49071--2/20/2009--HUMANA

related topics

{regulation, government, change}

{condition, economic, financial}

{acquisition, growth, future}

{system, service, information}

{capital, credit, financial}

{loss, insurance, financial}

{financial, litigation, operation}

{debt, indebtedness, cash}

{product, market, service}

{cost, regulation, environmental}

{cost, operation, labor}

If the premiums we charge are insufficient to cover the cost of health care services delivered to our members, or if our estimates of benefits payable or future policy benefits payable based upon our estimates of future benefit claims are inadequate, our profitability could be materially adversely affected. If we do not design and price our products properly and competitively, our membership and profitability could be materially adversely affected. If we fail to effectively implement our operational and strategic initiatives, including our Medicare initiatives, our business could be materially adversely affected. If we fail to properly maintain the integrity of our data, to strategically implement new information systems, or to protect our proprietary rights to our systems, our business could be materially adversely affected. We are involved in various legal actions, which, if resolved unfavorably to us, could result in substantial monetary damages. As a government contractor, we are exposed to additional risks that could adversely affect our business or our willingness to participate in government health care programs. Our industry is currently subject to substantial government regulation, which, along with possible increased governmental regulation or legislative change, could increase our costs of doing business and could materially adversely affect our profitability. We are also subject to potential changes in the political environment that can affect public policy and can adversely affect the markets for our products. Any failure to manage administrative costs could hamper profitability. Any failure by us to manage acquisitions, and other significant transactions successfully could have a material adverse effect on our financial results, business and prospects. If we fail to develop and maintain satisfactory relationships with the providers of care to our members, our business could be adversely affected. Our mail-order pharmacy business is highly competitive and subjects us to regulations in addition to those we face with our core health benefits businesses. Our ability to obtain funds from our subsidiaries is restricted. Downgrades in our debt ratings, should they occur, may adversely affect our business, results of operations, and financial condition. Changes in economic conditions could adversely affect our business and results of operations. The securities and credit markets recently have been experiencing extreme volatility and disruption. Given the current economic climate, our stock and the stocks of other companies in the insurance industry may be increasingly subject to stock price and trading volume volatility.

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49071--2/20/2009--HUMANA_INC