
5,441
|
|
|
2
|
|
|
2
|
|
|
(5,381
|
)
|
|
1,749
|
|
|||||||
Depreciation and amortization
|
66
|
|
|
23
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
100
|
|
|||||||
Total operating expenses
|
11,840
|
|
|
1,759
|
|
|
5,490
|
|
|
(58
|
)
|
|
28
|
|
|
(5,540
|
)
|
|
13,519
|
|
|||||||
Income from operations
|
267
|
|
|
211
|
|
|
173
|
|
|
53
|
|
|
18
|
|
|
38
|
|
|
760
|
|
|||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
53
|
|
|||||||
Income (loss) before income taxes and equity in net earnings
|
267
|
|
|
211
|
|
|
173
|
|
|
53
|
|
|
18
|
|
|
(15
|
)
|
|
707
|
|
|||||||
Equity in net earnings of Kindred at Home
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Segment earnings
|
$
|
267
|
|
|
$
|
211
|
|
|
$
|
173
|
|
|
$
|
53
|
|
|
$
|
18
|
|
|
$
|
(15
|
)
|
|
$
|
707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Our strategy offers our members affordable health care combined with a positive consumer experience in growing markets. At the core of this strategy is our integrated care delivery model, which unites quality care, high member engagement, and sophisticated data analytics. Our approach to primary, physician-directed care for our members aims to provide quality care that is consistent, integrated, cost-effective, and member-focused, provided by both employed physicians and physicians with network contract arrangements. The model is designed to improve health outcomes and affordability for individuals and for the health system as a whole, while offering our members a simple, seamless healthcare experience. We believe this strategy is positioning us for long-term growth in both membership and earnings. We offer providers a continuum of opportunities to increase the integration of care and offer assistance to providers in transitioning from a fee-for-service to a value-based arrangement. These include performance bonuses, shared savings and shared risk relationships. At
March 31, 2019
, approximately
2,223,300
members, or
65%
, of our individual Medicare Advantage members were in value-based relationships under our integrated care delivery model, as compared to
1,959,400
members, or
65%
, at
March 31, 2018
. Medicare Advantage and dual demonstration program membership enrolled in a Humana chronic care management program was
834,700
at
March 31, 2019
an
increase
of
10.9%
from
752,400
at
March 31, 2018
. The increase is driven by our improved process for identifying and enrolling members in the appropriate program at the right time, coupled with growth in Special Needs Plans, or SNP, membership and the insuring of certain SNP membership to Humana At Home's care management program.
|
•
|
Net income increased
15.3%
and earnings per diluted common share increased
17.8%
in the
2019 quarter
. This growth was mainly due to the year-over-year improvement in our Retail segment results, as well as the beneficial impact of the temporary suspension of the health industry insurance fee in 2019. In addition, year-over-year comparisons are favorably impacted by a lower number of shares used to compute dilutive earnings per share, primarily reflecting share repurchases.
|
•
|
Contributing to our Retail segment revenue growth was our individual Medicare Advantage membership, which
increased
414,800
members, or
13.7%
, from
March 31, 2018
to
March 31, 2019
.
|
•
|
Excluding the impact from the early receipt of the Medicare premium remittance of $3.3 billion in the 2018 quarter, our operating cash flow of
$896 million
for the 2019 quarter improved primarily from the timing of working capital items and higher earnings, including the effect of Medicare Advantage membership growth.
|
•
|
On April 1, 2019, CMS published its 2020 Medicare Advantage Capitation Rates and Medicare Advantage and Part D Payment Policies and Final Call Letter (the Final Rate Notice). We expect the Final Rate Notice to result in a 2.2 percent rate increase for our individual Medicare Advantage business versus CMS’ estimate for the sector of 2.53 percent, excluding the impact of Employer Group Waiver Plan (EGWP) funding changes, on a comparable basis.The difference between the Humana projection and the CMS projection results from small differences in various components of the rate.
