Humana At Home Acquires Your Home Advantage
This transaction with YHA results in a strengthening of Humana’s
home-based capabilities, allowing for better integration with the
company’s clinical model through tighter connections with other clinical
programs and integration of the care management team and related
clinical data. By improving the integration of the clinical model,
“The capabilities that Your Home Advantage brings us will help
Financial terms of the transaction were not disclosed. Additionally, the
transaction is not anticipated to materially impact Humana’s earnings
per diluted common share for the year ending
Cautionary Statement
This news release includes forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. When used in
investor presentations, press releases,
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If
Humana does not design and price its products properly and competitively, if the premiumsHumana receives are insufficient to cover the cost of health care services delivered to its members, if the company is unable to implement clinical initiatives to provide a better health care experience for its members, lower costs and appropriately document the risk profile of its members, or if its estimates of benefits expense are inadequate, Humana’s profitability could be materially adversely affected.Humana estimates the costs of its benefit expense payments, and designs and prices its products accordingly, using actuarial methods and assumptions based upon, among other relevant factors, claim payment patterns, medical cost inflation, and historical developments such as claim inventory levels and claim receipt patterns. These estimates, however, involve extensive judgment, and have considerable inherent variability because they are extremely sensitive to changes in claim payment patterns and medical cost trends. -
If
Humana fails to effectively implement its operational and strategic initiatives, particularly itsMedicare initiatives, state-based contract strategy, and its participation in the new health insurance exchanges, the company’s business may be materially adversely affected, which is of particular importance given the concentration of the company’s revenues in these products. -
If
Humana fails to properly maintain the integrity of its data, to strategically implement new information systems, to protect Humana’s proprietary rights to its systems, or to defend against cyber-security attacks, the company’s business may be materially adversely affected. -
Humana’s business may be materially adversely impacted by the adoption
of a new coding set for diagnoses (commonly known as ICD-10), the
implementation of which has been deferred to at least
October 1, 2015 . -
Humana is involved in various legal actions, or disputes that could lead to legal actions (such as, among other things, provider contract disputes relating to rate adjustments resulting from the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, commonly referred to as “sequestration”; other provider contract disputes; and qui tam litigation brought by individuals on behalf of the government) and governmental and internal investigations, any of which, if resolved unfavorably to the company, could result in substantial monetary damages or changes in its business practices. Increased litigation and negative publicity could also increase the company’s cost of doing business. -
As a government contractor,
Humana is exposed to risks that may materially adversely affect its business or its willingness or ability to participate in government health care programs including, among other things, loss of material government contracts, governmental audits and investigations, potential inadequacy of government-determined payment rates, potential restrictions on profitability, including by comparison of profitability of the company’sMedicare Advantage business to non-Medicare Advantage business, or other changes in the governmental programs in whichHumana participates. -
The Health Care Reform Law, including The Patient Protection and
Affordable Care Act and The Health Care and Education Reconciliation
Act of 2010, could have a material adverse effect on Humana’s results
of operations, including restricting revenue, enrollment and premium
growth in certain products and market segments, restricting the
company’s ability to expand into new markets, increasing the company's
medical and operating costs by, among other things, requiring a
minimum benefit ratio on insured products, lowering the company’s
Medicare payment rates and increasing the company’s expenses associated with a non-deductible health insurance industry fee and other assessments; the company’s financial position, including the company's ability to maintain the value of its goodwill; and the company’s cash flows. - Humana’s participation in the new federal and state health care exchanges, which entail uncertainties associated with mix, volume of business, and the operation of premium stabilization programs, which are subject to federal administrative action, could adversely affect the company’s results of operations, financial position, and cash flows.
- Humana’s business activities are subject to substantial government regulation. New laws or regulations, or changes in existing laws or regulations or their manner of application could increase the company’s cost of doing business and may adversely affect the company’s business, profitability and cash flows.
-
If
Humana fails to develop and maintain satisfactory relationships with the providers of care to its members, the company’s business may be adversely affected. - Humana’s pharmacy business is highly competitive and subjects it to regulations in addition to those the company faces with its core health benefits businesses.
- Changes in the prescription drug industry pricing benchmarks may adversely affect Humana’s financial performance.
-
If
Humana does not continue to earn and retain purchase discounts and volume rebates from pharmaceutical manufacturers at current levels, Humana’s gross margins may decline. - Humana’s ability to obtain funds from certain of its licensed subsidiaries is restricted by state insurance regulations.
- Downgrades in Humana’s debt ratings, should they occur, may adversely affect its business, results of operations, and financial condition.
- The securities and credit markets may experience volatility and disruption, which may adversely affect Humana’s business.
In making forward-looking statements,
-
Form 10-K for the year ended
December 31, 2014 ; - Form 8-Ks filed during 2015.
About Your Home Advantage
Your Home Advantage (YHA) is a healthcare management company dedicated to improving clinical and quality outcomes by bridging the gap between the physician’s office and the member’s home. YHA was founded on the basis that these organizations and companies need to achieve optimal clinical compliance and business sustainability while setting the standard for better patient health. Remaining flexible and transparent is how YHA effectively builds successful relationships with its clients.
About
- Annual reports to stockholders
-
Securities and Exchange Commission filings - Most recent investor conference presentations
- Quarterly earnings news releases
- Replays of most recent earnings release conference calls
- Calendar of events (including upcoming earnings conference call dates and times, as well as planned interaction with research analysts and institutional investors)
- Corporate Governance information
Source:
Humana Inc.
Investor Relations:
Regina Nethery, 502-580-3644
Rnethery@humana.com
or
Corporate
Communications:
Tom Noland, 502-580-3674
Tnoland@humana.com