United Healthcare 2013 Annual Report Download - page 7

UnitedHealthcare Employer & Individual’s comprehensive and integrated pharmaceutical management services
promote lower costs by using formulary programs to drive better unit costs, encouraging consumers to use drugs
that offer better value and outcomes, and by supporting the appropriate use of drugs based on clinical evidence
through physician and consumer programs.
Specialty Offerings.UnitedHealthcare Employer & Individual also delivers dental, vision, life, and disability
product offerings through an integrated approach including a network of more than 58,000 vision professionals in
private and retail settings, and more than 250,000 dental providers.
UnitedHealthcare Military & Veterans. UnitedHealthcare Military & Veterans is the provider of health care
services for more than 2.9 million active duty and retired military service members and their families in 21 states
(West Region) under the Department of Defense’s (DoD) TRICARE Managed Care Support contract. The
contract began on April 1, 2013 and includes a transition period and five one-year renewals at the government’s
option.
UnitedHealthcare Military & Veterans’ responsibility as a contractor is to augment the military’s direct care
system by providing managed care support services, provider networks, medical management, claims/enrollment
administration, and customer services.
UnitedHealthcare Medicare & Retirement
UnitedHealthcare Medicare & Retirement provides health and well-being services to individuals age 50 and
older, addressing their unique needs for preventive and acute health care services as well as for services dealing
with chronic disease and other specialized issues for older individuals. UnitedHealthcare Medicare & Retirement
is fully dedicated to serving this growing senior market segment, providing products and services in all 50 states,
the District of Columbia, and most U.S. territories. It has distinct pricing, underwriting, clinical program
management and marketing capabilities dedicated to health products and services in this market.
UnitedHealthcare Medicare & Retirement offers a spectrum of risk-based Medicare products which may be
purchased by individuals or on a group basis, including Medicare Advantage plans, Medicare Prescription Drug
Benefit (Medicare Part D) and Medicare Supplement/Medigap products that supplement traditional fee-for-
service coverage. UnitedHealthcare Medicare & Retirement services include care management and clinical
management programs, a nurse health line service, 24-hour access to health care information, access to
discounted health services from a network of care providers and administrative services.
Premium revenues from the Centers for Medicare & Medicaid Services (CMS) represented 29% of UnitedHealth
Group’s total consolidated revenues for the year ended December 31, 2013, most of which were generated by
UnitedHealthcare Medicare & Retirement under a number of contracts.
UnitedHealthcare Medicare & Retirement has extensive distribution capabilities and experience, including direct
marketing to consumers on behalf of its key clients: AARP, the nation’s largest membership organization
dedicated to the needs of people age 50 and over; state and U.S. government agencies; and employer groups.
Products are also offered through employer groups and agent channels.
UnitedHealthcare Medicare & Retirement’s major product categories include:
Medicare Advantage. UnitedHealthcare Medicare & Retirement provides health care coverage for seniors and
other eligible Medicare beneficiaries primarily through the Medicare Advantage program administered by CMS,
including Medicare Advantage HMO plans, preferred provider organization (PPO) plans, Point-of-Service plans,
Private-Fee-for-Service plans and Special Needs Plans (SNPs). Under the Medicare Advantage program,
UnitedHealthcare Medicare & Retirement provides health insurance coverage in exchange for a fixed monthly
premium per member from CMS and in some cases consumer premiums. Premium amounts vary based on the
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