newsrelease

HumanaInc.500WestMainStreetP.O.Box1438Louisville,KY40202http://www.humana.com

FORMOREINFORMATIONCONTACT:

AmySmithHumanaInvestorRelations(502)580-2811e-mail:Amysmith@humana.com

KelleyMurphyHumanaCorporateCommunications(502)224-1755e-mail:Kmurphy26@humana.com

HumanaReportsFourthQuarter2020FinancialResults;ProvidesFullYear2021FinancialGuidance

• Reports4Q20losspercommonshareof$2.07onaGAAPbasis,$2.30onanAdjustedbasis;reportsfullyear(FY)2020earningsperdilutedcommonshare(EPS)of$25.31onaGAAPbasis,$18.75onanAdjustedbasis(in-linewiththecompany'sinitialFY2020AdjustedEPSguidanceascommunicatedthroughouttheyear)

• AnnouncesFY2021EPSguidanceinarangeof$20.82to$21.32onaGAAPbasis,$21.25to$21.75onAdjustedbasis;whileacknowledgingtheheighteneduncertaintysurroundingtheongoingpandemic

• ReaffirmsFY2021expectedindividualMedicareAdvantagemembershipgrowthrangeofapproximately425,000to475,000members,representingexpectedyear-over-yeargrowthofapproximately11to12percent

• Ongoingassistancetomembers,providers,employergroups,employees,andcommunitiesduring4Q20includingthecontinuedwaiverofMedicareAdvantagecostsharing(includingforprimarycare,COVID-19treatment,andmore),deliveryofmeals,masks,andpreventivescreeningtestkits,programsinunderservedcommunities,andproviderreliefefforts,whilecontinuingtoadvancethecompany'sstrategy

LOUISVILLE,KY(February3,2021)–HumanaInc.(NYSE:HUM)todayreportedconsolidatedpretaxresultsandresultspercommonshareforthequarterendedDecember31,2020(4Q20)versusthequarterendedDecember31,2019(4Q19)andfortheyearendedDecember31,2020(FY2020)versustheyearendedDecember31,2019(FY2019)asnotedinthetablesbelow.

Consolidated(loss)incomebeforeincometaxesandequityinearnings(pretax(loss)income)Inmillions 4Q20(a) 4Q19(b) FY2020(c) FY2019(d)

GenerallyAcceptedAccountingPrinciples(GAAP) ($458) $593 $4,600 $3,456

Amortizationassociatedwithidentifiableintangibles 22 17 88 70

Put/callvaluationadjustmentsassociatedwithcompany'snon-consolidatingminorityinterestinvestments 40 (289) 103 (506)

Changeinfairmarketvalueofpublicly-tradedequitysecurities (102) — (745) —

Receiptofcommercialriskcorridorreceivablespreviouslywrittenoff,net — — (578) —

Chargesassociatedwithworkforceoptimization — 1 — 47

Adjusted(non-GAAP) ($498) $322 $3,468 $3,067

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(Losspercommonshare)ordilutedearningspercommonshare(EPS) 4Q20(a) 4Q19(b) FY2020(c) FY2019(d)

GAAP ($2.07) $3.84 $25.31 $20.10

Amortizationassociatedwithidentifiableintangibles 0.13 0.10 0.51 0.40Put/callvaluationadjustmentsassociatedwithcompany'snon-consolidatingminorityinterestinvestments 0.24 (1.67) 0.60 (2.89)

Changeinfairmarketvalueofpublicly-tradedequitysecurities (0.60) — (4.32) —

Receiptofcommercialriskcorridorreceivablespreviouslywrittenoff,net — — (3.35) —

Chargesassociatedwithworkforceoptimization — 0.01 — 0.26

Adjusted(non-GAAP) ($2.30) $2.28 $18.75 $17.87

Thecompanyhas includedfinancialmeasuresthroughoutthisearningsreleasethatarenot inaccordancewithGAAP.Managementbelievesthatthesemeasures,whenpresentedinconjunctionwiththecomparableGAAPmeasures,areusefultobothmanagementanditsinvestorsinanalyzingthecompany’songoingbusinessandoperatingperformance.Consequently,managementusesthesenon-GAAP(Adjusted)financialmeasuresasindicatorsofthecompany’sbusinessperformance,aswellasforoperationalplanninganddecisionmakingpurposes.Non-GAAP(Adjusted)financialmeasuresshouldbeconsideredinadditionto,butnotasasubstitutefor,orsuperiorto,financialmeasurespreparedinaccordancewithGAAP.AllfinancialmeasuresinthispressreleaseareinaccordancewithGAAPunlessotherwiseindicated.PleaserefertothefootnotesforadetaileddescriptionofeachitemadjustedoutofGAAPfinancialmeasurestoarriveatanon-GAAP(Adjusted)financialmeasure.

“Despite the pandemic, Humana has continued to accelerate on all fronts, including our short-term operating andfinancialperformance,ourability toadvanceour long-termstrategicobjectives, andour customer centricityefforts,”saidBruceD.Broussard,Humana’sPresidentandChiefExecutiveOfficer.“OurresponsetothepandemichighlightedthevalueofourMedicareAdvantage(MA)program,mostnotablyitsfocusonsupportingunderservedpopulationsandonaddressinghealthdisparities, criticalareasof importance forourcompany,and forourcountry.To thatend,wehadstrongMAmembershipgrowthin2020of11percent,includingDualSpecialNeedsPlan(D-SNP)membershipgrowthof41percent,andMedicaidfootprintexpansionfromthreestatestosix.Wealsocontinuedtoinvestinourprimarycareand home assets to expand access to care, particularly for underserved populations. Given the strength of ourunderlyingcorebusiness,combinedwithourcontinuedstrategic investments,weanticipatesolidgrowth in2021andbeyond.”

SummaryofQuarterlyandFullYearResults

Resultsfor4Q20andFY2020reflectcontinuedstrongcoreperformanceacrossthecompany,combinedwiththeimpactof the ongoing COVID-19 pandemic, including the company’s relentless efforts to ease the burdens for all of itsstakeholders by proactively addressing the physical, mental, and financial well-being of its members, communitiesincludingtheunderserved,providers,andemployergroups.

Beginning in the latter half of November and accelerating throughout the month of December, the companyexperienced a significant increase inCOVID-19 admissions in nearly all of themarkets inwhich it operates across itsMedicare Advantage, Medicaid, and group commercial insurance business lines. Humana also experienced acorrespondingdeclineinnon-COVIDutilizationinallservicecategories,withMedicareAdvantagenon-COVIDutilizationrunningapproximately15percentbelownormallevelsatthecloseofthequarter,wellbelowthenearbaselinelevelsofutilizationwitnessedaslateastheendofOctober2020.

Resultsofoperationsinthequarterwereaffectedbythefollowingfactors:• meaningfulCOVID-19treatmentandtestingcostsrelatedtotheuptickincasesinthelasttwomonthsof4Q20,

morethanoffsetbythedeclininglevelsofnon-COVIDutilizationaspreviouslydiscussed,• ongoingcrisisreliefeffortsandstrategicinvestmentsinthecompany'sintegratedcaredeliverymodel,bothof

whichwereheavilyweightedtothefinalmonthsof2020,and• increasedmarketingexpensesassociatedwiththeMedicareAdvantageAnnualElectionPeriod(AEP).

Inaddition,Humana’s4Q20andFY2020GAAPresultsofoperationswereimpactedbymarketgainsresultingfromtheinitial conversionof the company'spriorownership interest in certainprivately-held companies (primarilyOakStreetHealth, Inc.) into publicly-traded common stock upon such companies' initial public offering (IPO) during the thirdquarterof2020andthesubsequentchangesinthemarketvalueofsuchsecuritiesfromtheirIPO.FY2020resultswerefurtherimpactedbythereceiptofunpaidriskcorridorpayments(thatwerepreviouslywrittenoff)inthethirdquarter.ThereceiptoftheriskcorridorpaymentswasassociatedwithlossesincurredbythecompanyundertheAffordableCare

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Act(ACA)businessfrom2014to2016.Thereceiptoftheseriskcorridorpaymentsaccountedforlessthan50percentofthecompany’saccumulatedpretaxlossesfromitsACAbusinessesduringthattimeperiod.

The impact of both the fair market value changes and the receipt of the unpaid risk corridor payments have beenexcludedinthecompany’sAdjusted(non-GAAP)consolidatedresultsofoperationsasdetailedinthetablesabove.

Pleaserefertothetablesabove,aswellastheconsolidatedandsegmenthighlightsectionsthat followforadditionaldiscussionofthefactorsimpactingtheyear-over-yearcomparisons.

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Inaddition,belowisasummaryofkeyconsolidatedandsegmentstatisticscomparing4Q20to4Q19andFY2020toFY2019.

HumanaInc.SummaryofQuarterlyResults(dollarsinmillions,exceptpershareamounts) 4Q20(a) 4Q19(b) FY2020(c) FY2019(d)

Consolidatedresults:

Revenues-GAAP $19,062 $16,295 $77,155 $64,888

Revenues-Adjusted $18,960 $16,295 $75,801 $64,888

Pretax(loss)income-GAAP ($458) $593 $4,600 $3,456

Pretax(loss)income-Adjusted ($498) $322 $3,468 $3,067

(Losspercommonshare)dilutedEPS-GAAP ($2.07) $3.84 $25.31 $20.10

(Losspercommonshare)dilutedEPS-Adjusted ($2.30) $2.28 $18.75 $17.87

Benefitsexpenseratio-GAAP 88.3% 86.6% 83.1% 85.6%

Benefitsexpenseratio-Adjusted 88.3% 86.6% 83.8% 85.6%

Operatingcostratio-GAAP 16.3% 13.2% 13.2% 11.5%

Operatingcostratio-Adjusted 16.3% 13.2% 13.3% 11.4%

Operatingcashflows-GAAP $283 $512 $5,639 $5,284

Parentcompanycashandshortterminvestments $772 $1,361

Debt-to-totalcapitalization 32.7% 32.0%

Retailsegmentresults:

Revenues-GAAP $16,834 $14,207 $67,298 $56,466

Benefitsexpenseratio-GAAP 87.0% 86.3% 84.2% 86.4%

Operatingcostratio-GAAP 14.0% 11.6% 11.0% 9.4%

Segment(loss)earnings-GAAP ($210) $275 $3,017 $2,235

Segment(loss)earnings-Adjusted ($207) $279 $3,032 $2,251

GroupandSpecialtysegmentresults:

Revenues-GAAP $1,791 $1,875 $7,285 $7,525

Benefitsexpenseratio-GAAP 104.3% 95.2% 85.6% 86.0%

Operatingcostratio-GAAP 28.1% 22.4% 25.0% 22.0%

Segment(loss)earnings-GAAP ($375) ($146) ($143) $28

Segment(loss)earnings-Adjusted ($374) ($145) ($139) $32

HealthcareServicessegmentresults:

Revenues-GAAP $7,291 $6,696 $28,448 $25,783

Operatingcostratio-GAAP 97.8% 96.8% 96.3% 96.4%

Segmentearnings-GAAP $128 $178 $944 $789

Adjustedearningsbeforeinterest,taxes,depreciationandamortization(AdjustedEBITDA)(e) $196 $241 $1,232 $1,056

2021EarningsGuidance

Whileacknowledgingtheheighteneduncertaintysurroundingtheongoingpandemic,thecompanyprovided itsGAAPandAdjustedEPSguidance for theyearendingDecember31,2021 (FY2021)asdetailedbelow. GAAPandAdjustedresults for FY 2020 are also shown for comparison. Additional FY 2021 guidance points are included in the tablebeginningonpage24ofthisearningsrelease.

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DilutedearningspercommonshareFY2021

Guidance(f) FY2020(c)

GAAP $20.82to$21.32 $25.31

Amortizationofidentifiableintangibles ~$0.43 0.51

Put/callvaluationadjustmentsassociatedwithcompany'snon-consolidatingminorityinterestinvestments — 0.60

Changeinfairmarketvalueofpublicly-tradedequitysecurities — (4.32)

Receiptofcommercialriskcorridorreceivablespreviouslywrittenoff,net — (3.35)

Adjusted(non-GAAP)–FY2021projected;FY2020reported $21.25to$21.75 $18.75

2022FinalRateNotice

On January15,2021,Centers forMedicare&MedicaidServices (CMS)published itsAnnouncementofCalendarYear2022MedicareAdvantageCapitationRatesandPartCandPartDPaymentPolicies(theFinalRateNotice).ThecompanyexpectstheFinalRateNoticetoresultina3.7percent(g)rateincreasefornonendstagerenaldisease(ESRD)MedicareAdvantagebusiness,excludingtheimpactofEmployerGroupWaiverPlan(EGWP)fundingchanges.Thecompany’s3.7percentrateincreasecomparestoCMS’estimateforthesectorof4.08percentonacomparablebasis,withthevarianceprimarily driven by county rebasing and the company's geographic footprint. CMS also establishes separate rates ofpayment forESRDbeneficiariesenrolled inMedicareAdvantageplans.Thecompanyexpects theFinalRateNotice toresultina5.0percentrateincreasein2021forESRDbeneficiaries.Thecompany’sestimateof5.0percentisequivalenttoCMS’estimate.

The2022benchmarkincreaseof3.7percentincludesroughly0.8percentfortheprojectedcostofCOVID-19vaccines.

HumanaConsolidatedHighlights

Consolidatedrevenues

Consolidatedrevenues 4Q20(a) 4Q19 FY2020(c) FY2019

GAAP $ 19,062 $ 16,295 $ 77,155 $ 64,888

Changeinfairmarketvalueofpublicly-tradedequitysecurities (102) — (745) —

Receiptofcommercialriskcorridorreceivablespreviouslywrittenoff — — (609) —

Adjusted(non-GAAP) $ 18,960 $ 16,295 $ 75,801 $ 64,888

GAAPconsolidatedrevenuesfor4Q20were$19.06billion,anincreaseof$2.77billion,or17percent,from$16.30billionin4Q19.Totalpremiumsandservices revenuesof$18.85billion in4Q20 increased$2.70billion,or17percent, from$16.15billion in4Q19. The favorable year-over-year comparisonswereprimarilydrivenbyhigherpremium revenuesstemmingfromMedicareAdvantageandstate-basedcontractsmembershipgrowthandhigherpermemberMedicareAdvantagepremiums.Theseincreaseswerepartiallyoffsetbytheimpactofdecliningyear-over-yearstand-alonePDPandfully-insuredgroupcommercialmedicalmembership.

