Company: HUM
Filing Date: 2025-03-26
Form Type: 424B5
Source: 0001628280-25-014916
Chunk: 55

Company: HUMANA INC
Filing Date: 2025-03-26
Form: 424B5
Chunk 55
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government determined payment rates; potential restrictions on profitability, including by comparison of profitability of our Medicare Advantage business to non-Medicare Advantage business; or other changes in the governmental programs in which we participate. Changes to the risk-adjustment model utilized by the Centers for Medicare and Medicaid Services (“CMS”) to adjust premiums paid to Medicare Advantage plans or retrospective recovery by CMS of previously paid premiums as a result of the final rule related to the risk adjustment data validation audit methodology published by CMS on January 30, 2023 (Final RADV Rule), which we believe fails to address adequately the statutory requirement of actuarial equivalence and violates the Administrative Procedure Act due to its failure to include a “Fee for Service Adjuster”, could have a material adverse effect on our operating results, financial position and cash flows.

• Our business activities are subject to substantial government regulation. New laws or regulations, or legislative, judicial, or regulatory changes in existing laws or regulations or their manner of application could increase our cost of doing business and have a material adverse effect on our results of operations (including restricting revenue, enrollment and premium growth in certain products and market segments, restricting our ability to expand into new markets, increasing our medical and operating costs by, among other things, requiring a minimum benefit ratio on insured products, lowering our Medicare payment rates and increasing our expenses associated with a non-deductible health insurance industry fee and other assessments); our financial position (including our ability to maintain the value of our goodwill); and our cash flows.

• Our failure to manage acquisitions, divestitures and other significant transactions successfully may have a material adverse effect on our results of operations, financial position, and cash flows.

• If we fail to develop and maintain satisfactory relationships with the providers of care to our members, our business may be adversely affected.

• We face significant competition in attracting and retaining talented employees. Further, managing succession for, and retention of, key executives is critical to our success, and our failure to do so could adversely affect our businesses, operating results and/or future performance.

• Our pharmacy business is highly competitive and subjects us to regulations and supply chain risks in addition to those we face with our core health benefits businesses.

• Changes in the prescription drug industry pricing benchmarks may adversely affect our financial performance.

• Our ability to obtain funds from certain of our licensed subsidiaries is restricted by state insurance regulations.

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

• Volatility in the securities and credit markets,