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Humana Military Healthcare Services’ program integrity department wins award for fraud deterrence

TRICARE Management Activity names HMHS 2002 Contractor of the Year,
Anti-Fraud Performance

LOUISVILLE, KY — September 8, 2003 — Humana Inc. (NYSE: HUM) announced today that Humana Military Healthcare Services (HMHS) has won TRICARE Management Activity’s 2002 Contractor of the Year, Anti-Fraud Performance award for outstanding accomplishments in the detection and prevention of fraud against the Department of Defense’s military health entitlement program.

The award, HMHS’ second in this category, was presented to representatives of HMHS’ program integrity department and senior leadership team at the TRICARE Management Activity Fraud and Abuse conference in San Francisco, California in June 2003. Of the 85 fraud and abuses cases TMA received for resolution in 2002, HMHS submitted 59, or 69 percent of all cases.

“We obviously are very proud of this award,” said David J. Baker, HMHS president and CEO. “It always has been HMHS’ priority to protect and maintain the integrity of the TRICARE program, and it is especially critical to ensure that each dollar the Department of Defense budgets for its military health care is spent on caring for and serving our beneficiaries, not on repairing damages wrought by fraudulent activity.”

“It has been estimated that three to 10 percent of total annual national health care expenditures are lost to fraud,” said Thomas Luckett, HMHS Director of Program Integrity. “A $1.1 trillion health care system, with enormous volumes of claims filed annually, is a very alluring target for those who would choose to perpetrate fraudulent schemes. Through our cooperative work with contractor personnel, the TRICARE Management Activity offices, the U.S. government and private and public sectors, HMHS has been able to make a difference, and we are very proud of that.”

HMHS recently won the Department of Defense contract to administer the TRICARE program in the South Region. As the Managed Care Support Contractor for the South Region, HMHS will support health care delivery to approximately 2.76 million TRICARE beneficiaries in Tennessee, South Carolina, Georgia, Alabama, Mississippi, Florida, Arkansas, Louisiana, Oklahoma and Texas. HMHS began administering the TRICARE program for beneficiaries in the southeastern United States on July 1, 1996. On June 1, 2001, Humana acquired the contract to administer the TRICARE program in the Mid-Atlantic states of North Carolina and southern Virginia and the Heartland Region states of Kentucky, Indiana, Ohio, Illinois, Michigan, Wisconsin and West Virginia from Anthem, Inc. Humana’s TRICARE membership currently totals approximately 2.80 million.

Humana Inc., headquartered in Louisville, Kentucky, is one of the nation’s largest publicly traded health services companies, with approximately 6.6 million medical members located primarily in 18 states and Puerto Rico. Humana offers coordinated health insurance coverage and related services – through traditional and Internet-based plans – to employer groups, government-sponsored plans and individuals.

More information regarding Humana is available via the Internet at www.humana.com, including copies of:

  • Annual report to shareholders;
  • Securities and Exchange Commission filings;
  • Most recent investor conference presentation;
  • Quarterly earnings news releases;
  • Audio archive of the most recent earnings release conference call;
  • Calendar of events (includes upcoming earnings release dates, times and access number, as well as planned participation in investor conferences).

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