|
|
For the three months ended March 31,
|
|
Change
|
|||||||||||
|
2019
|
|
2018
|
|
Dollars
|
|
Percentage
|
|||||||
|
(dollars in millions, except per common share results)
|
|
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
Premiums:
|
|
|
|
|
|
|
|
|||||||
Retail
|
$
|
13,967
|
|
|
$
|
12,068
|
|
|
$
|
1,899
|
|
|
15.7
|
%
|
Group and Specialty
|
1,684
|
|
|
1,739
|
|
|
(55
|
)
|
|
(3.2
|
)%
|
|||
Individual Commercial
|
—
|
|
|
(5
|
)
|
|
5
|
|
|
100.0
|
%
|
|||
Other Businesses
|
—
|
|
|
9
|
|
|
(9
|
)
|
|
(100.0
|
)%
|
|||
Total premiums
|
15,651
|
|
|
13,811
|
|
|
1,840
|
|
|
13.3
|
%
|
|||
Services:
|
|
|
|
|
|
|
|
|||||||
Retail
|
5
|
|
|
2
|
|
|
3
|
|
|
150.0
|
%
|
|||
Group and Specialty
|
194
|
|
|
219
|
|
|
(25
|
)
|
|
(11.4
|
)%
|
|||
Healthcare Services
|
156
|
|
|
104
|
|
|
52
|
|
|
50.0
|
%
|
|||
Other Businesses
|
—
|
|
|
2
|
|
|
(2
|
)
|
|
(100.0
|
)%
|
|||
Total services
|
355
|
|
|
327
|
|
|
28
|
|
|
8.6
|
%
|
|||
Investment income
|
101
|
|
|
141
|
|
|
(40
|
)
|
|
(28.4
|
)%
|
|||
Total revenues
|
16,107
|
|
|
14,279
|
|
|
1,828
|
|
|
12.8
|
%
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|||||||
Benefits
|
13,493
|
|
|
11,670
|
|
|
1,823
|
|
|
15.6
|
%
|
|||
Operating costs
|
1,660
|
|
|
1,749
|
|
|
(89
|
)
|
|
(5.1
|
)%
|
|||
Depreciation and amortization
|
107
|
|
|
100
|
|
|
7
|
|
|
7.0
|
%
|
|||
Total operating expenses
|
15,260
|
|
|
13,519
|
|
|
1,741
|
|
|
12.9
|
%
|
|||
Income from operations
|
847
|
|
|
760
|
|
|
87
|
|
|
11.4
|
%
|
|||
Interest expense
|
62
|
|
|
53
|
|
|
9
|
|
|
17.0
|
%
|
|||
Other expense, net
|
39
|
|
|
—
|
|
|
39
|
|
|
100.0
|
%
|
|||
Income before income taxes and equity in net earnings
|
746
|
|
|
707
|
|
|
39
|
|
|
5.5
|
%
|
|||
Provision for income taxes
|
183
|
|
|
216
|
|
|
(33
|
)
|
|
(15.3
|
)%
|
|||
Equity in net earnings of Kindred at Home
|
3
|
|
|
—
|
|
|
3
|
|
|
100.0
|
%
|
|||
Net income
|
$
|
566
|
|
|
$
|
491
|
|
|
$
|
75
|
|
|
15.3
|
%
|
Diluted earnings per common share
|
$
|
4.16
|
|
|
$
|
3.53
|
|
|
$
|
0.63
|
|
|
17.8
|
%
|
Benefit ratio
(a)
|
86.2
|
%
|
|
84.5
|
%
|
|
|
|
1.7
|
%
|
||||
Operating cost ratio
(b)
|
10.4
|
%
|
|
12.4
|
%
|
|
|
|
(2.0
|
)%
|
||||
Effective tax rate
|
24.4
|
%
|
|
30.7
|
%
|
|
|
|
(6.3
|
)%
|
(a)
|
Represents benefits expense as a percentage of premiums revenue.
