American Republic Insurance Company was established in 1929 and is based in Des Moines, Iowa.  It is a well-positioned leader in the individual health insurance industry and experienced in the Senior market. American Republic will exclusively offer Humana's Medicare Advantage private fee-for-service plans and, in select areas, Humana's regional PPO plans, to its approximately 140,000 Medicare-eligible policyholders.

Terms of the transactions were not disclosed.

Enrollment in the new Part D drug benefit - created as part of the 2003 Medicare Modernization Act - will begin in November, with plans becoming effective Jan. 1, 2006.  Humana has received approval from The Centers for Medicare & Medicaid Services (CMS) to offer the Medicare Part D prescription drug plan (PDP) to the millions of Medicare-eligible beneficiaries residing in 46 states and the District of Columbia, representing all of the states for which Humana applied.

In addition to the new stand-alone PDPs, Humana will offer Medicare prescription drug coverage through its Medicare Advantage HMO, PPO and private fee-for-service (PFFS) health plans to people with Medicare. Humana's expanded Medicare portfolio will include up to five products in many states.
 
Humana will work closely with USAA members and American Republic customers to educate them about the Medicare prescription drug plan, PFFS and regional PPO plans. Each company's representatives will begin selling their respective Humana Medicare plan offering on Nov. 15. 

About Humana

Humana Inc., headquartered in Louisville, Kentucky, is one of the nation's largest publicly traded health benefits companies, with approximately 7 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 44-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 company's web site at http://www.humana.com, including copies of:

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