GAAPconsolidatedrevenuesforFY2020increased$12.27billion,or19percent,to$77.16billionfrom$64.89billioninFY2019.TotalFY2020premiumsandservicesrevenuesroseto$76.00billion,increasing$11.61billion,or18percent,from$64.39billionintheprior-yearperiod.TheFY2020increaseswereprimarilydrivenbythesamefactorsimpactingthequarterlyGAAPcomparison,alongwithhigherinvestmentincomeprimarilyresultingfrommarketgainsassociatedwithpublicly-tradedequitysecuritiesheldbythecompanyandthereceiptofpaymentsassociatedwiththecommercialriskcorridorreceivables(previouslywritten-off)inthethirdquarterof2020.

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Adjusted consolidated revenues for both 4Q20 and FY 2020were impacted by the same factors affecting the GAAPcomparisonswhileexcludingtheimpactofthefactorsdetailedinthetableabove.

Consolidatedbenefitsexpense

Consolidatedbenefitratio(benefitsexpenseasapercentofpremiums) 4Q20(a) 4Q19 FY2020(c) FY2019

GAAP 88.3% 86.6% 83.1% 85.6%

Receiptofcommercialriskcorridorreceivablespreviouslywrittenoff —% —% 0.7% —%

Adjusted(non-GAAP) 88.3% 86.6% 83.8% 85.6%

The4Q20andFY2020GAAPconsolidatedbenefitratiosof88.3percentand83.1percent,respectively,comparedtothe4Q19andFY2019GAAPconsolidatedbenefitratiosof86.6percentand85.6percent,respectively.

Theyear-over-year increase in theGAAPquarterlycomparisonreflects the impactofmeaningfulCOVID-19treatmentandtestingcostsresultingfromtheincreaseincasenumbersinthelasttwomonthsofthequarter.Thecomparisonwasfurtheraffectedbyongoingpandemicreliefeffortsandstrategicinvestmentsinthecompany'sintegratedcaredeliverymodel,bothofwhichwereheavilyweightedtothefinalmonthsof2020.Thesereliefefforts includethewaiverofallcostsharingforin-networkprimarycare,outpatientbehavioralhealth,andtelehealthvisitsforthecompany'sMedicareAdvantagemembers, continueddeliveryofmeals to seniormembers inneed, thedistributionof in-homepreventivescreeningkits tomembers,establishmentofa clinicaloutreach teamtoproactivelyengagewith thecompany'smostvulnerablemembers,andvariousproviderandemployergroupsupportinitiatives.

Thesefactorswerepartiallyoffsetbythefollowingfactors:

• temporarydeferralofnon-COVIDutilization;aspreviouslydiscussed,Humanaexperiencedasignificantdeclinein non-COVID utilization across all lines of business in the last two months of the quarter with MedicareAdvantagenon-COVIDutilizationrunningapproximately15percentbelowhistoricbaselinelevelsattheendof4Q20,

• thereinstatementofthenon-deductiblehealth insurance industryfee(HIF) in2020thatwascontemplated inthepricingandbenefitdesignofthecompany'sproducts;and

• higherfavorablePriorPeriodDevelopmentin4Q20.

The year-over-year decrease in the comparison of FY GAAP consolidated benefit ratios reflects the significantlydepressed non-COVID utilization in the first half of 2020 and in the last two months of 4Q20, along with thereinstatementofthenon-deductibleHIFinFY2020aspreviouslydiscussed,andthereceiptofcommercialriskcorridorreceivables(previouslywrittenoff)inthethirdquarterof2020.Thesedecreaseswerepartiallyoffsetbythefollowingfactors:

• meaningfulCOVID-19treatmentandtestingcosts,

• ongoingpandemicreliefeffortsandstrategicinvestmentsinthecompany'sintegratedcaredeliverymodel,and

• lowerfavorablePriorPeriodDevelopmentinFY2020.

TheAdjustedconsolidatedbenefit ratio forboth4Q20andFY2020were impactedby thesame factorsaffecting theGAAPcomparisonswhileexcluding the receiptof commercial risk corridors receivables (previouslywrittenoff) in thethirdquarterof2020.

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PriorPeriodMedicalClaimsReserveDevelopment(PriorPeriodDevelopment)

ConsolidatedPriorPeriodDevelopment(inmillions)Favorable(unfavorable)

FirstQuarter

SecondQuarter

ThirdQuarter

FourthQuarter FY

PriorPeriodDevelopmentfromprioryearsrecognizedin2020 $284 $(49) $43 $35 $313

PriorPeriodDevelopmentfromprioryearsrecognizedin2019 $267 $8 $56 $5 $336

FavorablePriorPeriodDevelopmentdecreased theconsolidatedbenefit ratioby20basispoints in4Q20anddidnotmaterially impact theconsolidatedbenefit ratio in4Q19.FavorablePriorPeriodDevelopmentdecreased theFY2020consolidatedbenefitratioby40basispointswhiledecreasingtheFY2019consolidatedbenefitratioby50basispoints.

Consolidatedoperatingexpenses

Consolidatedoperatingcostratio(operatingcostsasapercentoftotalrevenueslessinvestmentincome) 4Q20(a) 4Q19(b) FY2020(c) FY2019(d)

GAAP 16.3% 13.2% 13.2% 11.5%

Receiptofcommercialriskcorridorreceivablespreviouslywrittenoff,net — —% 0.1% —%

Chargesassociatedwithworkforceoptimization — —% —% (0.1)%

Adjusted(non-GAAP) 16.3% 13.2% 13.3% 11.4%

The4Q20GAAPconsolidatedoperatingcostratio(operatingcostsasapercentoftotalrevenueslessinvestmentincome)of16.3percentincreased310basispointsfromthe4Q19ratioof13.2percent.Theincreasewasprimarilyrelatedtothefollowingfactors:

• COVID-19 related administrative costs, including those associated with purchasing personal protectiveequipment for the company's clinicians and the build-out of infrastructure necessary to support employeesworkingremotely,

• continuedsupportforthecompany'sconstituents,includingmembers,providers,employergroups,employees,andcommunities,aswellasstrategicinvestmentsinthecompany'sintegratedcaredeliverymodel,

• increasedspendingassociatedwithMedicareAEP,and

• reinstatementofthenon-deductibleHIFin2020,whichincreasedtheconsolidatedGAAPoperatingcostratiobyapproximately160basispointsin4Q20.

Theaboveitemswerepartiallyoffsetbythefollowingitems:

• scaleefficienciesassociatedwithgrowthinthecompany'sMedicareAdvantagemembership;and

• significantoperatingcostefficienciesin4Q20drivenbypreviouslydisclosedproductivityinitiatives.

The170basispointincreaseintheFY2020GAAPconsolidatedoperatingcostratioof13.2percentfrom11.5percentinFY2019wasprimarilyimpactedbythesamefactorsinfluencingthefourthquarterGAAPcomparisoncombinedwiththe$200millionofcontributionstotheHumanaFoundationinthefirsthalfof2020tosupportthecommunitiesservedbythecompany,particularlythosewithsocialandhealthdisparities.

Thenon-deductibleHIFincreasedtheFY2020consolidatedGAAPoperatingcostratiobyapproximately160basispoints.

TheAdjustedconsolidatedoperatingcostratiosforboth4Q20andFY2020wereimpactedbythesamefactorsaffectingtheGAAPcomparisonswhileexcludingtheimpactofthefactorsdetailedinthetableabove.

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Balancesheet

• AtDecember 31, 2020, the company had cash, cash equivalents, and investment securities of$18.44 billion,downapproximately$3.39billion,or16percent,from$21.83billionatSeptember30,2020primarilyresultingfromcommonstock repurchases related to thecompany'saccelerated stock repurchase (ASR)programmorefullydescribedbelow,the$1.00billionrepaymentofatermloan,andrepaymentof$400millionrelatedtothecompany's2.50percentseniornoteswhichcamedueonDecember15,2020.Detailedchangesareoutlinedinthecompany’sconsolidatedstatementofcashflowsonpagesS-6ofthestatisticalsupplementincludedinthisrelease.

• AtDecember31,2020,cashandshort-terminvestmentsheldattheparentcompanyof$772milliondecreasedapproximately $1.65 billion, or 68 percent, from$2.42 billion at September 30, 2020.The sequential changeprimarily reflects common stock repurchases related to the company's ASRmore fully described below, the$1.00billionrepaymentofatermloan,repaymentof$400millionrelatedtothecompany's2.50percentseniornotes, capital expenditures, capital contributions to certain subsidiaries, and cash dividends to shareholders.These decreases were partially offset by dividends from certain regulated subsidiaries and non-regulatedsubsidiaryearnings.

• Days in claims payable (DCP) of 46.2 days at December 31, 2020, decreased by 2.2 days from 48.4 days atSeptember 30, 2020 but increased 5.8 days from 40.4 days at December 31, 2019. The sequential declineprimarilyresultedfromtimingofsurpluspaymentstoprovidersinrisksharingarrangements.

Theyear-over-yearincreaseinDCPprimarilyreflectsthepreviouslydiscussedlowerutilizationlevelsduringFY2020comparedtoFY2019,whichledtohigherprovidersurplusaccrualsrelatedtothecompany'srisksharingarrangements.

ChangesareoutlinedintheDCProllforwardonpageS-19ofthestatisticalsupplementincludedinthisrelease.

• Debt-to-totalcapitalizationatDecember31,2020was32.7percent,down30basispointsfrom33.0percentatSeptember 30, 2020 primarily resulting from a $1.00 billion repayment of a term loan and $400 millionrepaymentofthecompany's2.50percentseniornoteswhichcamedueonDecember15,2020.ThesedecreaseswerepartiallyoffsetbytheimpactofsharerepurchasesresultingfromtheASRprogramasmorefullydescribedbelow,additionalcommercialpaperborrowings,andtheimpactofthe4Q20loss.

Thecompany’slong-termdebt-to-totalcapitalizationtargetofapproximately35percentisexpectedtoallowthecompanytomaintainitsinvestmentgradecreditratingwhileprovidingsignificantfinancialflexibility.Attimes,the company's debt-to-total capitalization will exceed this target due to the timing of share repurchases,acquisitions,anddebtissuance.

Operatingcashflows

• GAAP cash flows provided by operations of$283million in 4Q20 compared toGAAP cash flows provided byoperationsof$512million in4Q19,adecreaseof$229million,or45percent,yearoveryear. Theyear-over-yeardecreasewasprimarilyimpactedbytheearningsdeclinein4Q20comparedto4Q19partiallyoffsetbythepositiveimpactofworkingcapitalitems.

• GAAPcashflowsprovidedbyoperationsforFY2020totaled$5.64billionversus$5.28billionduringFY2019,anincreaseof$355million,or7percent, yearoveryear. Theyear-over-year increaseprimarily reflectedhigherearningsinFY2020comparedtoFY2019andtheimpactofworkingcapitalitems.

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Sharerepurchases

• In July 2019, Humana's Board of Directors approved a $3.00 billion share repurchase authorization with anexpiration date of June 30, 2022. Prior to 2020, Humana repurchased $1.00 billion of shares through apreviouslydisclosedASRagreementunderthisauthorization.

InDecember2020,thecompanyenteredintoseparateagreementswithtwothird-partyfinancialinstitutionstoeffectanaggregate$1.75billionASRprogramunder theauthorization.During4Q20,under the termsof thisprogram,thecompanyrepurchasedapproximately3,829,400shares.TheactualnumberofsharesrepurchasedundertheDecember2020ASRagreementswillbedeterminedbasedonavolume-weightedaveragepriceofthecompany'scommonstockduringthepurchaseperiod.Settlementofapproximately$263millionofrepurchasesunder theASR agreements remains pending, and the company expects final settlement in secondquarter of2021. Aside from the completion of the ASR program, the company did not complete any additional open-marketsharerepurchasetransactionsduring4Q20.

• AsofFebruary2,2021,thecompanyhasaremainingrepurchaseauthorizationofapproximately$250million.

Cashdividends

• Thecompanypaidcashdividends to its stockholdersof$84million in4Q20versus$75million in4Q19.Cashdividendsof$323millionwerepaidtothecompany’sstockholdersduringFY2020comparedto$291millioninFY 2019. The increases reflect growth in the per share dividend amount to $0.625, as approved by thecompany'sBoardofDirectorsinFebruary2020,versusthepreviouspershareamountof$0.55.

Humana’sRetailSegment

This segment consists of the company’s Medicare benefits, marketed to individuals directly or via group Medicareaccounts,aswellasitsMedicareSupplementandstate-basedcontractsbusinesses.State-basedcontractsincludethosewithvariousstatestoprovideservicesundertheMedicaidprogram,includingTemporaryAssistanceforNeedyFamilies(TANF),dualeligible,andLong-TermSupportServicesbenefits. Inaddition, this segmentalso includes thecompany’scontract with Centers for Medicare & Medicaid Services (CMS) to administer the Limited Income Newly EligibleTransitionprescriptiondrugplan(PDP)program.

Retailsegmentrevenues:

• The4Q20revenuesfortheRetailsegmentwere$16.83billion,anincreaseof$2.63billion,or18percent,from$14.21billionin4Q19primarilyreflectinghigherpremiumsasaresultofMedicareAdvantageandstate-basedcontractsmembershipgrowthandhigherpermemberMedicareAdvantagepremiums. Thesefavorableitemswerepartiallyoffsetbythedeclineinmembershipinthecompany'sstand-alonePDPofferings.Theyear-over-yearmembershipchangesarefurtherdiscussedbelow.

• TheFY2020revenuesfortheRetailsegmentwere$67.30billion,up$10.83billion,or19percent,from$56.47billioninFY2019,primarilyreflectingthesamefactorsimpactingtheyear-over-yearfourthquartercomparison.