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
Change
|
||||||||
|
2019
|
|
2018
|
|
Members
|
|
Percentage
|
||||
Membership:
|
|
|
|
|
|
|
|
||||
Medical membership:
|
|
|
|
|
|
|
|
||||
Individual Medicare Advantage
|
3,433,300
|
|
|
3,018,500
|
|
|
414,800
|
|
|
13.7
|
%
|
Group Medicare Advantage
|
517,900
|
|
|
492,700
|
|
|
25,200
|
|
|
5.1
|
%
|
Medicare stand-alone PDP
|
4,448,400
|
|
|
5,042,100
|
|
|
(593,700
|
)
|
|
(11.8
|
)%
|
Total Retail Medicare
|
8,399,600
|
|
|
8,553,300
|
|
|
(153,700
|
)
|
|
(1.8
|
)%
|
State-based Medicaid
|
461,300
|
|
|
336,000
|
|
|
125,300
|
|
|
37.3
|
%
|
Medicare Supplement
|
267,300
|
|
|
238,700
|
|
|
28,600
|
|
|
12.0
|
%
|
Total Retail medical members
|
9,128,200
|
|
|
9,128,000
|
|
|
200
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|||||||
|
For the three months ended March 31,
|
|
Change
|
|||||||||||
|
2019
|
|
2018
|
|
Dollars
|
|
Percentage
|
|||||||
|
(in millions)
|
|
|
|||||||||||
Premiums and Services Revenue:
|
|
|
|
|
|
|
|
|||||||
Premiums:
|
|
|
|
|
|
|
|
|||||||
Individual Medicare Advantage
|
$
|
10,709
|
|
|
$
|
8,970
|
|
|
$
|
1,739
|
|
|
19.4
|
%
|
Group Medicare Advantage
|
1,632
|
|
|
1,524
|
|
|
108
|
|
|
7.1
|
%
|
|||
Medicare stand-alone PDP
|
809
|
|
|
896
|
|
|
(87
|
)
|
|
(9.7
|
)%
|
|||
Total Retail Medicare
|
13,150
|
|
|
11,390
|
|
|
1,760
|
|
|
15.5
|
%
|
|||
State-based Medicaid
|
677
|
|
|
553
|
|
|
124
|
|
|
22.4
|
%
|
|||
Medicare Supplement
|
140
|
|
|
125
|
|
|
15
|
|
|
12.0
|
%
|
|||
Total premiums
|
13,967
|
|
|
12,068
|
|
|
1,899
|
|
|
15.7
|
%
|
|||
Services
|
5
|
|
|
2
|
|
|
3
|
|
|
150.0
|
%
|
|||
Total premiums and services revenue
|
$
|
13,972
|
|
|
$
|
12,070
|
|
|
$
|
1,902
|
|
|
15.8
|
%
|
Segment earnings
|
$
|
465
|
|
|
$
|
267
|
|
|
$
|
198
|
|
|
74.2
|
%
|
Benefit ratio
|
88.3
|
%
|
|
87.4
|
%
|
|
|
|
0.9
|
%
|
||||
Operating cost ratio
|
8.2
|
%
|
|
10.1
|
%
|
|
|
|
(1.9
|
)%
|
|
|
|
|
|
|
|
|
•
|
Retail segment earnings
increased
$198 million
, or
74.2%
, from
$267 million
in the
2018 quarter
to
$465 million
in the
2019 quarter
primarily due segment's lower operating cost ratio, partially offset by the segment's higher benefit ratio as more fully described below.
|
•
|
Individual Medicare Advantage membership
increased
414,800
members, or
13.7%
, from
March 31, 2018
to
March 31, 2019
, primarily due to membership additions associated with the most recent Annual Election Period, or AEP, and Open Election Period (OEP) for Medicare beneficiaries. The OEP sales period, which ran from January 1 to March 31, added approximately 28,700 members through March 31, 2019. The increase in Individual Medicare Advantage membership includes the addition of approximately 42,000 Dual Eligible Special Need Plan (D-SNP) members from March 31, 2018 to March 31, 2019.
|
•
|
Group Medicare Advantage membership
increased
25,200
, or
5.1%
, from
March 31, 2018
to
March 31, 2019
, primarily due to net membership additions associated with the most recent AEP for Medicare beneficiaries.
