McGuire Remarks at Annual Meeting Focus on Commitment to Expanding
Health Care Access, Affordability and Innovation as well as Company's
Outstanding Performance Record
UnitedHealth Group (NYSE:UNH) today announced that all four of the nominees for its Board of Directors had been reelected.
The directors nominated and reelected to terms that expire in 2009 were Chairman and Chief Executive Officer William W. McGuire, M.D., Douglas W. Leatherdale, James A. Johnson, and Mary O. Mundinger, Dr.PH., R.N.
Dr. McGuire said, "I am very gratified by the deep shareholder support for the directors of this company. This vote testifies to the extraordinary performance of the company, our strategy for addressing the health care challenge in this country, and the seriousness with which we are continuing our efforts to advance corporate governance and compensation issues."
In addition, the Board of Directors renewed its share repurchase program. It authorized the repurchase of 140 million shares, or approximately 10 percent of shares outstanding.
"We believe that the renewed share repurchase program provides us with an excellent opportunity to further increase shareholder value at this time," Dr. McGuire said.
In his speech at today's Annual Shareholder Meeting at the company's headquarters, Dr. McGuire focused on the company's actions in:
-- Making health care available to more Americans--UnitedHealth Group is expanding services to reach more people, including individuals who may lack access to basic health care services.
-- Lowering cost trends--UnitedHealth Group's initiatives in disease management, technology, and other areas continue to lower costs to customers to well below the national average.
-- Helping those in need--UnitedHealth Group foundations have committed approximately $250 million in cash over the past six years to unique programs serving underserved populations.
-- Generating outstanding performance with a continued strong growth outlook--Over the 15-year period that ended December 31, 2005, earnings per share grew at a compound annual growth rate of 32 percent, generating stock appreciation of nearly 70-fold over that time. The company continues to have a positive business growth outlook built on efforts to advance unique customer needs.
-- Adopting the highest standards of governance and compensation--The changes made by the Board of Directors over the past two weeks, which are the latest initiatives in its ongoing review, bring the same degree of leadership and responsiveness to governance and compensation issues that the company brings to growing its business and serving its customers.
-- Serving as a force for change--Dr. McGuire reaffirmed the company's continued commitment to change the health care landscape for the betterment of the public well-being.
Highlights from Dr. McGuire's Remarks:
Making health care available to more Americans
"UnitedHealth Group is committed to the idea that health care be available to every person in America," Dr. McGuire said. He noted in particular UnitedHealth Group's extension of services to an additional 15 million individuals in the past year alone and highlighted several specific initiatives and accomplishments:
-- A commitment to expanding access to services for older Americans, having enrolled more than 4 million members in the company's Part D programs, increasing the ability of seniors and the disabled to access affordable prescription drugs nationwide.
-- Improving health outcomes for the frail elderly, through the Evercare program and continued demand for the company's Medicare Advantage and Medicare Supplement products.
-- Consumer-driven health plans that have grown to include more than 1.6 million people, clearly establishing the company's market leadership in this dynamic field.
-- Advanced data and information services, highlighted by the introduction of services for the U.S. Food and Drug Administration and drug manufacturers to assess the safety of new products for the American public.
-- Expansion of the client base at Uniprise and UnitedHealthcare by more than 900,000 people in the first quarter of 2006, and AmeriChoice's entrance into several new markets to serve economically disadvantaged individuals.
-- The completion of the acquisition of PacifiCare, a tremendous company composed of a talented group of men and women, creating new opportunities for advancing the company's goals of access, quality, usability, and affordability.
Lowering cost trends
"At the same time that we are enhancing the quality and accessibility of health and well-being services, we are significantly lowering the health care cost trends for our customers," said Dr. McGuire. "Various initiatives in disease management, technology and other areas continue to lower costs to our customers to well below the national average.
"For example, UnitedHealth Group's clinical health teams have assisted members and physicians in improving prescription compliance while reducing drug costs. With physician partners, we provide members with pill splitters for specific drugs, enabling individuals to purchase larger dosage-strength tablets at the same cost as smaller-dose tablets. This reduces members' out-of-pocket costs. If every consumer taking the drugs in this program fully participated, we believe the total health system savings could exceed $10 billion."
Helping those in need
Dr. McGuire also described the work of UnitedHealth Group foundations, which have committed approximately $250 million in cash over the past six years to unique programs serving medically underserved populations, advancing health and well-being knowledge for patients and families, helping doctors and health care providers have better resources to see the latest scientific data on best and proven treatments and offering responses to unprecedented natural disaster. Through the foundations, the company has enhanced access to health care in communities through interventions such as its community-based Centers of Excellence that provide health services in homeless shelters. Also, the foundations are supporting the operation of mobile health units to bring care to rural communities.
