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1、newsreleaseHumanaInc.500WestMainStreetP.O.Box1438Louisville,KY40202http:/FORMOREINFORMATIONCONTACT:LisaStonerHumanaInvestorRelations(502)580-2652e-mail:LSMarkTaylorHumanaCorporateCommunications(317)753-0345e-mail:MTHumanaReportsSecondQuarter2024FinancialResults;AffirmsFullYearAdjusted2024FinancialGu

2、idanceReports2Q24earningspershare(EPS)of$5.62onaGAAPbasis,AdjustedEPSof$6.96;reportsYTD2024EPSof$11.74onaGAAPbasis,$14.19onanAdjustedbasisRevises FY 2024 EPS guidance to approximately$12.81(previously approximately$13.93)on a GAAP basis,whileaffirmingAdjustedEPSofapproximately$16.00;affirmsFY2024Ins

3、urancesegmentbenefitratioofapproximately90percentRaises2024individualMedicareAdvantageannualmembershipgrowthby75,000tonowanticipateannualgrowthofapproximately225,000,or4.2percentPublishesLetterfromtheCEOandpreparedmanagementremarkstoInvestorRaheadofthismornings9:00a.m.ETquestionandanswersessiontodis

4、cussitsfinancialresultsforthequarterandexpectationsforfutureearningsLOUISVILLE,KY(July31,2024)HumanaInc.(NYSE:HUM)todayreportedconsolidatedpretaxresultsanddilutedearningspershare(EPS)forthequarterendedJune30,2024(2Q24)versusthequarterendedJune30,2023(2Q23)andforthesixmonthsendedJune30,2024(YTD2024)v

5、ersusthesixmonthsendedJune30,2023(YTD2023)asnotedinthetablesbelow.1Consolidatedincomebeforeincometaxesandequityinnetearnings(pretaxresults)Inmillions2Q24(a)2Q23(a)YTD2024(a)YTD2023(a)GenerallyAcceptedAccountingPrinciples(GAAP)$918$1,262$1,932$2,876Amortizationassociatedwithidentifiableintangibles15

6、16 31 34Put/callvaluationadjustmentsassociatedwiththecompanysnon-consolidatingminorityinterestinvestments68 53 199 107Impactofexitofemployergroupcommercialmedicalproductsbusiness59 45 60(37)Valuecreationinitiatives68 97 Transactionandintegrationcosts 4(48)Accruedchargerelatedtocertainanticipatedliti

7、gationexpenses 90 90Changeinfairmarketvalueofpublicly-tradedequitysecurities (1)Adjusted(non-GAAP)$1,128$1,470$2,319$3,021Dilutedearningspershare(EPS)2Q24(a)2Q23(a)YTD2024(a)YTD2023(a)GAAP$5.62$7.66$11.74$17.54Amortizationassociatedwithidentifiableintangibles0.13 0.13 0.25 0.27Put/callvaluationadjus

8、tmentsassociatedwiththecompanysnon-consolidatingminorityinterestinvestments0.57 0.43 1.65 0.85Impactofexitofemployergroupcommercialmedicalproductsbusiness0.49 0.35 0.50(0.30)Valuecreationinitiatives0.56 0.80 Transactionandintegrationcosts 0.03 (0.38)Accruedchargerelatedtocertainanticipatedlitigation

9、expenses 0.72 0.72Changeinfairmarketvalueofpublicly-tradedequitysecurities (0.01)Cumulativenettaximpactofnon-GAAPadjustments(0.41)(0.38)(0.75)(0.37)Adjusted(non-GAAP)$6.96$8.94$14.19$18.32RefertotheFootnotessectionincludedhereinforfurtherexplanationofdisclosuresforAdjusted(non-GAAP)financialmeasures

10、,aswellasadditionalreconciliations.Pleaserefertothetablesabove,aswellastheconsolidatedandsegmenthighlightsectionsthatfollowforadditionaldiscussionofthefactorsimpactingtheyear-over-yearcomparisons.Inaddition,asummaryofkeyconsolidatedandsegmentstatisticscomparing2Q24to2Q23andYTD2024toYTD2023follows.2H

11、umanaInc.SummaryofResults($inmillions,exceptpershareamounts)2Q24(a)2Q23(a)YTD2024(a)YTD2023(a)CONSOLIDATEDRevenues$29,540$26,747$59,151$53,489Revenues-Adjusted(non-GAAP)$29,380$25,733$58,711$51,385Pretaxresults$918$1,262$1,932$2,876Pretaxresults-Adjusted(non-GAAP)$1,128$1,470$2,319$3,021EPS$5.62$7.6

12、6$11.74$17.54EPS-Adjusted(non-GAAP)$6.96$8.94$14.19$18.32Benefitsexpenseratio 89.0%86.3%88.9%85.9%Benefitsexpenseratio-Adjusted(non-GAAP)88.9%86.1%88.9%86.0%Operatingcostratio 10.8%11.8%10.6%11.5%Operatingcostratio-Adjusted(non-GAAP)10.5%11.2%10.4%11.0%Operatingcashflows$1,636$9,863Operatingcashflow

13、s-Adjusted(non-GAAP)(b)$1,636$2,861Parentcompanycashandshortterminvestments$1,256$1,109Debt-to-totalcapitalization 43.6%41.0%DaysinClaimsPayable(DCP)41.642.6INSURANCESEGMENTRevenues$28,525$25,875$57,224$51,778Revenues-Adjusted(non-GAAP)$28,365$24,861$56,784$49,675Benefitsexpenseratio 89.5%86.8%89.4%

14、86.4%Benefitsexpenseratio-Adjusted(non-GAAP)89.4%86.6%89.4%86.5%Operatingcostratio 8.4%9.9%8.4%9.6%Operatingcostratio-Adjusted(non-GAAP)8.4%9.2%8.3%9.1%Incomefromoperations$763$1,031$1,661$2,358Incomefromoperations-Adjusted(non-GAAP)$826$1,172$1,730$2,422CENTERWELLSEGMENTRevenues$4,947$4,530$9,765$9

15、,035Operatingcostratio 92.0%92.6%92.5%92.1%Incomefromoperations$338$287$620$617Incomefromoperations-Adjusted(non-GAAP)(c)$394$337$729$716RefertotheFootnotessectionincludedhereinforfurtherexplanationofdisclosuresforAdjusted(non-GAAP)financialmeasures,aswellasreconciliations.3FY2024EarningsGuidanceHum

16、anareviseditsGAAPEPSguidancefortheyearendingDecember31,2024(FY2024)toapproximately$12.81fromapproximately$13.93,whileaffirmingitsAdjustedEPSguidanceofapproximately$16.00.AdditionalFY2024guidancepointsareincludedonpage15ofthisearningsrelease.DilutedearningspershareFY2024GuidanceGAAPapproximately$12.8

17、1Amortizationofidentifiableintangibles0.50Put/callvaluationadjustmentsassociatedwiththecompanysnon-consolidatingminorityinterestinvestments(d)1.65Impactofexitofemployergroupcommercialmedicalproductsbusiness1.21Valuecreationinitiatives(d)0.80Cumulativenettaximpactofnon-GAAPadjustments(0.97)Adjusted(n

18、on-GAAP)FY2024projectedapproximately$16.00RefertotheFootnotessectionincludedhereinforfurtherexplanationofdisclosuresforAdjusted(non-GAAP)financialmeasures,aswellasadditionalreconciliations.HumanaConsolidatedHighlightsHumanaInc.SummaryofResults($inmillions,exceptpershareamounts)2Q24(a)2Q23(a)YTD2024(

19、a)YTD2023(a)CONSOLIDATEDRevenues$29,540$26,747$59,151$53,489Revenues-Adjusted(non-GAAP)$29,380$25,733$58,711$51,385Pretaxresults$918$1,262$1,932$2,876Pretaxresults-Adjusted(non-GAAP)$1,128$1,470$2,319$3,021EPS$5.62$7.66$11.74$17.54EPS-Adjusted(non-GAAP)$6.96$8.94$14.19$18.32Benefitsexpenseratio 89.0

