United Healthcare 2012 Annual Report Download - page 4

UnitedHealthcare
UnitedHealthcare is advancing strategies to improve the way health care is delivered and financed, offering
consumers a simpler, more affordable health care experience. Our market position is built on:
• a national scale;
• the breadth of our product offerings, which are responsive to many distinct market segments in health care;
• strong local market relationships;
• service and advanced technology;
• competitive medical and operating cost positions;
• effective clinical engagement;
• extensive expertise in distinct market segments; and
• a commitment to innovation.
The financial results of UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement,
UnitedHealthcare Community & State and UnitedHealthcare International have been aggregated in the
UnitedHealthcare reportable segment due to their similar economic characteristics, products and services,
customers, distribution methods, operational processes and regulatory environment. The domestic businesses also
share significant common assets, including our contracted networks of physicians, health care professionals,
hospitals and other facilities, information technology infrastructure and other resources. UnitedHealthcare
utilizes the expertise of UnitedHealth Group affiliates for capabilities in specialized areas, such as OptumRx
pharmacy benefit products and services, certain OptumHealth product offerings and care management and
integrated care delivery services and OptumInsight health information and technology solutions, consulting and
other services. UnitedHealthcare arranges for discounted access to care through networks that include a total of
nearly 780,000 physicians and other health care professionals and approximately 5,900 hospitals and other
facilities across the United States (UnitedHealthcare Network).
UnitedHealthcare Employer & Individual
UnitedHealthcare Employer & Individual works closely with employers and individuals to provide health benefit
plans that provide solutions to help members live healthier lives and achieve meaningful cost savings.
UnitedHealthcare Employer & Individual offers a comprehensive array of consumer-oriented health benefit plans
and services for large national employers, public sector employers, mid-sized employers, small businesses and
individuals nationwide, providing nearly 27 million Americans access to health care as of December 31, 2012.
Through its risk-based product offerings, UnitedHealthcare Employer & Individual assumes the risk of both medical
and administrative costs for its customers in return for a monthly premium, which is typically at a fixed rate per
individual served for a one-year period. When providing administrative and other management services to
customers that elect to self-fund the health care costs of their employees and employees’ dependants,
UnitedHealthcare Employer & Individual receives a fixed service fee per individual served. These customers retain
the risk of financing medical benefits for their employees and employees’ dependants, while UnitedHealthcare
Employer & Individual provides customized services such as coordination and facilitation of medical and related
services to customers, consumers and health care professionals, transaction processing and access to a contracted
network of physicians, hospitals and other health care professionals, including dental and vision. Large employer
groups, such as those serviced by UnitedHealthcare Employer & Individual National Accounts, typically use self-
funded arrangements. As of December 31, 2012, UnitedHealthcare Employer & Individual National Accounts
served 395 large employer groups under these arrangements, including 147 of the Fortune 500 companies. Smaller
employer groups are more likely to purchase risk-based products because they are less willing or able to bear a
greater potential liability for health care expenditures. UnitedHealthcare Employer & Individual also offers a variety
of non-employer based insurance options for purchase by individuals, including students, which are designed to
meet the health coverage needs of these consumers and their families.
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