Retailsegmentenrollment:

• IndividualMedicareAdvantagemembershipwas3,962,700asofDecember31,2020,anetincreaseof375,500or 10 percent, from3,587,200 as of December 31, 2019, andup 27,600, or 1 percent, from3,935,100 as ofSeptember30,2020. Theyear-over-year increasewasprimarilyduetomembershipadditionsassociatedwiththe 2020Annual Election Period (AEP), continued enrollment due to special elections, age-ins, and andDualEligible Special Need Plans (D-SNP) members, as well as the 2020 Open Election Period (OEP) forMedicarebeneficiaries. The2020OEPsalesperiod,whichran fromJanuary1toMarch31,2020,addedapproximately30,000members.

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IndividualMedicareAdvantagemembershipincludes406,100D-SNPmembersasofDecember31,2020,anetincreaseof117,900,or41percent,from288,200asofDecember31,2019,andup15,000,or4percent,from391,100asofSeptember30,2020.

• January2021individualMedicareAdvantagemembershipapproximated4,270,600,upapproximately307,900,or 8 percent, from December 31, 2020, reflecting netmembership additions of 299,700 during the recentlyconcluded 2021 AEP, plus an additional 8,200D-SNPmembers associatedwith the recently completed iCareacquisition.

Includingthe impactoftherecentlycompleted iCareacquisition,January2021 individualMedicareAdvantagemembership includes 475,200 D-SNP members, which represents growth of 69,100, or 17 percent, overDecember31,2020.

• GroupMedicareAdvantagemembershipwas613,200asofDecember31,2020,anetincreaseof87,900,or17percent,from525,300atDecember31,2019,andup1,200from612,000asofSeptember30,2020.Theyear-over-yearincreasereflectstheadditionofalargeaccountinJanuary2020,alongwithnetmembershipadditionsassociatedwiththe2020sellingseason.

• January2021groupMedicareAdvantagemembershipapproximated556,900,downapproximately56,300,or9percent,fromDecember31,2020,reflectingnetmembershipdeclinesduringthe2021sellingseason.

• Membership in the company’s stand-alone PDP offerings was 3,866,700 as of December 31, 2020, a netdecreaseof498,500,or11percent,from4,365,200asofDecember31,2019,anddown25,500,or1percent,from3,892,200asofSeptember30,2020. Theanticipatedyear-over-yeardeclinewasprimarily the resultofterminations driven by premium and benefit adjustments experienced by members that were previouslyenrolled in thecompany's2019HumanaWalmartRxplanand the2019HumanaEnhancedplan,whichwereconsolidatedintothePremierRxplanin2020.TheexpectedPDPlosseswerepartiallyoffsetbygrowthinthenewlow-priceHumanaWalmartValueRxplan,drivenbybothnewsalesandplantoplanchanges.

• January 2021 stand-alone PDP membership approximated 3,663,200, down approximately 203,500, or 5percent, fromDecember31,2020, reflectingnetmembershipdeclinesduring the recently concludedAEP forMedicarebeneficiaries.Aspreviouslydisclosed,theseanticipatedmembershiplosseswereprimarilytheresultofHumana'sWalmartValueplannotbeingthelowcostleaderintheindustryin2021.

• State-based contracts membership (including dual-eligible demonstration members) was 772,400 as ofDecember 31, 2020, a net increase of 303,400, or 65 percent, from 469,000 at December 31, 2019 and up42,300,or6percent,from730,100atSeptember30,2020.Themembershipincreasesin2020primarilyreflecttheimpactofdiscontinuingthereinsuranceagreementwithCareSourceandtheassumptionoffullfinancialriskfortheexistingKentuckyMedicaidcontractasofJanuary1,2020,aswellasadditionalenrollmentresultingfromthecurrenteconomicdownturnduetotheCOVID-19pandemic.

Retailsegmentbenefitsexpense:

• The4Q20benefitratiofortheRetailsegmentwas87.0percent,anincreaseof70basispointsfrom86.3percentfor4Q19.Theyear-over-yearincreaseinthesegmentbenefitratiowasprimarilyduetothefollowingfactors:

◦ meaningfulCOVID-19treatmentandtestingcosts,

◦ ongoingpandemicreliefeffortsandstrategicinvestmentsinthecompany'sintegratedcaredeliverymodel,bothofwhichwereheavilyweightedtothefinalmonthsof2020,and

◦ ashiftinMedicaremembershipmixduetothelossofstand-alonePDPmembersandsignificantgrowthinMedicareAdvantagemembers;thebenefitratioforstand-alonePDPmembersgenerallydecreasesastheyearprogress.

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Theaboveitemswerepartiallyoffsetbythefollowingfactors:

◦ thetemporarydeferralofnon-COVIDutilizationinthelatterpartof4Q20aspreviouslydiscussed,

◦ the reinstatement of the non-deductible HIF in 2020 that was contemplated in the pricing and benefitdesignofthecompany'sproducts,and

◦ slightlyhigherfavorablePriorPeriodDevelopmentin4Q20comparedto4Q19.

• TheFY2020benefitratioforthesegmentof84.2percentwas220basispointslowerthantheFY2019ratioof86.4percentprimarilyreflectingthefollowingfactors:

◦ significantlydepressednon-COVIDutilization inthefirsthalfof2020andagain inthe lasttwomonthsof4Q20;and

◦ reinstatementofthenon-deductibleHIFin2020thatwascontemplatedinthepricingandbenefitdesignofthecompany'sproducts.

Thesedecreaseswerepartiallyoffsetbythefollowingfactors:

◦ meaningfulCOVID-19treatmentandtestingcosts,

◦ thecompany'songoingpandemicreliefeffortsandstrategicinvestmentsinthecompany'sintegratedcaredeliverymodel,

◦ theimpactfromashiftinMedicaremembershipmix,and

◦ lowerfavorablePriorPeriodDevelopmentinFY2020.

PriorPeriodDevelopment

Favorable Prior Period Development in the Retail segment decreased the segment benefit ratio by 20 basispointsin4Q20comparedtodecreasingthe4Q19ratioby10basispoints.

FavorablePriorPeriodDevelopmentdecreasedtheFY2020ratioby40basispointsanddecreasedtheFY2019benefitratioby70basispoints.

RetailSegmentPriorPeriodDevelopment(inmillions)Favorable(unfavorable)

FirstQuarter

SecondQuarter

ThirdQuarter

FourthQuarter FY

PriorPeriodDevelopmentfromprioryearsrecognizedin2020 $238 $(33) $30 $31 $266

PriorPeriodDevelopmentfromprioryearsrecognizedin2019 $283 $28 $55 $20 $386

Retailsegmentoperatingcosts:

• TheRetailsegment’soperatingcostratioof14.0percentin4Q20increased240basispointsfrom11.6percentin4Q19.Theyear-over-yearcomparisonwasnegativelyimpactedbythefollowingfactors:

◦ reinstatementofthenon-deductibleHIFin2020,whichincreasedtheRetailsegment'sGAAPoperatingcostratiobyapproximately160basispointsin4Q20,

◦ COVID-19relatedadministrativecostsaspreviouslydiscussed,

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◦ continued support for the company's constituents and strategic investments in the company's integratedcaredeliverymodel,and

◦ increasedspendingassociatedwithMedicareAEP.

Theaboveincreaseswerepartiallyoffsetbythefollowingitems:

◦ scaleefficienciesassociatedwithgrowthinthecompany'sMedicareAdvantagemembership;and

◦ significantoperatingcostefficienciesin4Q20drivenbypreviouslydisclosedproductivityinitiatives.

• TheRetailsegment’sFY2020operatingcostratioof11.0percentincreased160basispointsfrom9.4percentinFY 2019 primarily reflecting the same factors that impacted the year-over-year comparison for the fourthquarter. Thenon-deductibleHIF impacted the segment’s FY 2020operating cost ratio by approximately 160points.

Retailsegmentresults:

Retailsegment(loss)earningsinmillions 4Q20(a) 4Q19(b) FY2020(c) FY2019(d)

GAAP ($210) $275 $3,017 $2,235

Amortizationassociatedwithidentifiableintangibles 3 4 15 16

Adjusted(non-GAAP) ($207) $279 $3,032 $2,251

• Theyear-over-yearunfavorablequartercomparisoninGAAPsegmentresultswasimpactedbythesamefactorsthatledtothesegment'shigherbenefitandoperatingcostratiosin4Q20.Theyear-over-yearfavorablecomparisoninFYGAAPsegmentearningsresultedfromthenetfavorableimpactofalowersegmentbenefitratiopartiallyoffsetbyahigheroperatingcostratioaspreviouslydescribed.

Humana’sGroupandSpecialtySegment

This segment consists of the company’s employer group fully-insured commercial medical products and specialtyinsurancebenefitsmarketedtoindividualsandgroups,includingdental,vision,andlifeinsurancebenefits.Inaddition,thesegmentalsoincludesthecompany’sadministrativeservicesonly(ASO)productsanditsmilitaryservicesbusinesses.

GroupandSpecialtysegmentrevenues:

• The4Q20 revenues for theGroupandSpecialty segmentwere$1.79billion, down$84million, or 4percent,yearoveryearfrom$1.88billionin4Q19.Thisdecreasewasprimarilyduetothedeclineinthecompany'sfully-insuredgroupcommercialmembership,partiallyoffsetbyhigherpermemberpremiumsacrossthefully-insuredcommercialbusiness.

• TheFY2020revenuesfortheGroupandSpecialtysegmentwere$7.29billion,down$240million,or3percent,from $7.53 billion in FY 2019 primarily reflecting the same factors that impacted the year-over-year fourthquartercomparison,alongwithhigherstop-lossrevenuesrelatedtothecompany'slevel-fundedASOaccountsresultingfrommembershipgrowthinthisproductasmorefullydescribedbelow.

GroupandSpecialtysegmentenrollment:

• Group fully-insured commercial medical membership was 777,400 at December 31, 2020, a decrease of131,200,or14percent,from908,600atDecember31,2019,anddown22,100,or3percent,from799,500atSeptember30,2020.Theseanticipateddeclinesprimarilyreflectlowermembershipinsmallgroupaccountsdue

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inpart tomoresmallgroupaccountsselecting level-fundedASOproducts,aswellas the lossofcertain largegroup accounts due to disciplined pricing in the competitive environment. Additionally, the declines inmembershipwereimpactedbythecurrenteconomicdownturndrivenbytheCOVID-19pandemicresulting inhigherunemploymentratesand lossofcoveragefor fully-insuredcommercialgroupmembers.Theportionofgroupfully-insuredcommercialmedicalmembershipinsmallgroupaccounts(2-99sizedemployergroups)wasapproximately54percentatDecember31,2020comparedto56percentatSeptember30,2020and59percentatDecember31,2019.

• GroupASOcommercialmedicalmembershipwas504,900atDecember31,2020, adecreaseof24,300,or5percent,from529,200atDecember31,2019,butup2,800,or1percent,from502,100atSeptember30,2020.Thesechangesprimarilyreflectthelossofcertainlargegroupaccountsduetocontinueddisciplineinpricingofservices for self-funded accounts amid a highly competitive environment and the impact of the currenteconomicdownturndrivenby theCOVID-19pandemicaspreviouslydiscussed,partiallyoffsetbymore smallgroupaccountsselecting level-fundedASOproducts.Smallgroupmembershipcomprised45percentofgroupASOmedicalmembershipatDecember31,2020andatSeptember30,2020versus40percentatDecember31,2019.

• Militaryservicesmembershipwas5,998,700atDecember31,2020,anincreaseof14,400, from5,984,300atDecember 31, 2019, but down 17,700 from 6,016,400 at September 30, 2020.Membership includesmilitaryservicemembers,retirees,andtheirfamiliestowhomthecompanyisprovidinghealthcareservicesunderthecurrentTRICAREEastRegioncontract.

• Membershipinspecialtyproducts(h)was5,310,300atDecember31,2020,adecreaseof115,600,or2percent,from 5,425,900, at December 31, 2019, and down 15,300 from 5,325,600 at September 30, 2020. Thesedecreasesresultedfromthelossofcertaingroupaccountsofferingstand-alonedentalandvisionproducts,aswellastheimpactofthecurrenteconomicdownturndrivenbytheCOVID-19pandemicaspreviouslydiscussed.

GroupandSpecialtysegmentbenefitsexpense:

• The4Q20benefitratiofortheGroupandSpecialtysegmentwas104.3percent,anincreaseof910basispointsfrom95.2percentfor4Q19.Theyear-over-yearincreaseinthesegmentbenefitratiowasprimarilyduetothefollowingfactors:

◦ ongoingpandemicreliefeffortsandstrategicinvestmentsinthebusiness,primarilysurroundinginitiativestoeaseadministrativeandfinancialstressforprovidersandemployerswhilepositioningthebusinessforlong-termsuccess.Investmentsinthesegmentweredisproportionaterelativetothereductioninnon-COVIDutilizationlevelsforthecompany'scommercialgroupmedicalandspecialtymembers;and

◦ meaningfulCOVID-19treatmentandtestingcosts.

Theaboveitemswerepartiallyoffsetbythefollowingfactors:

◦ reinstatementofthenon-deductibleHIFin2020thatwascontemplatedinthepricingandbenefitdesignofthecompany'sproducts,

◦ thetemporarydeferralofnon-COVIDutilizationinthelasttwomonthsof4Q20aspreviouslydiscussed,and

◦ higherfavorablePriorPeriodDevelopmentinthesegmentin4Q20.

• TheFY2020benefitratioforthesegmentof85.6percentwas40basispointslowerthantheFY2019ratioof86.0percent.Theyear-over-yearcomparisonwasimpactedbythefollowingfactors:

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◦ significantlydepressednon-COVIDutilizationinthefirsthalfof2020andagaininthelasttwomonthsof4Q20,

◦ reinstatementofthenon-deductibleHIFin2020thatwascontemplatedinthepricingandbenefitdesignofthecompany'sproducts,and

◦ higherfavorablePriorPeriodDevelopmentinthesegmentinFY2020.

