UnitedHealth Group Incorporated is US-based international insurance and managed care provider with its headquarters in Minnetonka, Minnesota. UnitedHealth is a provider of insurance and healthcare products and services. In terms of revenue, it ranks as the eighth biggest company in the world and the 2nd biggest healthcare services provider after CVS Health. It is also the biggest insurance carrier in terms of net premiums.
The revenues of the company consist of 80% of the gross revenue of the Group.
UnitedHealth Group Incorporated enjoys the 8th rank on the Fortune Global 500 2021 list. As of 31st March 2021, the market capitalization of the group is around the US $400.7 billion.
The services offered by UnitedHealth Group Incorporated can be broadly categorized into health insurance, healthcare services, pharmacy benefit manager, and health care provider.
When was UnitedHealth Group founded?
The group was founded in 1977.
Who is the founder of UnitedHealth Group?
The founder of the group was Richard T. Burke.
How many employees are there in UnitedHealth Group Incorporated?
UnitedHealth Group employs 330,000 personnel.
UnitedHealth Group Management
In 2021 February, Andrew Witty was nominated as the Chief Executive Officer (CEO) of UnitedHealth Group. He has the overall responsibility for the policymaking guidance and the inclusive operations of the company and the development program in the long run. Andrew is a member of the Board of Directors of UnitedHealth Group. In March 2018, he was nominated as the CEO of Optum and the Executive VP of UnitedHealth Group. Earlier, he served in the position of business director of UnitedHealth Group. For a 9-year term (2008-2017), Andrew served as a Director and the CEO of GlaxoSmithKline (GSK) plc, a market leader in the pharma manufacturing industry. In 1985, Witty became a part of GSK and before getting the berth of the Chief Executive Officer of the same, he acted as GSK Europe President. Andrew was also the chancellor of the University of Nottingham, a Britain-based public research university. He also offers his services to the Innovation, Research, and Enterprise Council of the Prime Minister of Singapore. In 2020 November, Andrew was nominated as the chair of the Advisory Board of the Imperial College Business School.
From April 2020 to December 2020, Andrew was on voluntary service in the form of a special emissary to the WHO (World Health Organization), co-heading the endeavor to speed up reactions to the COVID-19 pandemic.
In 2012, Andrew got the knighthood for his contribution to the economy of the United Kingdom. Singapore nominated Witty as an honorary citizen in 2017 due to his assistance to the nation’s prosperity and progress.
Andrew Witty has honorary degrees from Nottingham, Manchester, and Exeter Universities.
Larry C. Renfro
Larry C. Renfro serves as the Vice Chairman of UnitedHealth Group and he was nominated in the same position in November 2014. Larry has the supervision responsibility for all business tactical associations, major clientele associations, as well as company-encompassing enterprise expansion endeavors. Renfro serves as the Optum Ventures Investment Funds managing partner, aiding in fast-tracking novelty at Optum and throughout the organization with nascent investiture in developing and sophisticated technology, healthcare, and data analytics firms that have performative competencies.
Larry became a part of UnitedHealth Group in 2009 January and has played the role of chief executive officer of the Public and Senior Markets Group, and CEO, Optum.
Earlier, Renfro served as a senior executive officer with Fidelity Investments. Besides, he was a member of the Executive Committee of Fidelity.
Renfro also served as the chief executive officer and president of AARP Services, Inc. earlier than joining Fidelity Investments in 2008 once more. He occupied senior executive roles with Allmerica Financial, State Street Bank & Trust, and NewRiver, Inc.
John Rex serves as the Chief Financial Officer (CFO) and Executive Vice President of UnitedHealth Group, Incorporated. He got the appointment in these two positions in 2016. He became a part of this organization in 2012 as the Chief Financial Officer and Executive Vice President of Optum, the healthcare services arm of United Health Group.
Previously, John served in the following positions:
- He worked as a prominent equity research expert
- He functioned as a planning and execution advisor and
- Worked as a CPA (certified public accountant) throughout miscellaneous healthcare industries.
Dirk McMahon serves as the Chief Operating Officer and President of UnitedHealth Group. He was nominated for these two positions in February 2021. In 2019 June, he was appointed the CEO of United Healthcare. Before this position, Dirk served as the COO and President of Optum and he was responsible for propelling the comprehensive business execution and straight supervision of the following:
- Optum Technology
- Optum Administration
- Enterprise and corporate planning
Dirk got the nomination to the Chief Executive’s office in 2017. Earlier, he served as the Executive VP of UnitedHealth Group, Enterprise Operations. Since becoming a part of the organization in 2003, Dirk has worked in various leadership roles throughout the organization such as supervising the pharmacy benefit management plans of UnitedHealth Group, CEO of OptumRx, together with various administrative roles in business operations, IT, and treasury. Before becoming a part of UHG, Dirk headed the global airport activities for Northwest Airlines.