20、%86.3%88.9%85.9%Benefitsexpenseratio-Adjusted(non-GAAP)88.9%86.1%88.9%86.0%Operatingcostratio 10.8%11.8%10.6%11.5%Operatingcostratio-Adjusted(non-GAAP)10.5%11.2%10.4%11.0%Operatingcashflows$1,636$9,863Operatingcashflows-Adjusted(non-GAAP)(b)$1,636$2,861Parentcompanycashandshortterminvestments$1,256$

21、1,109Debt-to-totalcapitalization 43.6%41.0%DaysinClaimsPayable(DCP)41.642.6RefertotheFootnotessectionincludedhereinforfurtherexplanationofdisclosuresforAdjusted(non-GAAP)financialmeasures,aswellasreconciliations.4ConsolidatedRevenuesThefavorableyear-over-yearquarterandYTDGAAPconsolidatedrevenuescomp

22、arisonswereprimarilydrivenbythefollowingfactors:higherpermemberMedicarepremiums,andMedicareAdvantageandstate-basedcontractsmembershipgrowth.Thesefactorswerepartiallyoffsetbythecontinueddeclineinthecompanysgroupcommercialmedicalandstand-alonePDPmembership.Refer to the Footnotes section included herei

23、n for a reconciliation of GAAP to Adjusted(non-GAAP)consolidatedrevenuesfortherespectiveperiods.ConsolidatedBenefitRatioTheyear-over-yearquarterlyandYTDincreasesintheGAAPconsolidatedratioprimarilyreflectedthefollowing:thecontinuedimpactofelevatedMedicareAdvantagemedicalcosttrendsin2Q24andYTD2024,and

24、alesserfavorableimpactfrompriorperiodmedicalclaimsreservedevelopment(priorperioddevelopment)in2024.Thesefactorswerepartiallyoffsetbytheimpactofthepricingandbenefitdesignofthecompanys2024MedicareAdvantageproducts,whichincludedareductioninbenefitsinresponsetothenetimpactofthe2024finalratenoticeandthei

25、nitialemergenceofincreasedmedicalcosttrendsin2023.Furthermore,theyear-over-yearcomparisoncontinuestoreflectashiftinlineofbusinessmix,withgrowthinMedicareAdvantageandstate-basedcontractsandothermembership,whichcancarryahigherbenefitratio.RefertotheFootnotessectionincludedhereinforareconciliationofGAA

26、PtoAdjusted(non-GAAP)consolidatedbenefitratiosfortherespectiveperiods.PriorPeriodMedicalClaimsReserveDevelopment(PriorPeriodDevelopment)ConsolidatedFavorablePriorPeriodDevelopment$inmillionsBasispoints(bps)FirstQuarterSecondQuarterYTDPriorPeriodDevelopmentfromprioryearsrecognizedin2024(e)$535$134$66

27、9DecreasetoGAAPbenefitratio(190bps)(50bps)(120bps)PriorPeriodDevelopmentfromprioryearsrecognizedin2023(e)$522$232$754DecreasetoGAAPbenefitratio(200bps)(90bps)(150bps)ConsolidatedOperatingCostRatioTheyear-over-yearquarterlyandYTDdecreasesintheGAAPconsolidatedoperatingcostratiofromtherespective2023per

28、iodsprimarilyrelatedtothefollowing:scaleefficienciesassociatedwithgrowthinthecompanysMedicareAdvantagemembership,administrativecostefficienciesresultingfromthecompanysvaluecreationinitiatives,5lower commission expense for brokers in 2024 compared to 2023 as a result of the significant individualMedi

29、careAdvantagemembershipgrowthin2023,andtheimpactoftheaccruedchargerelatedtocertainanticipatedlitigationexpensesincludedin2Q23andYTD2023results.Thesefactorswerepartiallyoffsetbytheimpactofchargesrelatedtovaluecreationinitiativesin2Q24andYTD2024.Thesechargeswererecordedatthecorporatelevelandnotallocat

30、edtothesegments.Refer to the Footnotes section included herein for a reconciliation of GAAP to Adjusted(non-GAAP)consolidatedoperatingcostratiosfortherespectiveperiods.BalancesheetDaysinclaimspayable(DCP)of41.6daysatJune30,2024representedadecreaseof0.9dayfrom42.5daysatMarch31,2024,andadecreaseof1.0d

31、ayfrom42.6daysatJune30,2023.The0.9daysequentialdecreasewasprimarilydrivenbyareturntomorenormalizedclaimssubmissionpatternsfollowingtheChangeHealthcaredisruptioninFebruary2024.The1.0dayyear-over-yeardecreasewasprimarilydrivenbylowerreserverequirementsinprovider-capitationaccrualsduetolowerperformance

32、-basedpaymentexpectations.Humanasdebt-to-totalcapitalizationatJune30,2024decreased150basispointsto43.6percentfrom45.1percentatMarch31,2024primarilydrivenby2Q24netearningsandthenetrepaymentofcommercialpaperbalances.OperatingcashflowsTheyear-over-yeardeclineinGAAPoperatingcashflowsprimarilyreflectedth

33、esignificantimpactoftheearlyreceiptofthe$7.00billionJuly2023premiumpaymentfromCMSinJune2023(b),resultinginsevenpaymentsbeingreceivedinYTD2023comparedtoonlysixreceivedinYTD2024.Further,YTD2023operatingcashflowsincludedtheCMSmid-yearsettlementof$2.2billionreceivedinJune2023,whereasthe2024settlementwas

34、notreceiveduntilJuly.SharerepurchasesYTD2024Totalnumberofsharesrepurchased1,948,690Averagepricepaidpershare$384.65RemainingrepurchaseauthorizationasofJuly30,2024$2.93billionHumanasInsuranceSegmentThissegmentiscomprisedofinsuranceproductsservingMedicareandstate-basedcontractbeneficiaries,aswellasindi

35、vidualsandemployers.ThesegmentalsoincludesthecompanysPharmacyBenefitManager,orPBM,business.6InsuranceSegmentResults($inmillions)2Q24(a)2Q23(a)YTD2024(a)YTD2023(a)Revenues$28,525$25,875$57,224$51,778Revenues-Adjusted(non-GAAP)$28,365$24,861$56,784$49,675Benefitsexpenseratio 89.5%86.8%89.4%86.4%Benefi

36、tsexpenseratio-Adjusted(non-GAAP)89.4%86.6%89.4%86.5%Operatingcostratio 8.4%9.9%8.4%9.6%Operatingcostratio-Adjusted(non-GAAP)8.4%9.2%8.3%9.1%Incomefromoperations$763$1,031$1,661$2,358Incomefromoperations-Adjusted(non-GAAP)$826$1,172$1,730$2,422RefertotheFootnotessectionincludedhereinforfurtherexplan

37、ationofdisclosuresforAdjusted(non-GAAP)financialmeasures,aswellasrecalculations.InsuranceSegmentRevenuesTheyear-over-yearquarterandYTDincreasesinGAAPsegmentrevenuesfromtherespective2023periodsprimarilyreflectedthefollowingitems:higherpermemberMedicarepremiums,andMedicareAdvantageandstate-basedcontra

38、ctsmembershipgrowth.Thesefactorswerepartiallyoffsetbythecontinueddeclineinthecompanysgroupcommercialmedicalandstand-alonePDPmembership.RefertotheFootnotessectionincludedhereinforareconciliationofGAAPtoAdjusted(non-GAAP)Insurancesegmentrevenuesfortherespectiveperiods.InsuranceSegmentBenefitRatioTheye

39、ar-over-yearquarterandYTDincreasesintheGAAPsegmentratioprimarilyreflectedthefollowing:thecontinuedimpactofelevatedMedicareAdvantagemedicalcosttrendsin2Q24andYTD2024,andalesserfavorableimpactfrompriorperioddevelopmentin2024.Thesefactorswerepartiallyoffsetbytheimpactofthepricingandbenefitdesignoftheco

40、mpanys2024MedicareAdvantageproducts,whichincludedareductioninbenefitsinresponsetothenetimpactofthe2024finalratenoticeandtheinitialemergenceofincreasedmedicalcosttrendsin2023.Furthermore,theyear-over-yearcomparisoncontinuestoreflectashiftinlineofbusinessmix,withgrowthinMedicareAdvantageandstate-based

41、contractsandothermembership,whichcancarryahigherbenefitratio.RefertotheFootnotessectionincludedhereinforareconciliationofGAAPtoAdjusted(non-GAAP)Insurancesegmentbenefitratiosfortherespectiveperiods.7InsuranceSegmentOperatingCostRatioTheyear-over-yearquarterandYTDdecreasesintheGAAPsegmentoperatingcos

42、tratiofromtherespective2023periodsprimarilyrelatedtothefollowing:scaleefficienciesassociatedwithgrowthinthecompanysindividualMedicareAdvantagemembership,administrativecostefficienciesresultingfromthecompanysvaluecreationinitiatives,lowercommissionexpenseforbrokersin2024comparedto2023asaresultofthesi

43、gnificantindividualMedicareAdvantagemembershipgrowthin2023,and theimpactoftheaccruedchargerelatedtocertainanticipatedlitigationexpensesincludedin2Q23andYTD2023results.RefertotheFootnotessectionincludedhereinforareconciliationofGAAPtoAdjusted(non-GAAP)Insurancesegmentoperatingcostratiosfortherespecti

44、veperiods.HumanasCenterWellSegmentThissegmentincludespharmacy(excludingthePBMoperations),primarycare,andhomesolutions.Thesegmentalsoincludestheimpact of non-consolidating minority interest investments related to the companys strategic partnerships with Welsh,Carson,Anderson&Stowe(WCAS)todevelopandop

45、eratesenior-focused,payor-agnostic,primarycarecenters,aswellastheGentiva(formerlyKindred)Hospiceoperations.Servicesofferedbythissegmentaredesignedtoenhancetheoverallhealthcareexperience.Theseservicesmayleadtolowerutilizationassociatedwithimprovedmemberhealthand/orlowerdrugcosts.CenterWellSegmentResu

46、lts($inmillions)2Q242Q23YTD2024YTD2023Revenues$4,947$4,530$9,765$9,035Operatingcostratio 92.0%92.6%92.5%92.1%Incomefromoperations$338$287$620$617Incomefromoperations-Adjusted(non-GAAP)(c)$394$337$729$716RefertotheFootnotessectionincludedhereinforfurtherexplanationofdisclosuresforAdjusted(non-GAAP)fi

47、nancialmeasures,aswellasreconciliations.CenterWellSegmentRevenuesThefavorableyear-over-yearquarterandYTDCenterWellsegmentrevenuescomparisonswereprimarilyimpactedbythefollowingfactors:greater intersegment revenues associated with the Home Solutions business in 2Q24 and YTD 2024 ascomparedtorespective

48、periodsin2023asaresultoftheexpansionofthevalue-basedhomecaremodel,andhigher revenues associated with growth in the companys Primary Care business,partially offset by theimpactofthev28riskmodelrevision.CenterWellSegmentOperatingCostRatioTheyear-over-yearquarterlydecreaseinthesegmentsoperatingcostrati

49、ofrom2Q23wasfavorablyimpactedbythefollowingfactors:administrativecostefficienciesresultingfromthecompanysvaluecreationinitiatives,and8positivepriorperioddevelopmentwithinthePrimaryCareOrganization,partiallyoffsetbytheunfavorableimpactofthev28riskmodelrevision.Theyear-over-yearincreaseintheYTD2024seg

50、mentoperatingcostratioprimarilyresultedfromtheunfavorableimpactofthev28riskmodelrevisiontothecompanysPrimaryCarebusiness.SeeadditionaloperationalmetricsfortheCenterWellsegmentonpagesS-14throughS-16ofthestatisticalsupplementincludedinthisearningsrelease.ConferenceCallHumanawillhostalivequestionandans

51、wersessionforanalystsat9:00a.m.Easterntimetodaytodiscussitsfinancialresultsforthequarterandthecompanysexpectationsforfutureearnings.Inadvanceofthequestionandanswersession,HumanawillpostaLetterfromtheCEOandpreparedmanagementremarkstotheQuarterlyResultssectionofitsInvestorRelationspage(https:/humana.g

52、cs- those unable to participate in the live event,the archive will be available in the Historical Webcasts andPresentations section of the Investor Relations page(https:/humana.gcs- to more accurately compare and analyze the companys core operating performance over time.Consequently,management uses

53、these non-GAAP(Adjusted)financial measures as consistent and uniform indicators of the companys corebusinessoperationsfromperiodtoperiod,aswellasforplanninganddecision-makingpurposesandindeterminationofincentivecompensation.Non-GAAP(Adjusted)financialmeasuresshouldbeconsideredinadditionto,butnotasas

54、ubstitutefor,orsuperiorto,financialmeasurespreparedinaccordancewithGAAP.AllfinancialmeasuresinthisearningsreleaseareinaccordancewithGAAPunlessotherwiseindicated.PleaserefertothefootnotesforadetaileddescriptionofeachitemadjustedoutofGAAPfinancialmeasurestoarriveatnon-GAAP(Adjusted)financialmeasures.(

55、a)Fortheperiodscoveredinthisearningspressrelease,thefollowingitemsareexcludedfromthenon-GAAPfinancialmeasuresdescribedabove,asapplicable:Amortizationassociatedwithidentifiableintangibles-Sinceamortizationvariesbasedonthesizeandtimingofacquisitionactivity,managementbelievesthisexclusionprovidesamorec

56、onsistentanduniformindicatorofperformancefromperiodtoperiod.Forallperiodsshownwithinthisearningsrelease,GAAPmeasuresaffectedincludeconsolidatedpretaxresults,EPS,andInsuranceandCenterWellsegmentsincomefromoperations.Thetablebelowdisclosesrespectiveperiodamortizationexpenseforeachsegment:92Q242Q23YTD2

57、024YTD2023Insurancesegment$4$6$9$11CenterWellsegment$11$10$22$23Put/callvaluationadjustmentsassociatedwiththecompanysnon-consolidatingminorityinterestinvestments-TheseamountsaretheresultoffairvaluemeasurementsassociatedwiththecompanysPrimaryCareOrganizationstrategicpartnership and are unrelated to t

58、he companys core business operations.For all periods shown within this earningsrelease,GAAPmeasuresaffectedincludeconsolidatedpretaxresultsandEPS.Impactofexitofemployergroupcommercialmedicalproductsbusiness-Theseamountsrelatetoactivityfromtheexitoftheemployergroupcommercialmedicalproductsbusinessasa

59、nnouncedbyHumanaonFebruary23,2023.Forallperiodsshown within this earnings release,GAAP measures affected include consolidated pretax results,EPS,consolidatedrevenues,consolidatedbenefitratio,consolidatedoperatingcostratio,Insurancesegmentrevenues,Insurancesegmentbenefitratio,Insurancesegmentoperatin

60、gcostratio,andInsurancesegmentincomefromoperations.Valuecreationinitiatives-Thesechargesrelatetothecompanysongoinginitiativetodriveadditionalvaluefortheenterprisethroughcostsaving,productivityinitiatives,andvaluecreationfrompreviousinvestments,andprimarilyconsistofassetimpairmentandseverancecharges.