Thesefactorswerepartiallyoffsetbythefollowingitems:

◦ meaningfulCOVID-19treatmentandtestingcosts;and

◦ thecompany'songoingpandemicreliefeffortsandstrategicinvestmentsaspreviouslydescribed.

PriorPeriodDevelopment

TheGroupandSpecialtysegment'sfavorablePriorPeriodDevelopmentfor4Q20,asnotedinthetablebelow,decreased the segment benefit ratio by 30 basis points in 4Q20 compared to unfavorable Prior PeriodDevelopmentin4Q19increasingthesegmentratioby90basispoints.

Favorable Prior Period Development decreased the FY 2020 ratio by 70 basis points while unfavorabledevelopmentinFY2019increasedthebenefitratioby70basispoints.

GroupandSpecialtysegmentPriorPeriodDevelopment(inmillions)Favorable(unfavorable)

FirstQuarter

SecondQuarter

ThirdQuarter

FourthQuarter FY

PriorPeriodDevelopmentfromprioryearsrecognizedin2020 $46 $(16) $13 $4 $47

PriorPeriodDevelopmentfromprioryearsrecognizedin2019 $(16) $(20) $1 $(15) $(50)

GroupandSpecialtysegmentoperatingcosts:

• TheGroupandSpecialtysegment’soperatingcostratiowas28.1percentin4Q20,anincreaseof570basispointsfrom22.4percentin4Q19primarilyreflectingthefollowingfactors:

◦ COVID-19relatedadministrativecostsaspreviouslydiscussed,

◦ continuedsupportforthecompany'sconstituentsandstrategicinvestmentsinthesegmenttopositionthebusinessforlong-termsuccess,and

◦ reinstatementofthenon-deductibleHIFin2020,whichincreasedtheGroupandSpecialtysegment'sGAAPoperatingcostratiobyapproximately130basispointsin4Q20.

Theimpactoftheaboveitemswaspartiallyoffsetbysignificantoperatingcostefficienciesin4Q20drivenbypreviouslydisclosedproductivityinitiatives.

• TheGroupandSpecialtysegment’soperatingcostratioof25.0percentforFY2020wasup300basispointscomparedto22.0percentforFY2019.Theyear-over-yearincreasewasprimarilyimpactedbythesamefactorsinfluencingthefourthquartercomparison.

Thenon-deductibleHIFimpactedthesegment’sFY2020operatingcostratiobyapproximately130basispoints.

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GroupandSpecialtysegmentresults:

GroupandSpecialtysegment(loss)earningsInmillions 4Q20(a) 4Q19(b) FY2020(c) FY2019(d)

GAAP ($375) ($146) ($143) $28

Amortizationassociatedwithidentifiableintangibles 1 1 4 4

Adjusted(non-GAAP) ($374) ($145) ($139) $32

• Theunfavorableyear-over-yearquartercomparisoninGAAPsegmentresultswasimpactedbythesamefactorsthatledtothesegment'shigherbenefitandoperatingcostratiosin4Q20.Theunfavorableyear-over-yearFYcomparisonofGAAPsegmentearningsresultedfromthenetnegativeimpactofahigheroperatingcostratio,partiallyoffsetbyaslightlylowerbenefitratioinFY2020.

Humana’sHealthcareServicesSegment

This segment includes services offered to the company’s health planmembers as well as to third parties, includingpharmacysolutions,providerservices,andclinicalprograms,suchashomehealthandotherservicesandcapabilitiestopromote wellness and advance population health, including the company's non-consolidating minority interestinvestmentsinKindredatHomeandthestrategicpartnershipwithWelsh,Carson,Anderson&Stowe(WCAS)todevelopandoperatesenior-focused,payor-agnostic,primarycarecenters.

Servicesofferedbythissegmentaredesignedtoenhancethehealthcareexperienceoverall.Theseservicesmayleadtolowerutilizationassociatedwithimprovedmemberhealthand/orlowerdrugcosts.

HealthcareServicessegmentrevenues:

• Revenuesof$7.29billionin4Q20fortheHealthcareServicessegmentincreasedby$595million,or9percent,from$6.70billionin4Q19.Theyear-over-yearcomparisonwasfavorablyimpactedbythefollowingfactors:

◦ thecompany'sstrongMedicareAdvantagemembershipgrowth;and

◦ additionalpharmacyrevenuesin4Q20associatedwiththeacquisitionofEnclaraHealthcare.

Theseincreaseswerepartiallyoffsetbythelossofintersegmentrevenuesassociatedwiththedeclineinstand-alonePDPmembershipaspreviouslydiscussed.

• FY2020revenues for theHealthcareServicessegmentwere$28.45billion,an increaseof$2.67billion,or10percent, from $25.78 billion in FY 2019 primarily due to the same factors affecting the year-over-yearcomparisonforthefourthquarter,alongwithaslightshiftbymembersto90-daysupply.

HealthcareServicessegmentoperatingcosts:• TheHealthcareServicessegment’soperatingcostratioof97.8percentin4Q20increased100basispointsfrom

96.8percentin4Q19primarilyresultingfromthefollowing:

◦ COVID-19administrativerelatedcosts,includingexpensesassociatedwithadditionalsafetymeasurestakenforthecompany'sproviderandclinicalteamswhohavecontinuedtoprovideservicestomembersduringthecrisis,

◦ highercostsincurredinthepharmacybusinesstoensuretimelydeliveryofprescriptionsamidtheCOVID-19pandemic,and

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◦ additionalinvestmentsinthesegment'sproviderbusinessduring4Q20relatedtomarketingandAEPinitiatives.

ThesecostswerepartiallyoffsetbyoperationalimprovementsandreducedutilizationresultingfromCOVID-19inthecompany'sproviderservicesbusiness,aswellassignificantoperatingcostefficienciesin4Q20drivenbypreviouslydisclosedproductivityinitiatives.

• TheHealthcareServicessegment’sFY2020operatingcostratioof96.3percentdecreased10basispointsfrom96.4percentinFY2019asaresultofthenetfavorableimpactofthesamefactorsaffectingthefourthquartercomparison.

HealthcareServicessegmentoperatingstatistics:

• Primary care providers in value-based (shared risk and path to risk) relationships of67,800 at December 31,2020, increased 10 percent from 61,900 at December 31, 2019, and increased 1 percent from 67,000 atSeptember30,2020.Thepercentageofthecompany’sindividualMedicareAdvantagemembersinvalue-basedrelationships was 67 percent as of December 31, 2020 and as of December 31, 2019, versus 66 percent atSeptember30,2020.

• Medicare Advantage and dual demonstration programmembership enrolled in a Humana caremanagementprogram(i)was 910,600 atDecember 31, 2020, up5 percent from868,800 atDecember 31, 2019 but down1percentfrom917,200atSeptember30,2020.Thesechangesweredrivenbythecompany'simprovedprocessfor identifying and enrollingmembers in the appropriate program at the right time, coupledwith growth inSpecialNeedsPlans(SNP)membership.

• Pharmacy script volume on an adjusted 30-day equivalent basis of122million for 4Q20 increased3 percentcompared to 118million for 4Q19. Pharmacy script volume of 478 million for FY 2020 increased 5 percentcomparedto456millionforFY2019.TheseincreasesprimarilyweredrivenbyhigherMedicareAdvantageandstate-basedcontractsmembership,partiallyoffsetbythedeclineinstand-alonePDPmembership.

HealthcareServicessegmentresults:

HealthcareServicessegmentresults(inmillions) 4Q20 4Q19 FY2020 FY2019

GAAPsegmentearnings $128 $178 $944 $789

Depreciationandamortizationexpense 52 44 203 179

Interestandtaxes 16 19 85 88

AdjustedEBITDA(e) $196 $241 $1,232 $1,056

• TheHealthcareServicessegment’s4Q20GAAPsegmentearningsdecreased$50million,or28percent,to$128millioncomparedtoGAAPsegmentearningsof$178millionin4Q19.Thedecreasewasprimarilyeffectedbythesame factors that resulted in a higher operating cost ratio for the segment in 4Q20 compared to the 4Q19segmentratio.

Adjusted EBITDA in 4Q20 for the Healthcare Services segment of $196million was down $45million, or 19percent,comparedtoAdjustedEBITDAof$241millionin4Q19.Theunfavorableyear-over-yearcomparisonofAdjustedEBITDAprimarily resulted from the same factors that impacted thequarterlyGAAP segment resultscomparisonwhileexcludingtheimpactofthefactorsdetailedinthetableabove.

• TheHealthcareServicessegment’sGAAPsegmentearningsinFY2020increased$155million,or20percent,to$944 million compared to GAAP segment earnings of $789 million in FY 2019 primarily reflecting the samefactorsthatresultedinalowerFY2020operatingcostratio,aswellashigherearningsfromequityinaffiliatesinFY2020.

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AdjustedEBITDAforFY2020of$1.23billionincreased$176million,or17percent,versustheFY2019AdjustedEBITDA for the Healthcare Services segment of $1.06 billion. The favorable year-over-year comparison ofAdjusted EBITDA primarily resulted from the same factors that impacted the FY GAAP segment resultscomparisonwhileexcludingtheimpactofthefactorsdetailedinthetableabove.

ConferenceCall

Humanawillhostaconferencecallat9:00a.m.Easterntimetodaytodiscussitsfinancialresultsforthequarterandthecompany’sexpectationsforfutureearnings.

Allpartiesinterestedinthecompany’s4Q20earningsconferencecallareinvitedtodial888-625-7430.Nopasswordisrequired.Theaudio-onlywebcastof the4Q20earningscallmaybeaccessedviaHumana’s InvestorRelationspageathumana.com.Thecompanysuggestsparticipantsforboththeconferencecallandthoselisteningviathewebdialinorsignonatleast15minutesinadvanceofthecall.

For those unable to participate in the live event, the archive will be available in the Historical Webcasts andPresentations section of the Investor Relations page at humana.com, approximately two hours following the livewebcast.Telephonereplayswillalsobeavailablefromapproximately12:15p.m.EasterntimeonFebruary3,2021until11:59p.m.EasterntimeonApril3,2021andcanbeaccessedbydialing855-859-2056andprovidingtheconferenceID#5899612.

Footnotes

(a)4Q20Adjustedresultsexcludethefollowing:• Amortizationexpenseforidentifiableintangiblesofapproximately$22millionpretax,or$0.13per

commonshare;GAAPmeasuresaffectedinthisreleaseincludeconsolidatedpretax,EPS,andsegmentearnings(forrespectiveamortizationexpensefortheRetailandGroupandSpecialtysegments).

• Put/callvaluationadjustmentsofapproximately$40million,or$0.24percommonshare,associatedwithHumana’snon-consolidatingminorityinterestinvestments.GAAPmeasuresaffectedinthisreleaseincludeconsolidatedpretaxandEPS.

• Changeinfairmarketvalueofpublicly-tradedequitysecuritiesof$102million,or$0.60percommonshare.Humanaadjustsforthemarketgainsandlossesofitspublicly-tradedequityinvestments(primarilyOakStreetHealth,Inc.)eachperiodbecausewhileinvestmentsarestrategicdecisionsforthecompany,management'smeasureofperformanceisprimarilyfocusedonoperationalresultsratherthanfairvalueofsuchinvestments.Also,managementdoesnotforecastchangesinfairvalueofitsequityinvestments.Accordingly,thecompanybelievesitisusefultoadjustGAAPEPSforthemarketgainsandlossesofpublicly-tradedequitysecurities.GAAPmeasuresaffectedinthisreleaseincludeconsolidatedpretax,EPS,andconsolidatedrevenues.

(b)4Q19Adjustedresultsexcludethefollowing:• Amortizationexpenseforidentifiableintangiblesofapproximately$17millionpretax,or$0.10perdiluted

commonshare;GAAPmeasuresaffectedinthisreleaseincludeconsolidatedpretax,EPS,andsegmentearnings(forrespectiveamortizationexpensefortheRetailandGroupandSpecialtysegments).

• Put/callvaluationadjustmentsofapproximately$289million,or$1.67perdilutedcommonshare,associatedwithHumana’snon-consolidatingminorityinterestinvestments.GAAPmeasuresaffectedinthisreleaseincludeconsolidatedpretaxandEPS.

• Expenseassociatedwithinvoluntaryworkforcereductionofapproximately$1millionpretax,or$0.01perdilutedcommonshare;GAAPmeasuresaffectedinthisreleaseincludeconsolidatedpretax,EPS,andconsolidatedoperatingcostratio.

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(c)FY2020Adjustedresultsexcludethefollowing:• Amortizationexpenseforidentifiableintangiblesofapproximately$88millionpretax,or$0.51perdiluted

commonshare;GAAPmeasuresaffectedinthisreleaseincludeconsolidatedpretax,EPSandsegmentearnings(forrespectiveamortizationexpensefortheRetailandGroupandSpecialtysegments.)

• Put/callvaluationadjustmentsofapproximately$103million,or$0.60perdilutedcommonshare,associatedwithHumana'snon-consolidatingminorityinterestinvestments.GAAPmeasuresaffectedinthisreleaseincludeconsolidatedpretaxandEPS.

• Changeinfairmarketvalueofpublicly-tradedequitysecuritiesof$745million,or$4.32perdilutedcommonshare.Humanaadjustsforthemarketgainsandlossesofitspublicly-tradedequityinvestments(primarilyOakStreetHealth,Inc.)eachperiodbecausewhileinvestmentsarestrategicdecisionsforthecompany,management'smeasureofperformanceisprimarilyfocusedonoperationalresultsratherthanfairvalueofsuchinvestments.Also,managementdoesnotforecastchangesinfairvalueofitsequityinvestments.Accordingly,thecompanybelievesitisusefultoadjustGAAPEPSforthemarketgainsandlossesofpublicly-tradedequitysecurities.GAAPmeasuresaffectedinthisreleaseincludeconsolidatedpretax,EPS,andconsolidatedrevenues.

• Netadjustmentof$578million,or$3.35perdilutedcommonshare,relatedtothereceiptofunpaidriskcorridorpaymentsassociatedwiththelossesincurredbythecompanyundertheACAbusinessfrom2014to2016(previouslywrittenoff).GAAPmeasuresaffectedinthisreleaseincludeconsolidatedpretax,EPS,consolidatedrevenues,consolidatedbenefitsexpenseratio,andconsolidatedoperatingcostratio.