The organization is made up of two subsidiary companies and are UnitedHealthcare and Optum.
UnitedHealthcare comprises four segments:
- UnitedHealthcare Medicare and Retirement – Offers healthcare and wellness services to people aged sixty-five and more.
- UnitedHealthcare Employer and Individual – Offers healthcare benefit coverage and facilities for big countrywide establishments
- UnitedHealthcare Global – Offers services to 6.2 million customers with healthcare benefits, staying mostly in Chile, Brazil, Peru, and Colombia but also in over one hundred and thirty other nations.
- UnitedHealthcare Community and State – Offers services to state packages that take care of the financially deprived, the medically underprivileged, and individuals who don’t have the advantage of company-sponsored health insurance cover, in return for a premium per subscriber every month generated by the state plan.
In 2011, the brand called Optum was launched as the firm’s healthcare services trade. Optum serves as UnitedHealth Group Incorporated’s tech-oriented division.
UnitedHealth Group Incorporated Products and Services
Health Insurance Coverage
UnitedHealthcare provides commercial group insurance programs throughout the US under various merchandise names with various products on offer.
- UnitedHealthcare Select Plus – It is a PPO (preferred provider organization).
- UnitedHealthcare Select – It is an EPO or exclusive provider organization that does not offer any cover for out-of-network carriers.
- UnitedHealthcare Navigate, Charter, and Compass – It asks for a primary care doctor’s recommendation for visiting an expert that implies that these are additionally protective managed care programs, resembling point of service programs.
- UnitedHealthcare Choice – It works like an HMO (Health Maintenance Organization ) program with the availability of expert physicians, while UnitedHealthcare Choice Plus functions as an HMO that permits out-of-network health insurance cover.
The company negotiates with carriers in intervallic deal arbitration; deals might be withdrawn from occasion to occasion. High-level deal disagreements can cover carrier networks throughout the country, like in the instance of a 2018 row with Envision Healthcare, an eminent emergency room physician team.
Keeping updated carrier directories is essential because the Hubs for Medicaid Services and Medicare can penalize carriers with invalid indexes. As a stipulation of involvement, UnitedHealthcare necessitates that carriers inform them about modifications. However, it features a Professional Verification Outreach plan to preemptively ask for details from carriers as well. Nonetheless, carriers are saddled by the preservation of their details with various networks (for example, rivals of UnitedHealthcare). The overall expenditure of keeping these indexes is projected at US $2.1 billion per annum. In 2018, a blockchain enterprise commenced sharing the directories.
UnitedHealth Group Financial Performance
1. United Health Group – Three Months Ended Quarterly Financial Performance
2. United Healthcare – Three Months Ended Quarterly Financial Performance
3. Optum – Three Months Ended Quarterly Financial Performance
- The revenue of UnitedHealth Group Incorporated amounting to US $71.3 billion rose 15% with all-inclusive progress for UnitedHealthcare and Optum
- Cash flow resulting from business operations attained US $5.5 billion that is 1.3 times the net income
- Earnings from Operations reached US $6.0 billion
- Net Earnings per share stood at US $4.46 and Adjusted Earnings per share stood at US $4.70
UnitedHealth Group Incorporated Stock Performance
The common stocks of UnitedHealth Group Incorporated are traded on the NYSE (New York Stock Exchange) with the ticker symbol UNH. Buyers must approach a broker for buying their stocks. UnitedHealth Group does not sell them directly. On September 15, 2021, the UnitedHealth Group Incorporated (UNH) closed trading with NYSE at $417.52 at 4:00 pm EDT (Eastern Daylight Time).
The stocks of UnitedHealth Group are also constituents of the DJIA, S&P 100, and S&P 500 indices.
UnitedHealth Group Foundations
There are two foundations under the UnitedHealth Group and they are the UnitedHealthcare Children’s Foundation and United Health Foundation. Since the time of its foundation in 1999 by UnitedHealth Group as a non-profit seeking, privately-held institution, the United Health Foundation has contributed over $170 million for the betterment of wellness and health care.
The viewpoint of UnitedHealth Group Incorporated
UnitedHealth Group Incorporated strives to accomplish its objectives through empathy, honesty, creativity, execution, and associations. It is dedicated to help communities live improved lives and ensure that healthcare infrastructure functions properly for everybody. Providing top-notch healthcare services at affordable prices is their forte. The company endows people to make sensible healthcare decisions by offering a diverse range of consultation, data, and widgets and endorses the doctor-patient association.
Disclaimer: This article has been written for academic knowledge enhancement and it would certainly be beneficial for students and startup entrepreneurs. It is constantly encouraged that this article is not taken as any form of investment consultation. It is always levelheaded to talk to your investment consultant when it is a matter of investment decision-making.