UnitedHealth Group
History
United Health Care is the health benefits service business of United Health Group. The company is working to build a modern, high-performing, affordable, and easy-to-access health system. United Healthcare acquired Ramsey-HMO, a Florida insurer, in 1994, and Metra Health Companies Inc. in 1995 for $1.65 billion. Metra Health is a private company formed by combining the group healthcare operations of the Travelers Companies and Metlife. It acquired Healthwise of America, which runs HMOs in Arkansas, Maryland, Kentucky, and Tennessee. In 2001, Evercare, a subsidiary of UnitedHealth Group, merged with Life Mark Health Plans.
Further, in 2002, UnitedHealth Group got hold of GeoAccess and Medicaid insurance company Ameri Choice. In 2003, it acquired Mid Atlantic Medical Services. It was an insurer serving Maryland, Washington D.C., Virginia, Delaware, and West Virginia. It made two acquisitions in 2004: TouchPoint Health Plan, a Wisconsin health plan (April 2004), and Oxford Health Plans (July 2004). Further, in 2011, OptumHealth acquired Logistics Health Inc. of La Crosse, and United Health Group bought the office building where Logistics Health Inc is based for $45 million.
UnitedHealth Group acquired XLHealth (a sponsor of Medicare Advantage health plans with a major focus on medicare recipients. In 2014, Optum secured a majority of stake in Audex Health (a Washington D.C.-based startup), and in 2015, Optumx announced to acquire Catamarans. In 2016, the company announced pulling out of all but a handful of state healthcare exchanges provided under the Affordable Care Act and will continue to sell in three states in 2017. UnitedHealth Optum unit acquired Rally Health (a company started by Audex Health's executives) in 2017.
In June 2019, the UnitedHealth Optum division acquired Davita Medical Group from its owner DaVita Inc. for $4.3 billion, and the company also agreed to acquire Equian for $3.2 billion. In June 2019, it acquired the online patient community platform PatientsLikeMe without revealing the deal amount and incorporated it into its research division. Ahead in 2019, Andrew Witty became president of United Health and handled the role of chief executive of the company's Optum group.
Market share and Current Stage
With an estimated 350,000 employees, the Company United Health has a notable market in the United States. Its industries are Finance and insurance, health & medical insurance, pharmacy benefit management, healthcare consultants, HMP providers, and Finance and Insurance. You can see their most significant market share in the Health and medical insurance industry. Here, they account for an estimated 25.95 of total industry revenue and are seen as an All-Star because they display a stronger market share, profit, and revenue growth.
In the Year 2021, the United Health Group has a 15.3 percent share of the U.S. health insurance market along with direct premium written amounting to something around 137.8 billion U.S. dollars. Companies like Anthem Inc and Centene Inc followed with a market share of 10.3% and 9.1%, respectively.
Market capitalization, commonly known as market cap, is the total value of a company's stock). Currently (Dec 30, 2022), the Company UnitedHealth Group's market cap is $495.37B. It has also acquired several competing healthcare, transforming this Company from a pure health insurer to a comprehensive healthcare provider.
In March 2022, the UnitedHealth Group stated that it would acquire LHC Grop for $5.4 billion. The deal will also expand its health capabilities by combining LHC's services with UnitedHealth's Optum unit.
Competitor Analysis
The Company United Health Group is the largest insurance provider in the country, with its main competitors like Aetna Inc. (AET), Humana Inc.( HUM) and WellPoint Inc. (WLP), etc.
In terms of market share, it is the leading Company, with a market share of 13.6%. Its annual revenue is about $80 billion, and more than 84 million policies. Moreover, its sales rise was above UnitedHealth Group Incorporated's competitors' average revenue growth of 10.6 %, estimated in the same quarter. When the results of its competitors are compared, UnitedHealth Group reported Total Revenue growth in the three quarter 2022 by 11.83 % year on year.
With a net margin of 6.66%, United Health achieved higher profitability than its competitors.
Net Income Comparison
In the 3 quarter of 2022 Unitedhealth Group estimated Net Income 2022 grew year on year by 28.47 %, faster than the average growth of Unitedhealth Group Incorporated's competitors of 24.04 %.
FAQ'S
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Company Name
UnitedHealth Group
Head Quarter
Minnetonka, Minnesota, United States
Founders
Richard T. Burke
CEO
Andrew Witty
Inception Date
1977
Total assets
$433.36 Billion