(d)FY2019Adjustedresultsexcludethefollowing:• Amortizationexpenseforidentifiableintangiblesofapproximately$70millionpretax,or$0.40perdiluted

commonshare;GAAPmeasuresaffectedinthisreleaseincludeconsolidatedpretax,EPSandsegmentearnings(forrespectiveamortizationexpensefortheRetailandGroupandSpecialtysegments.)

• Put/callvaluationadjustmentsofapproximately$506million,or$2.89perdilutedcommonshare,associatedwithHumana'snon-consolidatingminorityinterestinvestments.GAAPmeasuresaffectedinthisreleaseincludeconsolidatedpretaxandEPS.

• Expenseassociatedwithinvoluntaryworkforcereductionofapproximately$47millionpretax,or$0.26perdilutedcommonshare;GAAPmeasuresaffectedinthisreleaseincludeconsolidatedpretax,EPS,andconsolidatedoperatingcostratio.

(e)TheHealthcareServicessegmentAdjustedEBITDAincludesGAAPsegmentearningswithadjustmentstoaddbackdepreciationandamortizationexpense,interestexpense,andincometaxes.TheAdjustedEBITDAincludesresultsfromalllinesofbusinesswithinthesegment.TheAdjustedEBITDAalsoincludestheimpactofHumana’s40%minorityinterestinKindredatHomeandthestrategicpartnershipwithWelsh,Carson,Anderson&Stowe(WCAS)todevelopandoperatesenior-focused,payor-agnostic,primarycarecenters.

(f)FY2021AdjustedEPSprojectionsexcludethefollowing:• Amortizationexpenseforidentifiableintangiblesofapproximately~$0.43perdilutedcommonshare.• FY21GAAPEPSguidanceexcludestheimpactoffuturevaluechangesofput/calloptionsrelatedtoHumana’s

non-consolidatingminorityinterestinvestments.Thefuturevaluechangeoftheseput/calloptionscannotbeestimated.

• Thefuturevalueofpublicly-tradedequitysecurities,theirimpactonGAAPEPS,andtherelatednon-GAAPadjustmentwillfluctuateonthepublictradingvalueofthestock.Theguidancesetforthhereinassumesnofurtherchangeinthefairvalueoftheseinvestments.

(g)Excludesestimatesofchangesinrevenuesassociatedwithincreasedaccuracyofriskcoding.

(h)Thecompanyprovidesafullrangeofinsuredspecialtyproductsincludingdental,vision,andlifeinsurancebenefitsmarketedtoindividualsandgroups.Membersincludedintheseproductsmaynotbeuniquetoeachproductsincemembershavetheabilitytoenrollinmultipleproducts.

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(i)IncludesMedicareAdvantage(includingSpecialNeedsPlans(SNP))anddual-eligibledemonstrationprogrammembersenrolledinoneofHumana’scareprograms.ThesemembersmaybeenrolledinHumanaAtHomeChronicCareProgram(HCCP),HumanaAtHomeRemoteMonitoring,oranAdvanceIllnessSupportprogram.Membersincludedintheseprogramsmaynotbeuniquetoeachprogramsincemembershavetheabilitytoenrollinmultipleprograms.Inaddition,themembersintheHCCPprogrammayreceivevaryinglevelsofcaremanagementbasedontheirhealthstatusandneeds,rangingfromactivecaremanagementtoongoingmonitoring.

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CautionaryStatement

Thisnewsreleaseincludesforward-lookingstatementsregardingHumanawithinthemeaningofthePrivateSecuritiesLitigationReformActof1995.Whenusedininvestorpresentations,pressreleases,SecuritiesandExchangeCommission(SEC)filings,andinoralstatementsmadebyorwiththeapprovalofoneofHumana’sexecutiveofficers,thewordsorphraseslike“expects,”“believes,”“anticipates,”“intends,”“likelywillresult,”“estimates,”“projects”orvariationsofsuchwordsandsimilarexpressionsareintendedtoidentifysuchforward-lookingstatements.Theseforward-lookingstatementsarenotguaranteesoffutureperformanceandaresubjecttorisks,uncertainties,andassumptions,including,amongotherthings,informationsetforthinthe“RiskFactors”sectionofthecompany’sSECfilings,asummaryofwhichincludesbutisnotlimitedtothefollowing:

• IfHumanadoesnotdesignandpriceitsproductsproperlyandcompetitively,ifthepremiumsHumanareceivesareinsufficienttocoverthecostofhealthcareservicesdeliveredtoitsmembers,ifthecompanyisunabletoimplementclinicalinitiativestoprovideabetterhealthcareexperienceforitsmembers,lowercostsandappropriatelydocumenttheriskprofileofitsmembers,orifitsestimatesofbenefitsexpenseareinadequate,Humana’sprofitabilitycouldbemateriallyadverselyaffected.Humanaestimatesthecostsofitsbenefitexpensepayments,anddesignsandpricesitsproductsaccordingly,usingactuarialmethodsandassumptionsbasedupon,amongotherrelevantfactors,claimpaymentpatterns,medicalcostinflation,andhistoricaldevelopmentssuchasclaiminventorylevelsandclaimreceiptpatterns.Thecompanycontinuallyreviewsestimatesoffuturepaymentsrelatingtobenefitexpensesforservicesincurredinthecurrentandpriorperiodsandmakesnecessaryadjustmentstoitsreserves,includingpremiumdeficiencyreserves,whereappropriate.Theseestimatesinvolveextensivejudgment,andhaveconsiderableinherentvariabilitybecausetheyareextremelysensitivetochangesinclaimpaymentpatternsandmedicalcosttrends.Accordingly,Humana'sreservesmaybeinsufficient.

• IfHumanafailstoeffectivelyimplementitsoperationalandstrategicinitiatives,particularlyitsMedicareinitiativesandstate-basedcontractstrategy,thecompany’sbusinessmaybemateriallyadverselyaffected,whichisofparticularimportancegiventheconcentrationofthecompany’srevenuesintheseproducts.Inaddition,therecanbenoassurancesthatthecompanywillbesuccessfulinmaintainingorimprovingitsStarratingsinfutureyears.

• IfHumanafailstoproperlymaintaintheintegrityofitsdata,tostrategicallymaintainexistingorimplementnewinformationsystems,toprotectHumana’sproprietaryrightstoitssystems,ortodefendagainstcyber-securityattacksorpreventotherprivacyordatasecurityincidentsthatresultinsecuritybreachesthatdisruptouroperationsorintheunintendeddisseminationofsensitivepersonalinformationorproprietaryorconfidentialinformation,thecompany’sbusinessmaybemateriallyadverselyaffected.

• Humanaisinvolvedinvariouslegalactions,ordisputesthatcouldleadtolegalactions(suchas,amongotherthings,providercontractdisputesandquitamlitigationbroughtbyindividualsonbehalfofthegovernment),governmentalandinternalinvestigations,androutineinternalreviewofbusinessprocessesanyofwhich,ifresolvedunfavorablytothecompany,couldresultinsubstantialmonetarydamagesorchangesinitsbusinesspractices.Increasedlitigationandnegativepublicitycouldalsoincreasethecompany’scostofdoingbusiness.

• Asagovernmentcontractor,Humanaisexposedtorisksthatmaymateriallyadverselyaffectitsbusinessoritswillingnessorabilitytoparticipateingovernmenthealthcareprogramsincluding,amongotherthings,lossofmaterialgovernmentcontracts,governmentalauditsandinvestigations,potentialinadequacyofgovernmentdeterminedpaymentrates,potentialrestrictionsonprofitability,includingbycomparisonofprofitabilityofthecompany’sMedicareAdvantagebusinesstonon-MedicareAdvantagebusiness,orotherchangesinthegovernmentalprogramsinwhichHumanaparticipates.Changestotherisk-adjustmentmodelutilizedbyCMStoadjustpremiumspaidtoMedicareAdvantage,orMA,plansaccordingtothehealthstatusofcoveredmembers,includingproposedchangestothemethodologyusedbyCMSforriskadjustmentdatavalidationauditsthat

20

failtoaddressadequatelythestatutoryrequirementofactuarialequivalence,ifimplemented,couldhaveamaterialadverseeffectonouroperatingresults,financialpositionandcashflows.

• Humana'sbusinessactivitiesaresubjecttosubstantialgovernmentregulation.Newlawsorregulations,orlegislative,judicial,orregulatorychangesinexistinglawsorregulationsortheirmannerofapplicationcouldincreasethecompany'scostofdoingbusinessandhaveamaterialadverseeffectonHumana’sresultsofoperations(includingrestrictingrevenue,enrollmentandpremiumgrowthincertainproductsandmarketsegments,restrictingthecompany’sabilitytoexpandintonewmarkets,increasingthecompany’smedicalandoperatingcostsby,amongotherthings,requiringaminimumbenefitratiooninsuredproducts,loweringthecompany’sMedicarepaymentratesandincreasingthecompany’sexpensesassociatedwithanon-deductiblehealthinsuranceindustryfeeandotherassessments);thecompany’sfinancialposition(includingthecompany’sabilitytomaintainthevalueofitsgoodwill);andthecompany’scashflows.

• Humana’sfailuretomanageacquisitions,divestituresandothersignificanttransactionssuccessfullymayhaveamaterialadverseeffectonthecompany’sresultsofoperations,financialposition,andcashflows.

• IfHumanafailstodevelopandmaintainsatisfactoryrelationshipswiththeprovidersofcaretoitsmembers,thecompany’sbusinessmaybeadverselyaffected.

• Humana’spharmacybusinessishighlycompetitiveandsubjectsittoregulationsandsupplychainrisksinadditiontothosethecompanyfaceswithitscorehealthbenefitsbusinesses.

• ChangesintheprescriptiondrugindustrypricingbenchmarksmayadverselyaffectHumana’sfinancialperformance.

• Humana’sabilitytoobtainfundsfromcertainofitslicensedsubsidiariesisrestrictedbystateinsuranceregulations.

• DowngradesinHumana’sdebtratings,shouldtheyoccur,mayadverselyaffectitsbusiness,resultsofoperations,andfinancialcondition.

• Thesecuritiesandcreditmarketsmayexperiencevolatilityanddisruption,whichmayadverselyaffectHumana’sbusiness.

• Thespreadof,andresponseto,thenovelcoronavirus,orCOVID-19,underscorescertainrisksHumanafaces,includingthosediscussedabove,andtheongoing,heighteneduncertaintycreatedbythepandemicprecludesanypredictionastotheultimateadverseimpacttoHumanaofCOVID-19.

TotheextentthatthespreadofCOVID-19isnotcontained,thepremiumsthecompanychargesmayprovetobeinsufficienttocoverthecostofhealthcareservicesdeliveredtoitsmembers,whichmayincreasesignificantlyasaresultofhigherutilizationratesofmedicalfacilitiesandservicesandotherincreases in associated hospital and pharmaceutical costs. Humanamay also experience increasedcostsordecreasedrevenues if,asaresultof thecompany’smembersbeingunableorunwillingtosee theirprovidersdue toactions taken tomitigate the spreadofCOVID-19,Humana isunable toimplementclinicalinitiativestomanagehealthcarecostsandchronicconditionsofitsmembers,andappropriatelydocumenttheirriskprofiles.Inaddition,Humanaisoffering,andhasbeenmandatedbylegislativeandregulatoryaction(includingtheFamiliesFirstActandCARESAct)toprovide,certainexpandedbenefitcoveragetoitsmembers,suchaswaivingoutofpocketcostsforCOVID-19testingandtreatment.Humana isalsotakingactionsdesignedtohelpprovidefinancialandadministrativerelief for the health care provider community. Such measures and any further steps taken byHumana, or governmental action, to continue to respond to and address the ongoing impact ofCOVID-19,includingfurtherexpansionormodificationoftheservicesdeliveredtoitsmembers,theadoptionormodificationofregulatoryrequirementsassociatedwiththoseservicesandthecostsandchallenges associatedwith ensuring timely compliancewith such requirements, to provide furtherreliefforthehealthcareprovidercommunity,or inconnectionwiththerelaxationofstay-at-homeandphysicaldistancingordersandotherrestrictionsonmovementandeconomicactivity, includingthe potential for widespread testing and therapeutic treatments and the distribution andadministrationofCOVID-19vaccines,couldadverselyimpactthecompany’sprofitability.

ThespreadandimpactofCOVID-19,oractionstakentomitigatethisspread,couldhavematerialandadverseeffectsonHumana’sabilitytooperateeffectively,includingasaresultofthecompleteorpartialclosureoffacilitiesorlaborshortages.Disruptionsinpublicandprivateinfrastructure,

21

includingcommunications,availabilityofin-personsalesandmarketingchannels,financialservicesandsupplychains,couldmateriallyandadverselydisruptthecompany’snormalbusinessoperations.HumanahastransitionedasignificantsubsetofitsemployeepopulationtoaremoteworkenvironmentinanefforttomitigatethespreadofCOVID-19,ashaveanumberofthecompany’sthird-partyserviceproviders,whichmayexacerbatecertainriskstoHumana’sbusiness,includinganincreaseddemandforinformationtechnologyresources,increasedriskofphishingandothercybersecurityattacks,andincreasedriskofunauthorizeddisseminationofsensitivepersonalinformationorproprietaryorconfidentialinformationaboutthecompanyoritsmembersorotherthird-parties.TheoutbreakofCOVID-19hasseverelyimpactedglobaleconomicactivity,includingthebusinessesofsomeofHumana’scommercialcustomers,andcausedsignificantvolatilityandnegativepressureinthefinancialmarkets.InadditiontodisruptingHumana’soperations,thesedevelopmentsmayadverselyaffectthetimingofcommercialcustomerpremiumcollectionsandcorrespondingclaimpayments,thevalueofthecompany’sinvestmentportfolio,orfutureliquidityneeds.

