Oct 8 Humana Inc, the managed care
company, said on Tuesday the U.S. government shutdown would
delay payments related to its military health services contract
and that it could be liable for up to $175 million worth of
claims if the payments do not come through.
Humana provides administrative services to the government
for healthcare, with the federal government covering the cost of
the benefits and associated risk.
In a regulatory filing, Humana said it was notified by the
government on Oct. 2 it had permission to continue administering
the contract for two weeks, but would not receive payments
because the Defense Health Agency did not have legal authority
to make them.
The agency said once funding authority is received, payments
will be accelerated and paid with interest, according to Humana.
The company said it could be liable for the claims during
the period if the agency does not reimburse it once the shutdown
has ended. It also said it does not believe that will have a
material impact on its financial position.
Humana shares were off 4 cents at $94.67 in morning trading.