cost amount could have a material adverse effect on our business.
These changes may include, for example, an increase or reduction in the number of persons enrolled or eligible to enroll due to the federal government’s decision to increase or decrease U. S.  military presence around the world.
In the event government reimbursements were to decline from projected amounts, our failure to reduce the health care costs associated with these programs could have a material adverse effect on our business.
During 2004, we completed a contractual transition of our TRICARE business.
On July 1, 2004, our Regions 2 and 5 contract servicing approximately 1.1 million TRICARE members became part of the new North Region, which was awarded to another contractor.
On August 1, 2004, our Regions 3 and 4 contract became part of our new South Region contract.
On November 1, 2004, the Region 6 contract with approximately 1 million members became part of the South Region contract.
The members added with the Region 6 contract essentially offset the members lost four months earlier with the expiration of our Regions 2 and 5 contract.
For the year ended December 31, 2005, TRICARE premium revenues were approximately $2.4 billion, or 16.9% of our total premiums and ASO fees.
Part of the TRICARE transition during 2004 included the carve out of the TRICARE Senior Pharmacy and TRICARE for Life program which we previously administered on as ASO basis.
On June 1, 2004 and August 1, 2004, administrative services under these programs were transferred to another contractor.
For the year ended December 31, 2005, TRICARE administrative services fees totaled $50.1 million, or 0.4% of our total premiums and ASO fees.
Our Products Marketed to Commercial Segment Employers and Members Consumer-Choice Products Over the last several years, we have developed and offered various commercial products designed to provide options and choices to employers that are annually facing substantial premium increases driven by double-digit medical cost inflation.
These consumer-choice products, which can be offered on either a fully insured or ASO basis, provided coverage to approximately 371,100 members at December 31, 2005, representing approximately 11.7% of our total commercial medical membership as detailed below.
## Table 0 ##
These products are often offered to employer groups as “bundles”, where the subscribers are offered various HMO and PPO options, with various employer contribution strategies as determined by the employer.
Paramount to our consumer-choice product strategy, we have developed a group of innovative consumer products, styled as “Smart” products, that we believe will be a long-term solution for employers.
We believe this new generation of products provides more (1) choices for the individual consumer, (2) transparency of provider costs, and (3) benefit designs that engage consumers in the costs and effectiveness of health care choices.
Innovative tools and technology are available to assist consumers with these decisions, including the trade-offs between higher premiums and point-of-service costs at the time consumers choose their plans, and to suggest ways in which the consumers can maximize their individual benefits at the point they use their plans.
We believe that when consumers can make informed choices about the cost and effectiveness of their health care, a sustainable long term solution for employers can be realized.
Smart products, which accounted for approximately 65.1% of enrollment in all of our consumer-choice plans as of December 31, 2005, only are sold to employers who use Humana as their sole health insurance carrier.
Medical membership was as follows at December 31, 2004 and 2003:
## Table 1 ##
This table of financial data should be reviewed in connection with the discussion on the following pages.
Summary Net income was $280.0 million, or $1.72 per diluted common share, in 2004 compared to $228.9 million, or $1.41 per diluted common share, in 2003.
The increase in net income consisted of improved profits in both of our business segments, driven by higher earnings from our Medicare and commercial products.
The 2003 results included expenses for asset impairments as more fully described in Note 5 to the consolidated financial statements included in Item 8.
—Financial Statements and Supplementary Data.
Premium Revenues and Medical Membership Premium revenues increased 7.3% to $12.7 billion for 2004, compared to $11.8 billion for 2003.
Higher premium revenues resulted primarily from the Ochsner acquisition, as more fully described in Note 3 to the consolidated financial statements included in Item 8.
—Financial Statements and Supplementary Data, and an increase in Medicare Advantage and fully insured commercial average per member premiums.
Items impacting average per member premiums include changes in premium rates as well as changes in the geographic mix of membership, the mix of product offerings, and the mix of benefit plans selected by our membership.
Government segment premium revenues increased 8.8% to $5.7 billion for 2004, compared to $5.3 billion for 2003.
This increase primarily was attributable to our Medicare Advantage operations.
Medicare Advantage membership was 377,200 at December 31, 2004, compared to 328,600 at December 31, 2003, an increase of 48,600 members, or 14.8%, including 33,100 members added through the acquisition of Ochsner.
Average per member premiums for our Medicare Advantage business increased approximately 10% for 2004, reflecting higher reimbursement from CMS.
TRICARE premium revenues decreased 5.4% in 2004 reflecting the transition to the new South Region contract which included a temporary loss of approximately 1 million members for 4 months in 2004.
Commercial segment premium revenues increased 6.1% to $7.0 billion for 2004, compared to $6.5 billion for 2003.
This increase resulted from the Ochsner acquisition and increases in average per member premiums in the 6% to 8% range on our fully insured commercial business partially offset by membership attrition.
Average per member premium increases of 6% to 8% include the impact of an increasing mix of individual products into our fully insured membership.
A lower premium corresponding to lower benefits on products sold to individuals reduced our average per member premium trend by approximately 150 to 200 basis points.
Our fully insured commercial medical membership decreased 2.8%, or 66,300 members, to 2,286,500 at December 31, 2004 after
increases in premium payments to us, may have a material adverse effect on our results of operations, financial position, and cash flows.