Generating outstanding performance
"As we have been able to help more people by offering value-added services, our businesses have benefited," said Dr. McGuire. "The financial results of our efforts included a 40 percent increase in our company's market equity last year alone, continuing the strong growth performance that reflects a CAGR on earnings per share of 32 percent over the past 15 years - a virtually unparalleled accomplishment for any company of any size in any business in America. As we announced two weeks ago, our strong growth continues. For the first quarter of this year we had a 54 percent increase in year-over-year revenue to $17.2 billion and a $393 million increase in normalized operating income. We are proud of these record financial results, but equally proud to have benefited millions of consumers. That success, of course, ultimately determines all of our other results."
Adopting the highest standards of corporate governance and compensation
Addressing recent changes in corporate governance and compensation implemented by the Board of Directors, Dr. McGuire said, "Even as our business operations perform well, we are aware that as one of the leading companies in America, we must strive to achieve the highest standards in all aspects of our corporate governance and compensation. The landscape in which all public companies operate is constantly evolving, and we are making the necessary changes to ensure we are firmly in line with current best practices. Our Board has an ongoing commitment to review and update its practices, and it is acting accordingly. Indeed, the Board has taken substantial steps to bring the same degree of leadership and responsiveness to governance and compensation that we do in growing our business and in serving our customers."
Serving as a force for change
Dr. McGuire described how over 15 years, the company has advanced from financial difficulties to pioneer meaningful systemic changes that have helped improve the health care landscape in this country. Specifically, the company:
-- Advanced open-access health plans in place of those controlled by a gatekeeper
-- In 1999, made an unprecedented decision among managed care companies to eliminate pre-certification - the requirement that patients obtain authorization from their insurance company before receiving most medical treatments or procedures at a hospital
-- Created some of the nation's first specialty-care businesses that focused on more affordable prescription drugs and greater availability of quality organ transplants
-- Established a business focused on the needs of older Americans, rather than focusing on an existing single government Medicare product
-- Extended care to disenfranchised and underserved populations through the formation of a business dedicated to them as unique customers
-- Enhanced health system administration capabilities through investment in and the use of integrated, efficient, and progressive technologies
Dr. McGuire said, "These and other innovations represent our company's leadership in tackling the shortcomings of our health care system, not through preservation of the status quo but through substantive change."
About UnitedHealth Group
UnitedHealth Group (www.unitedhealthgroup.com) is a diversified health and well-being company dedicated to making health care work better. Headquartered in Minneapolis, Minn., UnitedHealth Group offers a broad spectrum of products and services through six operating businesses: UnitedHealthcare, Ovations, AmeriChoice, Uniprise, Specialized Care Services and Ingenix. Through its family of businesses, UnitedHealth Group serves approximately 70 million individuals nationwide.
UnitedHealth Group (NYSE:UNH) today announced that all four of the nominees for its Board of Directors had been reelected.
The directors nominated and reelected to terms that expire in 2009 were Chairman and Chief Executive Officer William W. McGuire, M.D., Douglas W. Leatherdale, James A. Johnson, and Mary O. Mundinger, Dr.PH., R.N.
Dr. McGuire said, "I am very gratified by the deep shareholder support for the directors of this company. This vote testifies to the extraordinary performance of the company, our strategy for addressing the health care challenge in this country, and the seriousness with which we are continuing our efforts to advance corporate governance and compensation issues."
In addition, the Board of Directors renewed its share repurchase program. It authorized the repurchase of 140 million shares, or approximately 10 percent of shares outstanding.
"We believe that the renewed share repurchase program provides us with an excellent opportunity to further increase shareholder value at this time," Dr. McGuire said.
In his speech at today's Annual Shareholder Meeting at the company's headquarters, Dr. McGuire focused on the company's actions in:
-- Making health care available to more Americans--UnitedHealth Group is expanding services to reach more people, including individuals who may lack access to basic health care services.
-- Lowering cost trends--UnitedHealth Group's initiatives in disease management, technology, and other areas continue to lower costs to customers to well below the national average.
-- Helping those in need--UnitedHealth Group foundations have committed approximately $250 million in cash over the past six years to unique programs serving underserved populations.
-- Generating outstanding performance with a continued strong growth outlook--Over the 15-year period that ended December 31, 2005, earnings per share grew at a compound annual growth rate of 32 percent, generating stock appreciation of nearly 70-fold over that time. The company continues to have a positive business growth outlook built on efforts to advance unique customer needs.
-- Adopting the highest standards of governance and compensation--The changes made by the Board of Directors over the past two weeks, which are the latest initiatives in its ongoing review, bring the same degree of leadership and responsiveness to governance and compensation issues that the company brings to growing its business and serving its customers.
-- Serving as a force for change--Dr. McGuire reaffirmed the company's continued commitment to change the health care landscape for the betterment of the public well-being.
Highlights from Dr. McGuire's Remarks:
Making health care available to more Americans
"UnitedHealth Group is committed to the idea that health care be available to every person in America," Dr. McGuire said. He noted in particular UnitedHealth Group's extension of services to an additional 15 million individuals in the past year alone and highlighted several specific initiatives and accomplishments:
-- A commitment to expanding access to services for older Americans, having enrolled more than 4 million members in the company's Part D programs, increasing the ability of seniors and the disabled to access affordable prescription drugs nationwide.
