Humana (NYSE: HUM) is a health insurance company. Historically, about half of Humana's beneficiaries have participated in government sponsored programs, including the state- and federally- funded Medicare, the federally funded Medicaid Advantage, and TRICARE, a program for armed services personnel. Humana's longstanding relationship with the government is beginning to pay high dividends, as it has capitalized on Medicare Part D's prescription drug coverage by enrolling over 3 million seniors in new benefits programs. Enrollment in government programs now accounts for 70% of all of Humana's membership.^[1] The company earned $31 billion in revenue and $1 billion in net income in 2009.^[2]

In addition to standard health insurance, Humana sells dental products, and has recently acquired a company selling vision and other dental insurance products. Still, the product line is not terribly diversified; it is largely concentrated in the government programs. This ignores the trend towards diversification that other insurance companies like Aetna have been quick to exploit.

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