61、For2Q24andYTD2024,GAAPmeasuresaffectedinthisreleaseincludeconsolidatedpretaxresults,EPS,andtheconsolidatedoperatingcostratio.Transactionandintegrationcosts-ThetransactionandintegrationcostsprimarilyrelatetotheacquisitionofKindredatHomein2021andthesubsequentdivestitureofGentiva(formerlyKindred)Hospic

62、ein2022.For2Q23andYTD2023,GAAPmeasuresaffectedincludeconsolidatedpretaxresults,EPS,andtheconsolidatedoperatingcostratio.Accruedchargerelatedtocertainanticipatedlitigationexpenses-Thischargerelatestocertainanticipatedexpensesthecompany has accrued in connection with a legal matter.For 2Q23 and YTD 20

63、23,GAAP measures affected includeconsolidatedpretaxresults,EPS,theconsolidatedandInsurancesegmentoperatingcostratios,andInsurancesegmentincomefromoperations.Changeinfairmarketvalueofpublicly-tradedequitysecurities-Thesegainsandlossesarearesultofmarketandeconomicconditionsthatareunrelatedtothecompany

64、scorebusinessoperations.ForYTD2023,GAAPmeasuresaffectedincludeconsolidatedpretaxresults,EPS,andconsolidatedrevenues(specificallyinvestmentincome).Cumulativenettaximpactofnon-GAAPadjustments-Thisadjustmentrepresentsthecumulativenetimpactofthecorrespondingtaxbenefitorexpenserelatedtotheaforementionedi

65、temsexcludedfromtheapplicableGAAPmeasures.Forallperiodspresentedinthisearningsrelease,EPSisthesoleGAAPmeasureaffected.Inadditiontothereconciliationsshownonpage2ofthisrelease,thefollowingarereconciliationsofGAAPtoAdjusted(non-GAAP)measuresdescribedaboveanddisclosedwithinthisearningsrelease:RevenuesRe

66、venues-CONSOLIDATED(inmillions)2Q242Q23YTD2024YTD2023GAAP$29,540$26,747$59,151$53,489Changeinfairmarketvalueofpublicly-tradedequitysecurities (1)Impactofexitofemployergroupcommercialmedicalproductsbusiness(160)(1,014)(440)(2,103)Adjusted(non-GAAP)$29,380$25,733$58,711$51,385Revenues-INSURANCESEGMENT

67、(inmillions)2Q242Q23YTD2024YTD2023GAAP$28,525$25,875$57,224$51,778Impactofexitofemployergroupcommercialmedicalproductsbusiness(160)(1,014)(440)(2,103)Adjusted(non-GAAP)$28,365$24,861$56,784$49,67510BenefitRatioBenefitratio-CONSOLIDATED2Q242Q23YTD2024YTD2023GAAP 89.0%86.3%88.9%85.9%Impactofexitofempl

68、oyergroupcommercialmedicalproductsbusiness(0.1)%(0.2)%0.1%Adjusted(non-GAAP)88.9%86.1%88.9%86.0%Benefitratio-INSURANCESEGMENT2Q242Q23YTD2024YTD2023GAAP 89.5%86.8%89.4%86.4%Impactofexitofemployergroupcommercialmedicalproductsbusiness(0.1)%(0.2)%0.1%Adjusted(non-GAAP)89.4%86.6%89.4%86.5%OperatingCostR

69、atioOperatingcostratio-CONSOLIDATED2Q242Q23YTD2024YTD2023GAAP 10.8%11.8%10.6%11.5%Impactofexitofemployergroupcommercialmedicalproductsbusiness(0.1)%(0.2)%(0.1)%(0.3)%Valuecreationinitiatives(0.2)%(0.1)%Accruedchargerelatedtocertainanticipatedlitigationexpenses%(0.4)%(0.2)%Adjusted(non-GAAP)10.5%11.2

70、%10.4%11.0%Operatingcostratio-INSURANCESEGMENT2Q242Q23YTD2024YTD2023GAAP 8.4%9.9%8.4%9.6%Impactofexitofemployergroupcommercialmedicalproductsbusiness%(0.3)%(0.1)%(0.3)%Accruedchargerelatedtocertainanticipatedlitigationexpenses%(0.4)%(0.2)%Adjusted(non-GAAP)8.4%9.2%8.3%9.1%IncomefromOperationsIncomef

71、romoperations-INSURANCESEGMENT2Q242Q23YTD2024YTD2023GAAP$763$1,031$1,661$2,358Amortizationassociatedwithidentifiableintangibles46911Impactofexitofemployergroupcommercialmedicalproductsbusiness594560(37)Accruedchargerelatedtocertainanticipatedlitigationexpenses9090Adjusted(non-GAAP)$826$1,172$1,730$2

72、,422(b)Generally,whenthefirstdayofamonthfallsonaweekendorholiday,withtheexceptionofJanuary1(NewYearsDay),thecompanyreceivesitsmonthlyMedicarepremiumpaymentfromCMSonthelastbusinessdayofthepreviousmonth.OnaGAAPbasis,this can result in certain quarterly cash flows from operations including more or less

73、 than three monthly payments.Consequently,whenthisoccurs,thecompanyreportsAdjustedcashflowsfromoperationstoreflectthreepaymentsineachquartertomatchtherelatedexpenses.11Netcashfromoperatingactivities(inmillions)YTD2024 YTD2023GAAP$1,636$9,863TimingofpremiumpaymentfromCMS(7,002)Adjusted(non-GAAP)$1,63

74、6$2,861(c)TheCenterWellsegmentAdjustedincomefromoperationsincludesanadjustmenttoaddbackdepreciationandamortizationexpensetothesegmentsGAAPincomefromoperationssincesuchanadjustmentiscommonlyutilizedforvaluationpurposeswithinthehealthcaredeliveryindustry.Incomefromoperations-CENTERWELLSEGMENT(inmillio

75、ns)2Q242Q23YTD2024YTD2023GAAP$338$287$620$617Depreciationandamortizationexpense56 50 109 99Adjusted(non-GAAP)$394$337$729$716(d)FY2024projectedAdjustedresultsexcludethefutureimpactofitemsthatcannotbeestimatedatthistime;YTD2024amountsshown.(e)PriorPeriodDevelopmentrelatedtotheemployergroupcommercialm

76、edicalproductsbusiness:Favorable(Unfavorable)PriorPeriodDevelopmentFirstQuarterSecondQuarterPriorPeriodDevelopmentfromprioryearsrecognizedin2024$34($9)PriorPeriodDevelopmentfromprioryearsrecognizedin2023$23($20)CautionaryStatementThisnewsreleaseincludesforward-lookingstatementsregardingHumanawithint

77、hemeaningofthePrivateSecuritiesLitigationReformActof1995.Whenusedininvestorpresentations,pressreleases,SecuritiesandExchangeCommission(SEC)filings,andinoralstatementsmadebyorwiththeapprovalofoneofHumanasexecutiveofficers,thewordsorphraseslike“expects,”“believes,”“anticipates,”“assumes,”“intends,”“li

78、kelywillresult,”“estimates,”“projects”orvariationsofsuchwordsandsimilarexpressionsareintendedtoidentifysuchforward-lookingstatements.Theseforward-lookingstatementsarenotguaranteesoffutureperformanceandaresubjecttorisks,uncertainties,andassumptions,including,amongotherthings,informationsetforthinthe“

79、RiskFactors”sectionofthecompanysSECfilings,asummaryofwhichincludesbutisnotlimitedtothefollowing:IfHumanadoesnotdesignandpriceitsproductsproperlyandcompetitively,ifthepremiumsHumanareceives are insufficient to cover the cost of healthcare services delivered to its members,if thecompanyisunabletoimple

80、mentclinicalinitiativestoprovideabetterhealthcareexperienceforitsmembers,lowercostsandappropriatelydocumenttheriskprofileofitsmembers,orifitsestimatesofbenefitsexpenseareinadequate,Humanasprofitabilitycouldbemateriallyadverselyaffected.Humanaestimatesthecostsofitsbenefitexpensepayments,anddesignsand

81、pricesitsproductsaccordingly,usingactuarialmethodsandassumptionsbasedupon,amongotherrelevantfactors,claimpaymentpatterns,medicalcostinflation,andhistoricaldevelopmentssuchasclaiminventorylevelsandclaimreceiptpatterns.Thecompanycontinuallyreviewsestimatesoffuturepaymentsrelatingtobenefitexpensesforse

