Company Overview

UnitedHealth Group is a health care juggernaut. Founded in 1974 under the name United Healthcare, the company became one of the first incorporated HMOs, growing since then through a series of acquisitions. The company’s Uniprise business provides benefit plans and services to large businesses. Its AmeriChoice business provides health care benefits to beneficiaries of Medicaid and other government-sponsored programs.
The firm’s Ovations subsidiary provides health services to those older than 50, and its Evercare business provides health services to the elderly and chronically ill. Its UnitedHealthcare business provides health benefits to individuals and small and mid-sized businesses. Finally, its Specialized Care Services business operates in areas such as dental, physical therapy, vision care, behavioral health, employee assistance, and risk insurance.

UnitedHealth continues to broaden its geographical reach through acquisitions of small rivals and corporate health plans. In 2006, it purchased John Deere’s employee health plan and Student Resources, the student insurance division of HealthMarkets’ MEGA Life subsidiary. The same year brought changes in the company’s executive office, after some irregular stock prices triggered some key role-shifting and the elimination of equity awards for the CEO and president. The SEC still opened a formal investigation into the company's stock-options practices in late 2006. The company’s first big move in 2007 was the acquisition of Sierra Health Services, which marked the first time UnitedHealth moved into the Nevada market—and the addition of more than 300,000 health plan members. Later that year, UnitedHealthcare announced its $775 million purchase of Fiserv's health-related businesses: Fiserv Health, Avidyn Health, Fiserv Health Specialty Solutions, and Innoviant Pharmacy Benefits Management. The industry comes with many challenges, however, especially given the current healthcare market and government aid programs. United Healthcare ended two big negotiations in Nebraska and St. Louis, Missouri, in November 2007. United almost lost its Nebraska business, however, due to a breakdown in negotiations of higher costs for the Nebraska Medical Center and UNMC Physicians. They reached an agreement in November, however, which increase payments by United Healthcare to the levels paid by other insurers in the Omaha market and requires that United Healthcare work to resolve administrative problems such as late billing and billing errors with the Medical Center and affiliated 500-member doctor group.