FACTS 2018 Q2 Helping people live healthier lives and helping make the health system work better for everyone - UnitedHealth Group

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FACTS 2018 Q2 Helping people live healthier lives and helping make the health system work better for everyone - UnitedHealth Group
2018 Q2
Helping people live
healthier lives and helping
make the health system
work better for everyone
FACTS 2018 Q2 Helping people live healthier lives and helping make the health system work better for everyone - UnitedHealth Group
Our Mission
          Our mission is to help people live healthier
          lives and help make the health system
          work better for everyone.

          • W
             e seek to enhance the performance of the
            health system and improve the overall health
            and well-being of the people we serve and their

          • W
             e work with health care professionals and
            other key partners to expand access to quality
            health care so people get the care they need at
            an affordable price.

          • W
             e support the physician/patient relationship
            and empower people with the information,
            guidance and tools they need to make personal
            health choices and decisions.

    Our Culture
    The people of this company are aligned around basic values that inspire our behavior as individuals
    and as an organization:
    Integrity. We are dedicated to the highest levels of        individual consumers of health care. Trust is earned
    personal and institutional integrity. We make honest        and preserved through truthfulness, integrity, active
    commitments and work to consistently honor those            engagement and collaboration with our colleagues
    commitments. We do not compromise ethics. We strive         and clients. We encourage the variety of thoughts and
    to deliver on our promises and we have the courage to       perspectives that reflect the diversity of our markets,
    acknowledge mistakes and do whatever is needed to           customers and workforce.
    address them.
                                                                Innovation. We pursue a course of continuous, positive
    Compassion. We try to walk in the shoes of the people       and practical innovation, using our deep experience in
    we serve and the people we work with across the health      health care to be thoughtful advocates of change and
    care community. Our job is to listen with empathy and       using the insights we gain to invent a better future that
    then respond appropriately and quickly with service and     will make the health care environment work and serve
    advocacy for each individual, each group or community       everyone more fairly, productively and consistently.
    and for society as a whole. We celebrate our role in
                                                                Performance. We are committed to deliver and
    serving people and society in an area so vitally human as
                                                                demonstrate excellence in everything we do. We will be
    their health.
                                                                accountable and responsible for consistently delivering
    Relationships. We build trust through cultivating           high-quality and superior results that make a difference
    relationships and working in productive collabo­ration      in the lives of the people we touch. We continue to
    with government, employers, physicians, nurses and          challenge ourselves to strive for even better outcomes in
    other health care professionals, hospitals and the          all key performance areas.

2   Facts 2018 Q2 UnitedHealth Group
FACTS 2018 Q2 Helping people live healthier lives and helping make the health system work better for everyone - UnitedHealth Group
UnitedHealth Group is a highly diversified health and well-being company headquartered in the United
States, serving the markets for health benefits through UnitedHealthcare, and the growing markets for
health services through Optum. These two platforms share and build upon three core competencies:

   Clinical Insight                    Technology                         Data & Information
   Knowledge and experience            Enabling a variety of              Unique skills in collecting,
   in organizing health care           interactions at enormous           managing and analyzing
   resources to best serve             scale and complexity,              data; and the capability
   specific local market               helping connect all                to translate data into
   needs.                              participants in health care.       actionable information.

The breadth and scope of our diversified enterprise help consistently improve health care quality,
access and affordability. Our ability to analyze complex data and apply deep health care expertise
and insights allows us to serve care providers, individuals, vulnerable populations, businesses,
communities, and governments with more innovative products and complete, end-to-end offerings
for many of the biggest challenges facing health care today.

Fast Facts
                 Through our                                          285,000 people
                 businesses,                                          worldwide power this
                 UnitedHealthcare                                     enterprise with their
                 and Optum, we                                        entrepreneurial spirit and
                 provide medical                                      commitment to quality.
                 benefits to people
                 residing in all
50 states in the United States and                UnitedHealth Group’s
more than 130 other countries.                    workforce includes at
                                                  least 85,000 clinical
                                                  professionals who focus
UnitedHealth Group
                                                  on helping people live
                                                  healthier lives.
more than
$3.3 billion annually
                                                                      UnitedHealth Group is
in technology and innovation.
                                                                      a member of the Dow Jones

We process about 1 trillion digital               UNH                 Industrial Average and is
                                                                      traded on the NYSE under
transactions annually.
                                                                      the symbol UNH.

                                                                               Facts 2018 Q2 UnitedHealth Group   3
FACTS 2018 Q2 Helping people live healthier lives and helping make the health system work better for everyone - UnitedHealth Group

        Health Benefits
        UnitedHealthcare (www.uhc.com) is
        dedicated to simplifying the health
        care experience, meeting consumer
        health and wellness needs, and
        sustaining trusted relationships
        with care providers. The company
        provides global health care benefits,
        serving individuals, employers and
        Medicare and Medicaid beneficiaries.

