Humana (HUM) 8-K Results of Operations and Financial Condition

Exhibit 99.2

n e w s   r e l e a s e	Humana Inc.
	500 West Main Street P.O. Box 1438 Louisville, KY 40201-1438 http://www.humana.com

FOR MORE INFORMATION CONTACT:

Regina Nethery Humana Investor Relations (502) 580-3644 e-mail:Rnethery@humana.com

Tom Noland

Humana Corporate Communications

(502) 580-3674

e-mail:Tnoland@humana.com

Humana Reports Second Quarter 2013 Financial Results;

Raises Full Year EPS Guidance

• 2Q13 EPS of $2.63 exceeds management’s expectations

• Year-over-year second quarter pretax income up 14 percent in Retail Segment and up 9 percent in Employer Group Segment

• 2013 EPS guidance raised to range of $8.65 to $8.75

• 2013 cash flows from operations now projected to be at least $2 billion

LOUISVILLE, KY (July 31, 2013)– Humana Inc. (NYSE: HUM) today reported diluted earnings per common share (EPS) for the quarter ended June 30, 2013 (2Q13) of $2.63, compared to $2.16 per share for the quarter ended June 30, 2012 (2Q12). Results for 2Q13 exceeded management’s previous expectations of $2.40 to $2.50 per share primarily due to strong operating performance across the company’s business units and the favorable impact of the company’s reduced share count, partially offset by pretax expenses of $31 million ($0.12 per share) in connection with the company’s pending exit from its Puerto Rico Medicaid business.

For the six months ended June 30, 2013 (1H13) the company reported EPS of $5.58 compared to $3.65 in the six months ended June 30, 2012 (1H12). The 1H13 performance reflected the items discussed above for 2Q13 along with the first quarter 2013 beneficial effect of settlement of contract claims with the Department of Defense (DoD), as well as a benefit from a delay in the impact of sequestration for the company’s Medicare business.

The company now anticipates EPS for the year ending December 31, 2013 (FY13) to be in the range of $8.65 to $8.75 versus management’s previous guidance of $8.40 to $8.60. This increase reflects the better-than-expected second quarter results discussed above.

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“Our second quarter’s solid operating performance reflects the continued focus and executional discipline involved in key initiatives like our chronic care program, including increased care management professional staffing and clinical assessments,” said Bruce D. Broussard, President and Chief Executive Officer of Humana. “The favorable outcomes seen from those programs year to date reinforce our commitment to the related planned investments in the second half of 2013. We believe maintaining momentum on those and other key capability-building initiatives, together with our focus on operating cost efficiencies, will effectively position Humana to face the reform-related challenges that accelerate in 2014.”

CONSOLIDATED HIGHLIGHTS

Consolidated revenues

2Q13 consolidated revenues were $10.32 billion, an increase of 6.4 percent from $9.70 billion in 2Q12, with total premiums and services revenue up 6.6 percent compared to the prior year’s quarter. The year-over-year increase in premiums and services revenue was primarily driven by higher Retail and Employer Group segment revenues resulting from higher average individual and group Medicare membership, partially offset by the impact of sequestration.

1H13 consolidated revenues rose $889 million, or 4.5 percent, to $20.81 billion from $19.92 billion in 1H12 with total premiums and services revenue of $20.62 billion also up 4.5 percent, increasing $897 million from $19.73 billion in the prior year period. These revenue increases were driven primarily by higher average individual and group Medicare membership, partially offset by the impact of sequestration and a change in TRICARE contract accounting, which beginning on April 1, 2012 is accounted for as self-funded versus fully-insured for the previous contract.

Consolidated benefits expense

The 2Q13 consolidated benefit ratio (benefits expense as a percent of premiums) of 83.4 percent declined by 10 basis points from 83.5 percent for the prior year’s quarter. The company experienced favorable prior-year medical claims reserve development of approximately $100 million in 2Q13 compared to $40 million in 2Q12.

The 1H13 consolidated benefit ratio of 83.2 percent decreased by 130 basis points from 84.5 percent in 1H12 primarily due to favorable prior-year development and the beneficial effect in the 2013 period of the favorable settlement of contract claims with the DoD as discussed above.

Consolidated operating expenses

The consolidated operating cost ratio (operating costs as a percent of total revenues less investment income) of 14.3 percent for 2Q13 decreased from 14.4 percent in 2Q12 as improved operating leverage in the Retail and Employer Group Segments more than offset the 20 basis point impact of costs associated with the exit of the Puerto Rico Medicaid business described above.

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The 1H13 consolidated operating cost ratio of 14.1 percent increased from 14.0 percent in 1H12, as the negative impact of the most recent TRICARE South Region contract being accounted for as an administrative services only (ASO) arrangement was partially offset by improved operating leverage in the Retail and Employer Group segments.

Balance sheet

At June 30, 2013, the company had cash, cash equivalents, and investment securities of $10.85 billion, down $518 million from $11.36 billion at March 31, 2013, reflecting normal cash management activities and lower net unrealized gains primarily due to an increase in market interest rates.

Parent company cash and short-term investments of $883 million at June 30, 2013 increased $681 million from $202 million at March 31, 2013, primarily due to approximately $970 million of dividends to the parent company from the operating subsidiaries, partially offset by share repurchases, capital expenditures, and payment of a cash dividend to shareholders during 2Q13.

Days in claims payable of 50.7 at June 30, 2013 increased 1.7 days from 49.0 days at March 31, 2013.

Debt-to-total capitalization at June 30, 2013 was 21.8 percent, down 40 basis points from 22.2 percent at March 31, 2013 primarily driven by higher capitalization associated with 2Q13 earnings.

Cash flows from operations

Cash flows provided by operations for 2Q13 were $173 million compared to cash flows provided by operations of $706 million in 2Q12. For 1H13, cash flows provided by operations totaled $585 million versus $3.05 billion in cash flows from operations during 1H12. The company also evaluates operating cash flows on a non-GAAP basis:

Net cash from operating activities     (in millions)	2Q13		2Q12			1H13		1H12
GAAP	$	173	$	706		$	585	$	3,052
Timing of premium payment from CMS (a)		—		(118	)		—		(2,133	)
Non-GAAP (b)	$	173	$	588		$	585	$	919

The year-over-year decrease in the non-GAAP cash flows from operations is due primarily to the effect on cash flows of changes in working capital accounts, including the timing of the mid-year Medicare Risk Adjustment payment that more than offset higher net income.

Share repurchases and cash dividends

During 2Q13, the company executed share repurchases of $130 million, or 1,623,400 of its outstanding shares, at an average price of $79.92 per share. In April 2013, the Board of Directors replaced its previous share repurchase authorization (of which approximately $557 million remained unused) with a new $1 billion repurchase authorization. As of July 31, 2013, $871 million of the current repurchase authorization was remaining, with an expiration date of June 30, 2015.

During 2Q13, the company paid cash dividends to its stockholders totaling approximately $41 million.

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RETAIL SEGMENT

This segment consists of Medicare and commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products, marketed directly to individuals, and includes the company’s contract with CMS to administer the LI-NET program and contracts for state-based Medicaid members.

Retail Segment Highlights

Pretax results:

• Retail Segment pretax income of $418 million in 2Q13 compared to $367 million in 2Q12, an increase of $51 million, reflecting the company’s improved operating performance over the prior year. This year-over-year increase was primarily due to membership growth and a lower operating cost ratio as favorable outcomes from clinical initiatives were generally offset by related investment spending.

• For 1H13, pretax earnings for the Retail Segment of $768 million increased by $273 million from 1H12 pretax earnings of $495 million. The first-half increase reflects the same factors impacting the second quarter year-over-year comparison, in addition to the favorable impact of a lower year-to-date benefit ratio.

Enrollment:

• Individual Medicare Advantage membership was 2,029,700 as of June 30, 2013, an increase of 133,900 members, or 7.1 percent from 1,895,800 at June 30, 2012 and up 102,100, or 5.3 percent from 1,927,600 at December 31, 2012, primarily due to a successful enrollment season associated with the 2013 plan year as well as age-in activity year to date.

• Individual Medicare Advantage net membership growth during 2013 included the divestiture of 12,600 members acquired with the March 2012 Arcadian Management Services, Inc. transaction, in accordance with the company’s previously disclosed agreement with the United States Department of Justice.