-- Improving health outcomes for the frail elderly, through the Evercare program and continued demand for the company's Medicare Advantage and Medicare Supplement products.
-- Consumer-driven health plans that have grown to include more than 1.6 million people, clearly establishing the company's market leadership in this dynamic field.
-- Advanced data and information services, highlighted by the introduction of services for the U.S. Food and Drug Administration and drug manufacturers to assess the safety of new products for the American public.
-- Expansion of the client base at Uniprise and UnitedHealthcare by more than 900,000 people in the first quarter of 2006, and AmeriChoice's entrance into several new markets to serve economically disadvantaged individuals.
-- The completion of the acquisition of PacifiCare, a tremendous company composed of a talented group of men and women, creating new opportunities for advancing the company's goals of access, quality, usability, and affordability.
Lowering cost trends
"At the same time that we are enhancing the quality and accessibility of health and well-being services, we are significantly lowering the health care cost trends for our customers," said Dr. McGuire. "Various initiatives in disease management, technology and other areas continue to lower costs to our customers to well below the national average.
"For example, UnitedHealth Group's clinical health teams have assisted members and physicians in improving prescription compliance while reducing drug costs. With physician partners, we provide members with pill splitters for specific drugs, enabling individuals to purchase larger dosage-strength tablets at the same cost as smaller-dose tablets. This reduces members' out-of-pocket costs. If every consumer taking the drugs in this program fully participated, we believe the total health system savings could exceed $10 billion."
Helping those in need
Dr. McGuire also described the work of UnitedHealth Group foundations, which have committed approximately $250 million in cash over the past six years to unique programs serving medically underserved populations, advancing health and well-being knowledge for patients and families, helping doctors and health care providers have better resources to see the latest scientific data on best and proven treatments and offering responses to unprecedented natural disaster. Through the foundations, the company has enhanced access to health care in communities through interventions such as its community-based Centers of Excellence that provide health services in homeless shelters. Also, the foundations are supporting the operation of mobile health units to bring care to rural communities.
Generating outstanding performance
"As we have been able to help more people by offering value-added services, our businesses have benefited," said Dr. McGuire. "The financial results of our efforts included a 40 percent increase in our company's market equity last year alone, continuing the strong growth performance that reflects a CAGR on earnings per share of 32 percent over the past 15 years - a virtually unparalleled accomplishment for any company of any size in any business in America. As we announced two weeks ago, our strong growth continues. For the first quarter of this year we had a 54 percent increase in year-over-year revenue to $17.2 billion and a $393 million increase in normalized operating income. We are proud of these record financial results, but equally proud to have benefited millions of consumers. That success, of course, ultimately determines all of our other results."
Adopting the highest standards of corporate governance and compensation
Addressing recent changes in corporate governance and compensation implemented by the Board of Directors, Dr. McGuire said, "Even as our business operations perform well, we are aware that as one of the leading companies in America, we must strive to achieve the highest standards in all aspects of our corporate governance and compensation. The landscape in which all public companies operate is constantly evolving, and we are making the necessary changes to ensure we are firmly in line with current best practices. Our Board has an ongoing commitment to review and update its practices, and it is acting accordingly. Indeed, the Board has taken substantial steps to bring the same degree of leadership and responsiveness to governance and compensation that we do in growing our business and in serving our customers."
Serving as a force for change
Dr. McGuire described how over 15 years, the company has advanced from financial difficulties to pioneer meaningful systemic changes that have helped improve the health care landscape in this country. Specifically, the company:
-- Advanced open-access health plans in place of those controlled by a gatekeeper
-- In 1999, made an unprecedented decision among managed care companies to eliminate pre-certification - the requirement that patients obtain authorization from their insurance company before receiving most medical treatments or procedures at a hospital
-- Created some of the nation's first specialty-care businesses that focused on more affordable prescription drugs and greater availability of quality organ transplants
-- Established a business focused on the needs of older Americans, rather than focusing on an existing single government Medicare product
-- Extended care to disenfranchised and underserved populations through the formation of a business dedicated to them as unique customers
-- Enhanced health system administration capabilities through investment in and the use of integrated, efficient, and progressive technologies
Dr. McGuire said, "These and other innovations represent our company's leadership in tackling the shortcomings of our health care system, not through preservation of the status quo but through substantive change."
About UnitedHealth Group
UnitedHealth Group (www.unitedhealthgroup.com) is a diversified health and well-being company dedicated to making health care work better. Headquartered in Minneapolis, Minn., UnitedHealth Group offers a broad spectrum of products and services through six operating businesses: UnitedHealthcare, Ovations, AmeriChoice, Uniprise, Specialized Care Services and Ingenix. Through its family of businesses, UnitedHealth Group serves approximately 70 million individuals nationwide.
© 2006 Business Wire
