SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report: April 8, 1999
(Date of Earliest Event Reported)
HUMANA INC.
(Exact name of Registrant as specified in its Charter)
Delaware 1-5975 61-0647538
(State of (Commission (I.R.S. Employer
Incorporation) File Number) Tax Identification
No.)
500 West Main Street
Louisville, KY 40202
(Address of principal executive offices)
(502) 580-1000
(Registrant's telephone number, including area code)
Item 5. Other Events
On April 8, 1999, Humana Inc. (the
"Company" or "Registrant") issued a press
release, a copy of which is attached hereto
as Exhibit 99 and is incorporated herein by
reference.
Item 7. Financial Statements and Exhibits.
Exhibit 99. Copy of the Company's Press Release dated April 8, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
HUMANA INC.
_________________________________
By: James E. Murray
Senior Vice President
and Chief Financial Officer
Dated: April 8, 1999
<PAGE>
Exhibit Index
Exhibit 99. Copy of the Company's Press Release dated April 8, 1999.
Humana Inc.
500 West Main Street
P.O. Box 1438
Louisville, KY 40201-1438
http://www.humana.com
news release
FOR MORE INFORMATION:
Kristi Drablos
Investor Relations
(502) 580-3644
E-MAIL: [email protected]
Greg Donaldson
Corporate Communications
(502) 580-3683
E-MAIL: [email protected]
Humana reports impact of medical cost trends
and Columbia/HCA contract
- Anticipates 1st quarter operating earnings between
$.20 and $.24 per share
- Strengthens reserves for higher than estimated medical cost trends
- Announces premium deficiency as a prudent measure
LOUISVILLE, KY, April 8, 1999 -- Humana Inc. (NYSE:HUM) said
today that increased medical cost trends will result in lower
than expected earnings for the first quarter of 1999. Humana said
first-quarter operating earnings, expected to be announced May
13, will be in the range of $.20 to $.24 per share.
The company also announced it intends to record $90 million
in additional medical claims expense during the first quarter.
Included in this expense are approximately $50 million related to
a premium deficiency due in part to the recently renegotiated
Columbia contract, $35 million related to a medical claim reserve
strengthening and $5 million for a payment to Columbia to resolve
issues outstanding from the company's previous contract.
"The Columbia contract reflects the changed dynamics of our
industry and the end of an era between Humana and Columbia.
Although its immediate financial impact is adverse, the contract
represents a new cost factor which we can address in our upcoming
premium pricing actions," said Gregory H. Wolf, Humana's
president and chief executive officer. "Most importantly, we
believe that we made the right decision for our 1.3 million
Florida members who would have been greatly inconvenienced by a
termination of service with Columbia and the possible disruption
of their health care. Notwithstanding the hard decisions we made
this quarter, our business is fundamentally sound and we remain
confident in our ability to successfully meet the challenges our
industry will face in the future."
-More-
Humana Inc., headquartered in Louisville, Ky., is one of the
nation's largest publicly traded managed health care companies
with approximately 6.2 million medical members located primarily
in 15 states and Puerto Rico. Humana offers coordinated health
care through a variety of plans - health maintenance
organizations, preferred provider organizations, point-of-service
plans and administrative services products - to employer groups,
government-sponsored plans and individuals.
More information about Humana is available at
http://www.humana.com.
This press release contains forward-looking information.
The forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements may be significantly
impacted by certain risks and uncertainties described in Humana's
Annual Report on Form 10-K for the year ended December 31, 1998
as filed with the Securities and Exchange Commission.
