AARP and UnitedHealth Group to Broaden Historic Relationship to Improve the Health of Americans.Exclusive Seven-Year Agreement Expands Scope of Service to Include Medicare Advantage, Part D and Medicare Supplement Products Across All Markets; Innovative Agreement Includes Commitments To Social Responsibility, Diversity and Pro-Consumer Initiatives MINNEAPOLIS -- 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 (NYSE NYSE See: New York Stock Exchange :UNH Unh The symbol for the element unnilhexium. ) announced today that the Company and AARP AARP, a nonprofit, nonpartisan national organization dedicated to "enriching the experience of aging"; membership is open to people age 50 or older. Founded in 1958 by Ethel Percy Andrus as American Association of Retired Persons, AARP now has over 30 million have agreed to extend and broaden their existing arrangement for an additional seven years to cover AARP-branded Medicare Advantage, Medicare Part D and Medicare Supplement products across all markets. The new agreement, which takes effect January 1, 2008, and will continue through December 31, 2014, provides access to AARP's nearly 38 million members and others aged 50 and over. In addition to covering a diversified portfolio of Medicare-related and indemnity insurance indemnity insurance Managed care A type of health insurance in which a Pt can choose the hospital and provider, and the insurer reimburses the Pt or provider for a set percentage of the cost, minus deductibles and co-payments products, the new relationship includes a commitment to develop and offer new products, services and technologies, with a focus on health and wellness solutions that address AARP members' individual needs. It also provides for an expanded range of AARP-branded Medicare Advantage plans that will offer greater predictability to enrollees through a two-year marketplace commitment covering 2008-2009. Further, the agreement continues certain existing products for members aged 50 to 64. Stephen J. Hemsley, president and chief executive officer, UnitedHealth Group, said: "We are extraordinarily privileged to continue working with AARP, the leading membership organization for Americans 50+, to improve the health and well-being of millions of people in this country. We're excited our new agreement extends our existing relationship to cover Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, products across all markets. We are committed to using the resources across our enterprise to develop new ways to improve the health of AARP's millions of members and increase access to high quality, affordable health care for all Americans." A Far-Reaching and Innovative Agreement The new agreement between AARP and UnitedHealth Group includes a broad range of innovative offerings and services, with opportunities that extend across the extensive capabilities of UnitedHealth Group. The new agreement includes several new measures to empower health care consumers, simplify their interactions with the Company and ensure their satisfaction through high quality service. The agreement calls for the Company to help ensure that members have a seamless, easy-to-use online experience that helps them obtain important health information and live healthier, active lives. In addition, subject to compliance with legal requirements, the organizations will work in tandem to ensure that information provided to members or prospective members is presented in a clear, concise and understandable manner. The new agreement also includes additional commitments by the Company to corporate social responsibility, corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. , and diversity initiatives. In line with its existing plans, UnitedHealth Group will continue to develop and enhance its corporate social responsibility program, ensuring that the Company will address the affordability and accessibility of quality health care, the growing ranks of the uninsured, and the unique health care needs of populations aged 50 and above. The agreement also includes specific provisions related to UnitedHealth Group's ongoing commitment to meeting corporate governance objectives. In addition, UnitedHealth Group will continue to enhance its diversity program by developing products and services to meet the unique needs of diverse communities, by addressing racial/ethnic disparities in health care delivery, and encouraging further diversity across the Company. "Through our new agreement, we will work to ensure that consumers will have the products, services and information they need at their fingertips "Fingertips" is a 1963 number-one hit single recorded live by "Little" Stevie Wonder for Motown's Tamla label. Wonder's first hit single, "Fingertips" was the first live, non-studio recording to reach number-one on the Billboard Pop Singles chart in the United States. ," said Stephen Hemsley. "Moreover, this new agreement with AARP presents us with a tremendous opportunity to work toward effective reform of the nation's health care system for millions of seniors - including those in vulnerable and diverse communities." About UnitedHealth Group UnitedHealth Group (www.unitedhealthgroup.com) is a diversified health and well-being company dedicated to making health care work better. Headquartered in Minneapolis, Minn., UnitedHealth Group offers a broad spectrum of products and services through six operating businesses: UnitedHealthcare, Ovations, AmeriChoice, Uniprise, Specialized Care Services and Ingenix. Through its family of businesses, UnitedHealth Group serves approximately 70 million individuals nationwide. Forward-Looking Statements This news release may contain statements, estimates, projections, guidance or outlook that constitute "forward-looking" statements as defined under U.S. federal securities laws. Generally the words "believe," "expect," "intend," "estimate," "anticipate," "plan," "project," "will" and similar expressions, identify forward-looking statements, which generally are not historical in nature. These statements may contain information about financial prospects, economic conditions, trends and unknown certainties. We caution that actual results could differ materially from those that management expects, depending on the outcome of certain factors. These forward-looking statements involve risks and uncertainties that may cause UnitedHealth Group's actual results to differ materially from the results discussed in the forward-looking statements. Some factors that could cause results to differ materially from the forward-looking statements include: the potential consequences of the findings announced on October 15, 2006 of the investigation by an Independent Committee of directors of our historic stock option practices, the consequences of the restatement of our previous financial statements, related governmental reviews, including a formal investigation by the SEC, and review by the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. , U.S. Congressional committees, U.S. Attorney for the Southern District of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Minnesota Attorney General, a related review by the Special Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Committee of the Company, and related shareholder derivative actions, shareholder demands and purported securities and Employee Retirement Income Security Act The Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C.A. § 1001 et seq. (1974), is a federal law that sets minimum standards for most voluntarily established Pension and health plans in private industry to provide protection for individuals enrolled in these plans. (ERISA See Employee Retirement Income Security Act. ERISA See Employee Retirement Income Security Act (ERISA). ) class actions, the resolution of matters currently subject to an injunction issued by the United States District Court for the District of Minnesota The United States District Court for the District of Minnesota is the Federal district court whose jurisdiction is the state of Minnesota. It was established by an act of Congress on March 17, 1849. , a purported notice of acceleration with respect to certain of the Company's debt securities based upon an alleged event of default under the indenture governing such securities, and recent management and director changes, and the potential impact of each of these matters on our business, credit ratings and debt; increases in health care costs that are higher than we anticipated in establishing our premium rates, including increased consumption of or costs of medical services; heightened competition as a result of new entrants into our market, and consolidation of health care companies and suppliers; events that may negatively affect our contract with AARP; uncertainties regarding changes in Medicare, including coordination of information systems and accuracy of certain assumptions; funding risks with respect to revenues received from Medicare and Medicaid Medicare and Medicaid U.S. government programs in effect since 1966. Medicare covers most people 65 or older and those with long-term disabilities. Part A, a hospital insurance plan, also pays for home health visits and hospice care. programs; increases in costs and other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. associated with increased litigation, legislative activity and government regulation and review of our industry; our ability to execute contracts on competitive terms with physicians, hospitals and other service providers; regulatory and other risks associated with the pharmacy benefits management industry; failure to maintain effective and efficient information systems, which could result in the loss of existing customers, difficulties in attracting new customers, difficulties in determining medical costs estimates and appropriate pricing, customer and physician and health care provider disputes, regulatory violations, increases in operating costs, or other adverse consequences; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and intangible assets recorded for businesses that we acquire; potential noncompliance noncompliance failure of the owner to follow instructions, particularly in administering medication as prescribed; a cause of a less than expected response to treatment. noncompliance by our business associates with patient privacy data; misappropriation misappropriation n. the intentional, illegal use of the property or funds of another person for one's own use or other unauthorized purpose, particularly by a public official, a trustee of a trust, an executor or administrator of a dead person's estate, or by any of our proprietary technology; and anticipated benefits of acquisitions that may not be realized. This list of important factors is not intended to be exhaustive. A further list and description of some of these risks and uncertainties can be found in both companies' reports filed with the Securities and Exchange Commission from time to time, including annual reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , quarterly reports on Form 10-Q Form 10-Q See 10-Q. and current reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. . Any or all forward-looking statements we make may turn out to be wrong. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Except to the extent otherwise required by federal securities laws, we do not undertake to publicly update or revise any forward-looking statements. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion