Company: HUM
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000049071-25-000007
Chunk: 167

Company: HUMANA INC
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 167
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 additional information regarding our benefits payable and benefits expense recognition, refer to Note 2 to the audited Consolidated Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Form 10-K.

The detail of total net receivables was as follows at December 31, 2024, 2023 and 2022:

    Change 20242023202220242023 (in millions)Medicare$1,745 $1,426 $1,260 $319 $166 State-based contracts614 215 65 399 150 Military services180 148 101 32 47 Other263 334 318 (71)16 Allowance for doubtful accounts(98)(88)(70)(10)(18)Total net receivables$2,704 $2,035 $1,674 669 361 Reconciliation to cash flow statement:Receivables acquired— (24)Change in receivables per cash flow statement$669 $337 

 The changes in Medicare receivables for both the 2024 period and the 2023 period reflect individual Medicare Advantage membership growth and the typical pattern caused by the timing of accruals and related collections associated with the CMS risk-adjustment model. The increase in State-based contracts receivables for the 2024 and 2023 periods is primarily related to expansion to various states.

Cash Flow from Investing Activities

During the 2022 period, we completed the sale of a 60% interest of Gentiva Hospice to CD&R for cash proceeds of approximately $2.7 billion, net of cash disposed, including debt repayments from Gentiva Hospice to Humana of $1.9 billion. In connection with the sale we recognized a pre-tax gain, net of transaction costs, of $237 million which was reported as a gain on sale of Gentiva Hospice in the accompanying consolidated statement of income for the year ended December 31, 2022.

During the 2024, 2023 and 2022 periods, we acquired various businesses for approximately $89 million,  $233 million and $337 million, respectively, net of cash and cash equivalents received.

Our ongoing capital expenditures primarily relate to our information technology initiatives, support of services in our primary care operations including medical and administrative facility improvements necessary for activities such as the provision of care to members, claims processing