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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
We manage our business with three reportable segments: Retail, Group and Specialty, and Healthcare Services. The reportable segments are based on a combination of the type of health plan customer and adjacent businesses centered on well-being solutions for our health plans and other customers, as described below. These segment groupings are consistent with information used by our Chief Executive Officer, the Chief Operating Decision Maker, to assess performance and allocate resources.
The Retail segment consists of Medicare benefits, marketed to individuals or directly via group Medicare accounts. In addition, the Retail segment also includes our contract with CMS to administer the Limited Income Newly Eligible Transition, or LI-NET, prescription drug plan program and contracts with various states to provide Medicaid, dual eligible, and Long-Term Support Services benefits, which we refer to collectively as our state-based contracts. The Group and Specialty segment consists of employer group commercial fully-insured medical and specialty health insurance benefits marketed to individuals and employer groups, including dental, vision, and other supplemental health benefits, as well as administrative services only, or ASO products. In addition, our Group and Specialty segment includes our military services business, primarily our TRICARE T2017 East Region contract. The Healthcare Services segment includes services offered to our health plan members as well as to third parties, including pharmacy solutions, provider services, and home solutions services, such as home health and other services and capabilities to promote wellness and advance population health, including our non-consolidating minority investment in the strategic partnership with WCAS to develop and operate senior-focused, payor-agnostic, primary care centers. Our home solutions business now includes Kindred at Home.
Our Healthcare Services intersegment revenues primarily relate to managing prescription drug coverage for members of our other segments through Humana Pharmacy Solutions®, or HPS, and includes the operations of Humana Pharmacy, Inc., our mail order pharmacy business. These revenues consist of the prescription price (ingredient cost plus dispensing fee), including the portion to be settled with the member (co-share) or with the government (subsidies), plus any associated administrative fees. Services revenues related to the distribution of prescriptions by third party retail pharmacies in our networks are recognized when the claim is processed and product revenues from dispensing prescriptions from our mail order pharmacies are recorded when the prescription or product is shipped. Our pharmacy operations, which are responsible for designing pharmacy benefits, including defining member co-share responsibilities, determining formulary listings, contracting with retail pharmacies, confirming member eligibility, reviewing drug utilization, and processing claims, act as a principal in the arrangement on behalf of members in our other segments. As principal, our Healthcare Services segment reports revenues on a gross basis, including co-share amounts from members collected by third party retail pharmacies at the point of service.
In addition, our Healthcare Services intersegment revenues include revenues earned by certain owned providers derived from risk-based and non-risk-based managed care agreements with our health plans. Under risk based agreements, the provider receives a monthly capitated fee that varies depending on the demographics and health status of the member, for each member assigned to these owned providers by our health plans. The owned provider assumes the economic risk of funding the assigned members’ healthcare services. Under non risk-based agreements, our health plans retain the economic risk of funding the assigned members' healthcare services. Our Healthcare Services segment reports provider services revenues associated with risk-based agreements on a gross basis, whereby capitation fee revenue is recognized in the period in which the assigned members are entitled to receive healthcare services. Provider services revenues associated with non-risk-based agreements are presented net of associated healthcare costs.
We present our condensed consolidated results of operations from the perspective of the health plans. As a result, the cost of providing benefits to our members, whether provided via a third party provider or internally through a stand-alone subsidiary, is classified as benefits expense and excludes the portion of the cost for which the health plans do not bear responsibility, including member co-share amounts and government subsidies of $5.0 billion and $4.4 billion for the three months ended September 30, 2021 and 2020, respectively. For the nine
months ended September 30, 2021 and 2020 these amounts were $12.9 billion and $11.9 billion, respectively. In addition, depreciation and amortization expense associated with certain businesses in our Healthcare Services segment delivering benefits to our members, primarily associated with our provider services and pharmacy operations, are included with benefits expense. The amount of this expense was $28 million and $33 million for the three months ended September 30, 2021 and 2020, respectively. For the nine months ended September 30, 2021 and 2020, the amount of this expense was $80 million and $94 million, respectively.
