Humana 2015 Annual Report Download - page 69
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61
Change
2014 2013 Dollars Percentage
(in millions)
Premiums and Services Revenue:
Premiums:
Individual Medicare Advantage $ 25,782 $ 22,481 $ 3,301 14.7 %
Group Medicare Advantage 5,490 4,710 780 16.6 %
Medicare stand-alone PDP 3,404 3,033 371 12.2 %
Total Retail Medicare 34,676 30,224 4,452 14.7 %
Individual commercial 3,265 1,160 2,105 181.5 %
State-based Medicaid 1,255 328 927 282.6 %
Individual specialty 256 210 46 21.9 %
Total premiums 39,452 31,922 7,530 23.6 %
Services 39 18 21 116.7 %
Total premiums and services revenue $ 39,491 $ 31,940 $ 7,551 23.6 %
Income before income taxes $ 1,339 $ 1,490 $ (151) (10.1)%
Benefit ratio 84.9% 85.1% (0.2)%
Operating cost ratio 11.6% 10.1% 1.5 %
Pretax Results
• Retail segment pretax income was $1.3 billion in 2014, a decrease of $151 million, or 10.1%, compared to
2013 primarily driven by investment spending for health care exchanges and state-based contracts and higher
specialty prescription drug costs associated with a new treatment for Hepatitis C, partially offset by Medicare
Advantage and individual commercial medical membership growth as well as increased membership in our
clinical programs.
Enrollment
• Individual Medicare Advantage membership increased 359,200 members, or 17.4%, from December 31, 2013
to December 31, 2014 reflecting net membership additions, particularly for our HMO offerings, for the 2014
plan year.
• Fully-insured group Medicare Advantage membership increased 60,600 members, or 14.1%, from
December 31, 2013 to December 31, 2014 primarily due to the addition of a new large group account.
• Medicare stand-alone PDP membership increased 718,100 members, or 21.9%, from December 31, 2013 to
December 31, 2014 reflecting net membership additions, primarily for our Humana-Walmart plan offering,
for the 2014 plan year.
• Individual commercial medical membership increased 548,000 members, or 91.3%, from December 31, 2013
to December 31, 2014 primarily reflecting new sales, both on-exchange and off-exchange, of plans compliant
with the Health Care Reform Law.
• State-based Medicaid membership increased 231,300 members, or 270.5%, from December 31, 2013 to
December 31, 2014 primarily driven by the addition of members under our Florida Medicaid and Florida
Long-Term Support Services contracts as well as 18,300 dual eligible members from state-based contracts in
Virginia and Illinois.
• Individual specialty membership increased 123,300 members, or 11.8%, from December 31, 2013 to
December 31, 2014 primarily driven by increased membership in dental and vision offerings.