82、rvicesincurredinthecurrentandpriorperiodsandmakesnecessaryadjustmentstoitsreserves,includingpremiumdeficiencyreserves,whereappropriate.Theseestimatesinvolveextensivejudgment,andhaveconsiderableinherentvariabilitybecausetheyareextremelysensitivetochangesinclaimpaymentpatternsandmedicalcosttrends.Acco

83、rdingly,Humanasreservesmaybeinsufficient.12IfHumanafailstoeffectivelyimplementitsoperationalandstrategicinitiatives,includingitsMedicareinitiatives,whichareofparticularimportancegiventheconcentrationofthecompanysrevenuesintheseproducts,state-basedcontractstrategy,thegrowthofitsCenterWellbusiness,and

84、itsintegratedcaredeliverymodel,thecompanysbusinessmaybemateriallyadverselyaffected.Inaddition,therecanbenoassurancesthatthecompanywillbesuccessfulinmaintainingorimprovingitsStarratingsinfutureyears.IfHumana,orthethird-partyserviceprovidersonwhichitrelies,failstoproperlymaintaintheintegrityof its dat

85、a,to strategically maintain existing or implement new information systems,to protectHumanasproprietaryrightstoitssystems,ortodefendagainstcyber-securityattacks,containsuchattackswhentheyoccur,orpreventotherprivacyordatasecurityincidentsthatresultinsecuritybreaches that disrupt the companys operation

86、s or in the unintentional dissemination of sensitivepersonal information or proprietary or confidential information,the companys business may bemateriallyadverselyaffected.Humanaisinvolvedinvariouslegalactions,ordisputesthatcouldleadtolegalactions(suchas,amongotherthings,providercontractdisputesandq

87、uitamlitigationbroughtbyindividualsonbehalfofthegovernment),governmental and internal investigations,and routine internal review of businessprocessesanyofwhich,ifresolvedunfavorablytothecompany,couldresultinsubstantialmonetarydamages or changes in its business practices.Increased litigation and nega

88、tive publicity could alsoincreasethecompanyscostofdoingbusiness.As a government contractor,Humana is exposed to risks that may materially adversely affect itsbusinessoritswillingnessorabilitytoparticipateingovernmenthealthcareprogramsincluding,amongotherthings,lossofmaterialgovernmentcontracts;gover

89、nmentalauditsandinvestigations;potentialinadequacyofgovernmentdeterminedpaymentrates;potentialrestrictionsonprofitability,includingby comparison of profitability of the companys Medicare Advantage business to non-MedicareAdvantagebusiness;orotherchangesinthegovernmentalprogramsinwhichHumanaparticipa

90、tes.Changestotherisk-adjustmentmodelutilizedbyCMStoadjustpremiumspaidtoMedicareAdvantageplansorretrospectiverecoverybyCMSofpreviouslypaidpremiumsasaresultofthefinalrulerelatedtotheriskadjustmentdatavalidationauditmethodologypublishedbyCMSonJanuary30,2023(FinalRADVRule),whichHumanabelievesfailstoaddr

91、essadequatelythestatutoryrequirementofactuarialequivalenceandviolatestheAdministrativeProcedureActduetoitsfailuretoincludeaFeeforServiceAdjustercouldhaveamaterialadverseeffectonthecompanysoperatingresults,financialpositionandcashflows.Humanasbusinessactivitiesaresubjecttosubstantialgovernmentregulat

92、ion.Newlawsorregulations,orlegislative,judicial,orregulatorychangesinexistinglawsorregulationsortheirmannerofapplicationcouldincreasethecompanyscostofdoingbusinessandhaveamaterialadverseeffectonHumanasresultsofoperations(includingrestrictingrevenue,enrollmentandpremiumgrowthincertainproductsandmarke

93、tsegments,restrictingthecompanysabilitytoexpandintonewmarkets,increasingthecompanysmedicalandoperatingcostsby,amongotherthings,requiringaminimumbenefitratiooninsured products,lowering the companys Medicare payment rates and increasing the companysexpensesassociatedwithanon-deductiblehealthinsurancei

94、ndustryfeeandotherassessments);thecompanysfinancialposition(includingthecompanysabilitytomaintainthevalueofitsgoodwill);andthecompanyscashflows.Humanasfailuretomanageacquisitions,divestituresandothersignificanttransactionssuccessfullymayhaveamaterialadverseeffectonthecompanysresultsofoperations,fina

95、ncialposition,andcashflows.IfHumanafailstodevelopandmaintainsatisfactoryrelationshipswiththeprovidersofcaretoitsmembers,thecompanysbusinessmaybeadverselyaffected.Humanafacessignificantcompetitioninattractingandretainingtalentedemployees.Further,managingsuccessionfor,andretentionof,keyexecutivesiscri

96、ticaltotheCompanyssuccess,anditsfailuretodosocouldadverselyaffecttheCompanysbusinesses,operatingresultsand/orfutureperformance.Humanaspharmacybusinessishighlycompetitiveandsubjectsittoregulationsandsupplychainrisksinadditiontothosethecompanyfaceswithitscorehealthbenefitsbusinesses.Changesintheprescr

97、iptiondrugindustrypricingbenchmarksmayadverselyaffectHumanasfinancialperformance.13Humanasabilitytoobtainfundsfromcertainofitslicensedsubsidiariesisrestrictedbystateinsuranceregulations.DowngradesinHumanasdebtratings,shouldtheyoccur,mayadverselyaffectitsbusiness,resultsofoperations,andfinancialcondi

98、tion.Volatilityordisruptioninthesecuritiesandcreditmarketsmaysignificantlyandadverselyaffectthevalueofourinvestmentportfolioandtheinvestmentincomethatwederivefromthisportfolio.Inmakingforward-lookingstatements,Humanaisnotundertakingtoaddressorupdatetheminfuturefilingsorcommunicationsregardingitsbusi

99、nessorresults.Inlightoftheserisks,uncertainties,andassumptions,theforward-lookingeventsdiscussedhereinmayormaynotoccur.Therealsomaybeotherrisksthatthecompanyisunabletopredictatthistime.Anyoftheserisksanduncertaintiesmaycauseactualresultstodiffermateriallyfromtheresultsdiscussedintheforward-lookingst

100、atements.HumanaadvisesinvestorstoreadthefollowingdocumentsasfiledbythecompanywiththeSECforfurtherdiscussionbothoftherisksitfacesanditshistoricalperformance:Form10-KfortheyearendedDecember31,2023;Form10-QforthequarterendedMarch31,2024;andForm8-Ksfiledduring2024.AboutHumanaHumanaInc.iscommittedtoputti

101、nghealthfirstforourteammates,ourcustomers,andourcompany.ThroughourHumanainsuranceservices,andourCenterWellhealthcareservices,wemakeiteasierforthemillionsofpeopleweservetoachievetheirbesthealthdeliveringthecareandservicetheyneed,whentheyneedit.Theseeffortsareleadingtoabetterqualityoflifeforpeoplewith

102、Medicare,Medicaid,families,individuals,militaryservicepersonnel,andcommunitiesatlarge.LearnmoreaboutwhatweofferatHandatCenterW.14HumanaInc.FullYear2024Projections-AsofJuly31,2024inaccordancewithGAAPunlessotherwisenotedCurrentGuidancePriorGuidanceDilutedearningspercommonshareGAAP:approximately$12.81G

103、AAP:approximately$13.93nochangeNon-GAAP:approximately$16.00TotalRevenuesConsolidatedGAAP:approximately$116billionGAAP:approximately$113billionConsolidated and segment level revenueprojections include expected investmentincome.Segment level revenues include amountsthateliminateinconsolidation.Insuran

104、cesegmentGAAP:approximately$112billionGAAP:approximately$110billionCenterWellsegmentnochangeGAAP:approximately$19billionChangeinyear-endmedicalmembershipfromprioryear-endIndividualMedicareAdvantageGrowthofapproximately225,000Growthofapproximately150,000GroupMedicareAdvantagenochangeGrowthofapproxima

