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{{Short description|American health insurance company based in Louisville, Kentucky}} |
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{{Infobox_Company |
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{{About|the health insurance company}} |
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| company_name = Humana Inc. |
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{{Use mdy dates|date=April 2024}} |
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| company_logo = [[Image:Humanalogo.jpg|center|200px|Humana logo]] |
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{{advert|date=February 2013}} |
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| slogan = Guidance when you need it most |
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{{Infobox company |
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| company_type = [[Public company|Public]] ({{nyse|HUM}}) |
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| name = Humana Inc. |
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| foundation = [[Louisville, Kentucky]] ([[1961]]) |
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| logo = Humana logo.svg |
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| location = Louisville, Kentucky, [[USA]] |
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| logo_size = |
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| key_people = [[David A. Jones, Sr.]] and [[Wendell Cherry]], co-founders<br />[[Mike McCallister]], president and [[CEO]] |
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| type = [[Public company|Public]] |
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| traded_as = {{Unbulleted list|{{NYSE|HUM}}|[[S&P 500]] component}} |
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| revenue = {{profit}} [[United States dollar|US $]]28.9 billion (2008)<ref name="Financials">[http://www.google.com/finance?fstype=ii&q=NYSE:HUM Financial Statements for Humana Inc.]</ref> |
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| key_people = {{ubl|class=nowrap|Kurt J. Hilzinger ([[Chairman]]) |[[Bruce D. Broussard]] ([[CEO]]) |Susan Diamond ([[CFO]])}} |
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| net_income = {{profit}} US $647.2 million (2008)<ref name="Financials" /> |
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| industry = [[Managed health care]] |
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| num_employees = 28,900 (2009)<ref name="SmartBriefOverview">[http://www.google.com/finance?q=Humana Humana Inc. Profile]</ref> |
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| revenue = {{nowrap|{{increase}} {{US$|106.4 billion|link=yes}} (2023)}} |
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| homepage = [http://www.humana.com/ www.humana.com] |
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| operating_income = {{nowrap|{{increase}} {{US$|4.01 billion}} (2023)}} |
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| net_income = {{nowrap|{{decrease}} {{US$|2.48 billion}} (2023)}} |
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| assets = {{nowrap|{{increase}} {{US$|47.07 billion}} (2023)}} |
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| equity = {{nowrap|{{increase}} {{US$|16.32 billion}} (2023)}} |
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| num_employees = 67,600 (2023) |
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| foundation = {{start date and age|1961|8|18}} (as Extendicare Inc.)<br />[[Louisville]], [[Kentucky]], U.S. |
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| hq_location = [[Louisville, Kentucky]], U.S. |
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| website = {{URL|https://www.humana.com/|humana.com}} |
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| footnotes = <ref name="10-K">{{cite web |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/49071/000004907124000012/hum-20231231.htm |title=Humana Inc. 2023 Annual Report (Form 10-K) |date=February 16, 2024 |publisher=[[U.S. Securities and Exchange Commission]] |access-date=April 26, 2024 |archive-date=February 17, 2024 |archive-url=https://web.archive.org/web/20240217043915/https://www.sec.gov/ix?doc=/Archives/edgar/data/49071/000004907124000012/hum-20231231.htm |url-status=live }}</ref> |
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}} |
}} |
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'''Humana Inc.''' ({{nyse|HUM}}), founded in 1961 in [[Louisville, Kentucky]], is a [[Fortune 100]] company that markets and administers health insurance. With a [[customer base]] of over 11.5 million in the [[United States]], the company is the largest (by revenues) [[Fortune 100]] company headquartered in the Commonwealth of [[Kentucky]],<ref>{{cite web|url=http://money.cnn.com/magazines/fortune/fortune100/2008/states/KY.html |title=Fortune 100 2008: States - Kentucky |publisher=Money.cnn.com |date=2008-05-05 |accessdate=2009-08-05}}</ref> and has a [[market cap]] of over [[United States dollar|US $]]8 billion, $25.2 billion in revenue, and over 26,000 employees nationwide. Humana markets its health insurance services in all 50 U.S. states, [[Washington, D.C.|D.C.]], and [[Puerto Rico]], and has [[international business]] interests in [[Western Europe]]. |
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'''Humana Inc.''' is a for-profit American [[health insurance in the United States|health insurance]] company based in [[Louisville]], [[Kentucky]]. In 2023, the company ranked 42 on the [[Fortune 500]] list,<ref>{{Cite web |title=Fortune 500 |url=https://fortune.com/ranking/fortune500/2023/search/ |access-date=August 30, 2023 |website=Fortune |language=en |archive-date=August 30, 2023 |archive-url=https://web.archive.org/web/20230830134552/https://fortune.com/ranking/fortune500/2023/search/ |url-status=live }}</ref> which made it the highest ranked (by revenues) company based in [[Kentucky]]. It is the fourth largest health insurance provider in the U.S.<ref>{{Cite web |last=Migneault |first=Jesse |date=April 13, 2017 |title=Top 5 Largest Health Insurance Payers in the United States |url=https://healthpayerintelligence.com/news/top-5-largest-health-insurance-payers-in-the-united-states#:~:text=These%20top%20five%20health%20insurance%20payers%20hold%20the,3.%20Aetna%204%204.%20Humana%205%205.%20Cigna |access-date=May 28, 2023 |website=Health Payer Intelligence |archive-date=May 28, 2023 |archive-url=https://web.archive.org/web/20230528155449/https://healthpayerintelligence.com/news/top-5-largest-health-insurance-payers-in-the-united-states#:~:text=These%20top%20five%20health%20insurance%20payers%20hold%20the,3.%20Aetna%204%204.%20Humana%205%205.%20Cigna |url-status=live }}</ref> |
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== History == |
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==History== |
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=== 1961-1993: Nursing homes and hospitals === |
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===1961–1983: Nursing homes and hospitals=== |
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The company was founded by [[David A. Jones, Sr.]] and [[Wendell Cherry]] as a [[nursing home]] company in 1961. Then known as Extendicare, the company became the largest nursing home company in the United States.{{Fact|date=April 2008}} Extendicare later divested the nursing home chain and moved into purchasing [[hospitals]] in 1972, becoming the world's largest hospital company in the 1980s.{{Fact|date=April 2008}} |
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Lawyers David A. Jones Sr. and [[Wendell Cherry]] founded a [[nursing home]] company in 1961.<ref>{{Cite web|last=Larson|first=Chris|date=February 20, 2020|title=Major Humana investor sheds half of its holdings in the company|url=https://www.bizjournals.com/louisville/news/2020/02/20/major-humana-investor-sheds-half-of-its-holdings.html|website=Louisville Business First|access-date=April 26, 2024|archive-date=February 13, 2023|archive-url=https://web.archive.org/web/20230213085510/https://www.bizjournals.com/louisville/news/2020/02/20/major-humana-investor-sheds-half-of-its-holdings.html|url-status=live}}</ref> The company, known in 1968 as Extendicare Inc., became the largest nursing home company in the United States. In 1972, Jones and Cherry sold the nursing home chain to purchase [[hospitals]].<ref name=biz>{{cite web|author1=Steve Ivey and Ed Green|title=Humana's history has been one of recognizing opportunities|url=http://www.bizjournals.com/louisville/print-edition/2011/11/11/humanas-history-has-been-one-of.html?page=all|publisher=American City Business Journals|access-date=March 23, 2015|date=November 11, 2011|archive-date=April 2, 2015|archive-url=https://web.archive.org/web/20150402205754/http://www.bizjournals.com/louisville/print-edition/2011/11/11/humanas-history-has-been-one-of.html?page=all|url-status=live}}</ref> |
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In 1974, the partners changed the corporate name to Humana Inc.<ref name=biz/> The name was meant to change public perception from 'warehousing' or indifferently treating people to providing a higher level of human care and, by extension, more humane care.<ref>{{cite book|url=https://books.google.com/books?id=nhd0aQe0YH0C&q=humana|title=Kiss & Sell: Writing for Advertising: (Redesigned & Rekissed)|first=Robert|last=Sawyer|date=August 16, 2006|publisher=AVA Publishing|via=Google Books|isbn=9782940373468|access-date=November 28, 2020|archive-date=April 26, 2024|archive-url=https://web.archive.org/web/20240426162015/https://books.google.com/books?id=nhd0aQe0YH0C&q=humana#v=snippet&q=humana&f=false|url-status=live}}</ref> It grew in the following years, both by business and in 1978 through the takeover of American Medicorp Inc.,<ref>{{Cite news|url=https://www.nytimes.com/1977/12/22/archives/twa-plans-offer-for-medicorp-shares-medicorp-takeover-planned-by.html|title=T. W. A. Plans Offer For Medicorp Shares|last=Cole|first=Robert J.|date=December 22, 1977|newspaper=The New York Times|issn=0362-4331|access-date=January 24, 2017|archive-date=August 13, 2017|archive-url=https://web.archive.org/web/20170813011203/http://www.nytimes.com/1977/12/22/archives/twa-plans-offer-for-medicorp-shares-medicorp-takeover-planned-by.html|url-status=live}}</ref> which doubled the company's size, and grew into the world's largest hospital company in the 1980s.<ref>{{Cite web|url=http://www.huffingtonpost.com/peter-dreier/humana-profits-over-peopl_b_327311.html|title=Humana: Profits Over People|first1=Peter|last1=Dreier|date=March 18, 2010|website=The Huffington Post|access-date=January 24, 2017|archive-date=February 2, 2017|archive-url=https://web.archive.org/web/20170202023146/http://www.huffingtonpost.com/peter-dreier/humana-profits-over-peopl_b_327311.html|url-status=live}}</ref> During this period, Humana developed the double corridor model for hospital construction. This design minimized the distance between patients and nurses by placing nursing support services in the interior of the building with patient rooms surrounding the perimeter.{{Citation needed|date=April 2008}} |
