The United health care coordinates health and well-being services on behalf of local employers and consumers nationwide. United Health care products are primarily marketed to small and medium-sized employers with up to 5,000 employees. As of December
31, 2002, this business served approximately 7.8 million individuals. With its risk-based product offerings, UnitedHealthcare
assumes the risk of both medical and administrative costs for its customers in return for a monthly premium, which is
typically at a fixed rate for a one-year period. UnitedHealthCare also provides administrative and other management services
to customers that self-insure the medical costs of their employees and their dependents, for which UnitedHealthcare receives
a fee.
United Health Group is a managed health care company. It is the parent of United Health care, the second largest health
insurer in the United States. It was founded in 1977, as United Health Care 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 business company. United Health care provides the products
mainly Uniprise, Health Care Services, Specialized Care Services, and Ingenix. 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.
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