|
•
|
Medicare stand-alone PDP membership
decreased
593,700
members, or
11.8%
, from
March 31, 2018
to
March 31, 2019
reflecting net declines during the most recent AEP for Medicare beneficiaries. These anticipated declines were primarily due to the competitive nature of the industry and the pricing discipline we have employed, which has resulted in us no longer being the low cost plan in any market for 2019.
|
•
|
State-based Medicaid membership
increased
125,300
members, or
37.3%
, from
March 31, 2018
to
March 31, 2019
, primarily driven by the statewide award of a comprehensive contract under Managed Medical Assistance (MMA) program in Florida.
|
•
|
Retail segment premiums increased
$1.9 billion
, or
15.7%
, from the
2018 quarter
to the
2019 quarter
primarily due to individual and group Medicare Advantage membership growth, higher per member premiums in the most recent AEP, as well as increased state-based contracts membership.
|
•
|
The Retail segment benefit ratio
increased
90
basis points from
87.4%
in the
2018 quarter
to
88.3%
in the
2019 quarter
primarily due to the temporary suspension of the health insurance industry fee in 2019 which was contemplated in the pricing and benefit design of our products, and higher individual Medicare Advantage membership growth. At the onset, our new Medicare Advantage members typically have a higher benefit ratio than existing Medicare Advantage members as they were not previously engaged in clinical programs or appropriately documented under the CMS risk-adjustment model. These items are partially offset by the impact of engaging our new 2018 Medicare Advantage members in clinical programs and ensuring that they are appropriately documented under the CMS risk-adjustment model, higher favorable prior period reserve development, and the impact of a less severe flu season in the
2019 quarter
.
|
•
|
The Retail segment’s benefits expense for the
2019 quarter
included
$283 million
in favorable prior-period medical claims reserve development versus
$187 million
in the
2018 quarter
. Prior-period medical claims reserve development decreased the Retail segment benefit ratio by approximately
200
basis points in the
2019 quarter
versus approximately
150
basis points in the
2018 quarter
.
|
•
|
The Retail segment operating cost ratio of
8.2%
for the
2019 quarter
decreased
190
basis points from
10.1%
for the
2018 quarter
, primarily due to the temporary suspension of the health insurance industry fee in 2019, as well as operating costs efficiencies from previously implemented productivity initiatives. These decreases
|
|
March 31,
|
|
Change
|
||||||||
|
2019
|
|
2018
|
|
Members
|
|
Percentage
|
||||
Membership:
|
|
|
|
|
|
|
|
||||
Medical membership:
|
|
|
|
|
|
|
|
||||
Fully-insured commercial group
|
958,200
|
|
|
1,075,100
|
|
|
(116,900
|
)
|
|
(10.9
|
)%
|
ASO
|
478,600
|
|
|
452,600
|
|
|
26,000
|
|
|
5.7
|
%
|
Military services
|
5,942,500
|
|
|
5,931,100
|
|
|
11,400
|
|
|
0.2
|
%
|
Total group and specialty medical members
|
7,379,300
|
|
|
7,458,800
|
|
|
(79,500
|
)
|
|
(1.1
|
)%
|
Specialty membership (a)
|
5,835,200
|
|
|
6,738,900
|
|
|
(903,700
|
)
|
|
(13.4
|
)%
|
(a)
|
Specialty products include dental, vision, voluntary benefit products and other supplemental health. Members included in these products may not be unique to each product since members have the ability to enroll in multiple products.
