Humana expands distribution channels for its Medicare products

Two additional alliances expand company’s potential to reach Medicare eligible individuals

LOUISVILLE, KY - Oct 21, 2005 - Humana Inc. (NYSE: HUM) announced today that it has established two additional strategic alliances that, together with previously announced ventures, will give the company and its Medicare products greater geographic presence and direct access to 20 million people with Medicare throughout the country.

USAA, a Fortune 200 financial services company with headquarters in San Antonio, will offer Humana's prescription drug plans exclusively to its nearly 750,000 Medicare-eligible members.  USAA has served the needs of military members and their families since 1922.

American Republic Insurance Company was established in 1929 and is based in Des Moines, Iowa.  It is a well-positioned leader in the individual health insurance industry and experienced in the Senior market. American Republic will exclusively offer Humana's Medicare Advantage private fee-for-service plans and, in select areas, Humana's regional PPO plans, to its approximately 140,000 Medicare-eligible policyholders.

Terms of the transactions were not disclosed.

Enrollment in the new Part D drug benefit - created as part of the 2003 Medicare Modernization Act - will begin in November, with plans becoming effective Jan. 1, 2006.  Humana has received approval from The Centers for Medicare & Medicaid Services (CMS) to offer the Medicare Part D prescription drug plan (PDP) to the millions of Medicare-eligible beneficiaries residing in 46 states and the District of Columbia, representing all of the states for which Humana applied.

In addition to the new stand-alone PDPs, Humana will offer Medicare prescription drug coverage through its Medicare Advantage HMO, PPO and private fee-for-service (PFFS) health plans to people with Medicare. Humana's expanded Medicare portfolio will include up to five products in many states.

Humana will work closely with USAA members and American Republic customers to educate them about the Medicare prescription drug plan, PFFS and regional PPO plans. Each company's representatives will begin selling their respective Humana Medicare plan offering on Nov. 15. 

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