The United Health Group Family

1
The United Health Group Family
2007
2
UHG Participates in a Huge Market
Health care growth is rapidly spawning attractive
new opportunities.
U.S. Health Spend
Government Sponsored Markets
Commercial Benefits
Out-of-Pocket Spend
Total
Medicare Advantage
Part D
Total
CDHP
Total
Size (B)
CAGR
7
8
7
21
11
11
5
Initial Part D number is for 2006.
Sources CMS National Health Expenditures
Kaiser Family Foundation CBO ICDC
3
Growth in the Sector is Driven by Unprecedented
Social Change
Consumers are the central theme in the
transformation of health care.
A dramatic increase in age
with a resulting increase in health spending
Evolution of 55 Population (M)
Consumer Health Care Expenditures by Age ()
2010
2015
35-45
45-54
55-64
2005
Millions
A steady rise in the population covered by
government programs
and an employer base with changing expectations
about benefits
Lives Covered by Government Programs (M)
500 Employers Offering Retiree Health Benefits
()
2005
2010
2015
Pre-65

65
Millions
Sources Census Bureau Mature Market Institute
CMS HHS Kaiser/Hewitt 2004 Survey Mercer HR
Consulting Watson Wyatt CPS March Supplement
4
Other Environmental Factors

• The US workforce is mobile and nomadic, driving
  demand for portable flexible products
• Distribution models are evolving and expanding
• Financial/Healthcare Convergence
• Long life products enormous variation
• An aging IT workforce and aging mainframe
  operating applications
• Challenging regulatory environment
• 50 States, 50 Insurance Departments, plus federal
  regulation
• Dramatically different regulatory regimes for
  government programs
• ICD 10 Bigger than Y2K

Change Risk Opportunity
5
The Marketplace Is Seeking Solutions to Market
Imperatives

• Affordability Manage the effectiveness and
  efficiency of care and provide choices within
  the financial means of the consumer
• Quality and Safety Health care services delivered
  safely and consistently within the norms of
  current science
• Human Usability An environment that is simple and
  understandable, usable, efficient,
  consistent and trustworthy
• Fair and Rational Access Efficient and fair
  access to, and distribution of, care

These imperatives drive our business agenda
6
Growth Enablers

• BPM/Rules/Integration
• Effectively Addresses the Information and Process
  Silos
• Maximize Workflow Efficiency
• Modernize Business Processes and Create
  Re-useable Services
• Leverage Business Rules Repositories to Increase
  Agility
• Legacy Modernization
• High Cost of Maintaining and Upgrading
• Risk Associated with Aging Systems and Hardware
• Difficulty in Obtaining Trained Knowledgeable
  Resources
• Complexity and Lack of Flexibility During
  Integration Activities

• Web Portal and eBusiness
• Enabling Safe and Easy Web Sales
• eService for Customer, Brokers, Providers
• Business Intelligence
• Integrating Disparate Data to Build a Complete
  View of Customers
• Creating Transparency and Improving Decision
  Making
• Moving toward a Real-Time Enterprise
• Global Sourcing
• Enabling Agile Application Development
• Targeted Business Process Outsourcing
• Understanding and Piloting Knowledge Process
  Outsourcing