• Membership in the company’s individual stand-alone Prescription Drug Plans (PDPs) was 3,220,600 at June 30, 2013, up 250,500, or 8.4 percent compared to 2,970,100 at June 30, 2012 and up 167,900, or 5.5 percent from 3,052,700 at December 31, 2012. These increases resulted primarily from growth in the company’s innovative Humana-Walmart plan offering.

• HumanaOne^® medical membership increased to 478,000 at June 30, 2013, an increase of 34,200, or 7.7 percent from 443,800 at June 30, 2012, while also increasing 34,000, or 7.7 percent from 444,000 at December 31, 2012. Membership growth reflects new sales in the first half of 2013 and favorable member retention.

• Medical membership in state-based Medicaid plans increased to 70,600 at June 30, 2013, an increase of 24,100, or 51.8 percent, from 46,500 at June 30, 2012 and up 18,500, or 35.5 percent, from 52,100 at December 31, 2012, primarily driven by the addition of the company’s Kentucky Medicaid contract effective on January 1, 2013.

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• Membership in individual specialty products^(c) of 1,011,700 at June 30, 2013 increased 105,500, or 11.6 percent, from 906,200 at June 30, 2012 and increased 63,000, or 6.6 percent, from 948,700 at December 31, 2012, primarily driven by increased membership in dental and vision offerings.

Premiums and services revenue:

• 2Q13 premiums and services revenue for the Retail Segment was $6.77 billion, an increase of 5.8 percent from $6.40 billion in 2Q12. The increase was primarily the result of a 7.0 percent increase in average individual Medicare Advantage membership year-over-year, partially offset by lower per-member premiums in the quarter which reflected the impact of sequestration beginning April 1, 2013.

Benefits expense:

• The 2Q13 benefit ratio for the Retail Segment of 84.2 percent was flat year-over-year. Retail Segment benefits expense for 2Q13 included the beneficial effect of $72 million in favorable prior-year development compared to $24 million in 2Q12. Additionally, year-over-year timing differences primarily associated with clinical investment spending and weekday seasonality generally offset the impact of favorable outcomes associated with clinical programs and higher prior-year claims development.

Operating costs:

• The Retail Segment’s operating cost ratio of 9.5 percent in 2Q13 decreased 50 basis points from 10.0 percent in 2Q12. The decrease was primarily the result of cost efficiencies associated with higher average membership as well as the company’s continued focus on operating cost reductions.

EMPLOYER GROUP SEGMENT

This segment consists of Medicare and commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products, as well as ASO products and health and wellness solutions businesses primarily marketed to employer groups.

Employer Group Segment Highlights

Pretax results:

• Employer Group Segment pretax income of $127 million in 2Q13 compares to pretax income of $117 million in 2Q12, reflecting the company’s improved operating performance over the prior year. The year-over-year improvement was primarily driven by group Medicare membership growth and a lower operating cost ratio for this segment.

• For 1H13, pretax earnings for the Employer Group Segment of $332 million increased by $86 million versus 1H12 pretax earnings of $246 million. The first-half increase reflects the same factors impacting the 2Q13 year-over-year comparison as well as a lower benefit cost ratio year to date.

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Enrollment:

• Fully-insured group Medicare Advantage membership was 416,600 at June 30, 2013, an increase of 56,100 members, or 15.6 percent from 360,500 at June 30, 2012 and up 45,800, or 12.4 percent from 370,800 at December 31, 2012, reflecting on-going success in demonstrating the company’s value proposition to employers for retirees. On January 1, 2013, the company lost its sole ASO group Medicare Advantage account which had 27,900 members at June 30, 2012 and 27,700 members at December 31, 2012.

• Group fully-insured commercial medical membership was 1,196,100 at June 30, 2013, roughly flat to June 30, 2012 levels and down 15,700, or 1.3 percent, from 1,211,800 at December 31, 2012, as higher small group business membership was generally offset by lower membership in large group accounts. Approximately 60 percent of group fully-insured commercial medical membership was in small group accounts at June 30, 2013 versus 58 percent at June 30, 2012 and 59 percent at December 31, 2012.

• Group ASO commercial medical membership declined to 1,199,600 at June 30, 2013, a decrease of 29,200, or 2.4 percent from 1,228,800 at June 30, 2012 and down 38,100, or 3.1 percent from 1,237,700 at December 31, 2012. This decline reflected a continuation of discipline in pricing services for self-funded accounts amid a highly competitive environment.

• Membership in Employer Group specialty products^(c) rose to 7,256,800 at June 30, 2013, an increase of 299,000, or 4.3 percent, from 6,957,800 at June 30, 2012 and was up 120,600, or 1.7 percent, from 7,136,200 at December 31, 2012. This increase primarily resulted from increased cross-sales of the company’s specialty products to its medical membership and growth in stand-alone specialty product sales.

Premiums and services revenue:

• 2Q13 premiums and services revenue for the Employer Group Segment were $2.81 billion, up approximately 7.2 percent from $2.62 billion in 2Q12, primarily reflecting the impacts of higher average group Medicare Advantage membership.

Benefits expense:

• The 2Q13 benefit ratio for the Employer Group Segment was 82.5 percent, an increase of 70 basis points from 81.8 percent for 2Q12. The year-over-year increase in the benefit ratio primarily reflected growth in the company’s group Medicare Advantage products, which generally carry a higher benefit ratio than fully-insured commercial group products, partially offset by higher favorable prior-year medical claims reserve development. Unfavorable timing differences for weekday seasonality for 2Q13 versus 2Q12 also negatively impacted this segment’s benefit ratio year over year.

Operating costs:

• The Employer Group Segment’s operating cost ratio was 15.3 percent in 2Q13, a decline of 100 basis points from 16.3 percent in 2Q12, primarily reflecting cost savings associated with operating cost reduction initiatives and a higher percentage of members in group Medicare Advantage plans (which carry a lower operating cost ratio than commercial fully-insured group accounts).

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HEALTHCARE SERVICES SEGMENT

This segment includes services offered to the company’s health plan members as well as to third parties including provider services, pharmacy solutions and mail-order pharmacy, integrated behavioral health services, and home care services.

Healthcare Services Segment Highlights

Pretax results:

• Healthcare Services Segment pretax income of $131 million in 2Q13 increased from $128 million in 2Q12, as revenue growth and the profit contribution from the Metropolitan Health Networks, Inc. (Metropolitan) acquisition and our home care services business were generally offset by previously-planned investment spending associated with the integration and build-out of provider practices and chronic care centers.

• For 1H13, pretax earnings for the Healthcare Services Segment of $256 million increased by $3 million from 1H12 pretax earnings of $253 million, reflecting the same factors impacting the second quarter year-over-year comparison.

Revenues:

• Revenues of $3.86 billion in 2Q13 for the Healthcare Services Segment increased $667 million, or 20.9 percent from $3.20 billion in 2Q12, primarily due to growth in the company’s pharmacy solutions and provider services businesses and its 2012 acquisitions of Metropolitan and SeniorBridge.

Operating costs:

• The Healthcare Services Segment’s operating cost ratio of 95.7 percent in 2Q13 was relatively unchanged from 95.4 percent in 2Q12.

OTHER BUSINESSES

The Other Businesses category consists of the company’s military services, Puerto Rico Medicaid, and closed-block long-term care businesses. The military services business consists primarily of the company’s TRICARE South Region contract.

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Other Businesses Highlights

Recent event:

• On June 26, 2013, the Puerto Rico Health Insurance Administration notified Humana of its election not to renew the company’s three-year Medicaid contracts for the East, Southeast, and Southwest regions which ended June 30, 2013. Contractual transition provisions require the continuation of insurance coverage for beneficiaries through September 30, 2013 and an additional period of time thereafter to process claims. During 2Q13, Humana accrued expenses of $31 million on these contracts primarily related to benefits and administrative costs.

Pretax results:

• Other Businesses reported a pretax loss of $30 million in 2Q13 versus a pretax loss of $56 million in 2Q12. The 2Q13 results included the $31 million in Puerto Rico Medicaid expenses noted above, while the 2Q12 results included expenses associated with a previously disclosed litigation settlement.

• For 1H13, Other Businesses reported pretax income of $28 million compared to a pretax loss of $51 million in 1H12. In addition to the factors impacting second quarter comparisons year-over-year for Other Businesses described above, 1H13 results include the beneficial effect of settlement of contract claims with the DoD.

Footnotes

(a) Generally, when the first day of a month falls on a weekend or holiday, with the exception of January 1 (New Year’s Day), the company receives this payment on the last business day of the previous month.