|
|
|
|
|
|
|
|
|
|||||||
|
For the three months ended March 31,
|
|
Change
|
|||||||||||
|
2019
|
|
2018
|
|
Dollars
|
|
Percentage
|
|||||||
|
(in millions)
|
|
|
|||||||||||
Premiums and Services Revenue:
|
|
|
|
|
|
|
|
|||||||
Premiums:
|
|
|
|
|
|
|
|
|||||||
Fully-insured commercial group
|
$
|
1,311
|
|
|
$
|
1,392
|
|
|
$
|
(81
|
)
|
|
(5.8
|
)%
|
Group specialty
|
373
|
|
|
347
|
|
|
26
|
|
|
7.5
|
%
|
|||
Total premiums
|
1,684
|
|
|
1,739
|
|
|
(55
|
)
|
|
(3.2
|
)%
|
|||
Services
|
194
|
|
|
219
|
|
|
(25
|
)
|
|
(11.4
|
)%
|
|||
Total premiums and services revenue
|
$
|
1,878
|
|
|
$
|
1,958
|
|
|
$
|
(80
|
)
|
|
(4.1
|
)%
|
Segment earnings
|
$
|
165
|
|
|
$
|
211
|
|
|
$
|
(46
|
)
|
|
(21.8
|
)%
|
Benefit ratio
|
76.4
|
%
|
|
73.2
|
%
|
|
|
|
3.2
|
%
|
||||
Operating cost ratio
|
21.9
|
%
|
|
23.6
|
%
|
|
|
|
(1.7
|
)%
|
|
|
|
|
|
|
|
|
•
|
Group and Specialty segment earnings decreased
$46 million
, or
21.8%
, from
$211 million
in the
2018 quarter
to
$165 million
in the
2019 quarter
primarily due to a higher benefit ratio, along with lower military services business earnings. Earnings related to the military services business were unfavorably impacted by the receipt of certain contractual incentives and adjustments in the 2018 quarter related to the previous TRICARE contract which did not recur in the 2019 quarter. This was partially offset by a lower operating cost ratio in the 2019 quarter and a favorable year -over-year earnings comparison for our group ASO commercial medical business.
|
•
|
Fully-insured commercial group medical membership
decreased
116,900
members, or
10.9%
, from
March 31, 2018
to
March 31, 2019
primarily reflecting lower membership in small group accounts due in part to more
|
•
|
Group ASO commercial medical membership
increased
26,000
members, or
5.7%
, from
March 31, 2018
to
March 31, 2019
reflecting more small group accounts selecting level-funded ASO products in 2019, partially offset by the loss of certain large group accounts as a result of continued discipline in pricing of services for self-funded accounts amid a highly competitive environment.
|
•
|
Military services membership
increased
11,400
members, or
0.2%
, from
March 31, 2018
to
March 31, 2019
. Membership includes military service members, retirees, and their families to whom the company is providing healthcare services under the current TRICARE East Region contract. The current contract, which covers 32 states, became effective on January 1, 2018.
|
•
|
Specialty membership
decreased
903,700
members, or
13.4%
, from
March 31, 2018
to
March 31, 2019
primarily due to the exit of our voluntary benefits and financial protection products in connection with the previously disclosed sale of KMG, which resulted in the loss of approximately 600,000 members, as well as the loss of some group accounts offering stand-alone dental and vision products.
|
•
|
Group and Specialty segment premiums
decreased
$55 million
, or
3.2%
, from the
2018 quarter
to
$1.68 billion
for the
2019 quarter
primarily due to a decline in our fully-insured group commercial and specialty membership, as well as due to reinsuring our voluntary benefits and financial protection products to a third party in connection with the previously disclosed sale of KMG during the second quarter of 2018. These decreases were partially offset by higher stop-loss revenues related to our level-funded ASO accounts resulting from membership growth in this product. Additionally, the impact of the lower commercial risk adjustment payable estimates in the 2019 quarter as compared to the 2018 quarter resulted in higher small group fully-insured commercial revenues.
|
•
|
Group and Specialty segment services revenue
decreased
$25 million
, or
11.4%
, from the
2018 quarter
to
$194 million
for the
2019 quarter
, primarily due to the impact of certain contractual incentives and adjustments related to the previous TRICARE contract received in the 2018 quarter, which did not recur in the 2019 quarter,
|
•
|
The Group and Specialty segment benefit ratio
increased
320
basis points from
73.2%
in the
2018 quarter
to
76.4%
in the
2019 quarter
primarily due to the impact of unfavorable prior-period reserve development in the 2019 quarter, the temporary suspension of the health insurance industry fee in 2019 which was contemplated in the pricing of our products, as well as membership mix, including the continued migration of healthier groups to level-funded ASO products in the 2019 quarter. These increases were partially offset by lower ASO stop-loss claims.
