Building on the success of its 2006 Medicare Advantage and Medicare prescription drug program plan offerings, Humana Inc. (NYSE: HUM) today announced it has received approval from The Centers for Medicare & Medicaid Services (CMS) for a major expansion of its Medicare benefit plans and business relationships for 2007. When the open enrollment period for 2007 benefits begins Nov. 15, 2006, people eligible for Medicare will have access to a wider array of Humana's Medicare Advantage (MAPD) and prescription drug plans (PDP).
The expansion of plan offerings will include private fee for service (PFFS) plans that feature a combination of health benefits and prescription drug coverage for one premium. This will include a zero-premium plan in some areas.
America's 42 million Medicare beneficiaries in all 50 states, Puerto Rico and the District of Columbia may also choose from one of Humana's stand-alone Medicare Part D prescription drug plans with options that include generic drug coverage through the coverage gap in most areas. In 2006, Humana enrolled an estimated 3.5 million people with Medicare in a PDP benefit plan and, on average, these members will realize an annual savings of about $1,100 on their prescription drug costs, according to data published by CMS. Humana's Medicare Part D prescription drug plans in Florida were recently given the J.D. Power and Associates award as "Highest in Member Satisfaction Among Medicare D Plan Providers in Florida."
"For 2007, Humana's prescription drug plan premiums will once again be below the national benchmark in each region," said Stefen Brueckner, Humana's vice president for senior products. "By pricing our plans appropriately in 2006, Humana was able to move the marketplace to a lower overall premium average for 2007, according to statistics released by CMS. With Humana's lower price/high value business proposition, consumers saved approximately $1.5 billion during the first six months of 2006. And, because of Humana's leadership position and the results of private market economics, it is estimated that taxpayers will save about $3.2 billion this year and $40 billion over the next ten years."
Humana "" Consumer Action survey
The popularity of the Medicare Part D prescription drug plan has been validated through a recent national survey of 1,000 Medicare enrollees and their caregivers. Conducted by Humana and the consumer advocacy group Consumer Action, the survey found that two-thirds of respondents said they are saving money on prescription drugs through their new Medicare PDP. Nearly 90 percent say they are happy with their plan and don't anticipate changing plans in 2007. Additionally, 75 percent said they had a somewhat or very positive experience with their Medicare Part D program.
In response to the need for increased, easy-to-understand information, Humana has developed a series of consumer-focused education tools. One such tool is SmartSummaryRxsm , the industry's first comprehensive, personalized record of Medicare members' prescriptions, what they paid for those prescriptions and guidance on how they might save money in the future.
Many of the Humana-Consumer Action results closely mirror those recently announced in a survey by America's Health Insurance Plans (AHIP). That poll showed 70 percent of self-enrolled seniors would recommend that others sign up for the Medicare Part D prescription drug benefit. The survey also revealed that two-thirds of seniors surveyed think enacting a Medicare prescription drug plan was a good idea.
About Humana
Humana Inc., headquartered in Louisville, Kentucky, is one of the nation's largest publicly traded health benefits companies, with more than 11 million medical members. Humana offers a diversified portfolio of health insurance products and related services "" through traditional and consumer-choice plans "" to employer groups, government-sponsored plans, and individuals.
Over its 45-year history, Humana has consistently seized opportunities to meet changing customer needs. Today, the company is a leader in consumer engagement, providing guidance that leads to lower costs and a better health plan experience throughout its diversified customer portfolio.
More information regarding Humana is available to investors via the Investor Relations page of the company's web site at http://www.humana.com, including copies of:
- Annual report to stockholders;
- Securities and Exchange Commission filings;
- Most recent investor conference presentation;
- Quarterly earnings news releases;
- Replays of most recent earnings release conference call;
- Calendar of events (includes upcoming earnings conference call dates, times, and access number, as well as planned interaction with research analysts and institutional investors);
- Corporate Governance Information.
