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December 05, 2002 at 07:00 PM
NU Online News Service, Dec. 5, 10:04 a.m. – Humana Inc., Louisville, Ky., says it will be spending more than $100 million in 2003 to eliminate 2,300 jobs, or 17%, of its employees; close three of its seven customer service centers; and reduce the stated value of some past acquisitions.
The charge also includes an increase in “reserves for liabilities related to previous acquisitions (including contractual disputes and litigation),” Humana says.
The company says that it still expects commercial premium yields, or average premium revenue per member, to be 13% to 15% in 2003, and that it expects the commercial medical cost increase trend to be 12% to 14%.
Commercial major medical membership will probably grow about 4%, the company says.
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