UnitedHealth Group

UnitedHealth Group Incorporated nyse: UNH is a managed health care company. It is the parent of United Healthcare, one of the largest health insurers in the U.S. It was created in 1977, as UnitedHealthCare Corporation (it renamed itself in 1998), but traces its origin to a firm it acquired in 1977, Charter Med Incorporated, which was founded in 1974. In 1979, it introduced the first network-based health plan for seniors. In 1984, it became a publicly traded company. In 2005, William W. McGuire, M.D., its CEO, earned $124 million. His compensation in the five years 2001-2005 was $341 million. He was the CEO from 1989 -- when annual revenues were just over $400 million -- to 1 December 2006, when he was replaced as CEO by Stephen Hemsley due to allegations of options backdating done to favor UHC executives such as McGuire (see Options Backdating section below).

In 1995, the company acquired The MetraHealth Companies Inc. for $1.65 billion. MetraHealth was a privately held company formed by combining the group health care operations of The Travelers Insurance Company and Metropolitan Life Insurance Company.

In July 2004 United Health Group acquired Oxford Health Plans and all of United Healthcare's ny small group contracts (2-49 lives) are now Oxford health plans products. In December 2005, the company received final regulatory approval for its $9.2 billion purchase of 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.

In March 2007 United Health Group signed a definitive agreement to acquire Sierra Health Services Inc. for $2.6 billion. Sierra provided health benefits and services to 310,000 members in Nevada and another 320,000 people in senior and government programs throughout the United States.

Was named Business Insurance Readers ChoiceTM winner 2007 for Best Managed Care Organization.

Businesses
Business Services Health Care Services Knowledge & Information Services Specialized Care Services
 * Uniprise
 * AmeriChoice
 * Ovations
 * Oxford
 * Pacificare
 * UHG International
 * UnitedHealthcare
 * Mid Atlantic Medical Serivces LLC (MAMSI)
 * Ingenix
 * i3 Innovus
 * Reden & Anders LTD (an Ingenix company)
 * ACN Group
 * Dental Benefit Providers
 * National Benefit Resources
 * Optum®
 * Spectera
 * Unimerica Workplace Benefits
 * United Behavioral Health
 * United Resource Networks

Options backdating investigations and lawsuits
In 2006, the Securities and Exchange Commission began investigating the conduct of United Health's management and directors, as did the Internal Revenue Service and prosecutors in the U.S. attorney's office for the Southern District of New York, who have subpoenaed documents from the company. The investigations came to light after a series of probing stories in the Wall Street Journal in May 2006, discussing apparent backdating of hundreds of millions of dollars' worth of stock optionsby United Health management. The backdating apparently occurred with the knowledge and approval of the directors, according to the Journal. Major shareholders have filed lawsuits accusing former New Jersey governor Thomas Kean and UHC's other directors of failing in their fiduciary duty. On 15 October 2006, Dr. McGuire was forced to resign, and relinquish hundreds of millions of dollars in stock options.

The American Chiropractic Association has filed a national class action lawsuit against ACN, ( American Chiropractic Network) which is owned by United Healthcare and administers chiropractic benefits, and United Healthcare for alleged practices in violation of the federal RICO act.

Trivia

 * UNH is one of Mad Money host Jim Cramer's favorite stocks (and one he owns for his charitable trust). He frequently refers to himself as "Doctor UNH".
 * Even though they are based in Minnesota, they are not allowed to sell insurance within Minnesota. This is because state law limits that to non-profit organizations (e.g., Blue Cross, Blue Shield)