Company: HUM
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000049071-25-000007
Chunk: 164

Company: HUMANA INC
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 164
---
 continues to reflect a shift in line of business mix, with growth in Medicare Advantage and state-based contracts and other membership, which can carry a higher benefit ratio. 

50

The Insurance segment benefits expense included $701 million of favorable prior-period medical claims reserve development in the 2024 period and $872 million of favorable prior-period medical claims reserve development in the 2023 period. Prior-period medical claims reserve development decreased the Insurance segment benefit ratio by approximately 60 basis points in the 2024 period and decreased the Insurance segment benefit ratio by approximately 90 basis points in the 2023 period.

Operating costs

The Insurance segment operating cost ratio decreased 100 basis points from 10.2% in the 2023 period to 9.2% in the 2024 period primarily due to scale efficiencies associated with growth in individual Medicare Advantage membership, administrative cost efficiencies resulting from our value creation initiatives, a lesser impact of commission expense for brokers in the 2024 period compared to the 2023 period as a result of significant individual Medicare Advantage membership growth in 2023, as well as the impact of the accrued charge related to certain anticipated litigation expenses included in the 2023 period. These factors were partially offset by significantly reduced compensation accruals in the 2023 period.

51

CenterWell Segment

  Change 20242023DollarsPercentage (in millions) Revenues:Services:Home solutions$1,313 $1,342 $(29)(2.2)%Pharmacy solutions904 849 55 6.5 %Primary care1,248 842 406 48.2 %Total external revenues3,465 3,033 432 14.2 %Intersegment revenues:Home solutions2,050 1,589 461 29.0 %Pharmacy solutions10,724 10,451 273 2.6 %Primary care3,697 3,332 365 11.0 %Intersegment revenues16,471 15,372 1,099 7.1 %Total revenues$19,936 18,405 1,531 8.3 %Income from operations$1,329 $1,404 $(75)(5.3)%Operating cost ratio92.2 %91.2 %1.0 %

Income from operations

CenterWell income from operations decreased $0.1 billion, or 5.3%, from $