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The corporate name was changed to Humana Inc. in 1974. Humana experienced tremendous growth in the years that followed, both organically and through the takeover of American Medicorp Inc. in 1978, which doubled the company's size.{{Fact|date=April 2008}} During the mid-1970s, the company used a [[fast-track]] construction process to complete and open one hospital a month.{{Fact|date=April 2008}} This accelerated construction schedule, which compressed time by overlapping processes, allowed Humana to develop hospital projects faster than the industry norm.{{Fact|date=April 2008}} During this construction boom, Humana developed the double corridor model for hospital construction. This highly efficient design minimized the distance between patients and nurses by placing nursing support services in the interior of the building with patient rooms surrounding the perimeter.{{Fact|date=April 2008}} |
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===1984–present=== |
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Humana brought the pioneering [[artificial heart]] research of Dr. [[Robert Jarvik]] and Dr. [[William DeVries]], the inventor and surgeon of the first artificial heart implant performed at the [[University of Utah]] in 1982, to create the Humana Heart Institute, in Louisville in 1985.{{Fact|date=April 2008}} |
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As the [[American health care system]] changed in the 1980s, "one of its hospitals in Arizona lost a contract with the largest health-maintenance organization in the area [and] Humana created its own [[health insurance]] plan."<ref name=biz/> |
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In 1993, Humana had become the largest hospital operator in the country, owning 77 hospitals.{{Citation needed|date=September 2021}} Humana executives spun off hospital operations from health insurance operations to create Galen Health Care. The following year they sold the 73 hospitals of Galen Health Care Inc. to Nashville-based Columbia [[Hospital Corporation of America]] for $3.4 billion.<ref name=biz/> |
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In 1998, one year after Jones had stepped aside as CEO, [[United Healthcare]] made an unsuccessful attempt to acquire Humana.<ref name=biz/> Humana pulled out of the acquisition after United stock dropped $2.9 billion in value.<ref>{{Cite news|url=https://www.wsj.com/articles/SB902713934522640500|title=Humana Walks Away From Merger After United HealthCare Stock Falls|last=Burton|first=Thomas M.|date=August 10, 1998|newspaper=[[The Wall Street Journal]]|issn=0099-9660|access-date=January 23, 2017|archive-date=June 25, 2017|archive-url=https://web.archive.org/web/20170625084224/https://www.wsj.com/articles/SB902713934522640500|url-status=live}}</ref> In 2001, Humana was a cofounder of Avality.<ref>{{cite news|last=Mathis|first=Karen Brune|url=https://www.jaxdailyrecord.com/showstory.php?Story_id=531565|title=Availity: from scratch to 300 employees and 700 million transactions|work=[[Financial News & Daily Record]]|date=July 30, 2010|access-date=August 17, 2016|archive-date=December 22, 2015|archive-url=https://web.archive.org/web/20151222155908/https://www.jaxdailyrecord.com/showstory.php?Story_id=531565|url-status=live}}</ref> |
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=== 1984-present: Health insurance === |
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In 2005, Humana entered into a [[business partnership]] with [[Virgin Group]], offering financial incentives to members for healthy behavior, such as regular exercise.<ref>{{Cite news|last=Green|first=Ed|url=http://www.bizjournals.com/louisville/stories/2006/03/20/daily28.html|title=Humana, Virgin launch health rewards program in Louisville|work=[[Louisville Business First|Business First]]|date=March 23, 2006|access-date=January 23, 2017|archive-date=February 2, 2017|archive-url=https://web.archive.org/web/20170202021125/http://www.bizjournals.com/louisville/stories/2006/03/20/daily28.html|url-status=live}}</ref> |
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As the [[Health care in the United States|American health care system]] evolved in the 1980s, Humana developed and began marketing [[health insurance]] products. |
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On November 16, 2006, the Centers for Disease Control and Prevention (CDC) and Humana Inc. partnered to expand on traditional private-sector approaches to population health management.<ref>{{cite web|url=http://press.humana.com/press-release/current-releases/cdc-and-humana-partner-create-next-generation-public-health|title=CDC and Humana Partner to Create Next Generation of Public Health; Alliance to Leverage Private-Sector Resources to Address Chronic Diseases|publisher=Humana|date=November 16, 2006|access-date=October 21, 2013|archive-date=July 1, 2017|archive-url=https://web.archive.org/web/20170701113133/http://press.humana.com/press-release/current-releases/cdc-and-humana-partner-create-next-generation-public-health|url-status=dead}}</ref> |
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[[UnitedHealth Group|United Healthcare]] attempted to acquire Humana in 1998. United's effort failed when it reported an almost billion-dollar quarterly loss. {{Fact|date=April 2008}} |
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In 2010, Humana bought Texas-based [[Concentra]] Inc., which owns urgent-care and physical therapy centers, for $790 million, effectively returning to healthcare services.<ref name=biz/> In May 2011, Humana announced it would be using [[mobileStorm]] to transmit protected health information to patients.<ref>[http://www.smartphonehc.com/2011/05/27/mobilestorm-launches-first-hipaa-compliant-cloud-based-mhealth-communication-platform-announces-humana-as-a-beta-client/ mobileStorm Launches First HIPAA-Compliant, Cloud-based mHealth Communication Platform; Announces Humana as a Beta Client] {{Webarchive|url=https://web.archive.org/web/20170629060551/http://www.smartphonehc.com/2011/05/27/mobilestorm-launches-first-hipaa-compliant-cloud-based-mhealth-communication-platform-announces-humana-as-a-beta-client/ |date=June 29, 2017 }}. Smart Phone Health Care. May 27, 2011.</ref> |
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In 2001, Humana partnered with [[Navigy, Inc.]], a subsidiary of [[Blue Cross and Blue Shield Association|Blue Cross and Blue Shield]] of Florida, Inc., to launch [[Availity]].{{Fact|date=April 2008}} |
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In March 2015, Humana announced the sale of Concentra to private equity firm [[Welsh, Carson, Anderson & Stowe]] and [[Select Medical Holdings Corporation]] for about $1 billion, with proceeds to fund a "$2 billion share buyback program and other corporate spending."<ref name=reu>{{cite news|title=Humana to sell Concentra medical center unit for $1 billion|url=https://www.reuters.com/article/us-humana-welshcarson-m-a-idUSKBN0MJ1GF20150323|access-date=March 23, 2015|work=Reuters|date=March 23, 2015|archive-date=December 23, 2015|archive-url=https://web.archive.org/web/20151223045420/http://www.reuters.com/article/us-humana-welshcarson-m-a-idUSKBN0MJ1GF20150323|url-status=live}}</ref> |
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In 2005, Humana entered into a [[Partnership|business partnership]] with [[Virgin Group]], offering financial incentives to members for healthy behavior, such as regular exercise.{{Fact|date=April 2008}} |
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In July 2015, [[Aetna]] announced that it would acquire Humana for $37 billion in cash and stock (approximately $230 a share at that time). Aetna and Humana shareholders would own 74% and 26% of the new combined company, however the merger was blocked by a federal judge in January 2017.<ref>{{cite web|url=http://www.businesswire.com/news/home/20150702005935/en/Aetna-Acquire-Humana-37-Billion-Combined-Entity#.VZZFMuMayc3|title=Aetna Acquiring Humana for $37 Billion|publisher=BusinessWire|date=July 3, 2015|access-date=April 26, 2024|archive-date=February 17, 2024|archive-url=https://web.archive.org/web/20240217115753/https://www.businesswire.com/news/home/20150702005935/en/Aetna-Acquire-Humana-37-Billion-Combined-Entity#.VZZFMuMayc3|url-status=live}}</ref><ref>{{Cite news|last=Cancryn|first=Adam|url=http://www.politico.com/story/2017/01/judge-block-aetna-humana-merger-234043|title=Judge blocks major health insurance merger|work=[[Politico]]|date=January 23, 2017|access-date=January 23, 2017|archive-date=January 25, 2017|archive-url=https://web.archive.org/web/20170125173955/http://www.politico.com/story/2017/01/judge-block-aetna-humana-merger-234043|url-status=live}}</ref> In February 2017, [[Aetna Inc.]] and Humana Inc. quashed a $34 billion merger agreement after judges ruled against the merger for a second time.<ref>{{cite web|url=https://www.wsj.com/articles/cigna-calls-off-merger-with-anthem-1487104016|title=Antitrust Rulings Put Chill on Health-Insurance Mergers|last1=Wilde Mathews|first1=Anna|last2=Kendall|first2=Brent|date=February 15, 2017|publisher=[[The Wall Street Journal]]|access-date=February 15, 2017|archive-date=March 13, 2019|archive-url=https://web.archive.org/web/20190313052135/https://www.wsj.com/articles/cigna-calls-off-merger-with-anthem-1487104016|url-status=live}}</ref> |
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The Business Health Care Group of Southeast Wisconsin (BHCGSW) chose Humana as its administrative partner to help reduce health care costs. Today, the BHCGSW represents more than 200 member companies, including large and small employers representing more than 150,000 health care consumers in Southeastern Wisconsin.<ref>{{cite press release|url=http://www.humana.com/corporatecomm/newsroom/releases/PR-News-20060706-154547-NR.html |title=Humana Press Release |publisher=Humana.com |date= |accessdate=2009-08-05}}</ref> |