Theongoing,heighteneduncertaintycreatedbythepandemicprecludesanypredictionastotheultimateadverseimpacttoHumanaofCOVID-19.HumanaiscontinuingtomonitorthespreadofCOVID-19,changestothecompany’sbenefitcoverages,andtheongoingcostsandbusinessimpactsofdealingwithCOVID-19,includingthepotentialcostsandimpactsassociatedwithliftingorreimposingrestrictionsonmovementandeconomicactivityandrelatedrisks.ThemagnitudeanddurationofthepandemicanditsimpactonHumana’sbusiness,resultsofoperations,financialposition,andcashflowsisuncertain,butsuchimpactscouldbematerialtothecompany’sbusiness,resultsofoperations,financialpositionandcashflows.

Inmakingforward-lookingstatements,Humanaisnotundertakingtoaddressorupdatetheminfuturefilingsorcommunicationsregardingitsbusinessorresults.Inlightoftheserisks,uncertainties,andassumptions,theforward-lookingeventsdiscussedhereinmayormaynotoccur.Therealsomaybeotherrisksthatthecompanyisunabletopredictatthistime.Anyoftheserisksanduncertaintiesmaycauseactualresultstodiffermateriallyfromtheresultsdiscussedintheforward-lookingstatements.

HumanaadvisesinvestorstoreadthefollowingdocumentsasfiledbythecompanywiththeSECforfurtherdiscussionbothoftherisksitfacesanditshistoricalperformance:

• Form10-KfortheyearendedDecember31,2019;

• Form10-QforthequarterendedMarch31,2020;June30,2020;September30,2020;and

• Form8-Ksfiledduring2020and2021.

22

AboutHumana

HumanaInc.(NYSE:HUM)iscommittedtohelpingourmillionsofmedicalandspecialtymembersachievetheirbesthealth.Oursuccessfulhistoryincaredeliveryandhealthplanadministrationishelpinguscreateanewkindofintegratedcarewiththepowertoimprovehealthandwell-beingandlowercosts.OureffortsareleadingtoabetterqualityoflifeforpeoplewithMedicare,families,individuals,militaryservicepersonnel,andcommunitiesatlarge.

Toaccomplishthat,wesupportphysiciansandotherhealthcareprofessionalsastheyworktodelivertherightcareintherightplacefortheirpatients,ourmembers.Ourrangeofclinicalcapabilities,resourcesandtools–suchasin-homecare,behavioralhealth,pharmacyservices,dataanalyticsandwellnesssolutions–combinetoproduceasimplifiedexperiencethatmakeshealthcareeasiertonavigateandmoreeffective.

MoreinformationregardingHumanaisavailabletoinvestorsviatheInvestorRelationspageofthecompany’swebsiteathumana.com,includingcopiesof:

• Annualreportstostockholders• SecuritiesandExchangeCommissionfilings• Mostrecentinvestorconferencepresentations• Quarterlyearningsnewsreleasesandconferencecalls• Calendarofevents• CorporateGovernanceinformation

23

InaccordancewithGAAPunless

otherwisenoted

HumanaInc.Full-Year2021ProjectionsAsofFebruary3,2021

Comments

Dilutedearningspercommonshare(EPS)

GAAP $20.82to$21.32

• Non-GAAPadjustmentsnotedinfootnote(f).

Adjustments ~$0.43

Non-GAAP $21.25to$21.75

Totalrevenues

Consolidated $80.3billionto$81.9billion •Consolidatedandsegment-levelrevenueprojectionsincludeexpectedinvestmentincome.

• Segment-levelrevenuesincludeamountsthateliminateinconsolidation.

Retailsegment $72.6billionto$73.7billion

GroupandSpecialtysegment $6.6billionto$7.1billion

HealthcareServicessegment $30.2billionto$30.5billion

Changeinyear-endmedicalmembershipfromprioryearend

• IndividualMedicareAdvantage:Up~425,000to475,000(nochange)

• GroupMedicareAdvantage:Down~50,000(nochange)• Medicarestand-alonePDP:Down~300,000(nochange)• State-basedcontracts:Down~50,000toUp~100,000• Groupcommercialmedical:Down~100,000

• State-basedcontractsincludecurrentmembershipinFlorida,Illinois,Kentucky,andWisconsin.ThelowendoftheguidancerangeassumesthePublicHealthEmergency(PHE)endsonApril20,2021whilethehighendoftherangeassumesthePHEcontinuesthrough2021.

• Groupcommercialmedicalmembershipincludesfully-insuredandASO(self-insured).

BenefitRatioRetailsegment 87.5%to88.5% • Ratiocalculation:benefitsexpenseasa

percentofpremiumsrevenues.GroupandSpecialtysegment 83.2%to83.7%

Consolidatedoperatingcostratio

10.0%to11.0% • Ratiocalculation:operatingcostsexcludingdepreciationandamortizationasapercentofrevenuesexcludinginvestmentincome.

24

InaccordancewithGAAPunless

otherwisenoted

HumanaInc.Full-Year2021ProjectionsAsofFebruary3,2021

Comments

Segmentresults

Retailsegmentearnings $2.1billionto$2.3billion•Nomaterialimpacttosegmentearningsanticipatedfromnon-GAAPadjustments.GroupandSpecialtysegmentearnings $75millionto$125million

HealthcareServicesAdjustedEBITDA $1.45billionto$1.5billion

Effectivetaxrate 22.1%to22.7%

WeightedaveragesharecountfordilutedEPS

128.6millionto129.6million • FY2021guidancereflectsincrementalsharerepurchase.

Cashflowsfromoperations $4.0billionto$4.5billion

Capitalexpenditures $1.1billionto$1.2billion

25

Humana Inc.Statistical Schedules

AndSupplementary Information

4Q20 Earnings Release

S-1

HumanaInc.StatisticalSchedulesandSupplementaryInformation4Q20EarningsRelease

Contents

ConsolidatedFinancialStatements

1. ConsolidatedStatementsofIncome(S-3-S-4)

2. ConsolidatedBalanceSheets(S-5)

3. ConsolidatedStatementsofCashFlows(S-6-S-7)

OperatingResultsDetail

4. ConsolidatingStatementsofIncome-Quarter(S-8-S-9)

5. ConsolidatingStatementsofIncome-FY(S-10-S-11)

6. EndingMembershipDetail(S-12)

7. PremiumsandServicesRevenueDetail(S-13-S-14)

8. HealthcareServicesSegmentMetrics(S-15-S-17)

BalanceSheetDetail

9. BenefitsPayableDetailandStatistics(S-18-S-19)

Footnotes(S-20)

S-2

HumanaInc.ConsolidatedStatementsofIncomeDollarsinmillions,exceptpercommonshareresults

ForthethreemonthsendedDecember31,Dollar Percentage

2020 2019 Change Change

Revenues:Premiums $ 18,364 $ 15,809 $ 2,555 16.2%

Services 484 336 148 44.0%

Investmentincome 214 150 64 42.7%

Totalrevenues 19,062 16,295 2,767 17.0%

Operatingexpenses:Benefits 16,213 13,689 2,524 18.4%

Operatingcosts 3,068 2,129 939 44.1%

Depreciationandamortization 127 115 12 10.4%

Totaloperatingexpenses 19,408 15,933 3,475 21.8%(Loss)incomefromoperations (346) 362 (708) -195.6%Interestexpense 72 58 14 24.1%Otherexpense(income),net(A) 40 (289) 329 113.8%(Loss)incomebeforeincometaxesandequityinnetearnings (458) 593 (1,051) 177.2%(Benefit)provisionforincometaxes (178) 79 (257) -325.3%Equityinnetearnings(losses)(B) 6 (2) 8 -400.0%

Net(loss)income $ (274)$ 512 $ (786) -153.5%

Basic(loss)earningspercommonshare $ (2.07)$ 3.87 $ (5.94) -153.5%

(Losspercommonshare)dilutedearningspercommonshare $ (2.07)$ 3.84 $ (5.91) -153.9%

Sharesusedincomputingbasicearningspercommonshare(000’s) 132,094 132,453Sharesusedincomputingdilutedearningspercommonshare(000’s) 132,094 133,342

S-3

HumanaInc.ConsolidatedStatementsofIncomeDollarsinmillions,exceptpercommonshareresults

FortheyearendedDecember31,Dollar Percentage

2020 2019 Change Change

Revenues:Premiums $ 74,186 $ 62,948 $ 11,238 17.9%

Services 1,815 1,439 376 26.1%

Investmentincome 1,154 501 653 130.3%

Totalrevenues 77,155 64,888 12,267 18.9%

Operatingexpenses:Benefits 61,628 53,857 7,771 14.4%

Operatingcosts 10,052 7,381 2,671 36.2%

Depreciationandamortization 489 458 31 6.8%Totaloperatingexpenses 72,169 61,696 10,473 17.0%

Incomefromoperations 4,986 3,192 1,794 56.2%Interestexpense 283 242 41 16.9%Otherexpense(income),net(A) 103 (506) 609 120.4%Incomebeforeincometaxesandequityinnetearnings 4,600 3,456 1,144 33.1%Provisionforincometaxes 1,307 763 544 71.3%

Equityinnetearnings(B) 74 14 60 428.6%Netincome $ 3,367 $ 2,707 $ 660 24.4%

Basicearningspercommonshare $ 25.47 $ 20.20 $ 5.27 26.1%Dilutedearningspercommonshare $ 25.31 $ 20.10 $ 5.21 25.9%

Sharesusedincomputingbasicearningspercommonshare(000’s) 132,199 134,055

Sharesusedincomputingdilutedearningspercommonshare(000’s) 133,012 134,727

S-4

HumanaInc.ConsolidatedBalanceSheetsDollarsinmillions,exceptshareamounts December31, December31, Year-to-DateChange

2020 2019 Dollar Percent

Assets

Currentassets:

Cashandcashequivalents $ 4,673 $ 4,054

Investmentsecurities 12,554 10,972

Receivables,net 1,138 1,056

Othercurrentassets 5,276 3,806

Totalcurrentassets 23,641 19,888 $ 3,753 18.9%

Propertyandequipment,net 2,371 1,955

Long-terminvestmentsecurities 1,212 406

Goodwill 4,447 3,928

Equitymethodinvestments 1,170 1,063

Otherlong-termassets 2,128 1,834

Totalassets $ 34,969 $ 29,074 $ 5,895 20.3%

LiabilitiesandStockholders’Equity

Currentliabilities:

Benefitspayable $ 8,143 $ 6,004

Tradeaccountspayableandaccruedexpenses 4,013 3,754

Bookoverdraft 320 225

Unearnedrevenues 318 247

Short-termdebt 600 699

Totalcurrentliabilities 13,394 10,929 $ 2,465 22.6%

Long-termdebt 6,060 4,967

Otherlong-termliabilities 1,787 1,141

Totalliabilities 21,241 17,037 $ 4,204 24.7%

Commitmentsandcontingencies

Stockholders’equity:

Preferredstock,$1par;10,000,000sharesauthorized,noneissued — —

Commonstock,$0.162/3par;300,000,000sharesauthorized;198,648,742issuedatDecember31,2020 33 33

Capitalinexcessofparvalue 2,705 2,820

Retainedearnings 20,517 17,483

Accumulatedothercomprehensiveincome 391 156

Treasurystock,atcost,69,787,614sharesatDecember31,2020 (9,918) (8,455)

Totalstockholders’equity 13,728 12,037 $ 1,691 14.0%

Totalliabilitiesandstockholders’equity $ 34,969 $ 29,074 $ 5,895 20.3%

Debt-to-totalcapitalizationratio 32.7% 32.0%

S-5

HumanaInc.ConsolidatedStatementsofCashFlowsDollarsinmillions ForthethreemonthsendedDecember31,

Dollar Percentage 2020 2019 Change Change

Cashflowsfromoperatingactivities

Net(loss)income $ (274) $ 512Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities:

Depreciation 138 123Amortization 22 17Gainsoninvestmentsecurities,net (142) (39)

Equityinnet(earnings)losses (6) 2

Stock-basedcompensation 52 44

Provisionfordeferredincometaxes 198 183

Changesinoperatingassetsandliabilities,netofeffectofbusinessesacquiredanddispositions:Receivables (3) (211)Otherassets 966 (216)Benefitspayable (65) (216)Otherliabilities (658) 303Unearnedrevenues 31 (27)

Other,net 24 37Netcashprovidedbyoperatingactivities 283 512 ($229) -44.7%

Cashflowsfrominvestingactivities

Purchasesofpropertyandequipment,net (296) (230)

Purchasesofinvestmentsecurities (1,895) (2,231)

Maturitiesofinvestmentsecurities 1,486 452

Proceedsfromsalesofinvestmentsecurities 650 1,208Netcashusedininvestingactivities (55) (801) $746 93.1%

Cashflowsfromfinancingactivities

Withdrawalsfromcontractdeposits,net (665) (634)

Proceeds(repayments)fromissuanceofcommercialpaper,net 274 (2)

Repaymentofseniornotes (400) (400)

Repaymentoftermloan (1,000) —

Changeinbookoverdraft 106 (48)

Commonstockrepurchases (1,790) (60)

Dividendspaid (84) (75)

Proceedsfromstockoptionexercisesandother 19 35Netcashusedinfinancingactivities (3,540) (1,184) ($2,356) -199.0%Decreaseincashandcashequivalents (3,312) (1,473)Cashandcashequivalentsatbeginningofperiod 7,985 5,527Cashandcashequivalentsatendofperiod $ 4,673 $ 4,054

S-6

HumanaInc.ConsolidatedStatementsofCashFlowsDollarsinmillions FortheyearendedDecember31,

Dollar Percent

2020 2019 Change Change

Cashflowsfromoperatingactivities

Netincome $ 3,367 $ 2,707

Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities:Depreciation 528 505Amortization 88 70Gainsoninvestmentsecurities,net (838) (62)

Equityinnetearnings (74) (14)

Stock-basedcompensation 181 163

Provisionfordeferredincometaxes 195 162

Changesinoperatingassetsandliabilities,netofeffectofbusinessesacquiredanddispositions:

Receivables (85) (32)Otherassets (581) 118Benefitspayable 2,139 1,142Otherliabilities 599 471Unearnedrevenues 71 (36)