(b) The company has included certain financial measures that are not in accordance with Generally Accepted Accounting Principles (GAAP) in its summary of financial results within this earnings press release. The company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful to both management and its investors in analyzing the company’s ongoing business and operating performance. Internally, management uses these non-GAAP financial measures as indicators of business performance, as well as for operational planning and decision making purposes. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

(c) The company provides a full range of insured specialty products including dental, vision and other supplemental health and financial protection products. Members included in these products may not be unique to each product since members have the ability to enroll in multiple products. Other supplemental benefits include life, disability, and fixed benefit products including cancer and critical illness policies.

Conference Call & Virtual Slide Presentation

Humana will host a conference call, as well as a virtual slide presentation, at 9:00 a.m. eastern time today to discuss its financial results for the quarter and the company’s expectations for future earnings. A live virtual presentation (audio with slides) may be accessed via Humana’s Investor Relations page at www.humana.com. The company suggests web participants sign on at least 15 minutes in advance of the call. The company also suggests web participants visit the site well in advance of the call to run a system test and to download any free software needed to view the presentation.

All parties interested in the audio-only portion of the conference call are invited to dial 888-625-7430. No password is required. The company suggests participants dial in at least ten minutes in advance of the call. For those unable to participate in the live event, the virtual presentation archive may be accessed via the Historical Webcasts & Presentations section of the Investor Relations page at www.humana.com.

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Cautionary Statement

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in investor presentations, press releases, Securities and Exchange Commission (SEC) filings, and in oral statements made by or with the approval of one of Humana’s executive officers, the words or phrases like “expects,” “believes,” “anticipates,” “intends,” “likely will result,” “estimates,” “projects” or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions, including, among other things, information set forth in the “Risk Factors” section of the company’s SEC filings, a summary of which includes but is not limited to the following:

• If Humana does not design and price its products properly and competitively, if the premiums Humana receives are insufficient to cover the cost of health care services delivered to its members, if the company is unable to implement clinical initiatives to provide a better health care experience for its members, lower costs and appropriately document the risk profile of its members, or if its estimates of benefits expense are inadequate, Humana’s profitability could be materially adversely affected. Humana estimates the costs of its benefit expense payments, and designs and prices its products accordingly, using actuarial methods and assumptions based upon, among other relevant factors, claim payment patterns, medical cost inflation, and historical developments such as claim inventory levels and claim receipt patterns. These estimates, however, involve extensive judgment, and have considerable inherent variability because they are extremely sensitive to changes in payment patterns and medical cost trends.

• If Humana fails to effectively implement its operational and strategic initiatives, particularly its Medicare initiatives (given the concentration of the company’s revenues in the Medicare business), the company’s business may be materially adversely affected.

• If Humana fails to properly maintain the integrity of its data, to strategically implement new information systems, to protect Humana’s proprietary rights to its systems, or to defend against cyber-security attacks, the company’s business may be materially adversely affected.

• Humana’s business may be materially adversely impacted by CMS’s adoption of a new coding set for diagnoses (commonly known as ICD-10).

• Humana is involved in various legal actions, or disputes that could lead to legal actions (such as, among other things, provider contract disputes relating to rate adjustments resulting from the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, commonly referred to as “sequestration”; other provider contract claims; and qui tam litigation brought by individuals on behalf of the government) and governmental and internal investigations, any of which, if resolved unfavorably to the company, could result in substantial monetary damages. Increased litigation and negative publicity could also increase the company’s cost of doing business.

• As a government contractor, Humana is exposed to risks that may materially adversely affect its business or its willingness or ability to participate in government health care programs including, among other things, loss of material government contracts, governmental audits and investigations, potential inadequacy of government-determined payment rates or other changes in the governmental programs in which Humana participates.

• The Health Care Reform Law, including The Patient Protection and Affordable Care Act and The Health Care and Education Reconciliation Act of 2010, could have a material adverse effect on Humana’s results of operations, including restricting revenue, enrollment and premium growth in certain products and market segments, restricting the company’s ability to expand into new markets, increasing the company’s medical and operating costs by, among other things, requiring a minimum benefit ratio on insured products, lowering the company’s Medicare payment rates and increasing the company’s expenses associated with a non-deductible health insurance industry fee and other assessments; financial position, including the company’s ability to maintain the value of its goodwill; and cash flows. In addition, if the new non-deductible health insurance industry fee and other assessments, including a three-year commercial reinsurance fee, were imposed as enacted, and if Humana is unable to adjust its business model to address these new taxes and assessments, such as through the reduction of the company’s operating costs, there can be no assurance that the non-deductible health insurance industry fee and other assessments would not have a material adverse effect on the company’s results of operations, financial position, and cash flows.

• Humana’s business activities are subject to substantial government regulation. New laws or regulations, or changes in existing laws or regulations or their manner of application could increase the company’s cost of doing business and may adversely affect the company’s business, profitability and cash flows.

• Any failure to manage operating costs could hamper Humana’s profitability.

• Any failure by Humana to manage acquisitions and other significant transactions successfully may have a material adverse effect on its results of operations, financial position, and cash flows.

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• If Humana fails to develop and maintain satisfactory relationships with the providers of care to its members, the company’s business may be adversely affected.

• Humana’s pharmacy business is highly competitive and subjects it to regulations in addition to those the company faces with its core health benefits businesses.

• Changes in the prescription drug industry pricing benchmarks may adversely affect Humana’s financial performance.

• If Humana does not continue to earn and retain purchase discounts and volume rebates from pharmaceutical manufacturers at current levels, Humana’s gross margins may decline.

• Humana’s ability to obtain funds from its subsidiaries is restricted by state insurance regulations.

• Downgrades in Humana’s debt ratings, should they occur, may adversely affect its business, results of operations, and financial condition.

• Changes in economic conditions could adversely affect Humana’s business and results of operations.

• The securities and credit markets may experience volatility and disruption, which may adversely affect Humana’s business.

• Given the current economic climate, Humana’s stock and the stock of other companies in the insurance industry may be increasingly subject to stock price and trading volume volatility.

In making forward-looking statements, Humana is not undertaking to address or update them in future filings or communications regarding its business or results. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed herein may or may not occur. There also may be other risks that the company is unable to predict at this time. Any of these risks and uncertainties may cause actual results to differ materially from the results discussed in the forward-looking statements.

Humana advises investors to read the following documents as filed by the company with the SEC for further discussion both of the risks it faces and its historical performance:

• Form 10-K for the year ended December 31, 2012 (as amended by the Form 10-K/A filed on April 12, 2013);

• Form 10-Q for the quarter ended March 31, 2013;

• Form 8-Ks filed during 2013.

About Humana

Humana Inc., headquartered in Louisville, Kentucky, is a leading health care company that offers a wide range of insurance products and health and wellness services that incorporate an integrated approach to lifelong well-being. By leveraging the strengths of its core businesses, Humana believes it can better explore opportunities for existing and emerging adjacencies in health care that can further enhance wellness opportunities for the millions of people across the nation with whom the company has relationships.

More information regarding Humana is available to investors via the Investor Relations page of the company’s web site at www.humana.com, including copies of:

• Annual reports to stockholders;

• Securities and Exchange Commission filings;

• Most recent investor conference presentations;

• Quarterly earnings news releases;

• Replays of most recent earnings release conference calls;

• Calendar of events (including upcoming earnings conference call dates and times, as well as planned interaction with research analysts and institutional investors);

• Corporate Governance information.