|
•
|
The Group and Specialty segment's benefits expense included
$16 million
in the
2019 quarter
of unfavorable prior-period medical claims reserve development versus
$34 million
in the
2018 quarter
of favorable prior-period medical claims reserve development. The unfavorable prior-period medical claims reserve development increased the Group and Specialty segment benefit ratio by approximately
100
basis points in the
2019 quarter
and the favorable prior-period medical claims reserve development decreased the Group and Specialty segment benefit ratio by approximately
200
basis points in the
2018 quarter
.
|
•
|
The Group and Specialty segment operating cost ratio of
21.9%
for the
2019 quarter
decreased
170
basis points from
23.6%
for the
2018 quarter
primarily due to the temporary suspension of the health insurance industry fee in 2019, as well as operating cost efficiencies in the 2019 quarter driven by previously implemented productivity initiatives. The decrease was further impacted by the exit of the voluntary benefits and financial protection products in connection with the previously disclosed sale of KMG during the second quarter of 2018, which carried a higher operating cost ratio. The non-deductible health insurance industry fee impacted the operating cost ratio by
160
basis points in the 2018 quarter.
|
|
|
|
|
|
|
|
|
|||||||
|
For the three months ended March 31,
|
|
Change
|
|||||||||||
|
2019
|
|
2018
|
|
Dollars
|
|
Percentage
|
|||||||
|
(in millions)
|
|
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
Services:
|
|
|
|
|
|
|
|
|||||||
Provider services
|
$
|
79
|
|
|
$
|
21
|
|
|
$
|
58
|
|
|
276.2
|
%
|
Pharmacy solutions
|
36
|
|
|
39
|
|
|
(3
|
)
|
|
(7.7
|
)%
|
|||
Clinical care services
|
41
|
|
|
44
|
|
|
(3
|
)
|
|
(6.8
|
)%
|
|||
Total services revenues
|
156
|
|
|
104
|
|
|
52
|
|
|
50.0
|
%
|
|||
Intersegment revenues:
|
|
|
|
|
|
|
|
|||||||
Pharmacy solutions
|
5,197
|
|
|
4,995
|
|
|
202
|
|
|
4.0
|
%
|
|||
Provider services
|
599
|
|
|
378
|
|
|
221
|
|
|
58.5
|
%
|
|||
Clinical care services
|
146
|
|
|
180
|
|
|
(34
|
)
|
|
(18.9
|
)%
|
|||
Total intersegment revenues
|
5,942
|
|
|
5,553
|
|
|
389
|
|
|
7.0
|
%
|
|||
Total services and intersegment revenues
|
$
|
6,098
|
|
|
$
|
5,657
|
|
|
$
|
441
|
|
|
7.8
|
%
|
Segment earnings
|
$
|
175
|
|
|
$
|
173
|
|
|
$
|
2
|
|
|
1.2
|
%
|
Operating cost ratio
|
96.6
|
%
|
|
96.2
|
%
|
|
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
•
|
Healthcare Services segment earnings of
$175 million
for the
2019 quarter
increased
$2 million
, or
1.2%
, from
$173 million
in the
2018 quarter
.
|
•
|
Humana Pharmacy Solutions script volumes on an adjusted 30-day equivalent basis increased to approximately
110 million
in the
2019 quarter
, up
1.9%
, versus scripts of approximately
108 million
in the
2018 quarter
, primarily reflecting growth associated with higher individual Medicare Advantage membership, partially offset by the decline in stand-alone PDP and Individual Commercial membership.
|
•
|
Services revenues
increased
$52 million
, or
50.0%
, from the
2018 quarter
to
$156 million
for the
2019 quarter
primarily due to service revenue growth from our provider services.
