Humana 2015 Annual Report Download - page 81

73
In 2015, we paid the federal government $867 million for the annual health insurance industry fee and expect to
pay a higher amount in 2016 given an increase in market share. The Consolidated Appropriations Act, 2016, enacted
on December 18, 2015, included a one-time one year suspension in 2017 of the health insurer fee.
Regulatory Requirements
For a detailed discussion of our regulatory requirements, including aggregate statutory capital and surplus as well
as dividends paid from the subsidiaries to the parent, please refer to Note 15 to the consolidated financial statements
included in Item 8. – Financial Statements and Supplementary Data.
Contractual Obligations
We are contractually obligated to make payments for years subsequent to December 31, 2015 as follows:
Payments Due by Period
Total
Less than
1 Year 1-3 Years 3-5 Years
More than
5 Years
(in millions)
Debt $ 4,099 $ 299 $ 800 $ 400 $ 2,600
Interest (1) 2,539 188 342 244 1,765
Operating leases (2) 697 173 286 148 90
Purchase obligations (3) 150 74 74 2 —
Future policy benefits payable and other
long-term liabilities (4) 2,578 79 462 204 1,833
Total $ 10,063 $ 813 $ 1,964 $ 998 $ 6,288
(1) Interest includes the estimated contractual interest payments under our debt agreements.
(2) We lease facilities, computer hardware, and other furniture and equipment under long-term operating leases
that are noncancelable and expire on various dates through 2026. We sublease facilities or partial facilities to
third party tenants for space not used in our operations which partially mitigates our operating lease
commitments. An operating lease is a type of off-balance sheet arrangement. Assuming we acquired the asset,
rather than leased such asset, we would have recognized a liability for the financing of these assets. See also
Note 16 to the consolidated financial statements included in Item 8. – Financial Statements and Supplementary
Data.
(3) Purchase obligations include agreements to purchase services, primarily information technology related
services, or to make improvements to real estate, in each case that are enforceable and legally binding on us
and that specify all significant terms, including: fixed or minimum levels of service to be purchased; fixed,
minimum or variable price provisions; and the appropriate timing of the transaction. Purchase obligations
exclude agreements that are cancelable without penalty.
(4) Includes future policy benefits payable ceded to third parties through 100% coinsurance agreements as more
fully described in Note 19 to the consolidated financial statements included in Item 8. – Financial Statements
and Supplementary Data. We expect the assuming reinsurance carriers to fund these obligations and reflected
these amounts as reinsurance recoverables included in other long-term assets on our consolidated balance sheet.
Amounts payable in less than one year are included in trade accounts payable and accrued expenses in the
consolidated balance sheet.
Off-Balance Sheet Arrangements
As of December 31, 2015, we were not involved in any special purpose entity, or SPE, transactions. For a detailed
discussion off-balance sheet arrangements, please refer to Note 16 to the consolidated financial statements included in
Item 8. – Financial Statements and Supplementary Data.