    Health Benefit Programs:
    UnitedHealthcare Employer & Individual                     UnitedHealthcare Community & State
    Employer sponsored and individual health benefits plans.   State Medicaid and community programs.

    UnitedHealthcare Medicare & Retirement                     UnitedHealthcare Global
    Health and well-being products and services for the        Medical benefits and care delivery, principally
    growing senior market.                                     in South America.

       Network                                                 Value-Based Care Programs
       In the United States, UnitedHealthcare arranges         UnitedHealthcare has
       for discounted access to care through networks          more than 1,000 value-             More than
                                                               based care arrangements
                               that include 1.2 million
                               physicians and other            in place to improve
                               health care professionals       patient health and
                                                                                               value-based care
                               and approximately               reward care providers for        arrangements
                               6,500 hospitals and             high-quality and better
                               other facilities.               outcomes.

4   Facts 2018 Q2 UnitedHealth Group
FACTS 2018 Q2 Helping people live healthier lives and helping make the health system work better for everyone - UnitedHealth Group

     Health Services
    Optum (www.optum.com) is a leading
    information and technology-enabled
    health services business dedicated to
    modernizing the system and improving
    the health of people and communities.
    Optum builds innovative partnerships,
    provides technology and tools that
    enable unprecedented collaboration
    and efficiency, and taps into valuable
    health care data to uncover insights that
    lead to better care at lower cost.

Business Segments:
OptumHealth                                 OptumInsight                          OptumRx
A leader in population health               A leader in providing health          A leading pharmacy care
management and health care                  information, technology,              services company serving
delivery, serving the physical,             services and consulting to            commercial, Medicare, Medicaid
mental and financial needs of               participants in the health            and other government health
individuals and organizations.              care industry.                        plans, employers and unions.

   Optum Serves:                                         Powering Modern Health Care
   124 million individuals                               Optum powers intelligence across the health care
                                                         system with products and services infused with
   4 out of 5 U.S. hospitals                             OptumIQ, a unique combination of data, analytics
                                                         and health care expertise.
   A network of more than 67,000 pharmacies
                                                         The strength of OptumIQ lies in an unparalleled database
   More than 100,000 physicians, practices               of 190 million lives of claims and administrative data
   and other health care facilities                      and over 100 million lives of clinical data, including:

   Approximately 3/4 of all U.S. health plans              · 6.5 billion medical procedures,
                                                           · 18 billion lab results and
   Government agencies in 37 states and D.C.               · 6 billion diagnoses

                                                                                        Facts 2018 Q2 UnitedHealth Group   5
FACTS 2018 Q2 Helping people live healthier lives and helping make the health system work better for everyone - UnitedHealth Group

    Consolidated Financial Results
                                                                                                                         Six Months Ended June 30,
     (in millions, except percentages and per share amounts)                                                             2018                                     2017
     Revenues                                                                                       $                 111,274                $                98,776
     Net Earnings*                                                                                  $                   5,758                $                  4,456
     GAAP Earnings Per Share (Diluted)*                                                             $                     5.85               $                    4.55
     Adjusted Earnings Per Share (Diluted)*1                                                        $                      6.19              $                    4.83
     Operating Margin2                                                                                                    7.4%                                    7.2%
     Net Margin3                                                                                                         5.2%                                     4.5%

    *Amounts attributable to UnitedHealth Group common shareholders.
    1 GAAP net earnings per share plus intangible amortization expense of $0.45 per share, net of tax effects of $0.11 and $0.17 per share for the six months ended June
     30, 2018 and 2017, respectively.
    2 Earnings from operations divided by total revenues.

    3 Net earnings attributable to UnitedHealth Group common shareholders divided by total revenues.

    Consolidated Financial Position
     (in millions)                                                                                                                     As of June 30, 2018
     Total Assets                                                                                                                            $                154,611
     Equity                                                                                                                                  $                50,783
     Market Capitalization                                                                                                                   $              236,017
     (based on June 29, 2018, closing market price)

      Stock Listing: UnitedHealth Group’s common stock is traded on the New York Stock Exchange under the symbol UNH.

      Debt Ratings: As of June 2018, UnitedHealth Group’s senior debt was rated “A3” with a stable outlook by Moody’s, “A+” with a stable
      outlook by S&P Global, “A-” with a stable outlook by Fitch and “bbb+” with a stable outlook by A.M. Best. Our commercial paper was rated
      “P-2” by Moody’s, “A-1” by S&P Global and “F1” by Fitch.