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In July 2018, Humana joined two [[private equity firm]]s in the acquisition of [[Kindred Healthcare]]. The deal provided Humana with a 40% stake in the company's home health, hospice and community care businesses, called "Kindred at Home," for approximately $800 million.<ref>{{cite web|url=https://www.forbes.com/sites/brucejapsen/2018/04/05/kindred-shareholders-approve-humana-deal/#70cd41d478fa|title=Kindred Shareholders Approve Humana Deal|last=Japsen|first=Bruce|date=April 5, 2018|work=[[Forbes]]|access-date=September 28, 2018|archive-date=April 10, 2019|archive-url=https://web.archive.org/web/20190410211105/https://www.forbes.com/sites/brucejapsen/2018/04/05/kindred-shareholders-approve-humana-deal/#70cd41d478fa|url-status=live}}</ref><ref>{{cite web|url=https://www.bizjournals.com/louisville/news/2018/09/20/humana-cfo-what-were-trying-to-do-with-health-care.html|title=Humana CFO: 'What we're trying to do with health care is fundamental transformation'|last=Larson|first=Chris|date=September 20, 2018|publisher=Louisiana Business First|access-date=September 28, 2018|archive-date=August 15, 2022|archive-url=https://web.archive.org/web/20220815040226/https://www.bizjournals.com/louisville/news/2018/09/20/humana-cfo-what-were-trying-to-do-with-health-care.html|url-status=live}}</ref> In August 2018, Humana announced the creation of a digital health and analytics division called Humana Studio H.<ref>{{Cite web|last=Greer|first=Carolyn|date=August 27, 2018|title=Humana plans new analytics division – here's where it's going|url=https://www.bizjournals.com/louisville/news/2018/08/27/humana-plans-new-analytics-division-heres-where.html|website=Louisville Business First|access-date=April 26, 2024|archive-date=February 13, 2023|archive-url=https://web.archive.org/web/20230213090129/https://www.bizjournals.com/louisville/news/2018/08/27/humana-plans-new-analytics-division-heres-where.html|url-status=live}}</ref> |
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In 2006, Humana launched an education campaign to market [[Medicare (United States)#Part C: Medicare Advantage plans|Medicare Advantage]] (MA) and [[Medicare Part D|Prescription Drug Plans]] (PDP) nationwide to Medicare eligible consumers, following the passage of the [[Medicare modernization act]]. |
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In December 2019, the company announced it would acquire Enclara Healthcare from Consonance Capital Partners and Enclara management.<ref>{{Cite web|title=Humana to Acquire Enclara Healthcare|url=https://www.biospace.com/article/humana-to-acquire-enclara-healthcare/|access-date=July 1, 2020|website=BioSpace|language=en-US|archive-date=July 1, 2020|archive-url=https://web.archive.org/web/20200701171140/https://www.biospace.com/article/humana-to-acquire-enclara-healthcare/|url-status=live}}</ref> |
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Humana also launched [[RightSource]], a national [[mail-order]] retail [[pharmacy]] business in 2006.{{Fact|date=April 2008}} |
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In 2021, Susan Diamond, formerly occupying an interim position, was announced to be the new permanent CFO. Her appointment to the position comes with the company's focus being turned towards the home healthcare business, acquiring in April of the same year a 60% stake in Kindred at Home, an in-home care and hospice business.<ref>{{Cite news|last=Maidenberg|first=Micah|date=April 27, 2021|title=Humana Buying Out Partners in Home-Health Business|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/humana-buying-out-partners-in-home-health-business-11619562869|access-date=June 30, 2021|issn=0099-9660|archive-date=June 30, 2021|archive-url=https://web.archive.org/web/20210630000553/https://www.wsj.com/articles/humana-buying-out-partners-in-home-health-business-11619562869|url-status=live}}</ref><ref>{{Cite web|title=Humana Announces Plan for CFO Transition|url=https://press.humana.com/news/news-details/2021/Humana-Announces-Plan-for-CFO-Transition/default.aspx|access-date=June 30, 2021|website=press.humana.com|language=en-US|archive-date=July 9, 2021|archive-url=https://web.archive.org/web/20210709181720/https://press.humana.com/news/news-details/2021/Humana-Announces-Plan-for-CFO-Transition/default.aspx|url-status=live}}</ref><ref>{{Cite news|last=Sebastian|first=Kristin Broughton and Dave|date=June 28, 2021|title=Health Insurer Humana Makes Its Interim CFO Permanent|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/health-insurer-humana-makes-its-interim-cfo-permanent-11624905340|access-date=June 30, 2021|issn=0099-9660|archive-date=June 29, 2021|archive-url=https://web.archive.org/web/20210629181903/https://www.wsj.com/articles/health-insurer-humana-makes-its-interim-cfo-permanent-11624905340|url-status=live}}</ref> |
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Humana screened the 1942 classic ''[[Casablanca (film)|Casablanca]]'' in select [[movie theater]]s nationwide as part of a campaign to preview its Medicare Advantage consumer services in 2007, marking the first time in more than 60 years that the film was seen nationally in movie theaters.<ref>{{cite press release|url=http://www.humana.com/corporatecomm/newsroom/releases/PR-News-20061009-155557-NR.html |title=Humana Press Release |publisher=Humana.com |date= |accessdate=2009-08-05}}</ref> |
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In April 2022, it was announced Humana would sell a 60% interest of its Kindred at Home division to the private investment company, [[Clayton, Dubilier & Rice]], for US$2.8 billion.<ref>{{Cite news |date=April 21, 2022 |title=Humana to sell majority stake in hospice business to CD&R for $2.8 billion |language=en |work=Reuters |url=https://www.reuters.com/business/humana-sell-majority-stake-hospice-business-cdr-28-billion-2022-04-21/ |access-date=April 30, 2022 |archive-date=April 30, 2022 |archive-url=https://web.archive.org/web/20220430120750/https://www.reuters.com/business/humana-sell-majority-stake-hospice-business-cdr-28-billion-2022-04-21/ |url-status=live }}</ref> |
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In its March 2008 issue, ''[[Fortune Magazine]]'' named Humana one of the Top 5 Most Admired Healthcare Companies in the United States.<ref>{{cite web|url=http://money.cnn.com/magazines/fortune/mostadmired/2008/industries/61.html |title=America's Most Admired Companies 2008: Industry: Health Care: Insurance, Managed Care | FORTUNE |publisher=Money.cnn.com |date=2008-03-17 |accessdate=2009-08-05}}</ref> |
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In February 2023, Humana announced they were exiting the employer-based commercial group insurance market.<ref>{{Cite web |title=Humana to Exit Employer Group Commercial Medical Products Business |url=https://press.humana.com/news/news-details/2023/Humana-to-Exit-Employer-Group-Commercial-Medical-Products-Business/default.aspx |access-date=August 24, 2023 |website=press.humana.com |language=en-US |archive-date=August 24, 2023 |archive-url=https://web.archive.org/web/20230824221127/https://press.humana.com/news/news-details/2023/Humana-to-Exit-Employer-Group-Commercial-Medical-Products-Business/default.aspx |url-status=live }}</ref> |
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=== Acquisitions === |
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==Corporate affairs== |
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This list represents some of the major acquisitions completed by Humana since 1990 in the [[United States|U.S.]]: |
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===Sponsorship=== |
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{| class="wikitable" |
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Humana is the presenting sponsor of the ''[[Grand Ole Opry]]''<ref>{{cite web|url=http://www.opry.com/about/Sponsors.html|title=About the Opry|publisher=[[Grand Ole Opry]]|access-date=August 17, 2016|archive-url=https://web.archive.org/web/20130616211730/http://www.opry.com/about/Sponsors.html|archive-date=June 16, 2013|url-status=dead}}</ref> and the [[National Senior Games]].<ref>{{Cite web |title=National Senior Games Association |url=https://nsga.com/ |website=nsga.com |access-date=April 26, 2024 |archive-date=March 24, 2024 |archive-url=https://web.archive.org/web/20240324172320/https://nsga.com/ |url-status=live }}</ref> |
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|- style="background:#fcfcfc;" |
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!Year |
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!Acquired company |
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!Location |
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|- |
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| 1990 |
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| [[Michael Reese Hospital|Michael Reese]] Health Plan |
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| Illinois |
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|- |
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| 1995 |
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| The Dental Concern |
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| Illinois |
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|- |
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| 1995 |
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| Carrington |
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| Illinois |
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|- |
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| 1996 |
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| Employers Health Insurance (EHI) |
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| Wisconsin |
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|- |
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| 1997 |
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| Physicians Corp of America (PCA) |
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| Texas |
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|- |
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| 1997 |
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| ChoiceCare |
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| Ohio |