105、tely45,000Medicarestand-alonePDPDeclineofapproximately600,000Declineofapproximately650,000State-basedcontractsnochangeGrowthofapproximately250,000State-based contracts guidance includesmembership in Florida,Illinois,Indiana,Kentucky,Louisiana,Ohio,Oklahoma,SouthCarolina,andWisconsin.BenefitRatioInsu

106、rancesegmentnochangeGAAP:approximately90.0%Ratio calculation:benefits expense as apercentofpremiumsrevenues.OperatingCostRatioConsolidatednochangeGAAP:approximately11.4%Ratio calculation:operating costs excludingdepreciationandamortizationasapercentofrevenuesexcludinginvestmentincome.SegmentResultsI

107、nsurancesegmentincomefromoperationsnochangeGAAP:approximately$1.1billionNon-GAAP:approximately$1.2billionInsurancesegmentNon-GAAPincomefromoperationsexcludestheprojectedimpactofthe exit of employer group commercialmedical products business and segmentamortization.CenterwellsegmentNon-GAAPincomefromo

108、perationsexcludestheprojectedimpactofsegmentdepreciationandamortization.CenterWellsegmentincomefromoperationsnochangeGAAP:approximately$1.2billionNon-GAAP:approximately$1.4billionEffectiveTaxRatenochangeGAAP:approximately25.2%Non-GAAP:approximately25.0%WeightedAvg.ShareCountforDilutedEPSnochangeappr

109、oximately121millionCashflowsfromoperationsnochangeGAAP:approximately$2billionCapitalexpendituresnochangeGAAP:approximately$800million15Humana Inc.Statistical SchedulesandSupplementary Information2Q24 Earnings ReleaseS-1HumanaInc.StatisticalSchedulesandSupplementaryInformation2Q24EarningsRelease(S-3)

110、-(S-4)ConsolidatedStatementsofIncome-QuarterandYTD(S-5)ConsolidatedBalanceSheets(S-6)ConsolidatedStatementsofCashFlows-YTD(S-7)-(S-8)ConsolidatingStatementsofIncome-Quarter(S-9)-(S-10)ConsolidatingStatementsofIncome-YTD(S-11)MembershipDetail(S-12)-(S-13)PremiumsandServicesRevenueDetail(S-14)-(S-16)C

111、enterWellSegment-PharmacySolutions,PrimaryCare,&HomeSolutions(S-17)FootnotesS-2HumanaInc.ConsolidatedStatementsofIncome(Unaudited)Dollarsinmillions,exceptpercommonshareresultsForthethreemonthsendedJune30,20242023Revenues:Premiums$28,142$25,495Services1,100 978Investmentincome298 274Totalrevenues29,5

112、40 26,747Operatingexpenses:Benefits25,039 22,009Operatingcosts3,148 3,111Depreciationandamortization212 191Totaloperatingexpenses28,399 25,311Incomefromoperations1,141 1,436Interestexpense168 120Otherexpense,net55 54Incomebeforeincometaxesandequityinnetearnings918 1,262Provisionfromincometaxes223 29

113、6Equityinnetlosses(A)(17)(10)Netincome678 956Netlossattributabletononcontrollinginterests1 3NetincomeattributabletoHumana$679$959Basicearningspercommonshare$5.63$7.70Dilutedearningspercommonshare$5.62$7.66Sharesusedincomputingbasicearningspercommonshare(000s)120,445 124,574Sharesusedincomputingdilut

114、edearningspercommonshare(000s)120,665 125,109S-3HumanaInc.ConsolidatedStatementsofIncome(Unaudited)Dollarsinmillions,exceptpercommonshareresultsForthesixmonthsendedJune30,20242023Revenues:Premiums$56,403$51,045Services2,162 1,977Investmentincome586 467Totalrevenues59,151 53,489Operatingexpenses:Bene

115、fits50,163 43,867Operatingcosts6,190 6,090Depreciationandamortization421 377Totaloperatingexpenses56,774 50,334Incomefromoperations2,377 3,155Interestexpense327 233Otherexpense,net118 46Incomebeforeincometaxesandequityinnetearnings1,932 2,876Provisionforincometaxes474 655Equityinnetlosses(A)(41)(27)

116、Netincome1,417 2,194Netlossattributabletononcontrollinginterests3 4NetincomeattributabletoHumana$1,420$2,198Basicearningspercommonshare$11.76$17.62Dilutedearningspercommonshare$11.74$17.54Sharesusedincomputingbasicearningspercommonshare(000s)120,712 124,790Sharesusedincomputingdilutedearningspercomm

117、onshare(000s)120,967 125,336S-4HumanaInc.ConsolidatedBalanceSheets(Unaudited)Dollarsinmillions,exceptshareamountsJune30,December31,20242023AssetsCurrentassets:Cashandcashequivalents$5,501$4,694Investmentsecurities17,42416,626Receivables,net4,0902,035Othercurrentassets5,8436,631Totalcurrentassets32,8

118、5829,986Propertyandequipment,net2,8213,030Long-terminvestmentsecurities388382Equitymethodinvestments736740Goodwill9,5679,550Otherlong-termassets3,7233,377Totalassets$50,093$47,065LiabilitiesandStockholdersEquityCurrentliabilities:Benefitspayable$11,446$10,241Tradeaccountspayableandaccruedexpenses6,5

119、276,569Bookoverdraft355353Unearnedrevenues313266Short-termdebt1,1491,443Totalcurrentliabilities19,79018,872Long-termdebt11,74610,213Otherlong-termliabilities1,8291,662Totalliabilities33,36530,747CommitmentsandcontingenciesStockholdersequity:Preferredstock,$1par;10,000,000sharesauthorized,noneissuedC

120、ommonstock,$0.162/3par;300,000,000sharesauthorized;198,718,810issuedatJune30,20243333Capitalinexcessofparvalue3,4203,346Retainedearnings28,74527,540Accumulatedothercomprehensiveloss(1,122)(999)Treasurystock,atcost,78,317,149sharesatJune30,2024(14,405)(13,658)Totalstockholdersequity16,67116,262Noncon

121、trollinginterests5756Totalequity16,72816,318Totalliabilitiesandequity$50,093$47,065Debt-to-totalcapitalizationratio 43.6%41.8%S-5HumanaInc.ConsolidatedStatementsofCashFlows(Unaudited)DollarsinmillionsForthesixmonthsendedJune30,20242023CashflowsfromoperatingactivitiesNetincome$1,417$2,194Adjustmentst

122、oreconcilenetincometonetcashprovidedbyoperatingactivities:Lossoninvestmentsecurities,net 45Equityinnetlosses41 27Stock-basedcompensation100 89Depreciation454 410Amortization31 34Impairmentofpropertyandequipment87 Changesinoperatingassetsandliabilities,netofeffectofbusinessesacquiredanddisposed:Recei

123、vables(2,055)269Otherassets592(1,141)Benefitspayable1,205 978Otherliabilities(327)(170)Unearnedrevenues47 7,092Other,net44 36Netcashprovidedbyoperatingactivities1,636 9,863CashflowsfrominvestingactivitiesAcquisitions,netofcashandcashequivalentsacquired(17)(189)Purchasesofpropertyandequipment,net(291

124、)(487)Purchasesofinvestmentsecurities(2,962)(2,737)Maturitiesofinvestmentsecurities1,355 577Proceedsfromsalesofinvestmentsecurities499 811Netcashusedininvestingactivities(1,416)(2,025)CashflowsfromfinancingactivitiesReceiptsfromcontractdeposits,net285 3,510Proceedsfromissuanceofseniornotes,net2,232

125、1,215Repaymentsofseniornotes(34)(349)Repayments(issuance)ofcommercialpaper,net(895)238Repaymentoftermloan(500)Debtissuecosts(7)(4)Changeinbookoverdraft2 159Commonstockrepurchases(766)(623)Dividendspaid(216)(211)Other(14)(120)Netcashprovidedbyfinancingactivities587 3,315Increaseincashandcashequivalen