|
•
|
Intersegment revenues
increased
$389 million
, or
7.0%
, from the
2018 quarter
to
$5.9 billion
for the
2019 quarter
primarily due to strong Medicare Advantage membership growth, and higher revenues associated with
|
•
|
The Healthcare Services segment operating cost ratio of
96.6%
for the
2019 quarter
increased
40
basis points from
96.2%
in the 2018 quarter primarily due to investments in our provider services business and a change in the mix of pharmacy spend as specialty drug spending continues to rise as a percentage of total spend.
|
|
Three Months Ended
|
||||||
|
2019
|
|
2018
|
||||
|
(in millions)
|
||||||
Net cash provided by operating activities
|
$
|
896
|
|
|
$
|
3,686
|
|
Net cash provided by (used in) investing activities
|
145
|
|
|
(405
|
)
|
||
Net cash provided by financing activities
|
493
|
|
|
1,532
|
|
||
Increase in cash and cash equivalents
|
$
|
1,534
|
|
|
$
|
4,813
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
2019
Quarter Change |
|
2018
Quarter Change |
||||||||
|
(in millions)
|
||||||||||||||
IBNR (1)
|
$
|
3,922
|
|
|
$
|
3,361
|
|
|
$
|
561
|
|
|
$
|
206
|
|
Reported claims in process (2)
|
1,019
|
|
|
617
|
|
|
402
|
|
|
104
|
|
||||
Other benefits payable (3)
|
1,083
|
|
|
884
|
|
|
199
|
|
|
(17
|
)
|
||||
Total benefits payable
|
$
|
6,024
|
|
|
$
|
4,862
|
|
|
$
|
1,162
|
|
|
$
|
293
|
|
(1)
|
IBNR represents an estimate of benefits payable for claims incurred but not reported (IBNR) at the balance sheet date and includes unprocessed claim inventories. The level of IBNR is primarily impacted by membership levels, medical claim trends and the receipt cycle time, which represents the length of time between when a claim is initially incurred and when the claim form is received and processed (i.e. a shorter time span results in a lower IBNR). IBNR includes unprocessed claims inventories.
|
(2)
|
Reported claims in process represents the estimated valuation of processed claims that are in the post claim adjudication process, which consists of administrative functions such as audit and check batching and handling, as well as amounts owed to our pharmacy benefit administrator which fluctuate due to bi-weekly payments and the month-end cutoff.
|
(3)
|
Other benefits payable primarily include amounts owed to providers under capitated and risk sharing arrangements.
|
|
March 31, 2019
|
|
December 31, 2018
|
|
2019
Quarter Change |
|
2018
Quarter Change |
||||||||
|
(in millions)
|
||||||||||||||
Medicare
|
$
|
1,771
|
|
|
$
|
836
|
|
|
$
|
935
|
|
|
$
|
457
|
|
Commercial and other
|
136
|
|
|
135
|
|
|
1
|
|
|
(27
|
)
|
||||
Military services
|
126
|
|
|
123
|
|
|
3
|
|
|
(17
|
)
|
||||
Allowance for doubtful accounts
|
(78
|
)
|
|
(79
|
)
|
|
1
|
|
|
9
|
|
||||
Total net receivables
|
$
|
1,955
|
|
|
$
|
1,015
|
|
|
$
|
940
|
|
|
$
|
422
|
|
Item 2:
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
(a)
|
None.
|
(b)
|
N/A
|
(c)
|
The following table provides information about our purchases of equity securities that are registered by us pursuant to Section 12 of the Securities Exchange Act of 1934, as amended, during the
three months ended March 31, 2019
:
|
Period
|
Total Number
of Shares Purchased (1)(2) |
|
Average
Price Paid per Share |
|
Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programs (1)(2) |
|
Dollar Value of
Shares that May Yet Be Purchased Under the Plans or Programs (1) |
||||||
January 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
1,026,354,011
|
|
February 2019
|
—
|
|
|
—
|
|
|
—
|
|
|
1,026,354,011
|
|
||
March 2019
|
—
|
|
|
—
|
|
|
—
|
|
|
1,026,354,011
|
|
||
Total
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
|
(1)
|
On
December 14, 2017
, our Board of Directors authorized the repurchase of up to
$3.0 billion
of our common shares expiring on
December 31, 2020
, exclusive of shares repurchased in connection with employee stock plans. Under the current share repurchase authorization, shares may be purchased from time to time at prevailing prices in the open market, by block purchases, through plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, or in privately-negotiated transactions (including pursuant to accelerated share repurchase agreements with investment bankers), subject to certain regulatory restrictions on volume, pricing, and timing.