Other than those described previously, the accounting policies of each segment are the same and are described in Note 2 to the consolidated financial statements included in our 2020 Form 10-K. Transactions between reportable segments primarily consist of sales of services rendered by our Healthcare Services segment, primarily pharmacy, provider, and home solutions services, to our Retail and Group and Specialty segment customers. Intersegment sales and expenses are recorded at fair value and eliminated in consolidation. Members served by our segments often use the same provider networks, enabling us in some instances to obtain more favorable contract terms with providers. Our segments also share indirect costs and assets. As a result, the profitability of each segment is interdependent. We allocate most operating expenses to our segments. Assets and certain corporate income and expenses are not allocated to the segments, including the portion of investment income not supporting segment operations, interest expense on corporate debt, and certain other corporate expenses. These items are managed at a corporate level. These corporate amounts are reported separately from our reportable segments and are included with intersegment eliminations in the tables presenting segment results below.
Our segment results were as follows for the three and nine months ended September 30, 2021 and 2020:
RetailGroup and SpecialtyHealthcare
Services		Eliminations/
Corporate		Consolidated
Three months ended September 30, 2021(in millions)
External revenues
Premiums:
Individual Medicare Advantage$14,642 $— $— $— $14,642 
Group Medicare Advantage1,737 — — — 1,737 
Medicare stand-alone PDP541 — — — 541 
Total Medicare16,920 — — — 16,920 
Fully-insured185 1,052 — — 1,237 
Specialty— 432 — — 432 
Medicaid and other1,296 — — — 1,296 
Total premiums18,401 1,484 — — 19,885 
Services revenue:
Home solutions— — 374 — 374 
Provider— — 110 — 110 
ASO and other— 198 — — 198 
Pharmacy— — 163 — 163 
Total services revenue— 198 647 — 845 
Total external revenues 18,401 1,682 647 — 20,730 
Intersegment revenues
Services1 10 5,087 (5,098)— 
Products— — 2,303 (2,303)— 
Total intersegment revenues1 10 7,390 (7,401)— 
Investment income (loss)38 3 1 (75)(33)
Total revenues18,440 1,695 8,038 (7,476)20,697 
Operating expenses:
Benefits16,207 1,282 — (173)17,316 
Operating costs1,669 421 7,634 (7,121)2,603 
Depreciation and amortization108 20 46 (24)150 
Total operating expenses17,984 1,723 7,680 (7,318)20,069 
Income (loss) from operations456 (28)358 (158)628 
Interest expense— — — 88 88 
Other income, net— — — (1,096)(1,096)
Income (loss) before income taxes and equity in net earnings 456 (28)358 850 1,636 
Equity in net earnings— — 15 — 15 
Segment earnings (loss)$456 $(28)$373 $850 $1,651 
Less: noncontrolling interests— — — — — 
Segment earnings (loss) attributable to Humana$456 $(28)$373 $850 $1,651 
RetailGroup and SpecialtyHealthcare
Services		Eliminations/
Corporate		Consolidated
Three months ended September 30, 2020(in millions)
External revenues
Premiums:
Individual Medicare Advantage$12,949 $— $— $— $12,949 
Group Medicare Advantage1,880 — — — 1,880 
Medicare stand-alone PDP622 — — — 622 
Total Medicare15,451 — — — 15,451 
Fully-insured177 1,169 — 602 1,948 
Specialty— 424 — — 424 
Medicaid and other1,081 — — — 1,081 
Total premiums16,709 1,593 — 602 18,904 
Services revenue:
Home solutions— — 26 — 26 
Provider— — 81 — 81 
ASO and other4 189 — — 193 
Pharmacy— — 157 — 157 
Total services revenue4 189 264 — 457 
Total external revenues 16,713 1,782 264 602 19,361 
Intersegment revenues
Services— 9 4,852 (4,861)— 
Products— — 2,013 (2,013)— 
Total intersegment revenues— 9 6,865 (6,874)— 
