This excerpt taken from the HUM 8-K filed Apr 28, 2008.
Cash and cash equivalents declined $352.2 million or 17 percent from
December 31, 2007 primarily due to the purchase of investments, the
repayment of borrowings, and common stock repurchases during 1Q08.
Debt-to-total capitalization at March 31, 2008 was 28.3 percent, down
120 basis points from December 31, 2007.
Days in claims payable of 56.9 at March 31, 2008 reflect a decline of
3.3 days from 60.2 at December 31, 2007, primarily driven by:
An increase in Medicare Advantage Private Fee-for-Service claims
administered internally in lieu of outsourced to a Medicare fiscal
intermediary where claims processing cycles are elongated.
(Reduced days in claims payable approximately 1.7 days.)
The impact of benefit levels resetting on January 1 for the Part D
component of the company’s Medicare Advantage products. This
results in benefit expenses increasing sequentially while the
corresponding benefits payable generally is unchanged, thus
lowering the calculated days in claims payable. (Reduced days in
claims payable approximately 1.5 days.)
A sequential increase in the percentage of Medicare Advantage
membership in PPO products. Network providers generally submit
claims faster than non-network providers, shortening the claims
receipt cycle time and allowing for reduced claims processing time
overall. (Reduced days in claims payable approximately 0.6 of a
Other factors detailed in the statistical supplement to this
release increased days in claims payable by approximately 0.5 of a
This excerpt taken from the HUM 8-K filed Feb 4, 2008.
Cash and cash equivalents declined $545.2 million or 21 percent
sequentially due to the payment of Part D risk-share payable of
approximately $726 million.
Parent company cash and investments increased $111.3 million to $535.7
million at December 31, 2007 from $424.4 million at December 31, 2006.
Debt-to-total capitalization at December 31, 2007 was 29.5 percent, up
380 basis points from September 30, 2007 due primarily to the
completion of two acquisitions during 4Q07. This ratio was up 10 basis
points compared to December 31, 2006.