United Healthcare 2005 Annual Report Download - page 14

regulations subject to periodic interpretation by the United States Department of Labor as well as the federal
courts. ERISA places controls on how our business units may do business with employers who sponsor employee
benefit health plans, particularly those that maintain self-funded plans. We believe that we are in compliance in
all material respects with applicable ERISA regulations.
Audits and Investigations
We typically have and are currently involved in various governmental investigations, audits and reviews. These
include routine, regular and special investigations, audits, and reviews by CMS, state insurance and health and
welfare departments, state attorneys general, the Office of the Inspector General, the Office of Personnel
Management, the Office of Civil Rights, the Department of Justice and U.S. Attorneys. Such government actions
can result in assessment of damages, civil or criminal fines or penalties, or other sanctions, including loss of
licensure or exclusion from participation in government programs. We do not believe the results of any of the
current investigations, audits or reviews, individually or in the aggregate, will have a material adverse effect on
our consolidated financial position or results of operations.
International Regulation
Some of our business units have limited international operations. These international operations are subject to
different legal and regulatory requirements in different jurisdictions, including various tax, tariff and trade
regulations, as well as employment, intellectual property and investment rules and laws. We believe we are in
compliance in all material respects with applicable laws.
COMPETITION
As a diversified health and well-being services company we operate in highly competitive markets. Our
competitors include managed health care companies, insurance companies, third-party administrators and
business services outsourcing companies, health care providers that have formed networks to directly contract
with employers, specialty benefit providers, government entities, and various health information and consulting
companies. For our Uniprise and Health Care Services businesses, competitors include Aetna Inc., Cigna
Corporation, Coventry Health Care, Inc., Humana Inc., and WellPoint, Inc., numerous for-profit and
not-for-profit organizations operating under licenses from the Blue Cross Blue Shield Association and other
enterprises concentrated in more limited geographic areas. Our Specialized Care Services and Ingenix business
segments also compete with a number of other businesses. New entrants into the markets in which we compete,
as well as consolidation within these markets, also contribute to a competitive environment. We believe the
principal competitive factors that can impact our businesses relate to the sales and pricing of our products and
services; product innovation; consumer satisfaction; the level and quality of products and services; care delivery;
network capabilities; market share; product distribution systems; efficiency of administration operations;
financial strength and marketplace reputation.
EMPLOYEES
As of December 31, 2005, we employed approximately 55,000 individuals. We believe our employee relations
are positive.
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