Investment income28 3 2 681 714 
Total revenues16,741 1,794 7,131 (5,591)20,075 
Operating expenses:
Benefits14,224 1,481 — (94)15,611 
Operating costs1,877 452 6,871 (6,687)2,513 
Depreciation and amortization87 21 46 (26)128 
Total operating expenses16,188 1,954 6,917 (6,807)18,252 
Income (loss) from operations553 (160)214 1,216 1,823 
Interest expense— — — 75 75 
Other income, net— — — (7)(7)
Income (loss) before income taxes and equity in net earnings 553 (160)214 1,148 1,755 
Equity in net earnings— — 35 — 35 
Segment earnings (loss)$553 $(160)$249 $1,148 $1,790 
Less: noncontrolling interests— — — — — 
Segment earnings (loss) attributable to Humana$553 $(160)$249 $1,148 $1,790 
RetailGroup and SpecialtyHealthcare
Services		Eliminations/
Corporate		Consolidated
Nine months ended September 30, 2021(in millions)
External revenues
Premiums:
Individual Medicare Advantage$44,042 $— $— $— $44,042 
Group Medicare Advantage5,267 — — — 5,267 
Medicare stand-alone PDP1,867 — — — 1,867 
Total Medicare51,176 — — — 51,176 
Fully-insured545 3,229 — — 3,774 
Specialty— 1,298 — — 1,298 
Medicaid and other3,739 — — — 3,739 
Total premiums55,460 4,527 — — 59,987 
Services revenue:
Home solutions— — 423 — 423 
Provider— — 298 — 298 
ASO and other17 582 — — 599 
Pharmacy— — 482 — 482 
Total services revenue17 582 1,203 — 1,802 
Total external revenues 55,477 5,109 1,203 — 61,789 
Intersegment revenues
Services1 30 14,838 (14,869)— 
Products— — 6,716 (6,716)— 
Total intersegment revenues1 30 21,554 (21,585)— 
Investment income155 11 3 52 221 
Total revenues55,633 5,150 22,760 (21,533)62,010 
Operating expenses:
Benefits48,574 3,674 — (487)51,761 
Operating costs4,653 1,227 21,749 (20,903)6,726 
Depreciation and amortization320 63 127 (74)436 
Total operating expenses53,547 4,964 21,876 (21,464)58,923 
Income (loss) from operations2,086 186 884 (69)3,087 
Interest expense— — — 235 235 
Other income, net— — — (562)(562)
Income before income taxes and equity in net earnings 2,086 186 884 258 3,414 
Equity in net earnings— — 69 — 69 
Segment earnings$2,086 $186 $953 $258 $3,483 
Less: noncontrolling interests— — — — — 
Segment earnings attributable to Humana$2,086 $186 $953 $258 $3,483 
RetailGroup and SpecialtyHealthcare
Services		Eliminations/
Corporate		Consolidated
Nine months ended September 30, 2020(in millions)
External Revenues
Premiums:
Individual Medicare Advantage$38,748 $— $— $— $38,748 
Group Medicare Advantage5,867 — — — 5,867 
Medicare stand-alone PDP2,108 — — — 2,108 
Total Medicare46,723 — — — 46,723 
Fully-insured509 3,606 — 602 4,717 
Specialty— 1,278 — — 1,278 
Medicaid and other3,104 — — — 3,104 
Total premiums50,336 4,884 — 602 55,822 
Services revenue:
Home solutions— — 80 — 80 
Provider— — 236 — 236 
ASO and other14 576 — — 590 
Pharmacy— — 425 — 425 
Total services revenue14 576 741 — 1,331 
Total external revenues 50,350 5,460 741 602 57,153 
Intersegment revenues
Services— 22 14,514 (14,536)— 
Products— — 5,900 (5,900)— 
Total intersegment revenues— 22 20,414 (20,436)— 
Investment income114 12 2 812 940 
Total revenues50,464 5,494 21,157 (19,022)58,093 
Operating expenses:
Benefits41,939 3,886 — (410)45,415 
Operating costs5,047 1,316 20,274 (19,653)6,984 
Depreciation and amortization251 60 135 (84)362 
Total operating expenses47,237 5,262 20,409 (20,147)52,761 
Income from operations3,227 232 748 1,125 5,332 
Interest expense— — — 211 211 
Other expense, net— — — 63 63 
Income before income taxes and equity in net earnings3,227 232 748 851 5,058 
Equity in net earnings— — 68 — 68 
Segment earnings$3,227 $232 $816 $851 $5,126 
Less: noncontrolling interests— — — — — 
Segment earnings attributable to Humana$3,227 $232 $816 $851 $5,126