United Healthcare 2007 Annual Report Download - page 7

We currently have a number of contracts with Centers for Medicare & Medicaid Services (CMS), which
primarily relate to the Medicare health benefit programs authorized under the 2003 Medicare Modernization Act.
Beginning January 1, 2006, we began serving as a plan sponsor offering Medicare Part D prescription drug
insurance coverage. In total, consolidated premium revenues from CMS were approximately 25% of our total
consolidated revenues for the year ended December 31, 2007, most of which were generated by Ovations.
Secure Horizons. Secure Horizons provides health care coverage for seniors and other eligible Medicare
beneficiaries primarily through the Medicare Advantage program administered by CMS. Secure Horizons offers
Medicare Advantage HMO, preferred provider organization (PPO), Special Needs Plans, Point-of-Service (POS)
plans, and Private-Fee-for-Service plans. Under the Medicare Advantage programs, Secure Horizons provides
health insurance coverage to eligible Medicare beneficiaries in exchange for a fixed monthly premium per
member from CMS that varies based on the geographic areas in which members reside, demographic factors such
as age, gender, and institutionalized status, and the health status of the individual. Most products are offered
under the “AARP Medicare Complete provided through Secure Horizons” brand name. Secure Horizons offers
Medicare Advantage products in all 50 states. As of December 31, 2007, Secure Horizons had approximately
1.3 million enrolled individuals in its Medicare Advantage products.
Ovations Part D. Ovations provides the Medicare prescription drug benefit (Part D) to beneficiaries throughout
the United States and its territories. Among the several Part D plans it offers, Ovations provides Medicare Part D
coverage plans with the AARP brand. Ovations provides Part D drug coverage through its Medicare Advantage
program, Special Needs Plans (covering individuals who live in an institutional long-term care setting, dually
eligible or individuals with severe or disabling chronic conditions) and stand-alone Part D plans. As of
December 31, 2007, Ovations had enrolled approximately 6.0 million members in the Part D program, including
approximately 4.7 million in the stand-alone Part D plans and approximately 1.3 million in Medicare Advantage
plans incorporating Part D coverage.
Insurance Solutions. Insurance Solutions offers a range of health insurance products and services to AARP
members, and has expanded the scope of services and programs offered over the past several years. Ovations
provides standardized Medicare supplement and hospital indemnity insurance from its insurance company affiliates
to approximately 3.8 million AARP members. Additional Ovations services include a nurse healthline service, a
lower cost standardized Medicare supplement offering that provides consumers with a national hospital network,
24-hour access to health care information, and access to discounted health services from a network of physicians.
Evercare. Evercare is one of the nation’s leaders in offering complete, individualized care planning and care
benefits for aging, disabled and chronically ill individuals. Evercare serves approximately 195,000 people
(including 145,000 with Medicare Advantage) across the nation in long-term care settings including nursing
homes, community-based settings and private homes, as well as through hospice and palliative care. Evercare
offers services through innovative care management and clinical programs.
Evercare integrates federal, state and private funding through a continuum of products from Special Needs Plans
and long-term care Medicaid programs to hospice care, and serves people in 38 markets in home, community and
nursing home settings. These services are provided primarily through nurse practitioners, nurses and care
managers. Evercare operated Special Needs Plans in 37 states as of December 31, 2007.
Evercare Solutions for Caregivers is a comprehensive eldercare service program providing service coordination,
consultation, claim management and information resources nationwide. Proprietary, automated medical record
software enables the Evercare clinical care teams to capture and track patient data and clinical encounters, creating a
comprehensive set of coherent care information that bridges across home, hospital and nursing home care settings
for high-risk populations. Evercare also operates hospice and palliative care programs in ten states (14 markets).
AmeriChoice
AmeriChoice provides network-based health and well-being services to beneficiaries of State Medicaid
Children’s Health Insurance Programs (SCHIP), and other government-sponsored health care programs.
5