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|- |
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| 2000 |
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| Memorial Sisters of Charity |
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| Texas |
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|- |
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| 2003 |
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| Oschner Health Plan |
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| Louisiana |
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|- |
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| 2005 |
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| CarePlus Health |
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| Florida |
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|- |
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| 2005 |
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| Corphealth Behavioral Healthcare |
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| Texas |
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|- |
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| 2006 |
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| CHA Health |
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| Kentucky |
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|- |
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| 2007 |
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| Compbenefits |
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| Georgia |
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|- |
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| 2007 |
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| KMG |
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| Minnesota |
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|- |
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| 2008 |
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| OSF Healthplans |
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| Illinois |
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|- |
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| 2008 |
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| Metcare |
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| Florida |
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|- |
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| 2008 |
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| Cariten |
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| Tennessee |
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|} |
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Since 1979, Humana has been a principal sponsor of the annual [[Humana Festival of New American Plays]] in Louisville, Kentucky.<ref>{{cite web|url=http://www.humanafoundation.org/actors_theatre.asp|title=Humana Festival of New American Plays|publisher=Humana Foundation|access-date=August 17, 2016|archive-url=https://web.archive.org/web/20140715002549/http://www.humanafoundation.org/actors_theatre.asp|archive-date=July 15, 2014|url-status=dead}}</ref> |
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== Corporate affairs == |
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[[LPGA]] player [[Nancy Scranton]] was a spokesperson for Humana.<ref>{{cite web |url=http://press.humana.com/press-release/current-releases/lpgas-nancy-scranton-becomes-humana-ambassador |title=LPGA's Nancy Scranton Becomes Humana Ambassador; Veteran Golfer Will Offer Golfing and Lifestyle Tips Targeted to Humana's Female Audience |access-date=October 21, 2013 |archive-date=July 1, 2017 |archive-url=https://web.archive.org/web/20170701123256/http://press.humana.com/press-release/current-releases/lpgas-nancy-scranton-becomes-humana-ambassador |url-status=dead }}</ref> In the past, PGA Tour player [[David Toms]]' David Toms Foundation has partnered with the Humana Foundation to provide grants to several children's charities in New Orleans.<ref>{{Cite news|url=http://philanthropynewsdigest.org/news/david-toms-humana-foundations-partner-to-assist-new-orleans-charities|title=David Toms, Humana Foundations Partner to Assist New Orleans Charities|newspaper=Philanthropy News Digest (PND)|language=en|access-date=January 24, 2017|archive-date=February 2, 2017|archive-url=https://web.archive.org/web/20170202032836/http://philanthropynewsdigest.org/news/david-toms-humana-foundations-partner-to-assist-new-orleans-charities|url-status=live}}</ref> Humana is the official health benefits provider of the [[PGA Tour]] and [[Champions Tour]].{{Citation needed|date=March 2022}} |
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=== Leadership === |
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The [[Humana Distaff Handicap]] is a [[Group races|Grade 1]] race for [[thoroughbred]] [[fillies]] and [[mares]], four-years-old and up. The race is run each spring on [[Kentucky Derby]] day at [[Churchill Downs]] and set at a distance of 7 furlongs for a purse of $250,000.{{Citation needed|date=April 2008}} |
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Michael B. McCallister, a 34 year company veteran, is president and [[chief executive officer]] of Humana the worst insurance in America. McCallister began his career in 1974 as an analyst in the company's finance department. In 2006, he was rated as one of the most successful CEOs in American business at creating [[shareholder value]] by ''[[Forbes|Forbes Magazine]]''. McCallister is a member of the [[Business Roundtable]]. |
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===Humana Military Healthcare Services=== |
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David Jones, Jr. serves as [[Board of directors|chairman of the board]] of directors. Jones is the son of company founder, David Jones, Sr. |
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In 1993, Humana founded Humana Military Healthcare Services (HMHS) as a wholly owned subsidiary.<ref name=biz/> They were awarded their first [[TRICARE]] contract in 1995, and began serving military beneficiaries in 1996.<ref>{{Cite book|url=https://books.google.com/books?id=SGyElmFkDc4C&q=HMHS+was+the+managed+care+contractor+for+the+Department+of+Defense+Military+Health+System+TRICARE+South+Region&pg=PA83|title=Project Healthcare Effectiveness Through Resource Optimization: Hearing|publisher=DIANE Publishing|isbn=9781422323243|pages=83|access-date=November 28, 2020|archive-date=April 26, 2024|archive-url=https://web.archive.org/web/20240426161916/https://books.google.com/books?id=SGyElmFkDc4C&q=HMHS+was+the+managed+care+contractor+for+the+Department+of+Defense+Military+Health+System+TRICARE+South+Region&pg=PA83#v=snippet&q=HMHS%20was%20the%20managed%20care%20contractor%20for%20the%20Department%20of%20Defense%20Military%20Health%20System%20TRICARE%20South%20Region&f=false|url-status=live}}</ref> |
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From 2004 to 2009, HMHS was the managed care contractor for the Department of Defense [[Military Health System]] [[TRICARE]] South Region. |
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In 2009, HMHS' Managed Care Support Contract was awarded to United Military and Veterans Services, a subsidiary of [[UnitedHealth Group]]. HMHS protested that decision and the [[Government Accountability Office]] upheld the protest in late 2009.<ref>{{Cite web|title=U.S. TRICARE Contract Protest By Humana Upheld|url=http://www.cbsnews.com/8301-505123_162-36143861/us-tricare-contract-protest-by-humana-upheld/|access-date=May 11, 2020|website=CBS News|language=en-US}}</ref> |
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In an interview published by ''[[The Courier-Journal]]'', the day following his retirement as chairman of the board of directors, David Jones, Sr. indicated he had vehemently opposed United Healthcare's effort to takeover Humana in 1998, but was out voted by other members of the board of directors. |
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In 2011, HMHS regained the five-year contract to administer medical benefits to military members and families in the South region, a contract worth $23.5 billion.<ref name="biz" /> In 2018, this was moved to the new TRICARE East region during the TRICARE regional realignment. |
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The year the leader joined the company is listed in brackets. |
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On December 22, 2022, the [[Department of Defense]] announced the award of the managed care support contract for the TRICARE East Region to Humana Military.<ref>{{Cite web |title=Contracts for December 22, 2022 |url=https://www.defense.gov/News/Contracts/Contract/Article/3254039/https%3A%2F%2Fwww.defense.gov%2FNews%2FContracts%2FContract%2FArticle%2F3254039%2F%2F |access-date=December 29, 2022 |website=U.S. Department of Defense |language=en-US}}</ref> |
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* Michael B. McCallister, President and Chief Executive Officer [1974] should rot in hell |
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* James (Jim) E. Murray, [[Vice president|Senior Vice President]] and [[Chief operating officer]] [1989] |
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* James (Jim) H. Bloem, Senior Vice President, [[Chief financial officer]] and Treasurer [2001] |
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* Paul B. Kusserow, Senior Vice President, [[Chief Strategy Officer]] [2009] |
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* Christopher Todoroff, Senior Vice President [[General Counsel]] [2008] |
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* Raja Rajamannar, Senior Vice President, [[Chief Innovation & Marketing Officer]] [2009] |
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* Bruce J. Goodman, Senior Vice President and Chief Service and Information Officer [1999] |
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* Thomas (Tom) J. Liston, Senior Vice President, Senior Products [1994] |
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* Bonita (Bonnie) C. Hathcock, Senior Vice President and Chief [[Human resources]] Officer [1999] |
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* Heidi Margulis, Senior Vice President of Government Relations [1985] |
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* Thomas (Tom) Noland, Senior Vice President of [[Corporate communications]] [1984] |
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* Bruce Perkins, Senior Vice President [1982] |
