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13. Segment Financial Information
Factors used to determine the Company’s reportable segments include the nature of operating activities,
economic characteristics, existence of separate senior management teams and the type of information presented
to the Company’s chief operating decision maker to evaluate its results of operations. Reportable segments with
similar economic characteristics are combined.
The following is a description of the types of products and services from which each of the Company’s four
reportable segments derives its revenues:
•UnitedHealthcare includes the combined results of operations of UnitedHealthcare Employer & Individual,
UnitedHealthcare Medicare & Retirement, UnitedHealthcare Community & State and UnitedHealthcare
Global because they have similar economic characteristics, products and services, customers, distribution
methods and operational processes and operate in a similar regulatory environment. The U.S. businesses
also share significant common assets, including a contracted network of physicians, health care
professionals, hospitals and other facilities, information technology infrastructure and other resources.
UnitedHealthcare Employer & Individual offers an array of consumer-oriented health benefit plans and
services for large national employers, public sector employers, mid-sized employers, small businesses and
individuals nationwide and active and retired military and their families through the TRICARE program
(West Region). UnitedHealthcare Medicare & Retirement provides health care coverage and 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 services dealing with chronic disease and other specialized issues for older
individuals. UnitedHealthcare Community & State’s primary customers oversee Medicaid plans, the
Children’s Health Insurance Program, and other federal, state and community health care programs.
UnitedHealthcare Global is a diversified global health services business with a variety of offerings,
including international commercial health and dental benefits.
•OptumHealth serves the physical, emotional and financial needs of individuals, enabling consumer health
management and local 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, local care delivery services, consumer engagement and 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 use OptumInsight to reduce costs, meet compliance mandates, improve
clinical performance and adapt to the changing health system landscape.
•OptumRx offers pharmacy benefit management services and programs including retail pharmacy network
management services, home delivery and specialty pharmacy services, manufacturer rebate contracting and
administration, benefit plan design and consultation, claims processing, and a variety of clinical programs
such as formulary management and compliance, drug utilization review and disease and drug therapy
management services.
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 local 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.
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