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LOUISVILLE, Ky. , March 12, 2024–(BUSINESS WIRE)–Humana Inc. (the “Company”) (NYSE: HUM) today announced that it has priced in an aggregate principal amount of $2. 25 billion of a public offering of senior bonds. These senior notes come with $1. 25 billion of the company’s 5. 375 percent senior notes, due 2031, at 99. 940 percent principal and $1. 0 billion of the company’s 5. 750 percent senior notes, due 2054, at 99. 949 percent principal (collectively, the “Premier-Tier Securities Offerings”). The Senior Notes are expected to close on March 13, 2024, subject to the satisfaction of standard ending conditions.
The Company expects net proceeds from Senior Notes offerings to be approximately $2. 226 billion after deducting underwriter discounts and estimated provisioning costs. The Company intends to use the net proceeds from the Senior Note offerings for general corporate purposes, which would possibly come with the redemption. of existing indebtedness, adding loans under its advertising paper program.
Citigroup Global Markets Inc. , Goldman Sachs
Offerings of the Senior Notes are made pursuant to a valid registration (including a base prospectus) filed with the Securities and Exchange Commission (the “SEC”). Senior Note offerings would possibly only be made through a prospectus. and a similar prospectus supplement, copies of which may be available by calling Citigroup Global Markets Inc. ‘s toll-free number. (800) 831-9146, Goldman Sachs
This press release shall constitute an offer to sell or the solicitation of an offer to buy any securities described herein, nor shall there be any sale of such securities in any state or jurisdiction in which such offer, solicitation or sale is made. would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
Precaution
This press release includes forward-looking statements relating to Humana within the meaning of the Private Securities Litigation Reform Act of 1995. When used in investor presentations, press releases, documents filed with the SEC, and in oral statements made through or with the approval of any of Humana’s officers. Words or words such as “expects,” “believes,” “anticipates,” “intends,” “is very likely to result,” “estimates,” “projects” or diversifications of those words and words are intended to identify those long-term appearance-making statements.
These forward-looking statements are promises of long-term functionality and are subject to risks, uncertainties and assumptions, including, but not limited to, the data set forth in the “Risk Factors” segment of the Company’s filings with the SEC, the summary of which includes, but is limited to, the following:
If Humana fails to design and price its products competitively, if premiums earned through Humana are inadequate to cover the cost of fitness facilities provided to its members, if the company is unable to launch clinical projects to offer a Greater enjoyment of physical care for its members. Reduce charges and document the risk profile of your members, or if your profit-making expense estimates are inadequate, Humana’s profitability may also be materially affected. Humana estimates the costs of its benefit bills and designs and prices its products accordingly, employing actuarial strategies and assumptions based on, among other relevant factors, claims payment models, medical cost inflation, and long-standing advances such as drug stock levels. claims and the receipt of claims. . reasons. The Company continually reviews estimates of long-term payroll tax bills for facilities incurred in existing and prior periods and makes mandatory changes to its reserves, adding premium deficiency reserves, as appropriate. These estimates require a lot of judgment and have a lot of inherent variability because they are incredibly sensitive to changes in claims payment patterns and medical rate trends. As a result, Humana’s reserves would likely be inadequate.
If Humana fails to implement its operational and strategic initiatives well, adding its Medicare initiatives, which are of particular importance given the company’s profit concentration on those products, state contracting strategy, the expansion of its CenterWell business, and its incorporated care delivery model, the company’s business could be specifically impacted. In addition, there is no guarantee that the company will be able to maintain its star score for years to come.
If Humana, or the third-party service providers it relies on, fail to protect the integrity of your data, strategically create data systems or implement new systems, protect Humana’s proprietary rights in its systems, or remain opposed to cybersecurity attacks. , involve such attacks when they occur, or prevent other privacy or knowledge security incidents that result in security breaches that disrupt business operations or the inadvertent dissemination of sensitive non-public data or confidential or proprietary data, the Company’s business may be materially affected.
Humana is involved in a variety of legal moves or litigation that would potentially result in legal action (such as, but not limited to, contract disputes with suppliers and litigation initiated through Americans on behalf of the government), government and internal investigations, and internal reviews of the regime. increase the company’s responsibility for doing business.
