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Humana Reports Lower 1st Quarter Net Income

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NU Online News Service, April 28, 2003, 12:05 p.m. EDT – Humana Inc., Louisville, Ky., is reporting $31 million in net income for the first quarter on $2.9 billion in revenue, compared with $50 million in net income on $2.7 billion in revenue for the first quarter of 2002.

Net income for the latest quarter includes a $30 million charge resulting from the cost of restructuring its operations and cutting 2,300 jobs.

Shutting down a customer service center in Jacksonville, Fla., and other facilities will cost about $17 million, Humana says. Humana also is writing off the cost of $14 million in software it plans to stop using after it restructures its customer service unit.

Humana ended the quarter providing or administering major medical coverage for 6.6 million people, up from 6.5 million people a year earlier.

Average commercial premium revenue per insured commercial member increased 14%, to $654.