2023 Annual Report

Generally Accepted Accounting Principles (GAAP)

OPERATING RESULTS

Revenues

Net income attributable to Humana

Diluted earnings per common share

FINANCIAL POSITION Total assets

Total liabilities

Total stockholders' equity

$2,262

$5,639

$5,284

Our shift over the years from a health insurance company to a healthcare services organization symbolizes more than a strategic evolution;

it represents our dedication and commitment to caring for the needs of our customers and patients, our employees, our communities and our environment.

For our customers and patients, it is our responsibility to ensure they receive the high-quality, comprehensive care they deserve.

Medicare Advantage

In our individual MA business, we were pleased to grow membership by over 840,000 in 2023, representing an impressive 19% growth rate, significantly outpacing the industry. We're proud that our dedication to putting our members' health first was recognized again this year in our Centers for Medicare & Medicaid Services (CMS) Star Ratings, with 94% of our members in plans rated 4 stars or higher, 61% in plans rated 4.5 or 5 stars, and 37% of all 5-star MA membership in a Humana plan.

In addition, for the third year in a row, Humana has been ranked No. 1 among health insurers for customer experience quality in Forrester's proprietary 2023 U.S. Customer Experience Benchmark survey. Humana also

ranked No. 1 in customer satisfaction among MA plans in Florida based on a comprehensive 2023 study by J.D. Power, and we are proud that Humana has once again been named the Best Overall Medicare Advantage Insurance Company by U.S. News & World Report, which created an honor

roll based on CMS's newly released Star Ratings for MA plans. Additionally, Humana ranked as the best company for member experience and was declared the best company for low-premium plan availability. Collectively, these ratings demonstrate our continued commitment to customer satisfaction and quality of care.

While the elevated MA medical costs impacting the industry significantly influenced our financial results for 2023 and outlook for 2024, we continue to believe the strong fundamentals of MA remain intact and the strength and scale of our platform and differentiated capabilities will allow us to effectively manage through the near-term uncertainty, compete effectively and deliver compelling shareholder returns over the long term.

We believe the value proposition of MA will remain compelling

Today, more than half of all Medicare-eligible seniors and those with disabilities rely on MA-more than 32 million Americans.1 These beneficiaries choose MA because it delivers the accountable, high-quality,consumer-centric healthcare they depend on. In a time when MA is facing near-term challenges, we believe it is important to reinforce our belief that MA has strong industry fundamentals and secular growth prospects due to an aging population and a value proposition that will continue to be superior to fee-for-service Medicare.

The average MA enrollee is more likely, as compared to those with fee-for-service Medicare, to live on less than $20,000 per year.2 That underscores why MA is deeply valued and relied on by millions of seniors. MA provides a significant value proposition: providing on-average cost savings for an enrollee of $2,400 per year;3 offering key benefits that are not covered by fee-for-service Medicare, such as access to healthy foods and rides to the doctor; and a deep focus on coordinating care for those with chronic illnesses and closing barriers to care. Seniors choosing MA have doubled since 2010, moving from 25% in 2010 to 54% currently, demonstrating the strong value proposition enrollees see in MA being right for their health needs.4,5 As we look ahead, the Medicare population will continue to grow. Kaiser Family Foundation anticipates there will be 70 million

Medicare-eligible Americans by 2030, with MA

penetration rates greater than 60%.6,4

In addition, the MA program has embedded adjusting mechanisms-including CMS benchmarks, risk adjustment and the ability to re-price each year-which enable Humana and others in the industry to adequately address unanticipated increases in medical costs within a relatively short period of time. Importantly, while moderate benefit adjustments will cause disruption for members in the near term, which the industry in its partnership with CMS must manage, we believe the value proposition of MA will remain compelling. As a result, we continue to expect the industry to experience high single-digit growth in the mid-term, including 2024.

94%

of our MA members in plans rated 4 stars or higher

In our Medicaid business, Humana continues to demonstrate the ability to deliver unique value to communities by building on a strong operating model that integrates physical and behavioral health and develops meaningful partnerships and innovations to address health inequities and social determinants of health. After successfully implementing the Ohio and Louisiana contracts in early 2023, we look forward to beginning to serve members in both Indiana and Oklahoma in 2024 and continue to expect to bring our total Medicaid footprint to nine states and approximately 1.5 million members by year-end 2024.

We expect to bring our total Medicaid footprint to nine states and approximately 1.5 million members by year-end 2024

CenterWell healthcare services

We've designed our CenterWell healthcare services so they are integrated and accessible where, when, and how our customers need them. Through our CenterWell offerings of primary care, home health, and pharmacy, our members and patients experience better health outcomes and greater satisfaction and are more likely to continue their health journey with us.

Primary care

Our primary care business is designed to address the unique needs of seniors, providing access to care in historically underserved areas by improving access to primary care. Focused on delivering quality care and patient experiences, our clinics emphasize prevention and lifestyle changes to improve the overall health of our patients. We continue to push for improvement in our operations and our ability to positively impact patient outcomes. Our primary care platform experienced significant growth in 2023, now operating 296 centers serving over 294,000 patients, representing year-over-year growth of 26% and 19%, respectively. In addition,

we increased the number of wholly owned centers that are contribution margin positive from 110 at the end of 2022 to 150 at year-end 2023, representing a 36% increase year over year.

Operating 296 centers serving over 294,000 patients

We also increased the number of centers that have reached our $3 million contribution margin target from 31 in 2022 to 53 at the end of 2023, representing a compelling 71% increase year over year. We will continue to expand our multi-payer primary care platform in 2024 as we expect to continue the growth pace that we have previously communicated: between 30 to 50 incremental centers annually. From a patient outcome perspective, we are pleased to share that 95% of physician patient panels had a primary care provider visit and 92% of the total panel had a preventive screening in 2023. Patient satisfaction scores continue to reflect the quality of care delivered, with Net Promoter Scores averaging +83.4 nationally. In addition, we are proud of our quality scores; we have closed 85% of all available Healthcare Effectiveness Data and Information Set (HEDIS®) gaps for our MA patients across our wholly owned and de novo centers, delivering a 4.5-star

rating in 2023 for our patients.