126、ts807 11,153Cashandcashequivalentsatbeginningofperiod4,694 5,061Cashandcashequivalentsatendofperiod$5,501$16,214S-6HumanaInc.ConsolidatingStatementsofIncomeForthethreemonthsendedJune30,2024(Unaudited)InmillionsInsuranceCenterWellEliminations/CorporateConsolidatedRevenuesexternalcustomersPremiums:Ind

127、ividualMedicareAdvantage$22,215$22,215GroupMedicareAdvantage1,938 1,938Medicarestand-alonePDP867 867TotalMedicare25,020 25,020State-basedcontractsandother2,524 2,524Commercialfully-insured152 152Specialtybenefits240 240MedicareSupplement206 206Totalpremiums28,142 28,142Servicesrevenue:Homesolutions3

128、35 335Primarycare322 322Pharmacysolutions229 229Militaryservicesandother206 206CommercialASO8 8Totalservicesrevenue214886 1,100Totalrevenuesexternalcustomers28,356886 29,242Intersegmentrevenues14,061(4,062)Investmentincome168130 298Totalrevenues28,5254,947(3,932)29,540Operatingexpenses:Benefits25,18

129、2(143)25,039Operatingcosts2,3954,553(3,800)3,148Depreciationandamortization18556(29)212Totaloperatingexpenses27,7624,609(3,972)28,399Incomefromoperations$763$338$40$1,141Benefitratio 89.5%89.0%Operatingcostratio 8.4%92.0%10.8%S-7HumanaInc.ConsolidatingStatementsofIncomeForthethreemonthsendedJune30,2

130、023(Unaudited)InmillionsInsuranceCenterWellEliminations/CorporateConsolidatedRevenuesexternalcustomersPremiums:IndividualMedicareAdvantage$19,749$19,749GroupMedicareAdvantage1,732 1,732Medicarestand-alonePDP568 568TotalMedicare22,049 22,049State-basedcontractsandother2,062 2,062Commercialfully-insur

131、ed950 950Specialtybenefits252 252MedicareSupplement182182Totalpremiums25,495 25,495Servicesrevenue:Homesolutions341 341Primarycare190 190Pharmacysolutions216 216Militaryservicesandother167 167CommercialASO64 64Totalservicesrevenue231747 978Totalrevenuesexternalcustomers25,726747 26,473Intersegmentre

132、venues153,783(3,798)Investmentincome134140 274Totalrevenues25,8754,530(3,658)26,747Operatingexpenses:Benefits22,127(118)22,009Operatingcosts2,5454,193(3,627)3,111Depreciationandamortization17250(31)191Totaloperatingexpenses24,8444,243(3,776)25,311Incomefromoperations$1,031$287$118$1,436Benefitratio

133、86.8%86.3%Operatingcostratio 9.9%92.6%11.8%S-8HumanaInc.ConsolidatingStatementsofIncomeForthesixmonthsendedJune30,2024(Unaudited)InmillionsInsuranceCenterWellEliminations/CorporateConsolidatedRevenuesexternalcustomersPremiums:IndividualMedicareAdvantage$44,663$44,663GroupMedicareAdvantage3,927 3,927

134、Medicarestand-alonePDP1,688 1,688TotalMedicare50,278 50,278State-basedcontractsandother4,8354,835Commercialfully-insured408 408Specialty479 479MedicareSupplement403 403Totalpremiums56,403 56,403Servicesrevenue:Homesolutions670 670Primarycare563 563Pharmacysolutions440 440Militaryservicesandother457

135、457CommercialASO32 32Totalservicesrevenue4891,673 2,162Totalrevenuesexternalcustomers56,8921,673 58,565Intersegmentrevenues28,092(8,094)Investmentincome330256 586Totalrevenues57,2249,765(7,838)59,151Operatingexpenses:Benefits50,433(270)50,163Operatingcosts4,7599,036(7,605)6,190Depreciationandamortiz

136、ation371109(59)421Totaloperatingexpenses55,5639,145(7,934)56,774Incomefromoperations$1,661$620$96$2,377Benefitratio 89.4%88.9%Operatingcostratio 8.4%92.5%10.6%S-9HumanaInc.ConsolidatingStatementsofIncomeForthesixmonthsendedJune30,2023(Unaudited)InmillionsInsuranceCenterWellEliminations/CorporateCons

137、olidatedRevenuesexternalcustomersPremiums:IndividualMedicareAdvantage$39,558$39,558GroupMedicareAdvantage3,497 3,497Medicarestand-alonePDP1,184 1,184TotalMedicare44,239 44,239State-basedcontractsandother3,971 3,971Commercialfully-insured1,968 1,968Specialty506 506MedicareSupplement361 361Totalpremiu

138、ms51,045 51,045Servicesrevenue:Homesolutions655 655Primarycare391 391Pharmacysolutions458 458Militaryservicesandother338 338CommercialASO135 135Totalservicesrevenue4731,504 1,977Totalrevenuesexternalcustomers51,5181,504 53,022Intersegmentrevenues297,531(7,560)Investmentincome231236 467Totalrevenues5

139、1,7789,035(7,324)53,489Operatingexpenses:Benefits44,120(253)43,867Operatingcosts4,9638,319(7,192)6,090Depreciationandamortization33799(59)377Totaloperatingexpenses49,4208,418(7,504)50,334Incomefromoperations$2,358$617$180$3,155Benefitratio 86.4%85.9%Operatingcostratio 9.6%92.1%11.5%S-10HumanaInc.Mem

140、bershipDetail(Unaudited)InthousandsJune30,2024Average2Q24June30,2023December31,2023MedicalMembership:IndividualMedicareAdvantage*5,617.6 5,596.05,269.15,408.9GroupMedicareAdvantage 544.9 547.4509.5509.6TotalMedicareAdvantage 6,162.5 6,143.45,778.65,918.5Medicarestand-alonePDP 2,341.2 2,349.12,915.32

141、,849.1TotalMedicare 8,503.7 8,492.58,693.98,767.6Medicaresupplement 339.2 333.4294.3307.2State-basedcontractsandother 1,392.3 1,402.51,330.21,228.8Militaryservices 5,959.2 5,965.95,939.15,960.2Totalexcludingemployergroupcommercialmedical16,194.4 16,194.316,257.516,263.8Fully-insuredcommercialmedical

142、62.2 79.0475.5338.7ASOcommercial 47.0 55.1395.3255.3Totalemployergroupcommercialmedical109.2 134.1870.8594.0TotalMedicalMembership 16,303.6 16,328.417,128.316,857.8SpecialtyMembership:Dentalfully-insured(B)2,091.3 2,099.32,294.22,205.0DentalASO 291.9 203.6309.1307.0TotalDental 2,383.2 2,302.92,603.3

143、2,512.0Vision 1,858.0 1,865.12,029.41,971.4Othersupplementalbenefits 360.8 361.8408.4384.9TotalSpecialtyMembership 4,602.0 4,529.85,041.14,868.3June30,2024MemberMixJune30,2024June30,2023MemberMixJune30,2023IndividualMedicareAdvantageMembershipHMO 2,866.5 51%2,814.9 53%PPO/PFFS 2,751.1 49%2,454.2 47%

144、TotalIndividualMedicareAdvantage 5,617.6 100%5,269.1 100%IndividualMedicareAdvantageMembershipSharedRisk(C)2,085.6 37%1,813.7 35%PathtoRisk(D)1,837.6 33%1,804.8 34%TotalValue-based 3,923.2 70%3,618.5 69%Other 1,694.4 30%1,650.6 31%TotalIndividualMedicareAdvantage 5,617.6 100%5,269.1 100%*IndividualM

145、edicareAdvantagemembershipincludes952,800DualEligibleSpecialNeedPlans(D-SNP)membersasofJune30,2024,anetincreaseof121,400,or15percent,from831,400asofJune30,2023,andup81,500,or9percent,from871,300asofDecember31,2023.S-11HumanaInc.PremiumsandServicesRevenueDetail(Unaudited)Dollarsinmillions,exceptperme