Other,net 49 90Netcashprovidedbyoperatingactivities 5,639 5,284 $355 6.7%

Cashflowsfrominvestingactivities

Acquisitions,netofcashacquired (709) —

Purchasesofpropertyandequipment,net (964) (736)

Purchasesofinvestmentsecurities (9,125) (6,361)

Maturitiesofinvestmentsecurities 4,986 1,733

Proceedsfromsalesofinvestmentsecurities 2,747 4,086Netcashusedininvestingactivities (3,065) (1,278) ($1,787) -139.8%

Cashflowsfromfinancingactivities

Withdrawalsfromcontractdeposits,net (939) (623)

Proceeds(repayment)fromtheissuanceofcommercialpaper,net 295 (360)

Proceedsfromissuanceofseniornotes,net 1,088 987

Repaymentofseniornotes (400) (400)

Proceedsfromissuanceoftermloan 1,000 —

Repaymentoftermloan (1,000) (650)

Changeinbookoverdraft 95 54

Commonstockrepurchases (1,820) (1,070)

Dividendspaid (323) (291)

Proceedsfromstockoptionexercisesandother 49 58Netcashusedinfinancingactivities (1,955) (2,295) $340 -14.8%Increaseincashandcashequivalents 619 1,711Cashandcashequivalentsatbeginningofperiod 4,054 2,343Cashandcashequivalentsatendofperiod $ 4,673 $ 4,054

S-7

HumanaInc.ConsolidatingStatementsofIncome—ForthethreemonthsendedDecember31,2020Inmillions

RetailGroupandSpecialty

HealthcareServices

Eliminations/Corporate Consolidated

Revenues—externalcustomersPremiums:

IndividualMedicareAdvantage $ 12,949 $ — $ — $ — $ 12,949

GroupMedicareAdvantage 1,907 — — — 1,907

Medicarestand-alonePDP 634 — — — 634

TotalMedicare 15,490 — — — 15,490

Fully-insured 179 1,155 — — 1,334

Specialty — 421 — — 421

Medicaidandother(C) 1,119 — — — 1,119

Totalpremiums 16,788 1,576 — — 18,364

Servicesrevenue:

Provider — — 119 — 119

ASOandother(D) 5 204 — — 209

Pharmacy — — 156 — 156

Totalservicesrevenue 5 204 275 — 484

Totalrevenues—externalcustomers 16,793 1,780 275 — 18,848

Intersegmentrevenues

Services — 7 4,977 (4,984) —

Products — — 2,028 (2,028) —

Totalintersegmentrevenues — 7 7,005 (7,012) —

Investmentincome 41 4 11 158 214

Totalrevenues 16,834 1,791 7,291 (6,854) 19,062

Operatingexpenses:

Benefits 14,598 1,643 — (28) 16,213

Operatingcosts 2,355 502 7,121 (6,910) 3,068

Depreciationandamortization 91 21 48 (33) 127

Totaloperatingexpenses 17,044 2,166 7,169 (6,971) 19,408

(Loss)incomefromoperations (210) (375) 122 117 (346)

Interestexpense — — — 72 72

Otherexpense,net(A) — — — 40 40

(Loss)incomebeforeincometaxesandequityinnetearnings (210) (375) 122 5 (458)

Equityinnetearnings(B) — — 6 — 6

Segment(loss)earnings $ (210) $ (375) $ 128 $ 5 $ (452)

Benefitratio 87.0% 104.3% 88.3%

Operatingcostratio 14.0% 28.1% 97.8% 16.3%

S-8

HumanaInc.ConsolidatingStatementsofIncome—ForthethreemonthsendedDecember31,2019Inmillions

RetailGroupandSpecialty

HealthcareServices

Eliminations/Corporate Consolidated

Revenues—externalcustomersPremiums:

IndividualMedicareAdvantage $ 10,874 $ — $ — $ — $ 10,874

GroupMedicareAdvantage 1,608 — — — 1,608

Medicarestand-alonePDP 757 — — — 757

TotalMedicare 13,239 — — — 13,239

Fully-insured 154 1,250 — — 1,404

Specialty — 411 — — 411

Medicaidandother(C) 755 — — — 755

Totalpremiums 14,148 1,661 — — 15,809

Servicesrevenue:

Provider — — 79 — 79

ASOandother(D) 3 203 — — 206

Pharmacy — — 51 — 51

Totalservicesrevenue 3 203 130 — 336

Totalrevenues—externalcustomers 14,151 1,864 130 — 16,145

Intersegmentrevenues

Services — 5 4,799 (4,804) —

Products — — 1,766 (1,766) —

Totalintersegmentrevenues — 5 6,565 (6,570) —

Investmentincome 56 6 1 87 150

Totalrevenues 14,207 1,875 6,696 (6,483) 16,295

Operatingexpenses:

Benefits 12,206 1,581 — (98) 13,689

Operatingcosts 1,642 419 6,481 (6,413) 2,129

Depreciationandamortization 84 21 35 (25) 115

Totaloperatingexpenses 13,932 2,021 6,516 (6,536) 15,933

Income(loss)fromoperations 275 (146) 180 53 362

Interestexpense — — — 58 58

Otherincome,net(A) — — — (289) (289)

Income(loss)beforeincometaxesandequityinnetearnings 275 (146) 180 284 593

Equityinnetlosses(B) — — (2) — (2)

Segmentearnings(loss) $ 275 $ (146) $ 178 $ 284 $ 591

Benefitratio 86.3% 95.2% 86.6%

Operatingcostratio 11.6% 22.4% 96.8% 13.2%

S-9

HumanaInc.ConsolidatingStatementsofIncome—FortheyearendedDecember31,2020Inmillions

RetailGroupandSpecialty

HealthcareServices

Eliminations/Corporate Consolidated

Revenues—externalcustomersPremiums:

IndividualMedicareAdvantage $ 51,697 $ — $ — $ — $ 51,697

GroupMedicareAdvantage 7,774 — — — 7,774

Medicarestand-alonePDP 2,742 — — — 2,742

TotalMedicare 62,213 — — — 62,213

Fully-insured 688 4,761 — 602 6,051

Specialty — 1,699 — — 1,699

Medicaidandother(C) 4,223 — — — 4,223

Totalpremiums 67,124 6,460 — 602 74,186

Servicesrevenue:

Provider — — 435 — 435

ASOandother(D) 19 780 — — 799

Pharmacy — — 581 — 581

Totalservicesrevenue 19 780 1,016 — 1,815

Totalrevenues—externalcustomers 67,143 7,240 1,016 602 76,001

Intersegmentrevenues

Services — 29 19,491 (19,520) —

Products — — 7,928 (7,928) —

Totalintersegmentrevenues — 29 27,419 (27,448) —

Investmentincome 155 16 13 970 1,154

Totalrevenues 67,298 7,285 28,448 (25,876) 77,155

Operatingexpenses:

Benefits 56,537 5,529 — (438) 61,628

Operatingcosts 7,402 1,818 27,395 (26,563) 10,052

Depreciationandamortization 342 81 183 (117) 489

Totaloperatingexpenses 64,281 7,428 27,578 (27,118) 72,169

Income(loss)fromoperations 3,017 (143) 870 1,242 4,986

Interestexpense — — — 283 283

Otherexpense,net(A) — — — 103 103

Income(loss)beforeincometaxesandequityinnetearnings 3,017 (143) 870 856 4,600

Equityinnetearnings(B) — — 74 — 74

Segmentearnings(loss) $ 3,017 $ (143) $ 944 $ 856 $ 4,674

Benefitratio 84.2% 85.6% 83.1%

Operatingcostratio 11.0% 25.0% 96.3% 13.2%

HumanaInc.

S-10

ConsolidatingStatementsofIncome—FortheyearendedDecember31,2019Inmillions

RetailGroupandSpecialty

HealthcareServices

Eliminations/Corporate Consolidated

Revenues—externalcustomersPremiums:

IndividualMedicareAdvantage $ 43,128 $ — $ — $ — $ 43,128

GroupMedicareAdvantage 6,475 — — — 6,475

Medicarestand-alonePDP 3,165 — — — 3,165

TotalMedicare 52,768 — — — 52,768

Fully-insured 588 5,123 — — 5,711

Specialty — 1,571 — — 1,571

Medicaidandother(C) 2,898 — — — 2,898

Totalpremiums 56,254 6,694 — — 62,948

Servicesrevenue:

Provider — — 446 — 446

ASOandother(D) 17 790 — — 807

Pharmacy — — 186 — 186

Totalservicesrevenue 17 790 632 — 1,439

Totalrevenues—externalcustomers 56,271 7,484 632 — 64,387

Intersegmentrevenues

Services — 18 18,255 (18,273) —

Products — — 6,894 (6,894) —

Totalintersegmentrevenues — 18 25,149 (25,167) —

Investmentincome 195 23 2 281 501

Totalrevenues 56,466 7,525 25,783 (24,886) 64,888

Operatingexpenses:

Benefits 48,602 5,758 — (503) 53,857

Operatingcosts 5,306 1,651 24,852 (24,428) 7,381

Depreciationandamortization 323 88 156 (109) 458

Totaloperatingexpenses 54,231 7,497 25,008 (25,040) 61,696

Incomefromoperations 2,235 28 775 154 3,192

Interestexpense — — — 242 242

Otherincome,net(A) — — — (506) (506)

Incomebeforeincometaxesandequityinnetearnings 2,235 28 775 418 3,456

Equityinnetearnings(B) — — 14 — 14

Segmentearnings $ 2,235 $ 28 $ 789 $ 418 $ 3,470

Benefitratio 86.4% 86.0% 85.6%

Operatingcostratio 9.4% 22.0% 96.4% 11.5%

S-11

HumanaInc.EndingMembershipDetailInthousands

Year-over-YearChange SequentialChange

December31,2020 Average4Q20 December31,2019 Amount PercentSeptember30,

2020 Amount Percent

MedicalMembership:

Retail

IndividualMedicareAdvantage 3,962.7 3,958.8 3,587.2 375.5 10.5% 3,935.1 27.6 0.7%

GroupMedicareAdvantage 613.2 613.1 525.3 87.9 16.7% 612.0 1.2 0.2%

Medicarestand-alonePDP 3,866.7 3,876.7 4,365.2 (498.5) -11.4% 3,892.2 (25.5) -0.7%

TotalMedicare 8,442.6 8,448.6 8,477.7 (35.1) -0.4% 8,439.3 3.3 —%

State-basedcontracts(E) 772.4 758.1 469.0 303.4 64.7% 730.1 42.3 5.8%

MedicareSupplement 335.6 334.2 298.4 37.2 12.5% 331.3 4.3 1.3%

TotalRetail 9,550.6 9,540.9 9,245.1 305.5 3.3% 9,500.7 49.9 0.5%

GroupandSpecialty

Fully-insuredcommercialmedical 777.4 787.0 908.6 (131.2) -14.4% 799.5 (22.1) -2.8%

ASOcommercial 504.9 502.6 529.2 (24.3) -4.6% 502.1 2.8 0.6%

Militaryservices 5,998.7 6,022.5 5,984.3 14.4 0.2% 6,016.4 (17.7) -0.3%

TotalGroupandSpecialty 7,281.0 7,312.1 7,422.1 (141.1) -1.9% 7,318.0 (37.0) -0.5%

TotalMedicalMembership 16,831.6 16,853.0 16,667.2 164.4 1.0% 16,818.7 12.9 0.1%

SpecialtyMembership(includedinGroupandSpecialtysegment):

Dental—fully-insured(F) 2,617.6 2,620.9 2,646.4 (28.8) -1.1% 2,627.4 (9.8) -0.4%

Dental—ASO 284.9 283.6 278.9 6.0 2.2% 282.4 2.5 0.9%

Vision 2,005.5 2,003.1 2,082.5 (77.0) -3.7% 2,013.8 (8.3) -0.4%

Othersupplementalbenefits(G) 402.3 402.2 418.1 (15.8) -3.8% 402.0 0.3 0.1%

TotalSpecialtyMembership 5,310.3 5,309.8 5,425.9 (115.6) -2.1% 5,325.6 (15.3) -0.3%

December31,2020MemberMix

December31,2020 December31,2019MemberMix

December31,2019

IndividualMedicareAdvantageMembership

HMO 2,352.5 59% 2,129.9 59%

PPO 1,610.2 41% 1,457.3 41%

TotalIndividualMedicareAdvantage 3,962.7 100% 3,587.2 100%

IndividualMedicareAdvantageMembership

SharedRisk(H) 1,231.9 31% 1,116.1 31%

PathtoRisk(I) 1,418.2 36% 1,290.9 36%

TotalValue-based 2,650.1 67% 2,407.0 67%

Other 1,312.6 33% 1,180.2 33%

TotalIndividualMedicareAdvantage 3,962.7 100% 3,587.2 100%

S-12

HumanaInc.PremiumsandServicesRevenueDetailDollarsinmillions,exceptpermemberpermonth

ForthethreemonthsendedDecember31,PerMemberperMonth(L)

ForthethreemonthsendedDecember31,

Dollar Percentage

2020 2019 Change Change 2020 2019

PremiumsandServicesRevenue

Retail

IndividualMedicareAdvantage $ 12,949 $ 10,874 $ 2,075 19.1% $ 1,090 $ 1,013

GroupMedicareAdvantage 1,907 1,608 299 18.6% 1,037 1,021

Medicarestand-alonePDP 634 757 (123) -16.2% 55 58

State-basedcontracts(E) 1,119 755 364 48.2% 492 537

MedicareSupplement 179 154 25 16.2% 179 175

Otherservices 5 3 2 66.7%

TotalRetail 16,793 14,151 2,642 18.7%

GroupandSpecialty

Fully-insuredcommercialmedical 1,155 1,250 (95) -7.6% 489 454

Specialty(J) 421 411 10 2.4% 28 27

CommercialASO&otherservices(D) 74 88 (14) -15.9%

Militaryservices(K) 137 120 17 14.2%

TotalGroupandSpecialty 1,787 1,869 (82) -4.4%

HealthcareServices

Pharmacysolutions 6,468 5,905 563 9.5%

Providerservices 634 594 40 6.7%

Clinicalprograms 178 196 (18) -9.2%

TotalHealthcareServices 7,280 6,695 585 8.7%

S-13

HumanaInc.PremiumsandServicesRevenueDetailDollarsinmillions,exceptpermemberpermonth

