United Healthcare 2012 Annual Report Download - page 104

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•OptumHealth serves the physical, emotional and financial needs of individuals, enabling consumer health
management and integrated care delivery through programs offered by employers, payers, government
entities and directly with the care delivery system. OptumHealth offers access to networks of care provider
specialists, health management services, integrated care delivery services, consumer relationship
management and sales distribution platform services and financial services.
•OptumInsight is a health care information, technology, operational services and consulting company
providing software and information products, advisory consulting services, and business process
outsourcing services and support to participants in the health care industry. Hospitals, physicians,
commercial health plans, government agencies, life sciences companies and other organizations that
comprise the health care system work with OptumInsight to reduce costs, meet compliance mandates,
improve clinical performance and adapt to the changing health system landscape.
•OptumRx offers a multitude of pharmacy benefit management services and programs including claims
processing, retail network contracting, rebate contracting and management, clinical programs, such as step
therapy, formulary management and disease/drug therapy management programs to achieve a low-cost,
high-quality pharmacy benefit. OptumRx also provides patient support programs and dispensing of
prescribed medications, including specialty medications, through its mail order pharmacies for its clients’
members.
The Company’s accounting policies for reportable segment operations are consistent with those described in the
Summary of Significant Accounting Policies (see Note 2). Transactions between reportable segments principally
consist of sales of pharmacy benefit products and services to UnitedHealthcare customers by OptumRx, certain
product offerings and care management and integrated care delivery services sold to UnitedHealthcare by
OptumHealth, and health information and technology solutions, consulting and other services sold to
UnitedHealthcare by OptumInsight. These transactions are recorded at management’s estimate of fair value.
Intersegment transactions are eliminated in consolidation. Assets and liabilities that are jointly used are assigned
to each reportable segment using estimates of pro-rata usage. Cash and investments are assigned such that each
reportable segment has working capital and/or at least minimum specified levels of regulatory capital.
As a percentage of the Company’s total consolidated revenues, premium revenues from CMS were 29% for the
year ended December 31, 2012, 28% for year ended December 31, 2011, and 27% for the year ended
December 31, 2010, most of which were generated by UnitedHealthcare Medicare & Retirement and included in
the UnitedHealthcare segment. U.S. customer revenue represented approximately 99% of consolidated total
revenues during 2012. Long-lived fixed assets located in the U.S. represented approximately 70% of the total
long-lived fixed assets as of December 31, 2012.
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