UnitedHealth Group

UnitedHealth Group Incorporated is an American multinational managed healthcare and insurance company based in Minnetonka, Minnesota. Offering insurance services under UnitedHealthcare and healthcare products under Optum, it is the world's eleventh-largest company by revenue and the largest healthcare company by revenue, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 78% of the Group's overall revenue.

The company is ranked 11th on the 2022 Fortune Global 500. UnitedHealth Group has a market capitalisation of $400.7 billion as of March 31, 2021.

UnitedHealth Group has origins dating back to 1974 with the founding of Minnesota-based Charter Med Incorporated, founded by Richard Taylor Burke. It originally processed claims for doctors at the Hennepin County Medical Society. United HealthCare Corporation was founded in 1977 to purchase Charter Med and create a network-based health plan for seniors. It became a publicly traded company in 1984 and changed its name to UnitedHealth Group in 1988.

In 1988, United HealthCare started its first pharmacy benefit management, through its Diversified Pharmaceutical Services subsidiary. It managed pharmacy benefits delivered both through retail pharmacies and mail. The subsidiary was sold to SmithKline Beecham in 1994 for $2.3 billion.

In 1994, United HealthCare acquired Ramsey-HMO, a Florida insurer. In 1995, the company acquired The MetraHealth Companies Inc. for $1.65 billion. MetraHealth was a privately held company formed by combining the group healthcare operations of The Travelers Companies and MetLife. In 1996, United HealthCare acquired HealthWise of America, which operated HMOs in Arkansas, Maryland, Kentucky and Tennessee.

In 1998, the company was reorganised as the holding of independent companies UnitedHealthcare, Ovations, Uniprise, Specialized Care Services and Ingenix, and rebranded as "UnitedHealth Group". Also in 1998, United Health Group acquired HealthPartners of Arizona, operator of Arizona's largest AHCCCS provider.

In 2001, EverCare, a UnitedHealth Group subsidiary, merged with LifeMark Health Plans In 2002, UnitedHealth Group acquired GeoAccess and Medicaid insurance company AmeriChoice. In 2003, UnitedHealth Group acquired Mid Atlantic Medical Services, an insurer serving Maryland, Washington D.C., Virginia, Delaware and West Virginia. Also in 2003, UnitedHealth Group acquired Golden Rule Financial, a provider of health savings accounts. On July 21, 2003, Exante Bank started operating in Salt Lake City, Utah, as a Utah state-chartered industrial loan corporation. It changed its name to OptumHealth Bank in 2008 and to Optum Bank in 2012.

In April 2004, UnitedHealth Group acquired Touchpoint Health Plan, a Wisconsin health plan. In July 2004, the company acquired Oxford Health Plans.

In December 2005, the company acquired PacifiCare Health Systems. It agreed to divest parts of PacifiCare's commercial health insurance business in Tucson, Arizona and Boulder, Colorado to satisfy antitrust regulator concerns, and also agreed to end its network access agreement with Blue Shield of California. The Tucson business was sold to Cigna. The company acquired Prescription Solutions, another pharmacy benefits manager, as part of its acquisition of PacifiCare Health Systems. This business was later rebranded OptumRx.

In February 2006, the company acquired John Deere Health Care. The same year, William W. McGuire stepped down as chairman and director due to his involvement in the employee stock options scandal. He was replaced by CEO Stephen Hemsley who had served as president and COO and a member of the board of directors. 

In February 2008, the company acquired Sierra Health Services for $2.6 billion. As part of the transaction, to obtain regulatory approval, 25,000 customers were sold to Humana. In July 2009, UnitedHealth Group agreed to acquire Health Net's Northeast licensed subsidiaries for up to $570 million in payments spread out over two years. Through 2010 and into 2011, senior executives of the company met monthly with executives of other health insurers to limit the effect of the health care reform law.

In July 2010, Ingenix acquired Picis Clinical Solutions, Inc., a health information provider for the high-acuity areas of hospitals.

Former LHI buildings in La Crosse
In 2011, Logistics Health, Inc. of La Crosse, Wisconsin, was acquired by OptumHealth. In September 2014, the office buildings where LHI is based were sold to UnitedHealth Group for $45 million.