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==Legal campaign against drug price fixing== |
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=== Locations === |
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Humana filed a lawsuit in August 2019, alleging that 37 defendants engaged in a “far-reaching conspiracy” to “blatantly fix the price” of generic drugs. This follows a similar smaller lawsuit from October 2018.<ref>{{cite web|url= https://www.centerforbiosimilars.com/view/humana-alleges-price-fixing-in-lawsuit-against-generic-drug-makers|title= Humana Alleges Price Fixing in Lawsuit Against Generic Drug Makers|date= October 21, 2019|access-date= April 26, 2024|archive-date= November 29, 2023|archive-url= https://web.archive.org/web/20231129030221/https://www.centerforbiosimilars.com/view/humana-alleges-price-fixing-in-lawsuit-against-generic-drug-makers|url-status= live}}</ref> |
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[[Image:Humana.jpg|thumb|right|Humana headquarters at the [[Humana Building]] in [[Louisville, Kentucky]]]] |
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==Controversy== |
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The [[Humana Building]] in [[Louisville, Kentucky]] is a well-known example of [[postmodern architecture]] designed by [[Michael Graves]] and completed in 1985. Humana sponsored an [[Architectural design competition|architectural competition]] to determine the design of its headquarters building. [[Scale model]]s of the participants (including the submissions of [[Helmut Jahn]], [[I. M. Pei]], Michael Graves and others) are contained in a vestibule located directly above the Main Street entrance. |
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In 1987, Humana sued [[NBC]] over a story line in the television [[medical drama]] ''[[St. Elsewhere]]'' in which the hospital was to be sold to a [[for-profit]] medical corporation and renamed "Ecumena", with subsequent changes to the hospital, both positive and negative, emanating from that change. The company claimed that the program infringed on the Humana trademark.<ref name="Potts-1987">{{Cite news |last=Potts |first=Mark |date=October 1, 1987 |title=HUMANA SUES NBC OVER NAME |language=en-US |newspaper=Washington Post |url=https://www.washingtonpost.com/archive/business/1987/10/01/humana-sues-nbc-over-name/2f5f2235-e25c-46a8-8528-c7b759547d46/ |access-date=October 5, 2023 |issn=0190-8286}}</ref> Humana failed to block the airing of the show,<ref name="Potts-1987" /> but was successful at forcing NBC into showing a disclaimer at the beginning of the September 30 episode saying that the drama had no connection whatsoever with Humana.<ref>{{cite web|url= http://www.highbeam.com/doc/1P2-3847944.html |archive-url= https://web.archive.org/web/20110516172845/http://www.highbeam.com/doc/1P2-3847944.html |url-status= dead |archive-date= May 16, 2011 |title=Humana lawsuit over 'St. Elsewhere' prompts TV disclaimer by NBC |publisher=Chicago Sun-Times|date=October 1, 1987| access-date=August 5, 2009}}</ref> |
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On May 30, 1996, [[Linda Peeno]], a physician who was contracted to work for Humana for nine months, testified before [[United States Congress|Congress]] as to the downside of [[managed care]]. Peeno said she was effectively rewarded by her employer for causing the death of a patient, because it saved the company a half-million dollars. Peeno stated that she felt the "managed care" model was inherently unethical.<ref>{{cite web|url=https://harp.org/peeno.htm |archive-url=https://web.archive.org/web/20080601094042/http://www.nomanagedcare.org/DrPeenotestimony.html |archive-date=June 1, 2008 |title=Testimony of Linda Peeno, MD about Managed Care in the Healthcare Industry – May 30, 1996 |publisher=harp.org|access-date=July 7, 2022}}</ref> |
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Humana also operates a state-of-the-art mail-order facility, ''Right''SourceRx. ''Right''SourceRx operates in [[Phoenix, Arizona]] and [[West Chester, Ohio]]. The Humana call center is located in [[Cincinnati, Ohio]] and other areas. |
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In 1999, season one of Michael Moore's TV series ''[[The Awful Truth (TV series)|The Awful Truth]]'' reported on Humana refusing to pay for a diabetic patient with [[pancreatic failure]] needing a transplant. The man's policy stated it covered all of his [[diabetes]]-related expenses, but another section of the policy stated that it did not cover organ transplants. Moore conducted a fake funeral on the front steps of the Humana building, and three days later Humana changed its policy and authorized the man's treatment.<ref>{{cite news|author1=Chris Kaltenbach|title=Moore to tell 'Awful Truth'|url=http://articles.baltimoresun.com/1999-04-07/features/9904070248_1_michael-moore-awful-truth-bravo|access-date=March 23, 2015|work=Baltimore Sun|date=April 7, 1999|archive-date=April 2, 2015|archive-url=https://web.archive.org/web/20150402123220/http://articles.baltimoresun.com/1999-04-07/features/9904070248_1_michael-moore-awful-truth-bravo|url-status=dead}}</ref> |
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=== Sponsorship === |
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[[Michael Moore]]'s 2007 documentary ''[[Sicko]]'' used the video of Linda Peeno's testimony.<ref>{{Cite web |last=Rovner |first=Julie |date=September 3, 2007 |title='Sicko's' Peeno Sees Few Gains in Health Insurance |url=https://www.npr.org/2007/09/03/13979799/sickos-peeno-sees-few-gains-in-health-insurance |access-date=October 5, 2023 |website=NPR |archive-date=February 25, 2023 |archive-url=https://web.archive.org/web/20230225004055/https://www.npr.org/2007/09/03/13979799/sickos-peeno-sees-few-gains-in-health-insurance |url-status=live }}</ref> On June 28, 2007, Humana declared that Peeno was never a Humana "associate" (permanent, full-time employee), but rather a "part-time contractor." Humana disputed portions of her Congressional testimony by saying that because the patient's healthcare plan did not cover heart transplants, denial of coverage was valid.<ref>{{cite news |title=Humana issues statement on Moore's 'Sicko' |url=http://www.bizjournals.com/louisville/stories/2007/06/25/daily35.html |publisher=Business First |date=June 28, 2007 |access-date=July 7, 2007 |archive-date=July 5, 2007 |archive-url=https://web.archive.org/web/20070705021201/http://www.bizjournals.com/louisville/stories/2007/06/25/daily35.html? |url-status=live }}</ref> |
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Humana is the official health benefits provider of the [[PGA Tour]] and [[Champions Tour]]. PGA Tour player [[David Toms]] and [[LPGA]] player [[Nancy Scranton]] are both ambassadors for Humana.{{Fact|date=April 2008}} |
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On September 21, 2009, the [[U.S. Dept. of Health and Human Services]] opened an investigation into Humana for sending flyers to [[Medicare (United States)|Medicare]] recipients that the [[AARP]] characterized as deceptive.<ref>{{cite news |url=http://www.medicalnewstoday.com/articles/164893.php |title=Medicare Probes Humana's Letter To Patients About Effects Of Health Reform |work=[[Medical News Today]] |date=September 23, 2009 |archive-url=https://web.archive.org/web/20090927083029/http://www.medicalnewstoday.com/articles/164893.php |archive-date=September 27, 2009 |access-date=April 26, 2024}}</ref> The mail was made to appear to contain official information about [[Medicare Advantage]] and prescription drug benefit information, but instead alleged that core Medicare benefits could be cut by the [[Obama administration]]'s healthcare reform,<ref name=Teo>{{cite news |first=Dawn |last=Teo |url=http://www.huffingtonpost.com/dawn-teo/humana-mailer-targets-eld_b_289421.html |title=Humana Mailer Targets Elderly, Claims Medicare Benefits To Be Cut |archive-url=https://web.archive.org/web/20160107195706/http://www.huffingtonpost.com/dawn-teo/humana-mailer-targets-eld_b_289421.html |archive-date=January 7, 2016 |work=[[Huffington Post]] |date=November 16, 2009 |access-date=April 26, 2024 |url-status=live}}</ref> a claim refuted by John Rother, [[AARP]]'s executive vice president.<ref>{{cite web|last=King|first=Neil|date=August 25, 2009|title=GOP Tees Up Medicare Manifesto|url=https://www.wsj.com/articles/SB125112553661853921|access-date=October 22, 2010|publisher=WSJ|archive-date=April 5, 2015|archive-url=https://web.archive.org/web/20150405121614/http://www.wsj.com/articles/SB125112553661853921|url-status=live}}</ref> Douglas Elmendorf, the head of the [[Congressional Budget Office]] (CBO), supported the claim that Medicare benefits could be cut,<ref>[http://www.seattletimes.com/politics/democrats-try-to-move-on-health-bill-gop-objects/ Budget chief says Medicare benefits could be cut] {{Webarchive|url=https://web.archive.org/web/20231018122026/https://www.seattletimes.com/politics/democrats-try-to-move-on-health-bill-gop-objects/ |date=October 18, 2023 }} Erica Werner, Associated Press. September 23, 2009</ref> but his comments were in reference to just one of several congressional bills. CBO estimates of another healthcare reform bill found that changes to premiums would vary.<ref>[http://www.cbo.gov/publication/24959 The Effect of H.R. 3200 on Medicare Part D Premiums] {{Webarchive|url=https://web.archive.org/web/20231018122025/https://www.cbo.gov/publication/24959 |date=October 18, 2023 }} Congressional Budget Office, Director's Blog. August 28, 2009</ref> The [[Centers for Medicare and Medicaid Services]] instructed Humana to cease all such mailings to Medicare plan members pending an investigation.<ref name=Teo/> HHS Secretary Kathleen Sebelius, in a letter to the insurance industry, threatened that bad actors may be excluded from new health insurance markets that were to open in 2014. Senate Republicans pointed out in a letter to Sebelius that a 1997 directive from the Centers for Medicare and Medicaid Services explicitly allowed HMOs to tell members about legislation and urge them to express opinions.{{citation needed|date=March 2015}} |
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The [[Humana Distaff Handicap]] is a [[Grade 1]] race for [[thoroughbred]] [[fillies]] and [[mare (horse)|mares]], four-years-old and up. The race is run each spring on [[Kentucky Derby]] day at [[Churchill Downs]] and set at a distance of 7 furlongs for a purse of $250,000.{{Fact|date=April 2008}} |
