Humana 2015 Annual Report Download - page 65

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57
Intersegment revenues
• Intersegment revenues increased $4.1 billion, or 21.6%, from 2014 to $22.9 billion for 2015 primarily due to
growth in our Medicare membership which resulted in higher utilization of our Healthcare Services segment
businesses.
Operating costs
• The Healthcare Services segment operating cost ratio of 95.2% for 2015 decreased 40 basis points from 95.6%
for 2014 primarily due to lower operating costs in our pharmacy business together with discretionary cost
reductions across the segment, partially offset by the increasing percentage of pharmacy business associated
with lower margin specialty drugs. Improving operating efficiency in the pharmacy business was primarily
driven by lower cost of goods associated with increased purchasing scale and lower cost-to-fill primarily due
to improvements in technology.