United Healthcare 2006 Annual Report Download - page 9

PART I
ITEM 1. BUSINESS
INTRODUCTION
Overview
UnitedHealth Group (“we,” “our,” or “the Company”) is a diversified health and well-being company, serving
approximately 70 million Americans. We are focused on improving the American health care system and how it
works for multiple, distinct constituencies. We provide individuals with access to quality, cost-effective health
care services and resources through more than 520,000 physicians and other care providers and 4,700 hospitals
across the United States.
During 2006, we managed approximately $92 billion in aggregate health care spending on behalf of the
constituents and consumers we served. Our primary focus is on improving health care systems by simplifying the
administrative components of health care delivery, promoting evidence-based medicine as the standard for care,
and providing relevant, actionable data that physicians, health care providers, consumers, employers and other
participants in health care can use to make better, more informed decisions.
Through our diversified family of businesses, we leverage core competencies in advanced technology-based
transactional capabilities; health care data, knowledge and information; and health care resource organization and
care facilitation to improve access to health and well-being services, simplify the health care experience, promote
quality and make health care more affordable.
Our revenues are derived from premium revenues on risk-based products; fees from management, administrative,
technology and consulting services; sales of a wide variety of products and services related to the broad health
and well-being industry; and investment and other income. In 2006, we conducted our business primarily through
operating divisions in the following business segments:
• Uniprise;
• Health Care Services, which includes our UnitedHealthcare, Ovations and AmeriChoice businesses;
• Specialized Care Services; and
• Ingenix.
For a discussion of our financial results by segment, see Item 7 — “Management’s Discussion and Analysis of
Financial Condition and Results of Operations.”
Recent Developments
Key Business Developments
The results of PacifiCare Health Systems, Inc. (“PacifiCare”), which we acquired in December 2005 for total
cash and stock consideration of approximately $8.8 billion, were included for the full year 2006. This acquisition
significantly strengthened our resources by enhancing our capabilities on the Pacific Coast and in other Western
states and broadening the scope of our product offerings for a host of specialized services.
On January 1, 2006, we began serving as a plan sponsor offering Medicare Part D prescription drug insurance
coverage under a contract with the Centers for Medicare & Medicaid Services (CMS). As of December 31, 2006,
we had enrolled approximately 5.7 million members in the Part D program, including approximately 4.5 million
in the stand-alone prescription drug plans and approximately 1.2 million in Medicare Advantage plans
incorporating Part D coverage.
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