UnitedHealth Group
Analyst: Paula Wade
Report Summary
Most developments were favorable for UnitedHealth Group in 2011, except those outside its control such as economic swings and challenges to healthcare reform. The company was at the top of the heap in many ways: it insured more Americans through commercial, Medicaid and Medicare products than any other health benefits company; it was actively expanding its prescription benefit business through OptumRx with plans to shed its long-term relationship with Medco Health; and it was reaching into nearly every corner of healthcare through its technology solutions, ancillary products and financial services. The company continued to be an innovator in product design and care management and supported patient-centered medical homes in multi-payer programs.
Questions Answered In This Report
UnitedHealth Group has made several key decisions regarding the future of pharmacy benefits, chief among them the decision to move all of its pharmacy management business to internal management by 2013. How many pharmacy lives will it control when that change occurs? What other major pharmacy strategies has UnitedHealth changed in 2010-2011? How is it approaching value-based benefit design?
UnitedHealth Group has a long history of developing technology and buying technology companies. What are developments by the company in the area of consumer-related technology solutions? How have recent acquisitions improved the company's position in offering IT solutions?
As federal reimbursement rates for Medicare Advantage fall, health plans will depend on the revenue from star quality bonuses to make their margins, and keep products robust and prices low. Where is UnitedHealth in the star quality universe, and in what areas is it likely to be aiming for quality improvements? Where is UnitedHealth's geographic strength in Medicare Advantage and stand-alone Part D products?
Markets Covered
United States
Primary Research
Data from HealthLeaders-InterStudy, Centers for Medicare & Medicaid Services, UnitedHealth SEC filings, UnitedHealth Group website
Companies Mentioned
- Medco Health Solutions
- Oxford Health
- PacifiCare
- Sierra Health Services
- UnitedHealthcare