FortheyearendedDecember31,PerMemberperMonth(L)

FortheyearendedDecember31,

Dollar Percentage

2020 2019 Change Change 2020 2019

PremiumsandServicesRevenueRetail

IndividualMedicareAdvantage $ 51,697 $ 43,128 $ 8,569 19.9% $ 1,107 $ 1,027

GroupMedicareAdvantage 7,774 6,475 1,299 20.1% 1,064 1,036

Medicarestand-alonePDP 2,742 3,165 (423) -13.4% 59 60

State-basedcontracts(E) 4,223 2,898 1,325 45.7% 510 525

MedicareSupplement 688 588 100 17.0% 177 176

Otherservices 19 17 2 11.8%

TotalRetail 67,143 56,271 10,872 19.3%

GroupandSpecialtyFully-insuredcommercialmedical 4,761 5,123 (362) -7.1% 483 454

Specialty(J) 1,699 1,571 128 8.1% 28 25

CommercialASO&otherservices(D) 309 326 (17) -5.2%

Militaryservices(K) 500 482 18 3.7%

TotalGroupandSpecialty 7,269 7,502 (233) -3.1%

HealthcareServicesPharmacysolutions 25,168 22,375 2,793 12.5%

Providerservices 2,594 2,650 (56) -2.1%

Clinicalprograms 673 756 (83) -11.0%

TotalHealthcareServices 28,435 25,781 2,654 10.3%

S-14

HumanaInc.HealthcareServicesSegmentMetrics

December31,2020

December31,2019 Difference

September30,2020 Difference

PrimaryCareProviders:

SharedRisk(H)

Proprietary 900 1,200 (300) -25.0% 1,000 (100) -10.0%

Contracted 23,000 18,700 4,300 23.0% 22,100 900 4.1%

PathtoRisk(I) 43,900 42,000 1,900 4.5% 43,900 — —%

TotalValue-based 67,800 61,900 5,900 9.5% 67,000 800 1.2%

CareManagementStatistics:

MembersenrolledinaHumanacaremanagementprogram(M) 910,600 868,800 41,800 4.8% 917,200 (6,600) -0.7%

Numberofhigh-riskdischargesenrolledinapost-dischargecaremanagementprogram(N) 73,600 61,500 12,100 19.7% 68,900 4,700 6.8%

PrimaryCareCenters(O) AsofDecember31,2020

CentersPrimary

CarePhysicians PatientsServed

Humana'sCareDeliverySubsidiaries 156 662 255,400

JointVentureandAllianceProviderPartners 152 274

S-15

HumanaInc.HealthcareServicesSegmentMetrics(Continued)Scriptvolumeinthousands

ForthethreemonthsendedDecember31,2020

ForthethreemonthsendedDecember31,2019

Year-over-Year

DifferenceForthethreemonthsended

September30,2020SequentialDifference

Pharmacy:GenericDispenseRate

Retail 91.8% 91.8% —% 91.5% 0.3%

GroupandSpecialty 88.1% 87.1% 1.0% 88.0% 0.1%

Mail-OrderPenetration

Retail 30.6% 29.2% 1.4% 29.9% 0.7%

GroupandSpecialty 6.4% 6.2% 0.2% 6.3% 0.1%

DifferencePercentageChange Difference

PercentageChange

Scriptvolume(P) 121,800 117,700 4,100 3.5% 119,400 2,400 2.0%

S-16

HumanaInc.HealthcareServicesSegmentMetrics(Continued)Scriptvolumeinthousands

FortheyearendedDecember31,2020

FortheyearendedDecember31,2019

Year-over-YearDifference

Pharmacy:GenericDispenseRate

Retail 91.7% 91.7% —%

GroupandSpecialty 87.9% 87.4% 0.5%

Mail-OrderPenetrationRetail 30.1% 28.8% 1.3%

GroupandSpecialty 6.2% 6.3% -0.1%

DifferencePercentageChange

Scriptvolume(P) 477,600 456,300 21,300 4.7%

S-17

HumanaInc.DetailofBenefitsPayableBalanceandYear-to-DateChangesDollarsinmillions

FortheyearendedDecember31,2020

FortheninemonthsendedSeptember30,2020

FortheyearendedDecember31,2019

Year-to-datechangesinbenefitspayable,excludingmilitaryservices

BalancesatJanuary1 $6,004 $6,004 $4,862

Less:Reinsurancerecoverables(Q) (68) (68) (95)

Beginningbalance,netofreinsurancerecoverable 5,936 5,936 4,767

Incurredrelatedto:

Currentyear 61,941 45,693 54,193

Prioryears(R) (313) (278) (336)

Totalincurred 61,628 45,415 53,857

Paidrelatedto:

Currentyear (54,003) (37,810) (48,421)

Prioryears (5,418) (5,334) (4,267)

Totalpaid (59,421) (43,144) (52,688)

Reinsurancerecoverables(Q) — 1 68

Endingbalance $8,143 $8,208 $6,004

S-18

HumanaInc.BenefitsPayableStatistics(Continued)(S)

DaysinClaimsPayable

QuarterEnded

DaysinClaims

Payable(DCP)

ChangeLast4

QuartersPercentageChange

12/31/2019 40.4 1.3 3.3%

3/31/2020 41.3 1.1 2.7%

6/30/2020 51.2 11.3 28.3%

9/30/2020 48.4 5.6 13.1%12/31/2020 46.2 5.8 14.4%

ChangeinDaysinClaimsPayable(T)1Q2020

2Q2020

3Q2020

4Q2020

FY2020

4Q2019

FY2019

DCP—beginningofperiod 40.4 41.3 51.2 48.4 40.4 42.8 39.1

ComponentsofchangeinDCP:

Provideraccruals(U) 0.2 7.0 (2.8) (1.0) 3.4 (0.6) 1.4

Medicalfee-for-service(V) 0.6 2.4 (0.6) (0.4) 2.0 0.3 0.7

Pharmacy(W) 0.3 (0.2) — (0.4) (0.3) (0.3) (0.5)

Processedclaimsinventory(X) (0.1) 0.6 0.7 (0.4) 0.8 (2.0) (0.5)

Other(Y) (0.1) 0.1 (0.1) — (0.1) 0.2 0.2

DCP—endofperiod 41.3 51.2 48.4 46.2 46.2 40.4 40.4

Totalchangefrombeginningofperiod 0.9 9.9 (2.8) (2.2) 5.8 (2.4) 1.3

S-19

HumanaInc.FootnotestoStatisticalSchedulesandSupplementaryInformation4Q20EarningsRelease

(A) Put/callvaluationadjustmentsassociatedwiththecompany'snon-consolidatingminorityinterestinvestments.(B) Netearningsassociatedwiththecompany'snon-consolidatingminorityinterestinvestments.(C) TheMedicaidandothercategoryincludespremiumsassociatedwiththecompany’sMedicaidbusiness.(D) TheASOandothercategoryisprimarilycomprisedofAdministrativeServicesOnly(ASO)feesandotherancillaryservicesfees,includingmilitaryservicesunlessseparatelydisclosed.(E) IncludesMedicaidTemporaryAssistanceforNeedyFamilies(TANF),dual-eligibledemonstration,andLong-TermSupportServices(LTSS)fromstate-basedcontracts.(F) Fully-insureddentalmembershipasreporteddoesnotincludeHumanamembersthathaveaMedicareAdvantageplanthatincludesanembeddeddentalbenefit.Costsassociatedwiththesedentalbenefits,

however,arerecordedintheGroupandSpecialtysegmentearningsresults.(G) Othersupplementalbenefitsincludegrouplifepolicies.(H) Incertaincircumstances,thecompanycontractswithproviderstoacceptfinancialriskforadefinedsetofMedicareAdvantagemembership.Intransferringthisrisk,thecompanyprepaystheseprovidersa

monthlyfixed-feepermembertocoordinatesubstantiallyallofthemedicalcarefortheirMedicareAdvantagemembersassignedorattributedtotheirproviderpanel,includingsomehealthbenefitadministrativefunctionsandclaimsprocessing.ForthesecapitatedSharedRiskarrangements,thecompanygenerallyagreestopaymentratesthattargetabenefitexpenseratio.Theresultisahighlevelofengagementonthepartoftheprovider.

(I) APathtoRiskproviderisonewhohasahighlevelofengagementandparticipatesinoneofHumana’spay-for-performanceprograms(ModelPracticeorMedicalHome)orhasariskcontractinplacewithatrigger(futuredateormembershipthreshold)whichhasnotyetbeenmet.Inadditiontoearningincentives,theseprovidersmayalsohaveasharedsavingscomponentbywhichtheycanshareinachievedsurpluseswhentheactualcostofthemedicalservicesprovidedtopatientsassignedorattributedtotheirpanelislessthantheagreeduponmedicalexpensetarget.

(J) Specialtypermemberpermonthiscomputedbasedonreportedspecialtypremiumsandaveragefully-insuredspecialtymembershipfortheperiod.Includedwithspecialtypremiumsarestop-lossASOpremiums.

(K) TheamountsprimarilyreflectservicesrevenuesundertheTRICAREEastRegioncontractthatgenerallyarecontractedonaper-memberbasis.(L) Computedbasedonaveragemembershipfortheperiod(i.e.,monthlyendingmembershipduringtheperioddividedbythenumberofmonthsintheperiod).(M) IncludesMedicareAdvantage(includingSpecialNeedsPlans(SNP))anddual-eligibledemonstrationprogrammembersenrolledinoneofHumana’scareprograms.ThesemembersmaybeenrolledinHumana

AtHomeChronicCareProgram(HCCP),HumanaAtHomeRemoteMonitoring,oranAdvanceIllnessSupportprogram.Membersincludedintheseprogramsmaynotbeuniquetoeachprogramsincemembershavetheabilitytoenrollinmultipleprograms.Inaddition,themembersintheHCCPprogrammayreceivevaryinglevelsofcaremanagementbasedontheirhealthstatusandneeds,rangingfromactivecaremanagementtoongoingmonitoring.

(N) ReflectsdischargesenrolledinHumana’s30-daycaremanagementservices,whichsupportsmembersaftertheyaredischargedhomefromahospitalorotherfacility.Theprogramisaimedatindividualsathigh-riskforre-hospitalization.Caremanagersvisitandcallmembersathometoensuretheyhaveandunderstandcorrectprescriptions,theirdoctorsareinformedaboutmembers’changedstatus,andthatmembersareeitherself-managingadequatelyorarereferredtoappropriateongoingservices.

(O) Humana'scaredeliverysubsidiariesincludeConviva,PartnersinPrimaryCare,andFamilyPhysiciansGroup.Thecenter,primarycarephysician,andpatientsservedcountsinclude(i)theoperationsofourmedicalcenterbusinessthroughbothemployedphysiciansandcareproviders,andthroughthirdpartymanagementserviceorganizationsandprofessionalgroupswithwhomwecontracttoarrangeforandmanagecertainclinicalservices,(ii)clinicsandoperationsmanagedbyPartnersinPrimaryCareinconnectionwithastrategicpartnershipwithWelsh,Carson,Anderson&Stowe,and(iii)thoseassociatedwithMSO/IPArelationshipswithConviva.

(P) Scriptvolumeispresentedonanadjusted30-dayequivalentbasis.ThisincludesallscriptsprocessedbytheHumanapharmacybenefitmanager(PBM).(Q) Representsreinsurancerecoverablesassociatedwiththecompany’sstate-basedMedicaidcontractinKentucky.(R) Amountsincurredrelatedtoprioryearsvaryfrompreviouslyestimatedliabilitiesastheclaimsultimatelyaresettled.Negativeamountsreportedforincurredrelatedtoprioryearsresultfromclaimsbeing

ultimatelysettledforamountslessthanoriginallyestimated(favorabledevelopment).Therewerenochangesintheapproachusedtodeterminethecompany’sestimateofmedicalclaimreservesduringthequarter.

(S) Acommonmetricformonitoringbenefitspayablelevelsrelativetobenefitsexpenseisdaysinclaimspayable(DCP).ThecompanycalculatesDCPusingthequarterlyreportedbenefitsexpenseandbenefitspayablebalancesaspresentedwithinthecompany’sconsolidatedfinancialstatements.

(T) DCPfluctuatesduetoanumberoffactors,themoresignificantofwhicharedetailedinthisrollforward.GrowthincertainproductlinescanalsoimpactDCPforthequartersinceaprovisionforclaimswouldnothavebeenrecordedformembersthathadnotyetenrolledearlierinthequarter,yetthosememberswouldhaveaprovisionandcorrespondingmedicalclaimsreserverecordeduponenrollmentlaterinthequarter.

(U) Provideraccrualsrepresentportionsofcapitationpaymentssetasidetopayfuturesettlementsforcapitatedproviders.Relatedsettlementsgenerallyhappenovera12-monthperiod.(V) Representsmedicalandspecialtyclaimsincurredbutnotreported(IBNR)fornon-pharmacyfully-insuredproducts.(W) Representspharmacyclaimsexpenseincludingpaymentstothecompany’spharmacybenefitmanagerforprescriptiondrugsfilledonbehalfofHumana’smembers,aswellasgovernmentsubsidized

programsfromMedicarePartDsuchaslowincomecostandreinsurancesubsidies,aswellascoveragegapdiscountprograms.(X) Includesprocessedclaimsthatareinthepostclaimadjudicationprocess,whichconsistsofoperatingfunctionssuchasaudit,checkbatchingandcheckhandling.TheseclaimsareincludedinIBNRlags,but

havenotyetbeenmailedorreleasedfromHumana.(Y) Includesnon-laggedreservessuchasASOstoploss,lifereserves,andaccidentaldeathanddismemberment/accidentandhealth.Alsoincludesanexplicitprovisionforuncertainty(alsocalledaprovisionfor

adversedeviation)intendedtoensuretheunpaidclaimliabilitiesareadequateundermoderatelyadverseconditions.

S-20