Our remaining repurchase authorization was approximately
$1.0 billion
as of May 1, 2019.
|
(2)
|
Excludes
0.03 million
shares repurchased in connection with employee stock plans.
|
Item 3:
|
Defaults Upon Senior Securities
|
Item 4:
|
Mine Safety Disclosures
|
Item 5:
|
Other Information
|
Item 6:
|
Exhibits
|
3(i)
|
Restated Certificate of Incorporation of Humana Inc. filed with the Secretary of State of Delaware on November 9, 1989, as restated to incorporate the amendment of January 9, 1992, and the correction of March 23, 1992 (incorporated herein by reference to Exhibit 4(i) to Humana Inc.’s Post-Effective Amendment No. 1 to the Registration Statement on Form S-8 (Reg. No. 33-49305) filed February 2, 1994).
|
By-Laws of Humana Inc., as amended on December 14, 2017 (incorporated herein by reference to Exhibit 3(b) to Humana Inc.’s Current Report on Form 8-K, filed December 14, 2017).
|
|
Amended and Restated Humana Inc. Stock Incentive Plan (incorporated herein by reference to Appendix A to Humana Inc.’s Proxy Statement with respect to the Annual Meeting of Stockholders held on April 18, 2019).
|
|
Form of Company’s Restricted Stock Unit Agreement and Agreement not to Compete or Solicit under the Amended and Restated Stock Incentive Plan (with retirement provisions).
|
|
Form of Company’s Restricted Stock Unit Agreement and Agreement not to Compete or Solicit under the Amended and Restated Stock Incentive Plan (without retirement provisions).
|
|
Form of Company’s Restricted Stock Unit Agreement with Performance Vesting and Agreement not to Compete or Solicit under the Amended and Restated Stock Incentive Plan.
|
|
Form of Company’s Incentive Stock Option Agreement and Agreement not to Compete or Solicit under the Amended and Restated Stock Incentive Plan.
|
|
Form of Company’s Stock Option Agreement and Agreement not to Compete or Solicit under the Amended and Restated Stock Incentive Plan (Non-Qualified Stock Options).
|
|
Principal Executive Officer certification pursuant to Section 302 of Sarbanes–Oxley Act of 2002.
|
|
Principal Financial Officer certification pursuant to Section 302 of Sarbanes–Oxley Act of 2002.
|
|
Principal Executive Officer and Principal Financial Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101
|
The following materials from Humana Inc.'s Quarterly Report on Form 10-Q formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets at March 31, 2019 and December 31, 2018; (ii) the Condensed Consolidated Statements of Income for the three months ended March 31, 2019 and 2018; (iii) the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2019; (iv) the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018; and (v) Notes to Condensed Consolidated Financial Statements.
|
|
|
HUMANA INC.
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date:
|
May 1, 2019
|
By:
|
/s/ CYNTHIA H. ZIPPERLE
|
|
|
|
Cynthia H. Zipperle
|
|
|
|
Senior Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer)
|
|
|
|
|
Date:
|
May 1, 2019
|
|
|
Signature:
|
/s/ Bruce D. Broussard
|
|
Bruce D. Broussard
Principal Executive Officer
|
|
|
|
Date:
|
|
May 1, 2019
|
|
|
|
Signature:
|
|
/s/ Brian A. Kane
|
|
|
Brian A. Kane
Principal Financial Officer
|
/s/ Bruce D. Broussard
|
Bruce D. Broussard
Principal Executive Officer
|
|
May 1, 2019
|
|
/s/ Brian A. Kane
|
Brian A. Kane
Principal Financial Officer
|
|
May 1, 2019
|