UnitedHealth Group Awarded TRICARE Managed Care Support Contract to Provide Services for Three Million People in the South Region

Mon Jul 13, 2009 7:20pm EDT
 
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MINNETONKA, Minn.--(Business Wire)--
UnitedHealth Group (NYSE:UNH) announced today that its UnitedHealth Military &
Veterans Services has been awarded the Department of Defense`s TRICARE Managed
Care Support South Region contract to provide health care services for active
duty and retired military service members and their families. UnitedHealth
Military & Veterans Services is a new UnitedHealth Group business dedicated to
providing the nation`s military, veterans, and their families with high-quality,
affordable health care. 

UnitedHealth Military & Veterans Services will be the Managed Care Support
contractor serving approximately three million TRICARE beneficiaries in Alabama,
Arkansas, Florida, Georgia, Kentucky (Fort Campbell area), Louisiana,
Mississippi, Oklahoma, South Carolina, Tennessee, and portions of Texas. The
contract includes a transition period and five one-year option periods for
health care operations. The first year of operations is anticipated to begin
April 1, 2010. 

Stephen J. Hemsley, president and chief executive officer of UnitedHealth Group
said, "All Americans should have access to high quality, affordable health care,
in particular the men and women who have volunteered to serve and protect our
nation, and their families. We believe that bringing together the proven
achievements of the Military Health System with UnitedHealth Group`s
capabilities will further enhance the effectiveness and quality of health care
provided to TRICARE beneficiaries." 

Lori C. McDougal, chief executive officer of UnitedHealth Military & Veterans
Services, said, "We look forward to working in partnership with the Military
Health System to apply our resources and experience to serve the health care
needs of the men and women in the uniformed services and their families. It is a
privilege for us to work with the TRICARE program to enhance access and quality
of care, continue to improve medical outcomes, and control overall costs." 

The contract award has a gross value of $21.8 billion over the term of the
contract, comprising more than $20.3 billion in government-forecasted health
care costs and $1.5 billion for management support and services. The Company
also has the opportunity to earn additional incentive fees based on its
performance against contract standards. UnitedHealth Military & Veterans
Services will provide medical and referral management, care provider networks,
customer services and claims processing, as well as management support including
cost trend risk management, fraud and abuse detection, and quality management
services. 

About UnitedHealth Group

UnitedHealth Group (NYSE:UNH) 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,
OptumHealth, Ingenix, and Prescription Solutions. Through its family of
businesses, UnitedHealth Group serves approximately 70 million individuals
nationwide. 

Forward-Looking Statements

This press 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 uncertainties and involve risks and
uncertainties. We caution that actual results could differ materially from those
that management expects, depending on the outcome of certain factors including
the duration of the contract, service needs, the level of enrollment in the
program and our performance relative to contract standards. 





UnitedHealth Group
Jack Sheehan, 952-992-4190 (Office)
952-270-7594 (Mobile)
Communications Director
jack_sheehan@uhc.com



Copyright Business Wire 2009

 

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