146、mberpermonth;includesintersegmentrevenuesForthethreemonthsendedJune30,PerMemberperMonth(I)ForthethreemonthsendedJune30,DollarPercentage20242023ChangeChange20242023InsuranceIndividualMedicareAdvantage$22,215$19,749$2,466 12.5%$1,323$1,258GroupMedicareAdvantage1,938 1,732206 11.9%1,180 1,133Medicarest

147、and-alonePDP867 568299 52.6%123 65State-basedcontractsandother(E)2,524 2,062462 22.4%573 483Fully-insuredcommercialmedical(F)152 950(798)-84.0%540 545Specialtybenefits(G)240 252(12)-4.8%18 18MedicareSupplement206 18224 13.2%206 206Militaryandother(H)207 18225 13.7%CommercialASO8 64(56)-87.5%Total28,

148、357 25,7412,616 10.2%CenterWellPharmacysolutions2,874 2,85519 0.7%Primarycare1,239 1,013226 22.3%Homesolutions834 662172 26.0%Total4,947 4,530417 9.2%S-12HumanaInc.PremiumsandServicesRevenueDetail(Unaudited)Dollarsinmillions,exceptpermemberpermonth;includesintersegmentrevenuesForthesixmonthsendedJun

149、e30,PerMemberperMonth(I)ForthesixmonthsendedJune30,DollarPercentage20242023ChangeChange20242023InsuranceIndividualMedicareAdvantage$44,663$39,558$5,105 12.9%$1,337$1,275GroupMedicareAdvantage3,927 3,497430 12.3%1,191 1,139Medicarestand-alonePDP1,688 1,184504 42.6%119 67State-basedcontractsandother(E

150、)4,835 3,971864 21.8%574 467Fully-insuredcommercialmedical(F)408 1,968(1,560)-79.3%555 547Specialty(G)479 506(27)-5.3%18 18MedicareSupplement403 36142 11.6%206 204Militaryservicesandother(H)459 36792 25.1%CommercialASO32 135(103)-76.3%Total56,894 51,5475,347 10.4%CenterWellPharmacysolutions5,702 5,7

151、12(10)(0.2)%Primarycare2,409 2,033376 18.5%Homesolutions1,654 1,290364 28.2%Total9,765 9,035730 8.1%S-13HumanaInc.CenterWellSegment-PharmacySolutions(Unaudited)ForthethreemonthsendedJune30,2024ForthethreemonthsendedJune30,2023ForthethreemonthsendedMarch31,2024GenericDispenseRateTotalMedicare 90.9%91

152、.8%91.0%Mail-OrderPenetrationTotalMedicare 28.4%29.9%29.0%ForthesixmonthsendedJune30,2024ForthesixmonthsendedJune30,2023GenericDispenseRateTotalMedicare 91.0%91.4%Mail-OrderPenetrationTotalMedicare 28.6%30.1%S-14HumanaInc.CenterWellSegment-PrimaryCare(J)(Unaudited)AsofJune30,2024AsofJune30,2023Year-

153、over-YearGrowthPrimaryPrimaryPrimaryCenterCarePatientsCenterCarePatientsCenterCarePatientsCountProvidersServed(K)CountProvidersServed(K)CountProvidersServedDenovo 116267 58,40067200 29,300 73.1%33.5%99.3%Wholly-owned183627 209,300191595 183,900(4.2)%5.4%13.8%IndependentPhysicianAssociations64,20059,

154、000 8.8%299 894 331,900258 795 272,200 15.9%12.5%21.9%AsofDecember31,2023YTDGrowthPrimaryPrimaryCenterCarePatientsCenterCarePatientsCountProvidersServed(K)CountProvidersServedDenovo108274 43,100 7.4%(2.6)%35.5%Wholly-owned188617 189,600(2.7)%1.6%10.4%IndependentPhysicianAssociations61,500 4.4%296 89

155、1 294,200 1.0%0.3%12.8%S-15HumanaInc.CenterWellSegment-HomeSolutions(Unaudited)ForthethreemonthsendedJune30,2024ForthethreemonthsendedJune30,2023Year-over-YearGrowthEpisodicAdmissions(L)81,024 75,545 7.3%TotalAdmissions-SameStore(M)106,055 96,791 9.6%ForthesixmonthsendedJune30,2024Forthesixmonthsend

156、edJune30,2023Year-over-YearGrowthEpisodicAdmissions(L)165,284 149,482 10.6%TotalAdmissions-SameStore(M)215,107 193,111 11.4%S-16HumanaInc.FootnotestoStatisticalSchedulesandSupplementaryInformation2Q24EarningsReleaseA.Netlossesassociatedwiththecompanysnon-consolidatedminorityinterestinvestments.B.Ful

157、ly-insureddentalmembershipasreporteddoesnotincludeHumanamembersthathaveaMedicareAdvantageplanthatincludesanembeddeddentalbenefit.C.Incertaincircumstances,thecompanycontractswithproviderstoacceptfinancialriskforadefinedsetofMedicareAdvantagemembership.FortheseDownsideRiskarrangements,theproviderismea

158、suredagainstamedicalexpenseratiotargetandthecompanymaysharesavingsfromreductiontothetotalcostofcareofthedefinedmembership.Theresultisahighlevelofengagementonthepartoftheprovider.Underthesearrangements,thecompanymaycontractwithproviderstoacceptpartial,full,orglobalfinancialrisk.Incertaininstances(cap

159、itatedsharedrisk)ofthesearrangements,thecompanymaychoosetoprepaytheseprovidersamonthlyfixed-feepermembertocoordinatesubstantiallyallofthemedicalcarefortheirMedicareAdvantagemembersassignedorattributedtotheirproviderpanel,includingsomehealthbenefitadministrativefunctionsandclaimsprocessing.D.APathtoR

160、iskproviderisonewhohasahighlevelofengagementandhascontractedwiththecompanytoparticipateinanUpsideOnly/SharedSavingstotalcostofcarearrangementand/orinoneofHumanasQualityBonusprograms(ModelPractice),throughwhichthecompanyrewardstheproviderforachievingqualityandutilizationtargets.Providerswhoarecontrac

161、tedinanUpsideOnly/SharedSavingsarrangementmayreceiveaportionofachievedsurpluseswhentheactualcostofthemedicalservicesprovidedtopatientsassignedorattributedtotheirpanelislessthantheagreeduponmedicalexpensetargets.ThesecontractsmayalsoincludeaDownsideRisktrigger(futuredateormembershipthreshold)whichhas

162、notyetbeenmet.E.PerMemberperMonth(PMPM)shownreflectsonlyMedicaidpremiumsandaverageMedicaidmembershipfortheperiod;includesimpactofdualeligibledemonstrationmembers.F.Fully-insuredcommercialmedicalpremiumsalsoincludestop-losspremiumsassociatedwiththecommercialASOproduct;forpurposesofthePMPMmetric,theco

163、mmercialASOstop-losspremiumshavebeenexcluded.G.Specialtypermemberpermonthiscomputedbasedonreportedspecialtypremiumsandaveragefully-insuredspecialtymembershipfortheperiod.H.TheamountsprimarilyreflectservicesrevenuesundertheTRICAREEastRegioncontractthatgenerallyarecontractedonaper-memberbasis.I.Comput

164、edbasedonaveragemembershipfortheperiod(i.e.monthlyendingmembershipduringtheperioddividedbythenumberofmonthsintheperiod).J.Denovoreferstoallnewcentersopenedoracquiredsince2020underaWCASjointventure.Wholly-ownedreferstoallcentersoutsideaWCASjointventure.K.RepresentsMedicareAdvantage(MA)risk,MApathtori

165、sk,MAvalue-based,DirectContractingEntity,andAccountableCareOrganizationpatients.L.ReflectspatientadmissionsunderthePatientDrivenGroupingsModel(PDGM)paymentmodel.M.Reflectsallpatientadmissionsregardlessofreimbursementmodel.Samestoreisdefinedascarecentersthathavebeenownedandoperatedatleastthelasttwelvemonthsandstartupsthatareanexpansionofasamestorecarecenter.S-17