HUM
Humana Inc.
Healthcare
04/11/2013
Presented
| Date | 04/09/2013 |
| Price | $77.67 |
| Market Cap | $12.30B |
| Ent Value | $13.96B |
| P/E Ratio | 21.66x |
| Book Value | $64.48 |
| Div Yield | 0.7% |
| Shares O/S | 158.71M |
| Ave Daily Vol | 2,790,000 |
| Short Int | 3.47% |
Current
| Price | $257.60 |
| Market Cap | $31.02B |
| Humana Inc., together with its subsidiaries, operates as a health and well-being company. The company operates through three segments: Retail, Employer Group, and Healthcare Services. The Retail segment provides Medicare and commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products directly to individuals. This segment has contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program and state-based Medicaid businesses. The Employer Group segment offers Medicare and commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and voluntary benefit products, as well as administrative services only products, and health and wellness solutions directly to employer groups. The Healthcare Services segment provides pharmacy, provider services, home based services, integrated behavioral health services, and predictive modeling and informatics services to its health plan members, as well as to third parties. The company also offers military services, such as TRICARE South Region contract; Puerto Rico Medicaid; and closed-block long-term care insurance policies. As of December 31, 2014, it had approximately 13.8 million members in medical benefit plans; and approximately 7.7 million members in specialty products. The company was founded in 1961 and is headquartered in Louisville, Kentucky. |
Highlights
The presenter is bullish on the outlook for HUM, the largest Medicare Advantage (MA) provider in the market. The Centers for Medicare & Medicaid Services (CMS) recently reversed an announced cut in reimbursement which would have effectively taken HUM’s margins to zero, said the presenter. This outcome removes an over-arching concern/ fear many investors and industry participants shared relating to the Administration’s intentions for the program. It is now clear officials in Washington, DC understand the importance of MA coverage for the ~30% of seniors who pay-up for richer benefits, and a major risk has been taken off of the table for the remainder of the year.
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