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==See also== |
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Humana is also one of the Official Sponsors of [[Dollywood]]. |
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* [[Top 100 Contractors of the U.S. federal government]] |
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* [[List of major employers in Louisville, Kentucky]] |
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==References== |
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=== Humana Military Healthcare Services === |
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Humana Military Healthcare Services (HMHS) is a wholly owned subsidiary of Humana. Since 2004, HMHS has acted as the Managed Care Support Contractor for the [[United States Department of Defense]] [[Military Health System]] [[TRICARE]] South Region. HMHS has provided managed care for the United States Army, but Humana lost the most recent bid for this contract. The current contract is set to end in March of 2010.<ref name="defenselink71704">{{cite press release | title=Tricare South Region to begin Transition August 1 | publisher=U.S. Department of Defense | date=2004-07-28 | url=http://www.defenselink.mil/releases/release.aspx?releaseid=7582 | accessdate=2008-05-27}}</ref> |
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== Controversy == |
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In 1987, Humana sued [[NBC]] over a story line in the television [[medical drama]] ''[[St. Elsewhere]]'' whereas the hospital was to be sold to a [[Business|for-profit]] medical corporation and renamed "Ecumena", with subsequent changes to the hospital, both positive and negative, emanating from that change. Humana was successful at forcing NBC into showing a disclaimer at the beginning of the September 30 episode saying that the drama had no connection whatsoever with Humana.<ref>{{cite web|url=http://www.highbeam.com/doc/1P2-3847944.html |title=Humana lawsuit over `St. Elsewhere' prompts TV disclaimer by NBC |publisher=Chicago Sun-Times |date=1987-10-01 |accessdate=2009-08-05}}</ref> |
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On May 30, 1996, [[Linda Peeno]], who was contracted to work for Humana for nine months, testified before [[United States Congress|Congress]] as to the downside of [[managed care]].<ref>[http://www.nomanagedcare.org/DrPeenotestimony.html Testimony of Linda Peeno, MD about Managed Care in the Healthcare Industry - May 30, 1996]</ref> |
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{{cquote|I wish to begin by making a public confession: In the spring of 1987, as a physician, I caused the death of a man. |
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Although this was known to many people, I have not been taken before any court of law or called to account for this in any professional or public forum. In fact, just the opposite occurred: I was "rewarded" for this. It bought me an improved reputation in my job, and contributed to my advancement afterwards. Not only did I demonstrate I could indeed do what was expected of me, I exemplified the "good" company doctor: I saved a half million dollars.}} |
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{{cquote|I contend that "managed care," as we currently know it, is inherently unethical in its organization and operation. Furthermore, I maintain that we have an industry which can exist only through flagrant ethical violations against individuals and the public.}} |
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On the June 21, 2007 episode of [[Amy Goodman]]'s ''[[Democracy Now!]]'' radio/television program, Peeno further claimed that "just within a day or so [of the refusal of the heart transplant, I] saw a sculpture being installed in the rotunda [of Humana's headquarters] and was told at that time that it had cost about the same as the [[Organ transplant|heart transplant]] that we had denied...By the way, I later found out that that sculpture cost $3.8 million, so it was equivalent to eight heart transplants."<ref>[http://www.democracynow.org/2007/6/21/hmo_whisteblower_dr_linda_peeno_on Linda Peeno's Interview on ''Democracy Now!'']</ref> |
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Video of Linda Peeno's testimony appeared in [[Michael Moore]]'s 2007 documentary ''[[Sicko]]''. On June 28, 2007, in a statement about the movie, Humana declared that Peeno was never a Humana "associate" (permanent, full-time employee), but rather a "part-time contractor". Humana also disputed the portions of Congressional testimony that were shown by saying that because the patient's specific healthcare plan didn't cover heart transplants, the denial of coverage was valid.<ref>{{cite news |title=Humana issues statement on Moore's 'Sicko' |url=http://www.bizjournals.com/louisville/stories/2007/06/25/daily35.html |publisher=''[[Business First]]'' |date=2007-06-28 |accessdate=2007-07-07}}</ref> |
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Humana was also featured in Season One of Moore's ''[[The Awful Truth (TV series)|The Awful Truth]]'', shown refusing to give a [[pancreatic failure]] sufferer authorization for a transplant due to a contradictory policy that stated that all of this man's [[diabetes]] related expenses were covered by his plan (his pancreas was failing due to his diabetes) but in another section, it said that it wouldn't cover organ transplants. Moore conducted a fake funeral on the front steps of Humana for the man who was sure to die without the transplant. Three days later, Humana changed their policy and authorized the man's treatment. This scene was the inspiration for ''Sicko''. |
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On September 21, 2009 the [[United States Department of Health and Human Services|U.S. Department of Health and Human Services]] opened an investigation into mass mailings sent by Humana to elderly Medicare recipients.<ref>[http://www.medicalnewstoday.com/articles/164893.php Medicare Probes Humana's Letter To Patients About Effects Of Health Reform] Medical News Today 23 Sep 2009</ref> The mail was made to appear to contain official information about [[Medicare Advantage]] and prescription drug benefit information, but instead alleged that core Medicare benefits could be cut by the [[Obama administration]]'s healthcare reform,<ref>[http://www.huffingtonpost.com/dawn-teo/humana-mailer-targets-eld_b_289421.html Humana Mailer Targets Elderly, Claims Medicare Benefits To Be Cut] ''[[Huffington Post]]''. 2009-09-16.</ref> a claim refuted by the [[non-partisan]] [[website]] [[FactCheck]]<ref>[http://www.factcheck.org/2009/08/seven-falsehoods-about-health-care/ Seven Falsehoods About Health Care] [[FactCheck.org]]. August 14, 2009</ref> and John Rother, [[AARP]]'s executive vice president.<ref>[http://online.wsj.com/article/SB125112553661853921.html GOP Tees Up Medicare Manifesto]</ref> Douglas Elmendorf, the head of the [[Congressional Budget Office]], later supported the claim that Medicare benefits would be cut.<ref>[http://news.yahoo.com/s/ap/20090923/ap_on_go_co/us_health_care_seniors_2 Budget chief says Medicare benefits could be cut] ERICA WERNER, Associated Press. September 22, 2009</ref> However, his comments were in reference to just one of several bills being drafted in Congress, and CBO estimates of another healthcare reform bill found that changes to premiums would vary.<ref>[http://cboblog.cbo.gov/?p=348 The Effect of H.R. 3200 on Medicare Part D Premiums] Congressional Budget Office, Director's Blog. August 28, 2009</ref> Because these mailings may have been paid for by public money provided to Humana for Medicare Advantage and possibly violated terms of their contract, the [[Centers for Medicare and Medicaid Services]] instructed Humana to cease all such mailings to Medicare plan members pending an investigation. |
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== Humana's Prescription Home Delivery == |
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In 2006, Humana started a Prescription Home Delivery Pharmacy called [http://www.rightsourcerx.com/ RightSourceRx].<ref name="RightSourceRx.com">[http://www.rightsourcerx.com/ RightSourceRx.com]</ref> Members are now able to get a discount on 90 day prescriptions through RightSource, depending on what their plan allows. RightSource just filled their 500,000 prescription in December of 2008. |
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== References == |
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{{Reflist}} |
{{Reflist}} |
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== |
==External links== |
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{{Commons category}} |
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* {{Official website|https://www.humana.com/}} |
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{{Finance links |
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| name = Humana |
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| symbol = HUM |
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| sec_cik = 49071 |
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| yahoo = HUM |
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| google = HUM |
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}} |
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{{Major insurance companies}} |
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{{authority control}} |
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[[Category:Financial services companies established in 1961]] |
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* [http://www.humana.com/ Official website] |
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[[Category:Companies listed on the New York Stock Exchange]] |
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* [http://www.humana-military.com/ Humana Military website] |
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[[Category:American companies established in 1961]] |
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* [http://www.rightsourcerx.com/ RightSourceRX.com] |
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Latest revision as of 20:45, 7 May 2024
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Company type | Public |
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Industry | Managed health care |
Founded | August 18, 1961 Louisville, Kentucky, U.S. | (as Extendicare Inc.)
