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Humana, the No. 2 seller of private Medicare policies, has been battling lower reimbursements from the U.S. government even as it boosts enrollment by double-digit percentages. Health insurers, including Louisville, Ky.-based Humana, are facing a 4% reduction in payment rates for Medicare Advantage programs this year, though relief is on the horizon. The U.S. government said it would increase payments by 1.25% in 2016, reversing an earlier proposal that would have cut payments yet again. That will help Humana’s bottom line, which has been squeezed recently by operating expenses that grew 18.7% year-over-year as of the start of 2015. Humana has been working with the U.S. government on its new value-based care initiatives, which would tie reimbursements for doctors and hospitals to quality outcomes. The Department of Health and Human Services is aiming to transition 30% of traditional, or fee-for-service, Medicare payments to value-based payment models by the end of 2016. Humana CEO Bruce Broussard said about 55% of the company’s members are connected to doctors using some form of this reimbursement standard, which has lowered costs 20% among those members.

Company Info

Bruce D. Broussard
Health Care: Insurance and Managed Care
Health Care
HQ Location
Louisville, KY
Years on List21
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Key Financials (last fiscal year)

$ millions% change
Revenues ($M)48,50017.4%
Profits ($M)1,147-6.8%
Total Stockholder Equity9,646-
Market Value (as of March 31, 2015)26,633-

Profit Ratios

Profit as % of Revenues2.4%
Profits as % of Assets4.9%
Profits as % of Stockholder Equity11.9%

Earnings Per Share (last fiscal year)

Earnings Per Share ($)7.36
EPS % Change (from 2013)-4.8%
EPS % Change (5 year annual rate)3.7%
EPS % Change (10 year annual rate)15.6%

Total Return

Total Return to Investors (2014)40.5%
Total Return to Investors (5 year, annualized)27.8%
Total Return to Investors (10 year, annualized)17.6%