United Healthcare 2010 Annual Report Download - page 11

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applicable drug regulatory agencies outside of the United States. The services provided include monitoring,
project management, data management and clinical staffing services. These services are generally performed in
connection with Phase I, Phase II and Phase III clinical trials.
The remaining portion of i3 will be organized into a new Life Sciences division that will focus Ingenix’s
capabilities in assisting life sciences clients to identify, analyze and measure the value of their products that have
received regulatory approval. The products and services provided by the Life Sciences division include health
economics outcomes and late phase research, market access and reimbursement informatics products and
services, epidemiology and certain drug safety services, products and services relating to patient reported
outcomes and regulatory consulting services.
Prescription Solutions
Prescription Solutions provides a comprehensive suite of integrated pharmacy benefit management (PBM)
services to more than 12 million people nationwide through its network of more than 66,000 retail pharmacies
and two mail service facilities, processing nearly 350 million adjusted retail, mail service and specialty drug
prescriptions annually. Prescription Solutions is dedicated to helping its customers achieve a low-cost, high-
quality pharmacy benefit. Prescription Solutions does this by working closely with customers to create
customized solutions that are designed to improve quality and safety, increase compliance and adherence, and
reduce fraud and waste.
Prescription Solutions’ integrated PBM services include retail network pharmacy contracting and management,
claims processing, mail order pharmacy services, specialty pharmacy services, benefit design consultation, rebate
contracting and management, drug utilization review, formulary management programs, disease therapy
management and adherence programs. The mail order and specialty pharmacy fulfillment capabilities of
Prescription Solutions are an important strategic component in serving employers, commercial health plans,
Medicaid plans and Medicare-contracted businesses, including Part D prescription drug plans. In addition to
PBM services, Prescription Solutions’ Consumer Health Products division delivers diabetic testing and other
specialized medical supplies, over the counter items, vitamins and supplements directly to members’ homes.
Prescription Solutions provides PBM services to customers in our Health Benefits segment, as well as external
employer groups, union trusts, managed care organizations, Medicare-contracted plans, Medicaid plans and
TPAs, including mail service only, rebate services only and pharmacy carve-out accounts. Prescription Solutions’
distribution system consists primarily of health insurance brokers and other health care consultants or direct
sales.
GOVERNMENT REGULATION
Most of our health and well-being services are regulated by federal and state regulatory agencies that generally
have discretion to issue regulations and interpret and enforce laws and rules. These regulations can vary
significantly from jurisdiction to jurisdiction, and the interpretation of existing laws and rules also may change
periodically. In the first quarter of 2010, the Patient Protection and Affordable Care Act and a reconciliation
measure, the Health Care and Education Reconciliation Act of 2010, which we refer to together as the Health
Reform Legislation, were signed into law. The Health Reform Legislation, portions of which are summarized
below, alters the regulatory environment in which we operate, in some cases to a significant degree. Federal and
state governments continue to enact and consider various legislative and regulatory proposals that could
materially impact certain aspects of the health care system. New laws, regulations and rules, or changes in the
interpretation of existing laws, regulations and rules, could negatively affect our business.
We believe we are in compliance in all material respects with applicable laws, regulations and rules. In the event
we fail to comply with, or we fail to respond quickly and appropriately to changes in, applicable laws, regulations
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