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Humana Receives URAC Pharmacy Benefit Management Accreditation

Humana One of First Organizations to Earn This New, Voluntary Accreditation

Category:

Thursday, October 11, 2007 9:19 am EDT

Dateline:

LOUISVILLE, Ky.

Public Company Information:

NYSE:
HUM
US4448591028

LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM) announced today that it has been awarded Pharmacy Benefit Management accreditation from URAC, a Washington, DC-based health care accrediting organization that establishes quality standards for the health care industry.

Nearly 70 percent of Americans receive their prescription medications through pharmacy benefit management companies.1 URAC accreditation assures for consumers and purchasers that the organization is clinically focused and meets quality standards for consumer protection and empowerment.

Humana Pharmacy Management has long invested in programs to find the sweet spot in the value of pharmacy to improve quality and lower overall costs, said William Fleming, Humana vice president of pharmacy and clinical integration. Receiving the URAC accreditation after a thorough review of our processes with these standards validates the outstanding work of our associates.

Humana Pharmacy Management one of the nations ten largest pharmacy benefit managers expects to process 250 million prescriptions in 2007. Approximately eight million Humana members have pharmacy benefits with the company; the URAC accreditation recognizes Humanas Commercial pharmacy business, which serves approximately three million Humana members.

The companies awarded URAC accreditation voluntarily sought a rigorous evaluation of their operations and have earned the URAC seal of excellence, said Alan P. Spielman, URACs president and chief executive officer. The accreditation standards were developed by a team of experts who buy, pay for and manage pharmaceutical programs, along with those who prescribe, dispense, and use the medications. Accreditation is a validation that companies that obtain the URAC seal are committed to quality and are willing to be accountable throughout their operations.

The Pharmacy Benefit Management standards were developed by more than 30 members of a multi-disciplinary stakeholder committee over the course of more than a year. Initial standards underwent a public review and comment period, then field testing by a dozen pharmacy benefit management organizations representing 52 percent of the current lives covered under pharmacy benefit management programs across the nation.

The standards address organizational quality, customer service, communications, disclosure of pricing policies, pharmaceutical distribution, drug utilization management, and formulary/pharmacy and therapeutics committees. URACs accreditation process for Pharmacy Benefit Management includes an application and evaluation process, a rigorous on-site evaluation and assessment by a URAC accreditation team, and review and consideration for accreditation by URACs Accreditation Committee.

Receiving this URAC accreditation highlights a lifetimes worth of work and a journey that we started several years ago at Humana, Fleming said. Routinely, health plans outsource pharmacy-benefit administration; Humana performs all pharmacy functions except claims-processing in-house for our members. With this URAC accreditation, Humana associates are excited to know that our processes align well with URACs standards.

1 Source: URAC

About URAC

URAC, an independent, nonprofit organization, is a leader in promoting health care quality through accreditation and certification programs. URACs standards keep pace with the rapid changes in the health care system, and provide a mark of distinction for health care organizations to demonstrate their commitment to quality and accountability. Through its broad-based governance structure and an inclusive standards-development process, URAC ensures that all stakeholders are represented in setting meaningful standards for the health care industry. For more information, visit www.urac.org.

About Humana

Humana Inc., headquartered in Louisville, Kentucky, is one of the nations largest publicly traded health benefits companies, with approximately 11.3 million medical members. Humana offers a diversified portfolio of health insurance products and related services through traditional and consumer-choice plans to employer groups, government-sponsored plans, and individuals.

Over its 46-year history, Humana has consistently seized opportunities to meet changing customer needs. Today, the company is a leader in consumer engagement, providing guidance that leads to lower costs and a better health plan experience throughout its diversified customer portfolio.

More information regarding Humana is available to investors via the Investor Relations page of the companys web site at http://www.humana.com, including copies of:

  • Annual reports to stockholders;
  • Securities and Exchange Commission filings;
  • Most recent investor conference presentations;
  • Quarterly earnings news releases;
  • Replays of most recent earnings release conference calls;
  • Calendar of events (includes upcoming earnings conference call dates and times, as well as planned interaction with research analysts and institutional investors);
  • Corporate Governance Information.

Contact:

Humana Corporate Communications
Jim Turner, 502-476-2119
jturner2@humana.com