As a government contractor, Humana is exposed to threats that may have an adverse effect on its operations or its willingness or ability to participate in government health systems, including, but not limited to, the loss of significant government contracts; government audits and investigations; the potential insufficiency of government-determined payment rates; possible restrictions on the ability to earn profits, which are added by comparing the earning capacity of the Company’s Medicare Advantage businesses with its non-Medicare Advantage businesses; or other adjustments to government systems in which Humana participates. Changes to the threat adjustment style used through the Centers for Medicare and Medicaid Services (“CMS”) to adjust premiums paid to Medicare Advantage plans or retrospective recovery through CMS of premiums paid in the past such as result of the threat adjustment of the final knowledge rule. validation audit method published through CMS on January 30, 2023 (RADV Final Rule), which Humana believes does not adequately meet the statutory requirement for actuarial equivalence and violates the Administrative Procedure Act because it does not include “fees of adjuster”, may simply have an adverse effect on the effects of the operations, monetary condition and money flows of the Company.
Humana’s business activities are subject to extensive government regulation. New laws or regulations, or legislative, judicial or regulatory adjustments to existing legislation or regulations or the way they are enforced, may increase the costs of operating the business and have an adverse effect. effect on the effects of Humana’s operations (including restricting earnings, registrations, and bonuses). growth of certain products and market segments, restricting the Company’s ability to expand into new markets, expanding the Company’s medical and operating pricing, among other things, requiring a minimum benefit-to-benefit ratio assured, reducing the Company’s Medicare payment rates, and expanding expenses related to non-deductible fitness insurance expenses and other valuations); the monetary position of the company (including the company’s ability to price its goodwill); And the company’s money flows.
Humana’s inability to effectively manage acquisitions, divestitures and other significant transactions may have an adverse effect on the effects of the Company’s operations, monetary condition and cash flows.
If Humana fails to expand and establish acceptable relationships with its members’ care providers, the company’s operations could be impacted.
Humana faces a significant struggle to attract and retain talented employees. In addition, controlling good fortune and retaining key executives are critical to the good fortune of the company, and failure in this area can have a negative effect on the company, effects on operations and/or long-term functionality of the business.
Humana’s pharmaceutical business is highly competitive and subject to regulations and supply chain risks in addition to those faced by the company with its core healthcare delivery businesses.
Changes in prescription drug industry pricing benchmarks could have a negative effect on Humana’s financial performance.
Humana’s ability to download quotes from some of its authorized subsidiaries is limited by national insurance regulations.
If Humana’s debt ratings were to be downgraded, they could have an adverse effect on its business, effects on operations and monetary condition.
Volatility in the securities and credit markets, coupled with interest rate adjustments, could potentially materially and adversely affect the price of Humana’s investment portfolio and the investment source of income that Humana derives from that portfolio.
By making forward-looking statements, Humana assumes no legal responsibility to address or update such statements in future documents or communications relating to its business or effects. In light of those risks, uncertainties and assumptions, the forward-looking events discussed herein may or may not occur. There could also be other dangers that the company should not foresee at this time. Each of these hazards and uncertainties may also cause actual effects to differ materially from those expressed in forward-looking statements. declarations.
Humana advises investors to read the company’s Form 10-K for the year ended December 31, 2023, as filed with the SEC to learn more about the dangers it faces and its past performance.
About Humana
Humana Inc. (NYSE: HUM) is committed to prioritizing fitness for our teammates, our customers and our business. Through our Humana insurance services and CenterWell healthcare services, we help the millions of people we serve more seamlessly achieve their goals. More productive physical fitness: Offering them the attention they want, when they want it. These efforts lead to a higher quality of life for others with Medicare, Medicaid, families, individuals, military personnel, and communities at large.
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Contactos
Lisa StonerInvestor RelationsHumana Inc. 502-580-2652email: lstamper@humana. com Mark TaylorCorporate CommunicationsHumana Inc. 317-753-0345email: mtaylor108@humana. com