Founder | Wendell Cherry ![]() |
Headquarters | Louisville, Kentucky, U.S. |
Key people |
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Revenue | ![]() |
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Total assets | ![]() |
Total equity | ![]() |
Number of employees | 67,600 (2023) |
Website | humana.com |
Footnotes / references [1] |
Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky. In 2023, the company ranked 42 on the Fortune 500 list,[2] which made it the highest ranked (by revenues) company based in Kentucky. It is the fourth largest health insurance provider in the U.S.[3]
History
[edit]1961–1983: Nursing homes and hospitals
[edit]Lawyers David A. Jones Sr. and Wendell Cherry founded a nursing home company in 1961.[4] The company, known in 1968 as Extendicare Inc., became the largest nursing home company in the United States. In 1972, Jones and Cherry sold the nursing home chain to purchase hospitals.[5]
In 1974, the partners changed the corporate name to Humana Inc.[5] The name was meant to change public perception from 'warehousing' or indifferently treating people to providing a higher level of human care and, by extension, more humane care.[6] It grew in the following years, both by business and in 1978 through the takeover of American Medicorp Inc.,[7] which doubled the company's size, and grew into the world's largest hospital company in the 1980s.[8] During this period, Humana developed the double corridor model for hospital construction. This design minimized the distance between patients and nurses by placing nursing support services in the interior of the building with patient rooms surrounding the perimeter.[citation needed]
1984–present
[edit]As the American health care system changed in the 1980s, "one of its hospitals in Arizona lost a contract with the largest health-maintenance organization in the area [and] Humana created its own health insurance plan."[5]
In 1993, Humana had become the largest hospital operator in the country, owning 77 hospitals.[citation needed] Humana executives spun off hospital operations from health insurance operations to create Galen Health Care. The following year they sold the 73 hospitals of Galen Health Care Inc. to Nashville-based Columbia Hospital Corporation of America for $3.4 billion.[5]
In 1998, one year after Jones had stepped aside as CEO, United Healthcare made an unsuccessful attempt to acquire Humana.[5] Humana pulled out of the acquisition after United stock dropped $2.9 billion in value.[9] In 2001, Humana was a cofounder of Avality.[10]
In 2005, Humana entered into a business partnership with Virgin Group, offering financial incentives to members for healthy behavior, such as regular exercise.[11]
On November 16, 2006, the Centers for Disease Control and Prevention (CDC) and Humana Inc. partnered to expand on traditional private-sector approaches to population health management.[12]
In 2010, Humana bought Texas-based Concentra Inc., which owns urgent-care and physical therapy centers, for $790 million, effectively returning to healthcare services.[5] In May 2011, Humana announced it would be using mobileStorm to transmit protected health information to patients.[13]
In March 2015, Humana announced the sale of Concentra to private equity firm Welsh, Carson, Anderson & Stowe and Select Medical Holdings Corporation for about $1 billion, with proceeds to fund a "$2 billion share buyback program and other corporate spending."[14]
In July 2015, Aetna announced that it would acquire Humana for $37 billion in cash and stock (approximately $230 a share at that time). Aetna and Humana shareholders would own 74% and 26% of the new combined company, however the merger was blocked by a federal judge in January 2017.[15][16] In February 2017, Aetna Inc. and Humana Inc. quashed a $34 billion merger agreement after judges ruled against the merger for a second time.[17]
In July 2018, Humana joined two private equity firms in the acquisition of Kindred Healthcare. The deal provided Humana with a 40% stake in the company's home health, hospice and community care businesses, called "Kindred at Home," for approximately $800 million.[18][19] In August 2018, Humana announced the creation of a digital health and analytics division called Humana Studio H.[20]
In December 2019, the company announced it would acquire Enclara Healthcare from Consonance Capital Partners and Enclara management.[21]
In 2021, Susan Diamond, formerly occupying an interim position, was announced to be the new permanent CFO. Her appointment to the position comes with the company's focus being turned towards the home healthcare business, acquiring in April of the same year a 60% stake in Kindred at Home, an in-home care and hospice business.[22][23][24]
In April 2022, it was announced Humana would sell a 60% interest of its Kindred at Home division to the private investment company, Clayton, Dubilier & Rice, for US$2.8 billion.[25]
In February 2023, Humana announced they were exiting the employer-based commercial group insurance market.[26]
Corporate affairs
[edit]Sponsorship
[edit]Humana is the presenting sponsor of the Grand Ole Opry[27] and the National Senior Games.[28]
Since 1979, Humana has been a principal sponsor of the annual Humana Festival of New American Plays in Louisville, Kentucky.[29]
LPGA player Nancy Scranton was a spokesperson for Humana.[30] In the past, PGA Tour player David Toms' David Toms Foundation has partnered with the Humana Foundation to provide grants to several children's charities in New Orleans.[31] Humana is the official health benefits provider of the PGA Tour and Champions Tour.[citation needed]
The Humana Distaff Handicap is a Grade 1 race for thoroughbred fillies and mares, four-years-old and up. The race is run each spring on Kentucky Derby day at Churchill Downs and set at a distance of 7 furlongs for a purse of $250,000.[citation needed]
Humana Military Healthcare Services
[edit]In 1993, Humana founded Humana Military Healthcare Services (HMHS) as a wholly owned subsidiary.[5] They were awarded their first TRICARE contract in 1995, and began serving military beneficiaries in 1996.[32]
From 2004 to 2009, HMHS was the managed care contractor for the Department of Defense Military Health System TRICARE South Region.
In 2009, HMHS' Managed Care Support Contract was awarded to United Military and Veterans Services, a subsidiary of UnitedHealth Group. HMHS protested that decision and the Government Accountability Office upheld the protest in late 2009.[33]
In 2011, HMHS regained the five-year contract to administer medical benefits to military members and families in the South region, a contract worth $23.5 billion.[5] In 2018, this was moved to the new TRICARE East region during the TRICARE regional realignment.
On December 22, 2022, the Department of Defense announced the award of the managed care support contract for the TRICARE East Region to Humana Military.[34]
Legal campaign against drug price fixing
[edit]Humana filed a lawsuit in August 2019, alleging that 37 defendants engaged in a “far-reaching conspiracy” to “blatantly fix the price” of generic drugs. This follows a similar smaller lawsuit from October 2018.[35]
Controversy
[edit]In 1987, Humana sued NBC over a story line in the television medical drama St. Elsewhere in which the hospital was to be sold to a for-profit medical corporation and renamed "Ecumena", with subsequent changes to the hospital, both positive and negative, emanating from that change. The company claimed that the program infringed on the Humana trademark.[36] Humana failed to block the airing of the show,[36] but was successful at forcing NBC into showing a disclaimer at the beginning of the September 30 episode saying that the drama had no connection whatsoever with Humana.[37]
On May 30, 1996, Linda Peeno, a physician who was contracted to work for Humana for nine months, testified before Congress as to the downside of managed care. Peeno said she was effectively rewarded by her employer for causing the death of a patient, because it saved the company a half-million dollars. Peeno stated that she felt the "managed care" model was inherently unethical.[38]
In 1999, season one of Michael Moore's TV series The Awful Truth reported on Humana refusing to pay for a diabetic patient with pancreatic failure needing a transplant. The man's policy stated it covered all of his diabetes-related expenses, but another section of the policy stated that it did not cover organ transplants. Moore conducted a fake funeral on the front steps of the Humana building, and three days later Humana changed its policy and authorized the man's treatment.[39]
Michael Moore's 2007 documentary Sicko used the video of Linda Peeno's testimony.[40] On June 28, 2007, Humana declared that Peeno was never a Humana "associate" (permanent, full-time employee), but rather a "part-time contractor." Humana disputed portions of her Congressional testimony by saying that because the patient's healthcare plan did not cover heart transplants, denial of coverage was valid.[41]
On September 21, 2009, the U.S. Dept. of Health and Human Services opened an investigation into Humana for sending flyers to Medicare recipients that the AARP characterized as deceptive.[42] The mail was made to appear to contain official information about Medicare Advantage and prescription drug benefit information, but instead alleged that core Medicare benefits could be cut by the Obama administration's healthcare reform,[43] a claim refuted by John Rother, AARP's executive vice president.[44] Douglas Elmendorf, the head of the Congressional Budget Office (CBO), supported the claim that Medicare benefits could be cut,[45] but his comments were in reference to just one of several congressional bills. CBO estimates of another healthcare reform bill found that changes to premiums would vary.[46] The Centers for Medicare and Medicaid Services instructed Humana to cease all such mailings to Medicare plan members pending an investigation.[43] HHS Secretary Kathleen Sebelius, in a letter to the insurance industry, threatened that bad actors may be excluded from new health insurance markets that were to open in 2014. Senate Republicans pointed out in a letter to Sebelius that a 1997 directive from the Centers for Medicare and Medicaid Services explicitly allowed HMOs to tell members about legislation and urge them to express opinions.[citation needed]
See also
[edit]References
[edit]- ^ "Humana Inc. 2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 16, 2024. Archived from the original on February 17, 2024. Retrieved April 26, 2024.
