HUMANA INC (HUM)

Humana Inc., headquartered in Louisville, Kentucky and organized as a Delaware corporation in 1964, is a health and well-being company that provides health insurance and health care services through its Humana insurance business and its CenterWell health care services business. As of December 31, 2025, it had approximately 15 million members in its medical benefit plans and approximately 4.7 million members in its specialty products. Its stated strategy centers on an integrated care delivery model that combines quality care, member engagement and data analytics, and helps providers move from fee-for-service to value-based arrangements.

The company has two reportable segments. The Insurance segment offers Medicare and state-based contract products as well as products for individuals and employers, and includes its pharmacy benefit manager business. Its products include individual Medicare Advantage (HMO, PPO, private fee-for-service and special needs plans, including dual eligible plans), group Medicare Advantage, Medicare stand-alone prescription drug plans (including a plan co-branded with Walmart), Medicare Supplement, Medicaid state-based contracts, and specialty benefits such as dental, vision, life and disability. It also administers TRICARE for the Department of Defense, where the federal government retains the cost risk. Insurance generated $123.8 billion of premiums and services revenue in 2025, with individual Medicare Advantage the largest product at $90.4 billion, or 70.3% of consolidated premiums and services revenue. The CenterWell segment covers pharmacy solutions (CenterWell Pharmacy mail-order, CenterWell Specialty Pharmacy and retail pharmacies in its clinics), primary care, and home solutions. It also holds a minority interest of about 35% in Gentiva Hospice and a strategic partnership with Welsh, Carson, Anderson & Stowe to develop primary care centers. CenterWell reported $17.7 billion of intersegment revenue and $4.8 billion of external services revenue.

Humana's customers are mainly Medicare and Medicaid beneficiaries, individuals, employer groups, and military personnel and their families. In 2025, 83% of premiums and services revenue came from federal government contracts. Individual Medicare Advantage contracts in Florida with CMS made up 14% of consolidated premiums and services revenue and covered about 1.0 million members. At year-end the company had about 5.2 million individual Medicare Advantage members, and it has offered Medicare plans for over 30 years in all 50 states. Its Medicaid contracts include Florida, Kentucky, Illinois, Indiana, Louisiana, Ohio, Oklahoma, South Carolina, Virginia and Wisconsin. The T-5 TRICARE East Region contract began January 1, 2025, covers 24 states and Washington D.C. and about 4.6 million beneficiaries, and has one transition year followed by eight option years. CenterWell's primary care business runs 350 senior-focused clinics under the Conviva Senior Primary Care and CenterWell Senior Primary Care brands. It employs about 1,300 providers and serves about 491,100 patients, and it also operates a management services organization. CenterWell Home Health operates in 37 states.

Members access care through networks of employed and contracted providers, including hospitals, outpatient facilities, physicians, dentists, and ancillary providers such as laboratories, home health agencies, and pharmacies. Membership scale lets the company obtain contractual discounts. Medicare Advantage and Part D contracts with CMS are generally renewed for calendar-year terms, and all material CMS contracts have been renewed for 2026. Payments to Medicare Advantage plans depend on CMS risk adjustment, which relies on diagnosis data collected from providers.