Critical Accounting Policies and Estimates The discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements and accompanying notes, which have been prepared in accordance with accounting principles generally accepted in the United States of America.
The preparation of these financial statements and accompanying notes requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes.
We continuously evaluate our estimates and those critical accounting policies related primarily to benefits expense and revenue recognition as well as accounting for impairments related to our investment securities, goodwill, and long-lived assets.
These estimates are based on knowledge of current events and anticipated future events and, accordingly, actual results ultimately may differ from those estimates.
We believe the following critical accounting policies involve the most significant judgments and estimates used in the preparation of our consolidated financial statements.
Benefits Expense Recognition Benefits expense is recognized in the period in which services are provided and includes an estimate of the cost of services which have been incurred but not yet reported, or IBNR.
IBNR represents a substantial portion of our benefits payable as follows:
## Table 2 ##
Military services benefits payable primarily relates to our previous TRICARE South Region contract that expired on March 31, 2012 and primarily consists of our estimate of incurred healthcare services provided to beneficiaries which were in turn reimbursed by the federal government as further described in Note 2 to the consolidated financial statements included in Item 8.
– Financial Statements and Supplementary Data.
This amount was generally offset by a corresponding receivable due from the federal government, as more fullydescribed in Item 7.
– Management’s Discussion and Analysis of Financial Condition and Results of Operations under the section titled “Cash Flow from Operating Activities.
” Under the new TRICARE South Region contract effective April 1, 2012, the federal government retains the risk of the cost of health benefits and related benefit obligation as further described in Note 2 to the consolidated financial statements included in Item 8.
– Financial Statements and Supplementary Data.
Our reserving practice is to consistently recognize the actuarial best point estimate within a level of confidence required by actuarial standards.
Actuarial standards of practice generally require a level of confidence such that the liabilities established for IBNR have a greater probability of being adequate versus being insufficient, or such that the liabilities established for IBNR are sufficient to cover obligations under an assumption of moderately adverse conditions.
Adverse conditions are situations in which the actual claims are expected to be higher than the otherwise estimated value of such claims at the time of the estimate.
Therefore, in many situations, the claim amounts ultimately settled will be less than the estimate that satisfies the actuarial standards of practice.

<table><tr><td></td><td>Consumer-Choice Membership</td><td>Other Commercial Membership</td><td>Commercial Medical Membership</td></tr><tr><td>Fully insured</td><td>184,000</td><td>1,815,800</td><td>1,999,800</td></tr><tr><td>Administrative services only</td><td>187,100</td><td>983,900</td><td>1,171,000</td></tr><tr><td>Total Commercial medical</td><td>371,100</td><td>2,799,700</td><td>3,170,800</td></tr></table>
<table><tr><td></td><td colspan="2"></td><td colspan="2">Change</td></tr><tr><td></td><td> 2004</td><td> 2003</td><td>Members</td><td>Percentage</td></tr><tr><td>Government segment medical members:</td><td></td><td></td><td></td><td></td></tr><tr><td>Medicare Advantage</td><td>377,200</td><td>328,600</td><td>48,600</td><td>14.8%</td></tr><tr><td>Medicaid</td><td>478,600</td><td>468,900</td><td>9,700</td><td>2.1%</td></tr><tr><td>TRICARE</td><td>1,789,400</td><td>1,849,700</td><td>-60,300</td><td>-3.3%</td></tr><tr><td>TRICARE ASO</td><td>1,082,400</td><td>1,057,200</td><td>25,200</td><td>2.4%</td></tr><tr><td>Total Government</td><td>3,727,600</td><td>3,704,400</td><td>23,200</td><td>0.6%</td></tr><tr><td>Commercial segment medical members:</td><td></td><td></td><td></td><td></td></tr><tr><td>Fully insured</td><td>2,286,500</td><td>2,352,800</td><td>-66,300</td><td>-2.8%</td></tr><tr><td>ASO</td><td>1,018,600</td><td>712,400</td><td>306,200</td><td>43.0%</td></tr><tr><td>Total Commercial</td><td>3,305,100</td><td>3,065,200</td><td>239,900</td><td>7.8%</td></tr><tr><td>Total medical membership</td><td>7,032,700</td><td>6,769,600</td><td>263,100</td><td>3.9%</td></tr></table>
<table><tr><td></td><td> December 31, 2012</td><td>Percentage of Total</td><td> December 31, 2011</td><td> Percentage of Total</td></tr><tr><td></td><td colspan="4"> (dollars in millions)</td></tr><tr><td>IBNR</td><td>$2,552</td><td>67.5%</td><td>$2,056</td><td>54.8%</td></tr><tr><td>Reported claims in process</td><td>315</td><td>8.3%</td><td>376</td><td>10.0%</td></tr><tr><td>Other benefits payable</td><td>908</td><td>24.1%</td><td>983</td><td>26.2%</td></tr><tr><td>Benefits payable, excluding military services</td><td>3,775</td><td>99.9%</td><td>3,415</td><td>91.0%</td></tr><tr><td>Military services benefits payable</td><td>4</td><td>0.1%</td><td>339</td><td>9.0%</td></tr><tr><td>Total benefits payable</td><td>$3,779</td><td>100.0%</td><td>$3,754</td><td>100.0%</td></tr></table>

Question: what is the value of the total premiums and aso fees , in billions?
Answer: 12.525