UnitedHealth Group
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UnitedHealth Group Inc. | |
Type | Public (NYSE: UNH) |
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Founded | 1977 |
Headquarters | Minnetonka, Minnesota, USA |
Key people | Stephen Hemsley, CEO |
Industry | Health Care Plans |
Products | Uniprise, Health Care Services, Specialized Care Services, and Ingenix |
Revenue | $45.365 billion USD (2005) |
Operating income | $5.373 billion USD (2005) |
Net income | $3.300 billion USD (2005) |
Employees | 55,000(2006) |
Website | www.unitedhealthgroup.com |
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 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.
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[edit] 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 options by 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.[1][2] On October 15, 2006 Dr. McGuire was forced to resign, and relinquish hundreds of millions of dollars in stock options.
[edit] 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)
[edit] References
- ^ "A Board With Its Back To The Wall: UnitedHealth directors aren't ready to oust embattled CEO McGuire. Here's why", Business Week, July 10, 2006
- ^ Joe Conason, Jersey hustler: Why did former Gov. Kean, once a respected statesman, mislead the public and the press about the accuracy of ABC's 'Path to 9/11'?", Salon magazine, September 15, 2006
[edit] External links
- UnitedHealth Group Official Web Site.
- UnitedHealth Group at NNDB.
- UnitedHealth Group stock quote & chart
Minnesota-based Corporations |
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Minnesota-based Fortune 500 Corporations (by size): Target Corporation | UnitedHealth Group | Best Buy | Travelers | 3M | Supervalu | U.S. Bancorp | Northwest Airlines | CHS | General Mills | Medtronic | Xcel Energy | Land O'Lakes | Thrivent Financial for Lutherans | C. H. Robinson Worldwide | Hormel | Nash Finch | Ecolab | The Mosaic Company |
Minnesota-based Fortune 1000 Corporations (by size): Companies listed above, plus PepsiAmericas | Bemis Company | Pentair | St. Jude Medical | Alliant Techsystems | Valspar | Patterson Companies | Minnesota Life | Regis Corporation | Polaris Industries | Toro | Deluxe Corporation | Donaldson Company | Fastenal | H.B. Fuller | Federated Mutual Insurance | Ceridian |
Major Minnesota-based non-public or externally owned corporations (alphabetically): Andersen Windows | Cargill | Carlson Companies | Dairy Queen | Musicland | Schwan Food Company |