6    Facts 2018 Q2 UnitedHealth Group
FACTS 2018 Q2 Helping people live healthier lives and helping make the health system work better for everyone - UnitedHealth Group

Operating Results by Segment
                                                                                             Six Months Ended June 30,
(in millions)                                                                               2018                             2017
UnitedHealthcare                                                             $            91,305            $             80,924
Optum                                                                                     48,327                          43,908
Eliminations                                                                           (28,358)                         (26,056)
    Total Consolidated                                                       $            111,274           $             98,776

Earnings from Operations
UnitedHealthcare                                                             $              4,757           $               4,345
Optum1                                                                                     3,500                            2,799
    Total Consolidated                                                       $              8,257           $                7,144

UnitedHealthcare Employer & Individual                                       $             27,122           $             25,705
UnitedHealthcare Medicare & Retirement                                                    37,784                          33,299
UnitedHealthcare Community & State                                                         21,417                           18,127
UnitedHealthcare Global                                                                    4,982                            3,793

OptumHealth                                                                               11,700                            9,855
OptumInsight                                                                               4,254                            3,836
OptumRx                                                                                  33,047                            30,787
Optum Eliminations                                                                          (674)                            (570)

  1 Earnings from operations for Optum for the six months ended June 30, 2018 and 2017 included $1,058 and $754 for OptumHealth; $848 and
   $666 for OptumInsight; and $1,594 and $1,379 for OptumRx, respectively.

                                                                                                         Facts 2018 Q2 UnitedHealth Group   7
FACTS 2018 Q2 Helping people live healthier lives and helping make the health system work better for everyone - UnitedHealth Group
    (Jul. 2018) People who use Rally HealthSM digital health
    and well-being tools have earned more than $1 billion in
    health-related incentive rewards since 2016 by making
    choices that lead to better health. Rally Health is the
    consumer digital health platform of Optum.

    (Jul. 2018) Employees enrolled in UnitedHealthcare
    accident, critical illness or hospital indemnity
    protection plans can now receive benefit payouts faster and easier through UnitedHealthcare’s
    industry-first Supplemental Health Benefit Assist Program. Benefit Assist features a team of
    UnitedHealthcare Benefit Assistants who contact eligible plan participants following a qualifying
    critical illness diagnosis, hospital stay or serious accident to kick-start the claim process and
    facilitate a faster payout.

    (May 2018) In the annual UnitedHealthcare “Wellness Check Up Survey,” more than half
    of employees with access to workplace wellness programs said the programs have made
    a positive impact on their health, including 62 percent saying the initiatives translated to
    improved productivity and 30 percent reporting help detecting a disease.

                                                    (May 2018) UnitedHealthcare has now provided
                                                    more than 5 million in-home clinical visits
                                                    through its HouseCalls program, bringing
                                                    potentially life-saving preventive care to people
                                                    enrolled in its Medicare Advantage plans. Since
                                                    UnitedHealthcare introduced HouseCalls in 2012,
                                                    the program has helped tens of thousands of
                                                    seniors avoid potential hospital admissions by
                                                    identifying health concerns and enabling earlier
                                                    clinical intervention.

    (May 2018) The 2018 United Health Foundation’s America’s Health Rankings® Senior Report
    finds poorer health outcomes for rural senior citizens compared with their urban and suburban
    peers and increased national suicide rates. An analysis within the report also highlights the risk
    of social isolation and its association with poor health for seniors.

    (May 2018) The Spine and Joint Solution, UnitedHealthcare’s value-based care program
    for knee, hip and spine procedures, has demonstrated fewer hospital readmissions and
    complications following surgery, while generating total savings of nearly $18 million for
    participating employers.

            For further information about these recent developments, visit www.unitedhealthgroup.com

8   Facts 2018 Q2 UnitedHealth Group
FACTS 2018 Q2 Helping people live healthier lives and helping make the health system work better for everyone - UnitedHealth Group

                                         UnitedHealth Group is the top ranking company
                                         in the insurance and managed care sector on Fortune’s
                                         2018 “World’s Most Admired Companies” list.
                                         This is the eighth straight year UnitedHealth Group
                                         ranked No. 1 overall in its sector.

