Humana Inc. is one of the nation’s largest publicly traded managed healthcare companies with more than 6.2 million medical members primarily located in 15 states and Puerto Rico, including 1.1 million government members via the Humana Military Healthcare Services Program, and 1.7 million public sector enrollees. Headquartered in Louisville, the company employs approximately 17,000 individuals.

The company offers managed healthcare products that integrate medical management with the delivery of healthcare services through a network of providers. This network may share financial risk or have incentives to deliver quality medical services in a cost-effective manner. These products are marketed primarily through health maintenance organizations (HMOs) and preferred provider organizations (PPOs) that encourage or require the use of contracting providers. Humana also offers various specialty and administrative service products including dental, group life and worker’s compensation.

Plans to merge Humana with United HealthCare of Minneapolis were announced last spring, but fell through in August. The healthcare sector, managed care in particular, has been one of uncertainty of late, especially in the eyes of Wall Street analysts. HMOs are losing revenue and are starting to see a decline in patients as well. Humana’s size (6.2 million members) has enabled the company to achieve strong results in an otherwise flagging industry.

In 1998, the company focused on profitable growth and cost control and was able to achieve the following results: a 21 percent increase in earnings per share, excluding charges and other costs; a record $9.8 billion in revenue, a 22 percent increase over 1997; an improved medical expense ratio year-over-year excluding 1997 acquisitions, and a steady reduction in administrative cost ratio. The company has now achieved eight consecutive quarters of sequential earnings improvement and seven consecutive quarters of year-over-year earnings growth, a record unmatched in the healthcare industry in recent times.