UnitedHealth Group’s valuations compared to its peers
About 57% of UnitedHealth Group’s enrollments belong to the commercial category. It involves the employer-sponsored and individual insured segment.
UnitedHealth Group (UNH) is a health insurance provider. It faces a unique combination of business risks, including business mix and competition risks.
In 2014, OptumInsight released a population health analytics tool—OptumOne. It enables hospitals to improve the quality of care.
In the private health insurance industry, the operating expenses mainly involve the costs for providing hospital benefits and emergency services.
UnitedHealth Group’s OptumRx segment provides PBM services to more than 30 million Americans. It manages about $40 billion in pharmaceutical spending annually.
UnitedHealth Group’s OptumHealth segment is responsible for implementing measures to improve the quality of service and patient satisfaction.
The private health insurance industry in the US has been expanding its footprint in international markets. International markets are less penetrated and competitive.
Medicare Part D is a federal government program. It subsidizes prescription drug expenses for Medicare beneficiaries.
The private health insurance industry earns a substantial percentage of its revenue from state-based contracts for providing Medicaid, dual eligibility, and LTSS.
The private health insurance industry offers a diverse range of products. The products combine health plans with financial accounts to cater to different consumers’ needs.
Employer-sponsored coverage, a major form of insurance, increasingly adopted self-insured plans. They’re more cost-effective and flexible than fully-insured plans.
Out of UnitedHealth Group’s (UNH) four business segments, UnitedHealthcare accounted for 71.3% of the company’s revenue.
With a market capitalization of $107.1 billion, UnitedHealth Group is the largest insurance provider in the US. It registered revenue worth $130.5 billion in 2014.
Humana’s employed and contracted primary-care physicians rose by 29.2% from 11,300 in 2013 to 14,600 in 2014.
Humana’s total enrollment is mainly enrollments in the MA program, a substitute for the original Medicare program, via private insurance companies.
The private health insurance industry (XLV) in the US is gradually shifting from a group insurance model to a retail insurance model.
Humana’s (HUM) fully insured enrollments remained almost stable at 1.2 million in the fourth quarter of 2013 and the fourth quarter of 2014.
Humana’s (HUM) business model, which is geared more towards government enrollments, substantially differs from that of its peers.
The above graph shows the revenue earned from Humana’s commercial fully insured business, further subdivided into standard and specialty revenues.
Humana’s healthcare services segment offers pharmacy, health provider, home-based, behavioral health, and technology services.
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