UnitedHealth Group is a member of the Dow            UnitedHealthcare was named a winner in the
Jones Industrial Average.                            Customer Service Department of the Year
                                                     category, presented by the Stevie Awards
UnitedHealth Group has been listed in the Dow        in 2018, an international awards program
Jones Sustainability World Index and Dow Jones       recognizing outstanding performances in the
North America Index annually since 1999.             workplace. In addition, UnitedHealthcare was
                                                     named a Silver award winner for its proprietary
                                                     Advocate4Me® service.
In 2018 for the seventh consecutive year,
The Civic 50, a Points of Light initiative that
highlights companies that improve the quality of     UnitedHealthcare’s Amil business has received
life in the communities where they do business,      MCG’s 2017 Richard L. Doyle Award for
ranked UnitedHealth Group one of America’s 50        improving health care outcomes in Brazil.
most community-minded companies.
                                                     In 2018 for the second consecutive year, Valor
UnitedHealth Group was included among the            Econômico, a leading business newspaper in
2017 Best Employers for Diversity by Forbes.         Brazil, ranked Amil first in the Health Insurers
                                                     category in the Valor Brazilian Innovation
                                                     Rankings. The rankings are compiled in
In the 2017 Newsweek Green Rankings, created         partnership with Strategy&, a PwC group.
in partnership with Corporate Knights Capital
and HIP Investor, UnitedHealth Group ranked
in the top 10 percent of the largest 500 U.S.        In 2018, for the fourth consecutive year, Optum
companies in corporate sustainability and            ranked No. 1 on the Healthcare Informatics (HCI)
environmental impact.                                100, a listing of the top health care IT companies
                                                     based on U.S. revenues.
UnitedHealth Group was named a 2018 Military
Friendly Employer by Victory Media.                  Optum360, a leading provider of health care
                                                     revenue management services, received the
                                                     following recognition:
In 2017, for the seventh consecutive year, the
National Business Group on Health honored
UnitedHealth Group with a “Best Employers for         • No. 1 in the 2017 Black Book Rankings
Healthy Lifestyles” top-tier Platinum award.            for revenue cycle management software,
                                                        outsourcing and computer-assisted coding
Project HOPE, a global health and disaster
response organization, honored UnitedHealth
Group with a 2017 Project HOPE Global Health          • T
                                                         he 2017 United States Market Leadership
Award. The award recognizes outstanding                 Award for revenue cycle management coding
contributions to advance health outcomes in the         and clinical documentation from Frost &
developing world.                                       Sullivan.

                                                                              Facts 2018 Q2 UnitedHealth Group   9

                                    Building Healthier Communities
                                    The people of UnitedHealth Group, Optum and UnitedHealthcare, working
                                    together as a team and collaboratively with a broad range of partners
                                    across the nation and around the world, strengthen communities and
                                    help make a difference in the lives of millions of people.

     Our People
     Through our year-round giving! program, we support employees and their desire to give
     back to the communities where they live and work, across the nation and around the world.
     Through charitable contributions and volunteering, our people are deeply and personally
     involved in improving the health and welfare of their neighbors.

                   $57M                                             $253M
                   Employee & matching                              Employee giving! program
                   contributions in 2017                            contributions since 2005

                   23,000                                           1.5M
                   Charities supported worldwide                    Employee volunteer hours in 2017
                   through giving!

10    Facts 2018 Q2 UnitedHealth Group

Our Partners
The power of partnership and collaboration is
key to improving the health of our communities.
Each year, we support organizations and initiatives
that are dedicated to shaping the 21st century
health workforce, supporting whole-person health,
connecting communities to care and serving
distinct populations. For example:

• America’s Health Rankings
• Cankdeska Cikana Community College, North Dakota
• Diverse Scholars Initiative
                                                        The Environment
                                                        We are committed to conserving
• Massachusetts Housing & Shelter Alliance
                                                        energy and natural resources, reducing
• Medical College of Wisconsin                         our company’s carbon emissions and
• Recipe for Success, Texas                            raising employee awareness about
                                                        improving the environment.
• T
   he Governor’s Prevention Partnership and
  The Village for Families & Children, Hartford
• University of North Carolina at Chapel Hill                         1.6M
                                                                       Square feet LEED-certified

                                                                       8,355 tons
Our Foundations                                                        Paper recycled, saving
                                                                       142,040 trees in 2017

United Health Foundation is a not-for-profit,
private foundation dedicated to improving
the quality and cost-effectiveness of medical                          45
care, providing health care services for those                         Low cost/no cost energy
in challenging circumstances, and enhancing                            and water conservation
                                                                       projects implemented
community well-being.
                                                                       in 2017

The UnitedHealthcare Children’s Foundation is a                        29
nonprofit 501(c)(3) charity that provides medical                      Funded energy projects
grants to help pay for medical treatments, services                    completed, including
or equipment not covered, or not fully covered, by                     exterior/interior lighting
a family’s commercial insurance plan.

                                                                         Facts 2018 Q2 UnitedHealth Group   11
Capital Markets Communications & Strategy
John S. Penshorn
Brett Manderfeld

Corporate Communications
Tyler Mason

You can find more information about UnitedHealth Group
and its businesses by visiting our websites:


UnitedHealth Group Center                                                                                                         Last Updated: July 2018
9900 Bren Road East, Minnetonka, MN 55343                                                                                                 CG120002_0818

©2018 UnitedHealth Group. All Rights Reserved. UnitedHealth Group is a registered trademark with the U.S. Patent and Trademark Office.
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