Humana Inc

Trans World Airlines Inc. posted a smaller loss for the fourth quarter, its first full quarter out of bankruptcy, as operating expenses fell 18%. The St. Louis-based carrier's loss narrowed to $27.8 million from $245.2 million for the fourth quarter of 1994. The '95 period includes a $3.5-million after-tax gain from the cancellation of debt at the Trans World Express Inc. commuter subsidiary. For the year-earlier period, TWA had charges totaling $161.8 million.

Humana Inc., one of the nation's biggest health maintenance organizations, said Thursday that it will acquire Emphesys Financial Group Inc. for $650 million in cash. Emphesys is the country's 10th-largest group health insurer. Through its De Pere-based Employers Health Insurance Co., the company provides medical and life insurance for 1.3 million people in 46 states.

Aetna Life & Casualty Co. is expected to use the $4 billion it receives from the sale of its property and casualty unit to buy a health maintenance organization--and two Orange County companies appear to be among the top candidates. Aetna, the largest publicly traded U.S. life insurer, could launch a bid to acquire FHP International Corp. of Fountain Valley or PacifiCare Health Systems Inc. of Cypress with the proceeds of the unit sale to Travelers Group Inc., analysts said.

UnitedHealth Group Inc. and Humana Inc. are the biggest winners among insurers offering the new Medicare drug benefit, according to enrollment numbers released Friday. Though about 90 companies are administering more than 3,000 private plans around the country, enrollment is heavily concentrated in just a few companies, according to the Centers for Medicare and Medicaid Services.

Seniors wanting to avoid the Medicare prescription program's coverage gap have had one clear alternative: Choose a plan that cost more but bridged the break in benefits. But that option will be more restricted and more expensive next year. The leading national plan that covers brand and generic drugs in the gap -- Humana PDP Complete -- will no longer pay for brand-name prescriptions.

Health insurer Humana Inc. and Virgin Group Ltd. said they would form a partnership to sell health insurance and develop Virgin-branded health clubs. Financial terms weren't disclosed. The health clubs and insurance would be connected so that users could win discounted healthcare or Virgin products such as airline tickets and music if they met targets for keeping themselves healthy, the companies said.

Humana Inc. said it had settled a six-year dispute with representatives of more than 700,000 physicians over reimbursement and would make a $40-million payment. Louisville, Ky.-based Humana joins other health insurers such as Aetna Inc. and Cigna Corp. in settling with the doctors. The agreement still must be approved by a federal judge in Miami, Humana said.