Humana To Be Awarded Contract to Provide Long-Term Care for Residents in 10 Florida Counties

  Humana To Be Awarded Contract to Provide Long-Term Care for Residents in 10
  Florida Counties

  Company will be awarded five-year state contract to serve Florida Medicaid
  Long-Term Care recipients in South Florida, Northeast Florida and Daytona

Business Wire

TAMPA, Fla. -- February 18, 2013

Humana Inc. (NYSE: HUM) announced today that the Florida Agency for Health
Care Administration (AHCA) has selected Humana to participate in its managed
Long-Term Care program for Medicaid recipients in 10 Florida counties,
including South Florida, Northeast Florida and Daytona Beach. The state
contract term is for five years.

Humana will partner with the state to provide quality, long-term care services
to eligible Florida Medicaid recipients in three regions, leveraging its
innovative and integrated delivery system. Those regions include:

  *South Florida (Dade, Broward and Monroe counties)
  *Northeast Florida (Baker, Clay, Duval, Flagler, Nassau and St. Johns
  *Daytona Beach (Volusia County)

The Florida long-term care program’s enrollment period for eligible Florida
Medicaid recipients begins this August and will phase in by region through
March 1, 2014. The Medicaid recipients in this new Florida managed care
program are primarily seniors and persons over the age of 18 with disabilities
who need nursing facility level of care.

“We’re excited to bring Humana’s integrated care delivery model to long-term
care in Florida,” said Humana Retail Segment President Tom Liston, “and
provide recipients with coordinated, quality and cost-effective care. This
state award reflects Humana’s goal to improve the health and well-being of our
members by delivering expanded offerings that focus on wellness, nutrition and
aging with grace.”

Humana currently serves approximately 50,000 Medicaid members in South Florida
and has provided Medicaid benefits to Floridians since 1998.

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,”
“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 Humana’s SEC filings, as well as the other information
that Humana may provide with respect to the pending merger, 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 charges 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 benefit expenses
    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, including its Medicare initiatives, the company’s business
    may be materially adversely affected, which is of particular importance
    given the concentration of the company’s revenues in the Medicare
  *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.
  *Humana is involved in various legal actions and governmental and internal
    investigations, including without limitation, an ongoing internal
    investigation and litigation and government requests for information
    related to certain aspects of its Florida subsidiary operations, any of
    which, if resolved unfavorably to the company, could result in substantial
    monetary damages. Increased litigation and negative publicity could
    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.
  *Recently enacted health insurance reform, 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 (and particularly how the ratio may apply to Medicare plans,
    including aggregation, credibility thresholds, and its possible
    application to prescription drug plans), lowering the company’s Medicare
    payment rates and increasing the company’s expenses associated with a
    non-deductible federal premium tax 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 federal
    premium tax 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 federal premium tax 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 administrative costs could hamper Humana’s
  *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.
  *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-Ks for the year ended December 31, 2011;
  *Form 10-Qs for the quarters ended March 31, 2012, June 30, 2012, and
    September 30, 2012 (as amended by the Form 10-Q/A filed on December 4,
  *Form 8-Ks filed during 2012 and 2013.

About Humana

Humana Inc., headquartered in Louisville, Ky., 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, including copies

  *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


Humana Corporate Communications
Mitch Lubitz, 813-287-6180
Humana Investor Relations
Regina Nethery, 502-580-3644
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