In February 2012, the company acquired XLHealth, a sponsor of Medicare Advantage health plans with a primary focus on medicare recipients with special needs such as those with chronic illness and those eligible for Medicaid ("dual eligibles"). In October 2012, UnitedHealth Group and Amil Participações, one of the biggest Brazilian health insurance companies, completed the first phase of their merger.

In February 2014, Optum secured a majority stake in the Washington, D.C.-based startup Audax Health. Audax's CEO, Grant Verstandig, continued running the firm alongside COO David Ko. In October 2014, Optum Health acquired the health services unit of Alere for $600 million cash.

In March 2015, it was announced that CatamaranRx would be acquired by OptumRx.

In April 2016, the company announced it was pulling out of all but a "handful" of state healthcare exchanges provided under Affordable Care Act and will continue to sell only in three states in 2017.

In 2017, UnitedHealth's Optum unit acquired Rally Health, a company started by Audax Health's executives. Prior to acquisition, in 2015, UnitedHealth supported Rally Health as a majority investor, and through enrolling 5 million UnitedHealth policy holders in Rally Health's flagship product, RallySM. The close relations between UnitedHealth, Audax Health and Rally Health follows a close personal relationship between Grant Vrestandig (Audax and Rally) and UnitedHealth's President and CFO at the time, David Wichmann.

In June 2019, UnitedHealth's Optum division acquired Davita Medical Group from DaVita Inc. for $4.3 billion. That year, the company also agreed to acquire Equian for $3.2 billion. On June 19, 2019, UnitedHealth acquired the online patient community platform PatientsLikeMe for an undisclosed amount and it will be incorporated into UnitedHealth Group's research division.

In November 2019, Andrew Witty was named president of UnitedHealth, in addition to his role as chief executive of the company's Optum division.

UnitedHealth announced in March 2022 that it would acquire LHC Group for $5.4 billion. The deal will expand its home health capabilities by combining LHC's services with UnitedHealth's Optum unit.

The mission of UnitedHealth Group, a leading health care company, is to help people live healthier lives and make the health system work better for everyone. They aim to achieve this by providing high-quality, affordable health care services, investing in innovative technologies and solutions, and collaborating with healthcare professionals, policymakers, and communities to drive positive change in the healthcare industry. 

UnitedHealth's ultimate goal is to create a healthcare system that is accessible, efficient, and responsive to the needs of individuals and communities.

The vision of UnitedHealth Group is to be a trusted leader in the healthcare industry, delivering innovative solutions and exceptional services that improve the health and well-being of individuals and communities. 

UnitedHealth aims to create a sustainable and integrated healthcare system that delivers superior outcomes, reduces costs, and enhances the overall experience for patients, providers, and payers. They envision a future where every individual has access to high-quality, affordable healthcare, and where technology and data are leveraged to drive better health outcomes and improved health equity. Ultimately, UnitedHealth's vision is to help people live healthier lives and make healthcare work better for everyone.

UnitedHealthcare, the company's health insurance arm, provides health benefit plans for individuals, families, employers, and government programs. It offers a variety of insurance options, including medical, dental, vision, and pharmacy coverage. UnitedHealthcare focuses on delivering accessible and affordable health care solutions to its members, ensuring access to a vast network of health care providers and facilities.

Optum, another key division of UnitedHealth Group, offers an array of health services and innovations. Optum provides health management services, including population health management, care delivery, and health analytics. It also offers pharmacy care services through OptumRx, delivering prescription medications and medication management programs. Optum's technology and data analytics solutions help optimize health care operations, improve clinical outcomes, and enhance patient experiences.

UnitedHealth Group is committed to promoting wellness and preventive care. It offers employer-sponsored wellness programs that incentivize healthy behaviors and support employee well-being. The company also focuses on delivering personalized and integrated care through its care coordination services, promoting better care coordination and management for individuals with complex health needs.

Additionally, UnitedHealth Group invests in research and development to drive innovation and advance health care solutions. Its research division collaborates with leading academic institutions and industry partners to develop new treatments, therapies, and technologies.