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Humana Inc. – Earnings Guidance Points as of July 31, 2013

(in accordance with Generally Accepted Accounting Principles)	For the year ending December 31, 2013	Comments
Diluted earnings per common share
Full Year	$8.65 to $8.75
Revenues
Consolidated	$40.75 billion to $41.25 billion	Includes expected investment income in the range of $365 million to $385 million
Retail Segment	$26.75 billion to $27.25 billion	Segment-level revenues include intersegment amounts that eliminate in consolidation.
Employer Group Segment	$11.0 billion to $11.5 billion
Healthcare Services Segment	$15.0 billion to $15.5 billion
Other Businesses	$1.1 billion to $1.3 billion
Ending medical membership versus prior year end
Retail Segment
Medicare Advantage	Up 120,000 to 130,000	Includes the January 1, 2013 disposition of 12,600 Medicare Advantage members acquired in the March 2012 Arcadian transaction in accordance with the company’s previously disclosed agreement with the United States Department of Justice.
Medicare stand-alone PDPs (excl. LI-NET)	Up 170,000 to 190,000
HumanaOne	Up 7,000 to 8,000
Medicare Supplement	Up 15,000 to 25,000
Employer Group Segment
Medicare Advantage fully-insured	Up 50,000 to 60,000
Medicare Advantage ASO	Down 28,000
Commercial fully-insured	Relatively unchanged
Commercial ASO	Down 70,000 to 80,000
Benefit ratios
Retail Segment	84.0% to 84.5%	Benefits expense as a percent of     premiums.
Employer Group Segment	83.75% to 84.25%
Operating cost ratios Consolidated	14.75% to 15.25%	Operating costs as a percent of total     revenues excluding investment income
Healthcare Services Segment	95.5% to 96.0%

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Humana Inc. – Earnings Guidance Points as of July 31, 2013

(in accordance with Generally Accepted Accounting Principles)	For the year ending December 31, 2013	Comments
Consolidated depreciation and amortization (D&A)		Certain D&A is included in benefits expense on the income statement but shown as a non-cash item on the cash flows statement
Income statement	$325 million to $345 million
Cash flows statement	$415 million to $435 million
Consolidated interest expense	$140 million to $145 million
Pretax results
Retail Segment	$1.3 billion to $1.4 billion Approximately 5% pretax margin	Segment-level pretax results and margins include the impact of net investment income
Employer Group Segment	$250 million to $270 million 2% to 2.5% pretax margin
Healthcare Services Segment	$525 million to $550 million Approximately 3.5% pretax margin
Effective Tax Rate	Approximately 36%
Diluted shares	Approximately 160 million	Projections exclude the impact of future share repurchases
Cash flows from operations	$2.0 billion to $2.2 billion
Capital expenditures	$425 million to $450 million

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Humana Inc.

Statistical Schedules

And

Supplementary Information

2Q13 Earnings Release

S-1

Humana Inc.

Statistical Schedules and Supplementary Information

2Q13 Earnings Release

Contents

Page	Description
S-3-4	Consolidated Statements of Income
S-5-6	Quarterly Segment Financial Information
S-7-8	YTD Segment Financial Information
S-9	Consolidated Balance Sheets
S-10-11	Consolidated Statements of Cash Flows
S-12	Key Income Statement Ratios and Segment Operating Results
S-13-15	Healthcare Services Segment Metrics
S-16	Membership Detail
S-17-18	Premiums and Services Revenue Detail
S-19	Medicare Summary
S-20	Investments
S-21-23	Benefits Payable Detail and Statistics
S-24	Footnotes

S-2

Humana Inc.

Consolidated Statements of Income

Dollars in millions, except per common share results

	Three Months Ended June 30,				Dollar Change			Percentage Change
	2013		2012
Revenues:
Premiums	$	9,701	$	9,166	$	535			5.8	%
Services		528		434		94			21.7	%
Investment income		92		99		(7	)		-7.1	%
Total revenues		10,321		9,699		622			6.4	%
Operating expenses:
Benefits		8,091		7,652		439			5.7	%
Operating costs		1,461		1,384		77			5.6	%
Depreciation and amortization		80		73		7			9.6	%
Total operating expenses		9,632		9,109		523			5.7	%
Income from operations		689		590		99			16.8	%
Interest expense		35		26		9			34.6	%
Income before income taxes		654		564		90			16.0	%
Provision for income taxes		234		208		26			12.5	%
Net income	$	420	$	356	$	64			18.0	%
Basic earnings per common share	$	2.66	$	2.19	$	0.47			21.5	%
Diluted earnings per common share	$	2.63	$	2.16	$	0.47			21.8	%
Shares used in computing basic earnings per common share (000’s)		157,975		162,816
Shares used in computing diluted earnings per common share (000’s)		159,521		164,639

S-3

Humana Inc.

Consolidated Statements of Income

Dollars in millions, except per common share results

	Six Months Ended June 30,				Dollar Change			Percentage Change
	2013		2012
Revenues:
Premiums	$	19,569	$	18,941	$	628			3.3	%
Services		1,053		784		269			34.3	%
Investment income		185		193		(8	)		-4.1	%
Total revenues		20,807		19,918		889			4.5	%
Operating expenses:
Benefits		16,286		16,002		284			1.8	%
Operating costs		2,907		2,767		140			5.1	%
Depreciation and amortization		160		143		17			11.9	%
Total operating expenses		19,353		18,912		441			2.3	%
Income from operations		1,454		1,006		448			44.5	%
Interest expense		70		52		18			34.6	%
Income before income taxes		1,384		954		430			45.1	%
Provision for income taxes		491		350		141			40.3	%
Net income	$	893	$	604	$	289			47.8	%
Basic earnings per common share	$	5.64	$	3.70	$	1.94			52.4	%
Diluted earnings per common share	$	5.58	$	3.65	$	1.93			52.9	%
Shares used in computing basic earnings per common share (000’s)		158,446		163,267
Shares used in computing diluted earnings per common share (000’s)		159,962		165,363

S-4

Humana Inc.

2Q13 Segment Financial Information

In millions

	Retail			Employer Group			Healthcare Services			Other Businesses			Eliminations/ Corporate			Consolidated
Revenues - external customers
Premiums:
Medicare Advantage	$	5,572		$	1,160		$	—		$	—		$	—		$	6,732
Medicare stand-alone PDP		785			2			—			—			—			787
Total Medicare		6,357			1,162			—			—			—			7,519
Fully-insured		285			1,273			—			—			—			1,558
Specialty		52			275			—			—			—			327
Military services		—			—			—			5			—			5
Medicaid and other (A)		72			—			—			220			—			292
Total premiums		6,766			2,710			—			225			—			9,701
Services revenue:
Provider		—			4			313			—			—			317
ASO and other (B)		2			82			—			114			—			198
Pharmacy		—			—			13			—			—			13
Total services revenue		2			86			326			114			—			528
Total revenues - external customers		6,768			2,796			326			339			—			10,229
Intersegment revenues
Services		—			12			2,858			—			(2,870	)		—
Products		—			—			680			—			(680	)		—
Total intersegment revenues		—			12			3,538			—			(3,550	)		—
Investment income		18			10			—			15			49			92
Total revenues		6,786			2,818			3,864			354			(3,501	)		10,321
Operating expenses:
Benefits		5,696			2,235			—			251			(91	)		8,091
Operating costs		640			429			3,697			129			(3,434	)		1,461
Depreciation and amortization		32			27			36			4			(19	)		80
Total operating expenses		6,368			2,691			3,733			384			(3,544	)		9,632
Income (loss) from operations		418			127			131			(30	)		43			689
Interest expense		—			—			—			—			35			35
Income (loss) before income taxes	$	418		$	127		$	131		$	(30	)	$	8		$	654
Benefit ratio		84.2	%		82.5	%					111.6	%					83.4	%
Operating cost ratio		9.5	%		15.3	%		95.7	%		38.1	%					14.3	%

S-5

Humana Inc.

2Q12 Segment Financial Information (Recast) (C)

In millions

	Retail			Employer Group			Healthcare Services			Other Businesses			Eliminations/ Corporate			Consolidated
Revenues - external customers
Premiums:
Medicare Advantage	$	5,308		$	1,011		$	—		$	—		$	—		$	6,319
Medicare stand-alone PDP		745			2			—			—			—			747
Total Medicare		6,053			1,013			—			—			—			7,066
Fully-insured		250			1,247			—			—			—			1,497
Specialty		42			262			—			—			—			304
Military services		—			—			—			44			—			44
Medicaid and other (A)		45			—			—			210			—			255
Total premiums		6,390			2,522			—			254			—			9,166
Services revenue:
Provider		—			2			243			—			—			245
ASO and other (B)		5			89			—			91			—			185
Pharmacy		—			—			4			—			—			4
Total services revenue		5			91			247			91			—			434
Total revenues - external customers		6,395			2,613			247			345			—			9,600
Intersegment revenues
Services		1			7			2,359			—			(2,367	)		—
Products		—			—			591			—			(591	)		—
Total intersegment revenues		1			7			2,950			—			(2,958	)		—
Investment income		20			10			—			15			54			99
Total revenues		6,416			2,630			3,197			360			(2,904	)		9,699
Operating expenses:
Benefits		5,378			2,063			—			301			(90	)		7,652
Operating costs		638			428			3,049			111			(2,842	)		1,384
Depreciation and amortization		33			22			20			4			(6	)		73
Total operating expenses		6,049			2,513			3,069			416			(2,938	)		9,109
Income (loss) from operations		367			117			128			(56	)		34			590
Interest expense		—			—			—			—			26			26
Income (loss) before income taxes	$	367		$	117		$	128		$	(56	)	$	8		$	564
Benefit ratio		84.2	%		81.8	%					118.5	%					83.5	%
Operating cost ratio		10.0	%		16.3	%		95.4	%		32.2	%					14.4	%

S-6

Humana Inc.

YTD 2Q13 Segment Financial Information

In millions

	Retail			Employer Group			Healthcare Services			Other Businesses			Eliminations/ Corporate			Consolidated
Revenues - external customers
Premiums:
Medicare Advantage	$	11,308		$	2,350		$	—		$	—		$	—		$	13,658
Medicare stand-alone PDP		1,546			4			—			—			—			1,550
Total Medicare		12,854			2,354			—			—			—			15,208
Fully-insured		564			2,541			—			—			—			3,105
Specialty		101			550			—			—			—			651
Military services		—			—			—			16			—			16
Medicaid and other (A)		151			—			—			438			—			589
Total premiums		13,670			5,445			—			454			—			19,569
Services revenue:
Provider		—			8			619			—			—			627
ASO and other (B)		4			166			—			234			—			404
Pharmacy		—			—			22			—			—			22
Total services revenue		4			174			641			234			—			1,053
Total revenues - external customers		13,674			5,619			641			688			—			20,622
Intersegment revenues
Services		—			23			5,607			—			(5,630	)		—
Products		—			—			1,334			—			(1,334	)		—
Total intersegment revenues		—			23			6,941			—			(6,964	)		—
Investment income		36			21			—			30			98			185
Total revenues		13,710			5,663			7,582			718			(6,866	)		20,807
Operating expenses:
Benefits		11,625			4,412			—			438			(189	)		16,286
Operating costs		1,253			869			7,254			244			(6,713	)		2,907
Depreciation and amortization		64			50			72			8			(34	)		160
Total operating expenses		12,942			5,331			7,326			690			(6,936	)		19,353
Income from operations		768			332			256			28			70			1,454
Interest expense		—			—			—			—			70			70
Income before income taxes	$	768		$	332		$	256		$	28		$	—		$	1,384
Benefit ratio		85.0	%		81.0	%					96.5	%					83.2	%
Operating cost ratio		9.2	%		15.4	%		95.7	%		35.5	%					14.1	%

S-7

Humana Inc.

YTD 2Q12 Segment Financial Information (Recast) (C)

In millions

	Retail			Employer Group			Healthcare Services			Other Businesses			Eliminations/ Corporate			Consolidated
Revenues - external customers
Premiums:
Medicare Advantage	$	10,401		$	2,036		$	—		$	—		$	—		$	12,437
Medicare stand-alone PDP		1,471			4			—			—			—			1,475
Total Medicare		11,872			2,040			—			—			—			13,912
Fully-insured		494			2,489			—			—			—			2,983
Specialty		80			522			—			—			—			602
Military services		—			—			—			937			—			937
Medicaid and other (A)		91			—			—			416			—			507
Total premiums		12,537			5,051			—			1,353			—			18,941
Services revenue:
Provider		—			4			474			—			—			478
ASO and other (B)		11			178			—			109			—			298
Pharmacy		—			—			8			—			—			8
Total services revenue		11			182			482			109			—			784
Total revenues - external customers		12,548			5,233			482			1,462			—			19,725
Intersegment revenues
Services		1			17			4,824			—			(4,842	)		—
Products		—			—			1,175			—			(1,175	)		—
Total intersegment revenues		1			17			5,999			—			(6,017	)		—
Investment income		39			20			—			29			105			193
Total revenues		12,588			5,270			6,481			1,491			(5,912	)		19,918
Operating expenses:
Benefits		10,755			4,116			—			1,317			(186	)		16,002
Operating costs		1,275			864			6,189			217			(5,778	)		2,767
Depreciation and amortization		63			44			39			8			(11	)		143
Total operating expenses		12,093			5,024			6,228			1,542			(5,975	)		18,912
Income (loss) from operations		495			246			253			(51	)		63			1,006
Interest expense		—			—			—			—			52			52
Income (loss) before income taxes	$	495		$	246		$	253		$	(51	)	$	11		$	954
Benefit ratio		85.8	%		81.5	%					97.3	%					84.5	%
Operating cost ratio		10.2	%		16.5	%		95.5	%		14.8	%					14.0	%

S-8

Humana Inc.

Consolidated Balance Sheets

Dollars in millions, except share amounts

	June  30, 2013			December 31, 2012			YTD Change
							Dollar		Percent
Assets
Current assets:
Cash and cash equivalents	$	1,519		$	1,306
Investment securities		7,556			8,001
Receivables, net		1,593			733
Other current assets		1,960			1,670
Total current assets		12,628			11,710		$	918		7.8	%
Property and equipment, net		1,133			1,098
Long-term investment securities		1,770			1,846
Goodwill		3,638			3,640
Other long-term assets		1,679			1,685
Total assets		20,848			19,979		$	869		4.3	%
Liabilities and Stockholders’ Equity
Current liabilities:
Benefits payable		4,157			3,779
Trade accounts payable and accrued expenses		2,174			2,042
Book overdraft		246			324
Unearned revenues		193			230
Total current liabilities		6,770			6,375		$	395		6.2	%
Long-term debt		2,606			2,611
Future policy benefits payable		1,810			1,858
Other long-term liabilities		327			288
Total liabilities		11,513			11,132		$	381		3.4	%
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $1 par; 10,000,000 shares authorized, none issued		—			—
Common stock, $0.16 2/3 par; 300,000,000 shares authorized; 195,678,752 issued at June 30, 2013		32			32
Capital in excess of par value		2,190			2,101
Retained earnings		8,688			7,881
Accumulated other comprehensive income		209			386
Treasury stock, at cost, 39,215,632 shares at June 30, 2013		(1,784	)		(1,553	)
Total stockholders’ equity		9,335			8,847		$	488		5.5	%
Total liabilities and stockholders’ equity	$	20,848		$	19,979		$	869		4.3	%
Debt-to-total capitalization ratio		21.8	%		22.8	%
Return on Invested Capital (ROIC) - trailing 12 months		13.5	%		11.5	%

S-9

Humana Inc.

Consolidated Statements of Cash Flows

Dollars in millions

	Three Months Ended June 30,						Dollar Change			Percentage Change
	2013			2012
Cash flows from operating activities
Net income	$	420		$	356
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		104			82
Net realized capital gains		(5	)		(10	)
Stock-based compensation		19			14
Benefit for deferred income taxes		(8	)		—
Changes in operating assets and liabilities, net of effect of businesses acquired:
Receivables		(272	)		432
Other assets		22			(112	)
Benefits payable		67			(114	)
Other liabilities		(138	)		(1	)
Unearned revenues		(50	)		43
Other, net		14			16
Net cash provided by operating activities		173			706		($	533	)		-75.5	%
Cash flows from investing activities
Acquisitions, net of cash acquired		(7	)		(20	)
Purchases of property and equipment		(97	)		(99	)
Proceeds from sale of business		33			—
Purchases of investment securities		(602	)		(650	)
Maturities of investment securities		255			333
Proceeds from sales of investment securities		662			287
Net cash provided by (used in) investing activities		244			(149	)	$	393			263.8	%
Cash flows from financing activities
Receipts (withdrawals) from contract deposits, net		(104	)		(146	)
Change in book overdraft		(44	)		(34	)
Common stock repurchases		(137	)		(127	)
Excess tax benefit from stock-based compensation		(1	)		1
Dividends paid		(41	)		(41	)
Proceeds from stock option exercises and other		31			3
Net cash used in financing activities		(296	)		(344	)	$	48			14.0	%
Increase in cash and cash equivalents		121			213
Cash and cash equivalents at beginning of period		1,398			3,656
Cash and cash equivalents at end of period	$	1,519		$	3,869

S-10

Humana Inc.

Consolidated Statements of Cash Flows

Dollars in millions

	Six Months Ended June 30,						Dollar Change			Percentage Change
	2013			2012
Cash flows from operating activities
Net income	$	893		$	604
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		206			160
Net realized capital gains		(10	)		(14	)
Stock-based compensation		51			54
Benefit for deferred income taxes		(8	)		(9	)
Changes in operating assets and liabilities, net of effect of businesses acquired:
Receivables		(860	)		177
Other assets		(108	)		(250	)
Benefits payable		378			170
Other liabilities		52			51
Unearned revenues		(37	)		2,077
Other, net		28			32
Net cash provided by operating activities		585			3,052		($	2,467	)		-80.8	%
Cash flows from investing activities
Acquisitions, net of cash acquired		(12	)		(76	)
Purchases of property and equipment		(187	)		(185	)
Proceeds from sale of business		33			—
Purchases of investment securities		(1,385	)		(1,364	)
Maturities of investment securities		549			757
Proceeds from sales of investment securities		854			529
Net cash used in investing activities		(148	)		(339	)	$	191			56.3	%
Cash flows from financing activities
Receipts (withdrawals) from contract deposits, net		132			152
Repayment of long-term debt		—			(36	)
Change in book overdraft		(78	)		(46	)
Common stock repurchases		(231	)		(278	)
Excess tax benefit from stock-based compensation		—			21
Dividends paid		(83	)		(82	)
Proceeds from stock option exercises and other		36			48
Net cash used in financing activities		(224	)		(221	)	($	3	)		-1.4	%
Increase in cash and cash equivalents		213			2,492
Cash and cash equivalents at beginning of period		1,306			1,377
Cash and cash equivalents at end of period	$	1,519		$	3,869

S-11

Humana Inc.

Key Income Statement Ratios and Segment Operating Results

Dollars in millions

	Three Months Ended June 30,									Percentage Change			Six Months Ended June 30,									Percentage Change
	2013			2012			Difference						2013			2012			Difference
Benefit ratio
Retail		84.2	%		84.2	%		0.0	%					85.0	%		85.8	%		-0.8	%
Employer Group		82.5	%		81.8	%		0.7	%					81.0	%		81.5	%		-0.5	%
Other Businesses		111.6	%		118.5	%		-6.9	%					96.5	%		97.3	%		-0.8	%
Consolidated		83.4	%		83.5	%		-0.1	%					83.2	%		84.5	%		-1.3	%
Operating cost ratio
Retail		9.5	%		10.0	%		-0.5	%					9.2	%		10.2	%		-1.0	%
Employer Group		15.3	%		16.3	%		-1.0	%					15.4	%		16.5	%		-1.1	%
Healthcare Services		95.7	%		95.4	%		0.3	%					95.7	%		95.5	%		0.2	%
Other Businesses		38.1	%		32.2	%		5.9	%					35.5	%		14.8	%		20.7	%
Consolidated		14.3	%		14.4	%		-0.1	%					14.1	%		14.0	%		0.1	%
Detail of pretax income (loss)
Retail	$	418		$	367		$	51			13.9	%	$	768		$	495		$	273			55.2	%
Employer Group	$	127		$	117		$	10			8.5	%	$	332		$	246		$	86			35.0	%
Healthcare Services	$	131		$	128		$	3			2.3	%	$	256		$	253		$	3			1.2	%
Other Businesses	$	(30)		$	(56)		$	26			46.4	%	$	28		$	(51)		$	79			154.9	%
Consolidated	$	654		$	564		$	90			16.0	%	$	1,384		$	954		$	430			45.1	%

S-12

Humana Inc.

Healthcare Services Segment Metrics

	Quarter Ended June 30, 2013		Quarter Ended June 30, 2012		Difference					Quarter Ended March 31,  2013		Difference
Primary Care Providers:
Risk (D)
Owned / JV		4,200		1,000		3,200		320.0	%		4,100		100	2.4	%
Contracted		3,700		5,100		(1,400	)	-27.5	%		3,600		100	2.8	%
Path-to-Risk (E)		21,800		16,900		4,900		29.0	%		21,600		200	0.9	%
Care Management Professionals:
Employed		3,600		2,400		1,200		50.0	%		3,400		200	5.9	%
Contracted		5,400		3,000		2,400		80.0	%		4,200		1,200	28.6	%
Total		9,000		5,400		3,600		66.7	%		7,600		1,400	18.4	%
Care Management Statistics:
Number of members with complex chronic conditions in Humana Chronic Care Program		212,000		143,000		69,000					180,300		31,700
Number of high-risk discharges enrolled in Humana Transitions Program		5,500		—		5,500					4,100		1,400

S-13

Humana Inc.

Healthcare Services Segment Metrics (Continued)

Script volume in thousands

	Quarter Ended June 30, 2013			Quarter Ended June 30, 2012			Year-over-Year Difference						Quarter Ended March 31,  2013			Sequential Difference
Pharmacy:
Generic Dispense Rate
Retail		86.4	%		84.1	%		2.3	%					86.2	%		0.2	%
Employer Group		79.4	%		75.5	%		3.9	%					79.3	%		0.1	%
Total		85.6	%		83.2	%		2.4	%					85.4	%		0.2	%
Mail-Order Penetration
Retail		22.6	%		23.2	%		-0.6	%					22.9	%		-0.3	%
Employer Group		14.2	%		16.0	%		-1.8	%					14.6	%		-0.4	%
Total		21.6	%		22.4	%		-0.8	%					21.9	%		-0.3	%
							Difference			Percentage Change						Difference			Percentage Change
Script volume
Retail		60,000			52,600			7,400			14.1	%		58,900			1,100			1.9	%
Employer Group		7,800			6,300			1,500			23.8	%		7,700			100			1.3	%
Total		67,800			58,900			8,900			15.1	%		66,600			1,200			1.8	%

S-14

Humana Inc.

Healthcare Services Segment Metrics (Continued)

Script volume in thousands

	Six Months Ended June 30, 2013			Six Months Ended June 30, 2012			Year-over-Year Difference
Pharmacy:
Generic Dispense Rate
Retail		86.3	%		83.3	%		3.0	%
Employer Group		79.4	%		74.8	%		4.6	%
Total		85.5	%		82.4	%		3.1	%
Mail-Order Penetration
Retail		22.7	%		23.1	%		-0.4	%
Employer Group		14.4	%		15.8	%		-1.4	%
Total		21.8	%		22.3	%		-0.5	%
							Difference			Percentage Change
Script volume
Retail		118,800			104,600			14,200			13.6	%
Employer Group		15,500			12,600			2,900			23.0	%
Total		134,300			117,200			17,100			14.6	%

S-15

Humana Inc.

Membership Detail

In thousands

	Ending June 30,  2013		Average 2Q13		Ending June 30,  2012		Year-over-Year  Change						Ending December 31,  2012		YTD Change
							Amount			Percent					Amount			Percent
Medical Membership:
Retail
Medicare Advantage		2,029.7		2,024.0		1,895.8		133.9			7.1	%		1,927.6		102.1			5.3	%
Medicare stand-alone PDPs		3,220.6		3,219.7		2,970.1		250.5			8.4	%		3,052.7		167.9			5.5	%
Individual commercial		478.0		472.3		443.8		34.2			7.7	%		444.0		34.0			7.7	%
State-based Medicaid		70.6		70.9		46.5		24.1			51.8	%		52.1		18.5			35.5	%
Medicare Supplement		90.3		89.3		70.5		19.8			28.1	%		77.4		12.9			16.7	%
Total Retail		5,889.2		5,876.2		5,426.7		462.5			8.5	%		5,553.8		335.4			6.0	%
Employer Group
Medicare Advantage fully-insured		416.6		415.5		360.5		56.1			15.6	%		370.8		45.8			12.4	%
Medicare Advantage ASO		—		—		27.9		(27.9	)		-100.0	%		27.7		(27.7	)		-100.0	%
Medicare stand-alone PDPs		3.7		3.6		4.4		(0.7	)		-15.9	%		4.4		(0.7	)		-15.9	%
Fully-insured medical commercial		1,196.1		1,197.5		1,196.9		(0.8	)		-0.1	%		1,211.8		(15.7	)		-1.3	%
ASO commercial		1,199.6		1,201.4		1,228.8		(29.2	)		-2.4	%		1,237.7		(38.1	)		-3.1	%
Total Employer Group		2,816.0		2,818.0		2,818.5		(2.5	)		-0.1	%		2,852.4		(36.4	)		-1.3	%
Other Businesses
Military services		3,104.6		3,103.7		3,133.5		(28.9	)		-0.9	%		3,123.9		(19.3	)		-0.6	%
Puerto Rico Medicaid and other		560.8		559.7		560.6		0.2			0.0	%		558.7		2.1			0.4	%
Total Other Businesses		3,665.4		3,663.4		3,694.1		(28.7	)		-0.8	%		3,682.6		(17.2	)		-0.5	%
Total Medical Membership		12,370.6		12,357.6		11,939.3		431.3			3.6	%		12,088.8		281.8			2.3	%
Specialty Membership:
Retail
Dental - fully-insured		723.7		714.3		662.7		61.0			9.2	%		691.5		32.2			4.7	%
Vision		145.7		141.5		103.8		41.9			40.4	%		118.7		27.0			22.7	%
Other supplemental benefits (F)		142.3		141.9		139.7		2.6			1.9	%		138.5		3.8			2.7	%
Total Retail		1,011.7		997.7		906.2		105.5			11.6	%		948.7		63.0			6.6	%
Employer Group
Dental - fully-insured		2,508.3		2,505.9		2,416.4		91.9			3.8	%		2,446.4		61.9			2.5	%
Dental - ASO		863.8		865.6		849.4		14.4			1.7	%		868.3		(4.5	)		-0.5	%
Vision		2,538.4		2,540.0		2,456.3		82.1			3.3	%		2,525.0		13.4			0.5	%
Other supplemental benefits (F)		1,346.3		1,348.3		1,235.7		110.6			9.0	%		1,296.5		49.8			3.8	%
Total Employer Group		7,256.8		7,259.8		6,957.8		299.0			4.3	%		7,136.2		120.6			1.7	%
Total Specialty Membership		8,268.5		8,257.5		7,864.0		404.5			5.1	%		8,084.9		183.6			2.3	%

S-16

Humana Inc.

Premiums and Services Revenue Detail

Dollars in millions, except per member per month

	Three Months Ended June 30,				Dollar Change			Percentage Change			Per Member per Month  (G) Three Months Ended June 30,
	2013		2012								2013		2012
Premiums and Services Revenue
Retail:
Medicare Advantage	$	5,572	$	5,308	$	264			5.0	%	$	918	$	936
Medicare stand-alone PDPs		785		745		40			5.4	%		81		84
Individual commercial		241		215		26			12.1	%		170		162
State-based Medicaid		72		45		27			60.0	%		339		323
Medicare Supplemental		44		35		9			25.7	%		164		168
Specialty		52		42		10			23.8	%		17		16
ASO & other services (B)		2		6		(4	)		-66.7	%
Total Retail		6,768		6,396		372			5.8	%
Employer Group:
Medicare Advantage fully-insured		1,160		1,011		149			14.7	%		931		938
Medicare stand-alone PDPs		2		2		—			0.0	%
Fully-insured medical commercial		1,273		1,247		26			2.1	%		354		349
Specialty		275		262		13			5.0	%		14		14
ASO & other services (B)		98		98		—			0.0	%
Total Employer Group		2,808		2,620		188			7.2	%
Healthcare Services:
Pharmacy solutions		3,225		2,833		392			13.8	%
Provider services		513		292		221			75.7	%
Home care services		95		42		53			126.2	%
Integrated behavioral health		31		30		1			3.3	%
Total Healthcare Services		3,864		3,197		667			20.9	%
Other Businesses:
Military services (H)		101		130		(29	)		-22.3	%
Puerto Rico Medicaid and other (I)		238		215		23			10.7	%		131		125
Total Other Businesses	$	339	$	345	$	(6	)		-1.7	%

S-17

Humana Inc.

Premiums and Services Revenue Detail

Dollars in millions, except per member per month

	Six Months Ended June 30,				Dollar Change			Percentage Change			Per Member per Month  (G) Six Months Ended June 30,
	2013		2012								2013		2012
Premiums and Services Revenue
Retail:
Medicare Advantage	$	11,308	$	10,401	$	907			8.7	%	$	934	$	930
Medicare stand-alone PDPs		1,546		1,471		75			5.1	%		80		83
Individual commercial		477		426		51			12.0	%		172		161
State-based Medicaid		151		91		60			65.9	%		342		322
Medicare Supplemental		87		68		19			27.9	%		164		167
Specialty		101		80		21			26.3	%		17		16
ASO & other services (B)		4		12		(8	)		-66.7	%
Total Retail		13,674		12,549		1,125			9.0	%
Employer Group:
Medicare Advantage fully-insured		2,350		2,036		314			15.4	%		947		947
Medicare stand-alone PDPs		4		4		—			0.0	%
Fully-insured medical commercial		2,541		2,489		52			2.1	%		353		349
Specialty		550		522		28			5.4	%		14		14
ASO & other services (B)		197		199		(2	)		-1.0	%
Total Employer Group		5,642		5,250		392			7.5	%
Healthcare Services:
Pharmacy solutions		6,319		5,766		553			9.6	%
Provider services		1,022		573		449			78.4	%
Home care services		178		78		100			128.2	%
Integrated behavioral health		63		64		(1	)		-1.6	%
Total Healthcare Services		7,582		6,481		1,101			17.0	%
Other Businesses:
Military services (H)		211		1,036		(825	)		-79.6	%
Puerto Rico Medicaid and other (I)		477		426		51			12.0	%		131		125
Total Other Businesses	$	688	$	1,462	$	(774	)		-52.9	%

S-18

Humana Inc.

Medicare Summary

Premiums in millions, except per member per month

Membership in thousands

	Three Months Ended June 30,				Year-over-year  Change					Per Member per Month  (G) Three Months Ended June 30,
	2013		2012		Amount		Percent			2013		2012
Premiums
Medicare Advantage	$	6,732	$	6,319	$	413		6.5	%	$	920	$	936
Medicare stand-alone PDPs		787		747		40		5.4	%		81	$	84
Total Medicare	$	7,519	$	7,066	$	453		6.4	%
	Six Months Ended June 30,				Year-over-year  Change					Per Member per Month (G) Six Months Ended June 30,
	2013		2012		Amount		Percent			2013		2012
Premiums
Medicare Advantage	$	13,658	$	12,437	$	1,221		9.8	%	$	936	$	932
Medicare stand-alone PDPs		1,550		1,475		75		5.1	%		80		84
Total Medicare	$	15,208	$	13,912	$	1,296		9.3	%

	Ending June 30, 2013		Ending June 30, 2012		Year-over-year  Change
					Amount			Percent
Fully-Insured Membership
Medicare Advantage		2,446.3		2,256.3		190.0			8.4	%
Medicare stand-alone PDPs		3,224.3		2,974.5		249.8			8.4	%
Total Medicare		5,670.6		5,230.8		439.8			8.4	%
					Member Mix
	Ending June 30,  2013		Ending June 30, 2012		June 30, 2013			June 30, 2012
Retail Segment Detail
Medicare Advantage Membership
HMO		1,027.7		917.4		50.6	%		48.4	%
PPO		1,002.0		978.4		49.4	%		51.6	%
Total Individual Medicare		2,029.7		1,895.8		100.0	%		100.0	%
Medicare Advantage Membership
Risk (D)		541.4		502.5		26.7	%		26.5	%
Path-to-Risk (E)		404.9		325.4		19.9	%		17.2	%
Other		1,083.4		1,067.9		53.4	%		56.3	%
Total Individual Medicare		2,029.7		1,895.8		100.0	%		100.0	%

S-19

Humana Inc.

Investments

Dollars in millions

	Fair value
	6/30/2013		3/31/2013		12/31/2012
Investment Portfolio:
Cash & cash equivalents	$	1,519	$	1,398	$	1,306
Investment securities		7,556		8,141		8,001
Long-term investment securities		1,770		1,824		1,846
Total investment portfolio	$	10,845	$	11,363	$	11,153
Duration (J)		4.13		4.21		4.02
Average Credit Rating		AA-		AA-		AA-
Investment Portfolio Detail:
Cash and cash equivalents	$	1,519	$	1,398	$	1,306
U.S. Government and agency obligations
U.S. Treasury and agency obligations		571		552		618
U.S. Government residential mortgage-backed		1,407		1,585		1,569
U.S. Government commercial mortgage-backed		33		33		34
Total U.S. Government and agency obligations		2,011		2,170		2,221
Tax-exempt municipal securities
Pre-refunded		310		322		311
Insured		602		613		627
Other		2,103		2,235		2,120
Auction rate securities		13		13		13
Total tax-exempt municipal securities		3,028		3,183		3,071
Residential mortgage-backed
Prime residential mortgages		26		29		32
Alt-A residential mortgages		1		1		1
Sub-prime residential mortgages		1		1		1
Total residential mortgage-backed		28		31		34
Commercial mortgage-backed		573		694		659
Asset-backed securities		53		85		68
Corporate securities
Financial services		863		889		864
Other		2,770		2,913		2,930
Total corporate securities		3,633		3,802		3,794
Total investment portfolio	$	10,845	$	11,363	$	11,153

S-20

Humana Inc.

Detail of Benefits Payable Balance and Year-to-Date Changes

Dollars in millions

	June 30, 2013			June 30, 2012			December 31, 2012
Detail of benefits payable
IBNR and other benefits payable (K)	$	3,297		$	3,085		$	3,158
Unprocessed claim inventories (L)		380			310			302
Processed claim inventories (M)		334			359			230
Payable to pharmacy benefit administrator (N)		149			163			85
Benefits payable, excluding military services		4,160			3,917			3,775
Military services benefits payable (O)		(3	)		77			4
Total Benefits Payable	$	4,157		$	3,994		$	3,779
	Six Months Ended June 30, 2013			Six Months Ended June 30, 2012			Year Ended December 31, 2012
Year-to-date changes in benefits payable, excluding military services (P)
Balances at January 1	$	3,775		$	3,415		$	3,415
Acquisitions		—			70			66
Incurred related to:
Current year		16,632			15,233			30,198
Prior years (Q)		(366	)		(181	)		(257	)
Total incurred		16,266			15,052			29,941
Paid related to:
Current year		(12,884	)		(11,869	)		(26,738	)
Prior years		(2,997	)		(2,751	)		(2,909	)
Total paid		(15,881	)		(14,620	)		(29,647	)
Balances at end of period	$	4,160		$	3,917		$	3,775
	Six Months Ended June 30, 2013			Six Months Ended June 30, 2012			Year Ended December 31, 2012
Summary of Consolidated Benefit Expense:
Total benefit expense incurred, per above	$	16,266		$	15,052		$	29,941
Military services benefit expense		(37	)		890			908
Future policy benefit expense (R)		57			60			136
Consolidated Benefit Expense	$	16,286		$	16,002		$	30,985

S-21

Humana Inc.

Benefits Payable Statistics (S)

Receipt Cycle Time (T)

	2013		2012		Change			Percentage Change
1st Quarter Average		12.5		13.0		(0.5	)		-3.8	%
2nd Quarter Average		13.1		13.7		(0.6	)		-4.4	%
3rd Quarter Average				13.0		n/a			n/a
4th Quarter Average				12.8		n/a			n/a
Full Year Average		12.8		13.1		(0.3	)		-2.3	%

Unprocessed Claims Inventories

Date	Estimated  Valuation (millions)		Claim Item Counts (000s)		Number of Days on Hand
6/30/2011	$	410		1,093		5.1
9/30/2011	$	419		1,272		5.7
12/31/2011	$	280		599		2.8
3/31/2012	$	376		1,028		4.2
6/30/2012	$	310		1,077		4.2
9/30/2012	$	380		1,440		5.7
12/31/2012	$	302		1,061		4.1
3/31/2013	$	327		1,247		4.7
6/30/2013	$	380		1,274		4.7

S-22

Humana Inc.

Benefits Payable Statistics (Continued) (S)

Days in Claims Payable(U)

Quarter Ended	Days in Claims Payable (DCP)		Change Last  4 Quarters			Percentage Change
6/30/2011		56.0		(1.0	)		-1.8	%
9/30/2011		54.2		(3.6	)		-6.2	%
12/31/2011		52.5		(1.0	)		-1.9	%
3/31/2012		50.1		(5.4	)		-9.7	%
6/30/2012		51.0		(5.0	)		-8.9	%
9/30/2012		51.6		(2.6	)		-4.8	%
12/31/2012		48.5		(4.0	)		-7.6	%
3/31/2013		49.0		(1.1	)		-2.2	%
6/30/2013		50.7		(0.3	)		-0.6	%

Year-to-Date Change in Days in Claims Payable(V)

	2013			FY 2012
DCP - beginning of period		48.5			52.5
Components of change in DCP:
Change in unprocessed claims inventories		1.0			(0.1	)
Change in processed claims inventories		1.3			0.3
Change in pharmacy payment cutoff		—			(0.1	)
Change in capitation/provider settlements		(0.1	)		(4.3	)
All other		—			0.2
DCP - end of period		50.7			48.5

S-23

Humana Inc.

Footnotes to Statistical Schedules and Supplementary Information

2Q13 Earnings Release

(A) The Medicaid and other category includes the company’s Medicaid business as well as the closed block of long-term care.

(B) The ASO and other category is primarily comprised of ASO fees and other ancillary services fees.

(C) Beginning on January 1, 2013, the company reclassified certain businesses and renamed its Health and Well-Being Services segment as Healthcare Services. Prior periods were recast to conform to the current presentation.

(D) In certain circumstances, the company contracts with providers to accept financial risk for a defined set of Medicare Advantage membership. In transferring this risk, the company prepays these providers a monthly fixed-fee per member to coordinate substantially all of the medical care for their Medicare Advantage members assigned or attributed to their provider panel, including some health benefit administrative functions and claims processing. For these capitated arrangements, the company generally agrees to payment rates that target a benefit expense ratio. The result is a high level of engagement on the part of the provider.

(E) A path-to-risk provider is one who has a high level of engagement and participates in one of Humana’s pay-for-performance programs (Model Practice or Medical Home) or has a risk contract in place with a trigger (future date or membership threshold) which has not yet been met. In addition to earning incentives, these providers may also have a shared savings component by which they can share in achieved surpluses when the actual cost of the medical services provided to patients assigned or attributed to their panel is less than the agreed upon medical expense target.

(F) Other supplemental benefits include life, disability, and fixed benefit products including cancer and critical illness policies.

(G) Computed based on average membership for the period (i.e., monthly ending membership during the period divided by the number of months in the period).

(H) Military services revenues are generally not contracted on a per-member basis.

(I) Includes premiums associated with Puerto Rico Medicaid and the closed block of long-term care as well as services revenue.

(J) Duration is the time-weighted average of the present value of the fixed income portfolio cash flows.

(K) IBNR represents an estimate of benefits expense payable for claims incurred but not reported (IBNR) at the balance sheet date. The level of IBNR is primarily impacted by membership levels, benefit claim trends and the receipt cycle time, which represents the length of time between when a claim is initially incurred and when the claim form is received (i.e. a shorter time span results in lower reserves for claims IBNR). Other benefits payable includes amounts payable to providers under capitation arrangements.

(L) Unprocessed claim inventories represent the estimated valuation of claims received but not yet fully processed.

(M) Processed claim inventories represent the estimated valuation of processed claims that are in the post-claim-adjudication process, which consists of operating functions such as audit and check batching and handling.

(N) The balance due to the company’s pharmacy benefit administrator fluctuates as a result of the number of business days in the last payment cycle of the month. Payment cycles are every 8 days (8^th, 16^th, and 24th of month) and the last day of the month.

(O) Military services benefits payable primarily consist of IBNR related to the company’s previous contract that expired on March 31, 2012.

(P) The table excludes activity associated with military services benefits payable related to the previous contract that expired March 31, 2012.

(Q) Amounts incurred related to prior years vary from previously estimated liabilities as the claims ultimately are settled. Negative amounts reported for incurred related to prior years result from claims being ultimately settled for amounts less than originally estimated (favorable development). There were no changes in the approach used to determine the company’s estimate of medical claim reserves during the quarter.

(R) Future policy benefit expense has a related liability classified as a long-term liability on the balance sheet.

(S) Benefits reserves statistics represents fully-insured medical claims data and excludes military services claims data and specialty benefits.

(T) The receipt cycle time measures the average length of time between when a claim was initially incurred and when the claim form was received. Receipt cycle time data for the company’s largest claim processing platforms represent approximately 93% of the company’s fully-insured medical claims volume. Pharmacy and specialty claims, including dental, vision and other supplemental benefits, are excluded from this measurement.

(U) A common metric for monitoring benefits payable levels relative to the benefit expense is days in claims payable, or DCP, which represents the benefits payable at the end of the period divided by average benefits expense per day in the quarterly period.

(V) DCP fluctuates due to a number of factors, the more significant of which are detailed in this roll forward. Growth in certain product lines can also impact DCP for the quarter since a provision for claims would not have been recorded for members that had not yet enrolled earlier in the quarter, yet those members would have a provision and corresponding medical claims reserve recorded upon enrollment later in the quarter. This analysis excludes the impact upon DCP of military services and Medicare stand-alone PDPs.

S-24