- ^ "Fortune 500". Fortune. Archived from the original on August 30, 2023. Retrieved August 30, 2023.
- ^ Migneault, Jesse (April 13, 2017). "Top 5 Largest Health Insurance Payers in the United States". Health Payer Intelligence. Archived from the original on May 28, 2023. Retrieved May 28, 2023.
- ^ Larson, Chris (February 20, 2020). "Major Humana investor sheds half of its holdings in the company". Louisville Business First. Archived from the original on February 13, 2023. Retrieved April 26, 2024.
- ^ a b c d e f g h Steve Ivey and Ed Green (November 11, 2011). "Humana's history has been one of recognizing opportunities". American City Business Journals. Archived from the original on April 2, 2015. Retrieved March 23, 2015.
- ^ Sawyer, Robert (August 16, 2006). Kiss & Sell: Writing for Advertising: (Redesigned & Rekissed). AVA Publishing. ISBN 9782940373468. Archived from the original on April 26, 2024. Retrieved November 28, 2020 – via Google Books.
- ^ Cole, Robert J. (December 22, 1977). "T. W. A. Plans Offer For Medicorp Shares". The New York Times. ISSN 0362-4331. Archived from the original on August 13, 2017. Retrieved January 24, 2017.
- ^ Dreier, Peter (March 18, 2010). "Humana: Profits Over People". The Huffington Post. Archived from the original on February 2, 2017. Retrieved January 24, 2017.
- ^ Burton, Thomas M. (August 10, 1998). "Humana Walks Away From Merger After United HealthCare Stock Falls". The Wall Street Journal. ISSN 0099-9660. Archived from the original on June 25, 2017. Retrieved January 23, 2017.
- ^ Mathis, Karen Brune (July 30, 2010). "Availity: from scratch to 300 employees and 700 million transactions". Financial News & Daily Record. Archived from the original on December 22, 2015. Retrieved August 17, 2016.
- ^ Green, Ed (March 23, 2006). "Humana, Virgin launch health rewards program in Louisville". Business First. Archived from the original on February 2, 2017. Retrieved January 23, 2017.
- ^ "CDC and Humana Partner to Create Next Generation of Public Health; Alliance to Leverage Private-Sector Resources to Address Chronic Diseases". Humana. November 16, 2006. Archived from the original on July 1, 2017. Retrieved October 21, 2013.
- ^ mobileStorm Launches First HIPAA-Compliant, Cloud-based mHealth Communication Platform; Announces Humana as a Beta Client Archived June 29, 2017, at the Wayback Machine. Smart Phone Health Care. May 27, 2011.
- ^ "Humana to sell Concentra medical center unit for $1 billion". Reuters. March 23, 2015. Archived from the original on December 23, 2015. Retrieved March 23, 2015.
- ^ "Aetna Acquiring Humana for $37 Billion". BusinessWire. July 3, 2015. Archived from the original on February 17, 2024. Retrieved April 26, 2024.
- ^ Cancryn, Adam (January 23, 2017). "Judge blocks major health insurance merger". Politico. Archived from the original on January 25, 2017. Retrieved January 23, 2017.
- ^ Wilde Mathews, Anna; Kendall, Brent (February 15, 2017). "Antitrust Rulings Put Chill on Health-Insurance Mergers". The Wall Street Journal. Archived from the original on March 13, 2019. Retrieved February 15, 2017.
- ^ Japsen, Bruce (April 5, 2018). "Kindred Shareholders Approve Humana Deal". Forbes. Archived from the original on April 10, 2019. Retrieved September 28, 2018.
- ^ Larson, Chris (September 20, 2018). "Humana CFO: 'What we're trying to do with health care is fundamental transformation'". Louisiana Business First. Archived from the original on August 15, 2022. Retrieved September 28, 2018.
- ^ Greer, Carolyn (August 27, 2018). "Humana plans new analytics division – here's where it's going". Louisville Business First. Archived from the original on February 13, 2023. Retrieved April 26, 2024.
- ^ "Humana to Acquire Enclara Healthcare". BioSpace. Archived from the original on July 1, 2020. Retrieved July 1, 2020.
- ^ Maidenberg, Micah (April 27, 2021). "Humana Buying Out Partners in Home-Health Business". Wall Street Journal. ISSN 0099-9660. Archived from the original on June 30, 2021. Retrieved June 30, 2021.
- ^ "Humana Announces Plan for CFO Transition". press.humana.com. Archived from the original on July 9, 2021. Retrieved June 30, 2021.
- ^ Sebastian, Kristin Broughton and Dave (June 28, 2021). "Health Insurer Humana Makes Its Interim CFO Permanent". Wall Street Journal. ISSN 0099-9660. Archived from the original on June 29, 2021. Retrieved June 30, 2021.
- ^ "Humana to sell majority stake in hospice business to CD&R for $2.8 billion". Reuters. April 21, 2022. Archived from the original on April 30, 2022. Retrieved April 30, 2022.
- ^ "Humana to Exit Employer Group Commercial Medical Products Business". press.humana.com. Archived from the original on August 24, 2023. Retrieved August 24, 2023.
- ^ "About the Opry". Grand Ole Opry. Archived from the original on June 16, 2013. Retrieved August 17, 2016.
- ^ "National Senior Games Association". nsga.com. Archived from the original on March 24, 2024. Retrieved April 26, 2024.
- ^ "Humana Festival of New American Plays". Humana Foundation. Archived from the original on July 15, 2014. Retrieved August 17, 2016.
- ^ "LPGA's Nancy Scranton Becomes Humana Ambassador; Veteran Golfer Will Offer Golfing and Lifestyle Tips Targeted to Humana's Female Audience". Archived from the original on July 1, 2017. Retrieved October 21, 2013.
- ^ "David Toms, Humana Foundations Partner to Assist New Orleans Charities". Philanthropy News Digest (PND). Archived from the original on February 2, 2017. Retrieved January 24, 2017.
- ^ Project Healthcare Effectiveness Through Resource Optimization: Hearing. DIANE Publishing. p. 83. ISBN 9781422323243. Archived from the original on April 26, 2024. Retrieved November 28, 2020.
- ^ "U.S. TRICARE Contract Protest By Humana Upheld". CBS News. Retrieved May 11, 2020.
- ^ "Contracts for December 22, 2022". U.S. Department of Defense. Retrieved December 29, 2022.
- ^ "Humana Alleges Price Fixing in Lawsuit Against Generic Drug Makers". October 21, 2019. Archived from the original on November 29, 2023. Retrieved April 26, 2024.
- ^ a b Potts, Mark (October 1, 1987). "HUMANA SUES NBC OVER NAME". Washington Post. ISSN 0190-8286. Retrieved October 5, 2023.
- ^ "Humana lawsuit over 'St. Elsewhere' prompts TV disclaimer by NBC". Chicago Sun-Times. October 1, 1987. Archived from the original on May 16, 2011. Retrieved August 5, 2009.
- ^ "Testimony of Linda Peeno, MD about Managed Care in the Healthcare Industry – May 30, 1996". harp.org. Archived from the original on June 1, 2008. Retrieved July 7, 2022.
- ^ Chris Kaltenbach (April 7, 1999). "Moore to tell 'Awful Truth'". Baltimore Sun. Archived from the original on April 2, 2015. Retrieved March 23, 2015.
- ^ Rovner, Julie (September 3, 2007). "'Sicko's' Peeno Sees Few Gains in Health Insurance". NPR. Archived from the original on February 25, 2023. Retrieved October 5, 2023.
- ^ "Humana issues statement on Moore's 'Sicko'". Business First. June 28, 2007. Archived from the original on July 5, 2007. Retrieved July 7, 2007.
- ^ "Medicare Probes Humana's Letter To Patients About Effects Of Health Reform". Medical News Today. September 23, 2009. Archived from the original on September 27, 2009. Retrieved April 26, 2024.
- ^ a b Teo, Dawn (November 16, 2009). "Humana Mailer Targets Elderly, Claims Medicare Benefits To Be Cut". Huffington Post. Archived from the original on January 7, 2016. Retrieved April 26, 2024.
- ^ King, Neil (August 25, 2009). "GOP Tees Up Medicare Manifesto". WSJ. Archived from the original on April 5, 2015. Retrieved October 22, 2010.
- ^ Budget chief says Medicare benefits could be cut Archived October 18, 2023, at the Wayback Machine Erica Werner, Associated Press. September 23, 2009
- ^ The Effect of H.R. 3200 on Medicare Part D Premiums Archived October 18, 2023, at the Wayback Machine Congressional Budget Office, Director's Blog. August 28, 2009
External links
[edit]- Official website
- Business data for Humana: