UnitedHealth Group Incorporated (‘UnitedHealth Group’) operates as a health care and well-being company.
The company’s two distinct, yet complementary businesses — Optum and UnitedHealthcare — are working to help build a modern, high-performing health system through improved access, affordability, outcomes, and experiences for the individuals and organizations it is privileged to serve. Optum serves the broad health care marketplace, including patients and consumers, payers, care providers, emp...
UnitedHealth Group Incorporated (‘UnitedHealth Group’) operates as a health care and well-being company.
The company’s two distinct, yet complementary businesses — Optum and UnitedHealthcare — are working to help build a modern, high-performing health system through improved access, affordability, outcomes, and experiences for the individuals and organizations it is privileged to serve. Optum serves the broad health care marketplace, including patients and consumers, payers, care providers, employers, governments, and life sciences companies, through its Optum Health, Optum Insight, and Optum Rx businesses.
UnitedHealthcare offers a full range of health benefits, designed to simplify the health care experience and make it more affordable for consumers to access high-quality care. UnitedHealthcare Employer & Individual serves consumers and employers, ranging from sole proprietorships to large, multi-site, and national employers, and public sector employers. UnitedHealthcare Medicare & Retirement delivers health and well-being benefits to seniors and other Medicare-eligible consumers. UnitedHealthcare Community & State serves consumers who are economically disadvantaged, the medically underserved, and those without the benefit of employer-sponsored health benefits coverage.
Segments
The company has four reportable segments: Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare, which includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, and UnitedHealthcare Community & State.
Optum
Optum is an information and technology-enabled health services business serving the broad health care marketplace, including:
Those who need care: patients who need the right care, information, resources, products, and engagement to improve their health, achieve their health goals, and receive an improved patient experience that is personalized, comprehensive, and delivered in all care settings, including in-home and virtually.
Those who provide care: physicians, hospitals, pharmacies, and others seeking to improve the health system and reduce the administrative burden, allowing for providers to focus time on patients, leading to the best possible patient care and experiences while achieving better health outcomes at lower costs. Improved health outcomes are achieved by utilizing the company’s clinical expertise, data, and analytics to better understand, treat, and prevent consumers’ health conditions, and ensure they receive the best evidence-based care.
Those who pay for care: consumers, employers, health plans, and state, federal, and municipal agencies devoted to ensuring the people they sponsor receive high-quality care, administered and delivered efficiently and effectively, all while driving health equity so that every individual, family, and community has access to the care they need.
Those who innovate for care: global life sciences organizations dedicated to developing more effective approaches to care, enabling technologies, and medicines to improve care delivery and health outcomes.
Optum operates three business segments which combine distinctive capabilities in value-based care, population health, health care operations, data and analytics, and pharmacy care services:
Optum Health delivers patient-centered care, care management, wellness and consumer engagement, and health financial services;
Optum Insight offers data, analytics, research, consulting, technology, and managed services solutions; and
Optum Rx provides diversified pharmacy care services.
Optum Health
Optum Health provides comprehensive and patient-centered care, addressing the physical, mental, social, and financial well-being of 100 million consumers, and serves more than 100 health payer partners. It engages people in the most appropriate care settings, including clinical sites, in-home, and virtual. Optum Health delivers primary, specialty, and surgical care; helps patients and providers navigate and address complex, chronic, and behavioral health needs; offers post-acute care planning services; and serves consumers and care providers through advanced, on-demand digital health technologies, such as telehealth and remote patient monitoring, and innovative health care financial services. Optum Health works directly with patients, consumers, care delivery systems, providers, employers, payers, and public-sector entities to provide high-quality, accessible, and equitable care with improved health outcomes and reduced total cost of care. Optum Health enables care providers to transition from traditional fee-for-service payment models to performance-based delivery and payment models designed to improve patient health outcomes and experience through value-based care.
Optum Health offerings include fully accountable value-based arrangements, where Optum Health assumes responsibility for health care costs in exchange for a monthly premium. Offerings also include administrative fee arrangements, where Optum Health manages or administers products and services in exchange for a monthly fee, and fee-for-service arrangements, where Optum Health delivers health-related products and medical services for patients at a contracted fee.
Optum Financial, including Optum Bank, served consumers through more than 27 million consumer accounts with $24 billion in assets under management as of December 31, 2024. Organizations across the health system rely on Optum Financial to manage and improve payment flows through its highly automated, scalable, end-to-end digital payment and financing systems, and integrated card solutions. For financial services offerings, Optum Financial charges fees and earns investment income on managed funds.
Optum Health sells the company’s products primarily through its direct sales force, strategic collaborations, and external producers in three key areas: employers, including large, mid-sized, and small employers; payers, including health plans, third-party administrators (TPAs), underwriter/stop-loss carriers, and individual product intermediaries; and public entities, including the U.S. Departments of Health and Human Services (HHS), Veterans Affairs, Defense, and other federal, state, and local health care agencies.
Optum Insight
Optum Insight connects the health care system with services, analytics, and platforms that make clinical, administrative, and financial processes simpler and more efficient for all participants in the health care system. Hospital systems, physicians, health plans, public entities, life sciences companies, and other organizations comprising the health care industry depend on Optum Insight to help them improve performance and reduce costs through administrative efficiency and payment simplification, advance care quality through evidence-based standards built directly into clinical workflows, meet compliance mandates, and modernize their core operating systems to meet the changing needs of the health system.
Health Systems: Serves hospitals, physicians, and other care providers to improve operating performance, better coordinate care, and reduce administrative costs through technology and services to improve population health management, patient engagement, revenue cycle management, and strategic growth plans.
Health Plans: Serves health plans by improving financial performance and enhancing outcomes through proactive analytics, a comprehensive payment integrity portfolio, and technology-enabled and staff-supported risk and quality services. Optum Insight helps health plans navigate a dynamic environment defined by shifts in employer vs. public-sector coverage, the demand for affordable benefit plans, and the need to leverage new technology to reduce complexity.
State Governments: Provides advanced technology and analytics services to modernize the administration of critical safety net programs, such as Medicaid, while improving cost predictability.
Life Sciences Companies: Combines data and analytics expertise with comprehensive technologies and health care knowledge to help life sciences companies, including those in pharmaceuticals and medical technology, adopt a more comprehensive approach to advancing therapeutic discoveries and improving clinical outcomes.
Many of Optum Insight’s software and information products and professional services are delivered over extended periods, often several years. Optum Insight maintains an order backlog to track unearned revenues under these long-term arrangements.
Optum Insight’s products and services are sold primarily through a direct sales force. Optum Insight’s products are also supported and distributed through an array of alliances and business partnerships with other technology vendors, who integrate and interface Optum Insight’s products with their applications.
Optum Rx
Optum Rx provides a full spectrum of pharmacy care services through its network of more than 65,000 retail pharmacies, through home delivery, specialty and community health pharmacies, the provision of in-home and community-based infusion services, and through rare disease and gene therapy support services. It also offers direct-to-consumer solutions.
Optum Rx manages a broad range of prescription drug spend, including widely available retail drugs, as well as limited and ultra-limited distribution drugs in oncology, HIV, pain management, and ophthalmology. Optum Rx serves the growing pharmacy needs of people with behavioral health and substance use disorders.
Optum Rx serves health benefits providers, large national employer plans, unions and trusts, purchasing coalitions, and public-sector entities. Optum Rx sells its services through direct sales, health insurance brokers, and other health care consultants.
Optum Rx offers multiple clinical programs, digital tools, and services to help clients manage overall pharmacy and health care costs in a clinically appropriate manner, which are designed to deliver improved consumer experiences, better health outcomes, and a lower total cost of care. Optum Rx provides various utilization management, medication management, quality assurance, adherence, and counseling programs to complement each client’s plan design and clinical strategies. Optum Rx is accelerating the integration of medical, pharmacy, and behavioral care, and treating the whole patient by embedding its pharmacists as key members of the patient care team.
UnitedHealthcare
Through the company’s health benefits offerings, UnitedHealthcare is enabling better health, creating a better health care experience for its customers, and helping to control rising health care costs.
UnitedHealthcare arranges for discounted access to care through its extensive networks and uses Optum’s capabilities to help coordinate and provide patient care, improve affordability of medical care, analyze cost trends, manage pharmacy care services, work with care providers more effectively, and create a simpler and more satisfying consumer and physician experience.
UnitedHealthcare Employer & Individual
Domestically, 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. As of December 31, 2024, UnitedHealthcare Employer & Individual provided access to medical services for 29.7 million people.
UnitedHealthcare Employer & Individual typically distributes its products through a variety of channels, dependent upon the specific product, including: through consultants or direct sales, in collaboration with brokers and agents, through wholesale agents or agencies who contract with health insurance carriers to distribute individual or group benefits, through professional employer organizations and associations, and through both multi-carrier and its own proprietary private exchange marketplaces.
UnitedHealthcare Employer & Individual’s major product families include consumer engagement products, such as high-deductible consumer-driven benefit plans and a variety of innovative consumer-centric products; traditional products; clinical and pharmacy products; and specialty benefits, such as vision, dental, accident protection, critical illness, disability, and hospital indemnity offerings.
UnitedHealthcare Medicare & Retirement
UnitedHealthcare Medicare & Retirement provides health and well-being services to seniors and other Medicare-eligible consumers, addressing their unique needs. UnitedHealthcare Medicare & Retirement has distinct benefit designs, pricing, underwriting, clinical program management, and marketing capabilities dedicated to health products and services in this market.
UnitedHealthcare Medicare & Retirement offers a selection of products allowing people choice in obtaining the health coverage and services they need as their circumstances change. These offerings include care management and health system navigator services, clinical management programs, nurse health line services, 24-hour access to health care information, access to discounted health services from a network of care providers, and administrative services.
UnitedHealthcare Medicare & Retirement has extensive distribution capabilities and experience, including direct marketing to consumers on behalf of its key clients, a membership organization, and state and U.S. government agencies. Products are also offered through agents, employer groups, and digital channels.
Major product categories include:
Medicare Advantage: Provides health care coverage for seniors and other eligible Medicare beneficiaries through the Medicare Advantage program administered by the Centers for Medicare & Medicaid Services (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 benefits coverage in exchange for a fixed monthly premium per member from CMS, plus, in some cases, monthly consumer premiums. Premium amounts received from CMS vary based on the geographic areas in which individuals reside, demographic factors, such as age, gender, and institutionalized status, and the health status of the individual. UnitedHealthcare Medicare & Retirement served 7.8 million people through its Medicare Advantage products as of December 31, 2024.
The company has continued to enhance its offerings, focusing on more digital and physical care resources in the home, expanding its concierge navigation services, and enabling the home as a safe and effective setting for care. For example, through the company’s HouseCalls program, nurse practitioners performed 2.9 million clinical preventive home care visits in 2024 to address unmet care opportunities and close gaps in care.
Medicare Part D: Provides Medicare Part D benefits to beneficiaries through its Medicare Advantage and stand-alone Medicare Part D plans. The stand-alone Medicare Part D plans address a large spectrum of people’s needs and preferences for their prescription drug coverage, including low-cost prescription options. As of December 31, 2024, UnitedHealthcare enrolled 10.1 million people in the Medicare Part D programs, including 3.1 million individuals in stand-alone Medicare Part D plans, with the remainder in Medicare Advantage plans incorporating Medicare Part D coverage.
Medicare Supplement: Provides a full range of supplemental products at diverse price points. These products cover various levels of coinsurance and deductible gaps to which seniors are exposed in the traditional Medicare program. UnitedHealthcare Medicare & Retirement served 4.3 million seniors nationwide through various Medicare Supplement products as of December 31, 2024.
Premium revenues from CMS represented 40% of UnitedHealth Group’s total consolidated revenues for the year ended December 31, 2024, most of which were generated by UnitedHealthcare Medicare & Retirement.
UnitedHealthcare Community & State
UnitedHealthcare Community & State is dedicated to serving state programs caring for the economically disadvantaged, the medically underserved, and those without the benefit of employer-funded health care coverage, typically in exchange for a monthly premium per member from the state program. UnitedHealthcare Community & State’s primary customers oversee Medicaid plans, including Temporary Assistance to Needy Families, Children’s Health Insurance Programs (CHIP), Dual SNPs (DSNPs), Long-Term Services and Supports (LTSS), Aged, Blind and Disabled, and other federal, state, and community health care programs. As of December 31, 2024, UnitedHealthcare Community & State participated in programs in 33 states and the District of Columbia, and served more than 7.4 million people, including 1.2 million people through Medicaid expansion programs in 20 states under the Patient Protection and Affordable Care Act (ACA).
UnitedHealthcare Community & State administers benefits for the unique needs of children, pregnant women, adults, seniors, and those who are institutionalized or are nursing home eligible. These individuals often live in medically underserved areas and are less likely to have a consistent relationship with the medical community or a care provider. They also often face significant social and economic challenges.
Government Regulation
CMS regulates the company’s UnitedHealthcare businesses and certain aspects of its Optum businesses. Payments by CMS to the company’s businesses are subject to regulations, including those governing fee-for-service and the submission of information relating to the health status of enrollees for purposes of determining the amounts of certain payments to it. CMS also has the right to audit the company’s performance to determine its compliance with CMS contracts and regulations, and the quality of care it provides to Medicare beneficiaries. The company’s commercial business is further subject to CMS audits related to medical loss ratios (MLRs) and risk adjustment data.
Certain of the company’s operations are subject to regulation under the administrative simplification provisions of the Health Insurance Portability and Accountability Act of 1996, as amended (HIPAA), which apply to both the group and individual health insurance markets, including self-funded employee benefit plans.
The company’s businesses must comply with the Health Information Technology for Economic and Clinical Health Act (HITECH), which regulates matters relating to privacy, security, and data standards. HITECH imposes requirements on uses and disclosures of health information; includes contracting requirements for HIPAA business associate agreements; extends parts of HIPAA privacy and security provisions to business associates; adds federal data breach notification requirements for covered entities and business associates, and reporting requirements to HHS and the Federal Trade Commission (FTC), and, in some cases, to the local media; strengthens enforcement and imposes higher financial penalties for HIPAA violations, and, in certain cases, imposes criminal penalties for individuals, including employees.
The use and disclosure of individually identifiable health data by the company’s businesses are also regulated in some instances by other federal laws, including the Gramm-Leach-Bliley Act (GLBA), or state statutes implementing GLBA.
The Employee Retirement Income Security Act of 1974, as amended (ERISA), regulates how the company’s services are provided to or through certain types of employer-sponsored health benefit plans. Regulations established by the DOL subject it to additional requirements for administration of benefits, claims payment, and member appeals under health care plans governed by ERISA.
Some of the company’s business activity is subject to other health care-related regulations and requirements, including PPO, Managed Care Organization (MCO), utilization review (UR), TPA, pharmacy care services, durable medical equipment, or care provider-related regulations and licensure requirements.
UnitedHealthcare Community & State and certain of the company’s Optum businesses are subject to regulation by state Medicaid agencies which oversee the provision of benefits to its Medicaid and CHIP beneficiaries and to its beneficiaries dually eligible for Medicare and Medicaid.
Certain of the company’s pharmacies must also register with the U.S. Drug Enforcement Administration (DEA), and individual state controlled substance authorities to dispense controlled substances.
Certain of the company’s businesses participate in direct-to-consumer activities and are subject to regulations applicable to online communications and other general consumer protection laws and regulations, such as the Federal Tort Claims Act, the Federal Postal Service Act, and the FTC’s Telemarketing Sales Rule. Most states also have similar consumer protection laws.
Optum Bank is subject to regulation by federal banking regulators, including the Federal Deposit Insurance Corporation (FDIC), which performs annual examinations to ensure the bank is operating in accordance with federal safety and soundness requirements, and the Consumer Financial Protection Bureau, which may perform periodic examinations to ensure the bank is in compliance with applicable consumer protection statutes, regulations, and agency guidelines. Optum Bank is also subject to supervision and regulation by the Utah State Department of Financial Institutions, which carries out annual examinations to ensure the bank is operating in accordance with state safety and soundness requirements, and performs periodic examinations of the bank’s compliance with applicable state banking statutes, regulations, and agency guidelines.
In addition, the company’s non-U.S. businesses and operations are subject to the U.S. laws regulating the conduct and activities of the U.S.-based businesses operating outside the United States, such as the Foreign Corrupt Practices Act (FCPA), which prohibits offering, promising, providing, or authorizing others to give anything of value to a foreign government official to obtain or retain business or otherwise secure a business advantage.
Intellectual Property Rights
The company has obtained trademark registration for the UnitedHealth Group, Optum and UnitedHealthcare names and logos.
History
UnitedHealth Group Incorporated was founded in 1974. The company was incorporated in 1977 in Minnesota.
