Company: HUM
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000049071-25-000007
Chunk: 156

Company: HUMANA INC
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 156
---
 and offer assistance to providers in transitioning from a fee-for-service to a value-based arrangement. These include performance bonuses, shared savings and shared risk relationships. At December 31, 2024, approximately 3,994,300 members, or 71%, of our individual Medicare Advantage members were in value-based relationships under our integrated care delivery model, as compared to 3,764,300 members, or 70%, at December 31, 2023.  

•Net income attributable to Humana was $1.2 billion, or $9.98 per diluted common share, and $2.5 billion, or $20.00 per diluted common share, in  2024 and 2023, respectively. This comparison was significantly impacted by put/call valuation adjustments associated with non-consolidating minority interest investments, charges associated with value creation initiatives, transaction and integration costs, impairment charges and an accrual related to certain anticipated litigation expenses. The impact of these adjustments to our consolidated income before income taxes and equity in net earnings and diluted earnings per common share was as follows for the 2024 and 2023 periods:

43

20242023(in millions)Consolidated income before income taxes and equity in net losses:Put/call valuation adjustments associated with our non-consolidating minority interest investments$296 $320 Transaction and integration costs— (48)Accrued charge related to certain anticipated litigation expenses— 105 Value creation initiatives281 436 Impairment charges200 91 Total$777 $904 20242023Diluted earnings per common share:Put/call valuation adjustments associated with our non-consolidating minority interest investments$2.45 $2.57 Transaction and integration costs— (0.38)Accrued charge related to certain anticipated litigation expenses— 0.84 Value creation initiatives2.33 3.50 Impairment charges1.65 0.73 Net tax impact of transactions(1.50)(1.67)Total$4.93 $5.59 

44

Regulatory Environment

We are and will continue to be regularly subject to new laws and regulations, changes to existing laws and regulations, and judicial determinations that impact the interpretation and applicability of those laws and regulations. The Health Care Reform Law, the Families First Act, the CARES Act, and the Inflation Reduction Act, and related regulations, are examples of laws which have enacted significant reforms to