Humana Sees Large Enrollment in Medicare
Posted on: Thursday, 22 December 2005, 15:00 CST
By BRUCE SCHREINER
LOUISVILLE, Ky. - Humana Inc. said Thursday it expects enrollment in its Medicare prescription drug plans to surpass 1 million people when the new benefit begins Jan. 1.
The number of Medicare recipients signing up for Humana's prescription plans could double in a year, the Louisville-based health benefits company said.
Humana has aggressively pitched the drug plans as part of a broad expansion of its Medicare business that has nearly doubled in reach. Humana is offering prescription plans in 46 states and the District of Columbia. Just a year ago, Humana's Medicare business was in 25 states.
The company previously said it expects Medicare revenues to grow by $6 billion to $8 billion next year, totaling $10 billion to $13 billion. Humana has predicted 2006 total revenues will top $20 billion, up from $14.5 billion expected in 2005.
Humana on Thursday reaffirmed its earnings-per-share projection of at least $2.70 for 2006.
When the Medicare drug benefit kicks in on New Year's Day, Humana expects to have enrollment of 1.1 million to 1.2 million for its prescription offerings, the company said.
It expects enrollment to reach 1.7 million to 2.2 million by the end of 2006.
Humana spokesman Tom Noland said the membership projections, both for Jan. 1 and a year from now, are in line with the company's earlier forecasts.
Humana has aggressively pitched its prescription plan amid intense competition among insurers for market share among the vast Medicare-age population.
Humana gained a strategic foothold when it teamed with retailer Wal-Mart Stores Inc. Humana has promoted its Medicare plans at Wal-Mart stores and offered a drug card with the Humana and Wal-Mart brands. The card can be used at other pharmacies besides those at Wal-Mart stores.
Insurers began marketing their Medicare drug plans on Oct. 1 and enrollment started Nov. 15.
The Department of Health and Human Services has said it expects about 28 to 30 million beneficiaries to sign up during the enrollment period, which continues through May 15.
Humana also forecast membership of 650,000 to 675,000 in its Medicare Advantage plans as of Jan. 1, driven by growth in private fee-for-service plans. The company expects its Medicare Advantage membership to reach 900,000 to 1.1 million members by the end of 2006.
The growth in Humana's Medicare segment comes amid sluggishness in its commercial business.
Overall, Humana has about 7 million medical members.
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On the Net:
Humana: http://www.humana.com
Source: Associated Press/AP Online
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