Humana Inc Mission Statement

Humana Inc.

Introduction

Humana began as a nursing home called Extendicare, which was founded by two lawyers from Louisville, Kentucky named David A. Jones Sr. and Wendell Cherry in 1961. Extendicare’s expansion was swift in the first seven years due to the sale of stocks; the pair added new services to their patient care plan and opened forty new facilities, making it the leading nursing home organization in the country (“History of Humana Inc.-Funding Universe,” n.d.). From 1961 to 1971, also the birth of Medicare, Extendicare attempted to diversify the business by purchasing mobile home parks but it was unsuccessful (“History of Humana Inc.-Funding Universe,” n.d.). In 1968, Extendicare purchased their first hospital and utilized

This classification also contains the Tricare South Region agreement which affords health aids to the military (“Individual Health Plans and Products Overview from Humana,” 2017).

Healthcare Services Pharmacy Solutions, clinical programs, and provider services are provided under this product line which also gives the organization a chance to showcase their ability to stimulate wellness with their product called Go365 and encourage population health (“Individual Health Plans and Products Overview from Humana,” 2017).

Individual Commercial This division was created for the Affordable Healthcare Act where it provided a plan called Humana One which was a low-cost plan (“Individual Health Plans and Products Overview from Humana,”

Humana is heavily dependent upon Medicare financially and that can be considered a gamble to the overall outcome of the organization (“How big is Humana Insurance,” 2013). The country’s financial issues will give way to the uncertainty of medical care in the future, which can lead to a decline in revenue. At that time, Humana would be forced to depend on the Private and Group policies to breakeven but by that time it will be too late, they will have squandered the firm’s spot in the competition lineup (“How big is Humana Insurance,” 2013). Another significant threat to the organization can be found in the Social Security Administration report that detailed how Social Security will disburse $27 billion dollars more in benefits that are collected from tax income (Social Security, 2017). The deficit will grow over the next decade to a ghastly 1.4 trillion dollars. It has been predicted that Social Security will run out of funding by the year 2034 (Social Security, 2017).

Purpose

Our purpose is to shed some light on a flaw that poses an extreme threat to the survivability of Humana. What flaw do you ask? Well because of the over- dependence on the baby boomer population’s enrollment this puts the company in a most vulnerable position where the organization will be steadily reliant on Medicare or government reimbursements for its existence.

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