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Individuals in plans connected to Health Savings Accounts or Health Reimbursement Accounts increased 75 percent from June 2005
Consumer activation programs are being deployed across 2.7 million individuals, including approximately 1 million enrolled in traditional medical benefit plans

MINNEAPOLIS (June 8, 2006) – UnitedHealth Group (NYSE: UNH) today announced that membership in its consumer-driven health (CDH) plans has surpassed 1.75 million people. This growth reinforces the company’s position in striving to transform the health care system to one driven by more informed and empowered consumers, helped by consumer support tools that facilitate a new and more transparent health care market

UnitedHealth Group continues to be a leader in the advancement of health plans connected to a Health Savings Account (HSA) or Health Reimbursement Account (HRA). Membership is growing at a rapid pace across employers of all sizes as well as in the individual market. Consumers in plans connected to HSAs or HRAs increased 75 percent from June 2005, with more than 750,000 new individuals participating in the past year. About 60 percent of the CDH membership selected the plan even when their employers also offered more traditional, non-CDH options, further illustrating that consumers are driving this rapid growth through strong interest in account-based plans.

“Consumers are becoming much more comfortable with account-based plan designs,” said Mike Tarino, CEO of Definity Health, the UnitedHealth Group business that manages consumer-driven plans and activation strategies. “More than 13,000 employers have already turned to us to incorporate a consumerdriven plan design into their benefits strategy, and our CDH membership among large, national employers alone recently topped 1 million.”

Activation Programs Are Key
Tarino attributes the continued strong interest and enrollment in consumer-driven plans in large part to the activation programs pioneered by Definity Health, which include personalized health messaging, monthly health statements and health coaching. These strategies are tailored to each individual consumer, preparing them to take informed action, making it easier to navigate the health care system, enhancing their ability to focus on healthy lifestyles, and maximizing the value they receive for their health care dollars.

UnitedHealth Group is also extending these activation programs to enrollees in non-CDH plans, creating a more consumer-centric approach among participants in all types of health benefit programs. Already, approximately 1 million consumers in non-CDH plans are receiving a deeper and more personal level of support on their health care decisions through these efforts, effectively enabling behavior change and creating a simpler experience for any health care consumer, regardless of plan design.

Definity’s activation programs are producing tangible changes in the health care behaviors of consumers. For example, the personalized messaging program, which delivers personally relevant health messages through multiple formats, has found that consumers who read their personalized messages show:
• 240 percent higher rates of mammography
• 31 percent increase in the use of pill-splitting
• 100 percent increase in the use of mail order pharmacy services

These and other early results indicate that unique and integrated programs that help people get to the appropriate care provider and pursue the optimum intervention positively impact their health care outcomes, as well as related costs.

“More and more individuals and employers are realizing that they can influence positive changes in consumer health through innovative approaches like these,” Tarino said. “Engaging and activating consumers can drive significantly higher levels of awareness about affordability, accessibility and quality, and we believe strongly that those benefits should not be limited just to individuals in HRA and HSA plans.”

UnitedHealth Group companies currently serve 710,000 members enrolled in HSAs as well as 1,045,000 HRA enrollees. Approximately one-third of the large and mid-size employers served by UnitedHealth Group offer one of the company’s consumer-driven health plans, a strong indication that a consumer approach to health care is quickly becoming the mainstream.

CDHP consumers more likely to make active and informed decisions about their own health and health care needs
Increased use of preventive care services seen among CDHP members as compared to PPO
enrollees

Minneapolis (July 12, 2006) – A UnitedHealth Group (NYSE: UNH) study has found that individuals in consumer-driven health plans (CDHPs) are more likely to be actively engaged in managing their health and making health care decisions than individuals in more traditional arrangements. While the study sample remains relatively small because of the recent introduction of CDHPs, it is the largest study to date, covering a three-year period and examining more than 50,000 individuals. The results provide solid and measurable examples of how health care spending and consumer behavior can be positively advanced – without adverse effects on health outcomes – when consumers are given the necessary support.

“These results reinforce the revolutionary impact that the concept of consumerism is having by providing vehicles to effectively transfer knowledge and wealth to consumers so they can make wiser, more financially sound decisions about their health care,” said Mike Tarino, CEO of Definity Health, a UnitedHealth Group company and pioneer in consumer-driven health care.

The CDHP study compares cost and utilization trends among approximately 40,000 individuals in highdeductible plans connected to Health Reimbursement Accounts (HRAs) to data from roughly 15,000 individuals enrolled in preferred provider organizations (PPOs). The study period was between 2003 and 2005 and consisted of two sample groups drawn from the same employers. This new data reinforces the results of earlier Definity and UnitedHealth Group studies, which have consistently shown that CDHP enrollees have higher usage of preventive care services and lower tendency to pursue discretionary acute care services.

Notable findings from the three-year study include:

• Preventive Care – In each of the three years, up to 5 percent more of the CDHP members sought preventive care services than did PPO enrollees.

• Acute Care – Individuals enrolled in a CDHP showed an annual reduction in the use of acute care services (22 percent fewer hospital admissions and 14 percent fewer emergency room visits) without adverse health effects or outcomes, while the relative utilization of those services actually increased year-over-year among PPO members.

• Chronically Ill – CDHP enrollees with a chronic illness also used acute services less (8 percent fewer hospital admissions and 12 percent fewer emergency room visits) but continued to visit their primary care physician at the same rate as chronically ill members enrolled in traditional plans.

• Overall Costs – Costs per member decreased 3 percent to 5 percent in the CDH plan over the 2004-2005 period, as compared to their 2003 baseline level, while increasing 8 percent to 10 percent among PPO participants (after adjusting for demographics, health status, plan design impact and geography).

“While not yet conclusive, these findings support what we’ve seen anecdotally for the past several years: when consumers are given more information and responsibility for their health care, they will make efforts to assume more control over decision-making about the care they need in order to pursue the optimum courses of treatment. This in turn can help positively impact their health care outcomes and related costs,” Tarino said.

Saving Today for Tomorrow’s Expenses
Further UnitedHealth Group research found that consumers with Health Savings Accounts (HSAs) are contributing to their accounts and accumulating money for future health care expenses at higher rates than had been previously anticipated.

The HSA research is based on data from 130,000 members who have opened an HSA with UnitedHealth Group’s Exante Bank, the industry’s largest HSA administrator. The study found:

• The average balance in an Exante HSA is $1,112.00 for accounts that were opened January- March 2005, illustrating that consumers are building savings for future health expenses through these accounts.

• Approximately 60 percent of employers provide funding to their employees’ HSAs, and on
average employers are funding 40 percent of the employees’ health insurance policy deductibles.

• Nearly 90 percent of employees open the savings account if their employer offers to contribute funding to their HSA.
Jeff Cava, executive vice president of Human Resources and Administration for the Wendy’s restaurant chain, said employees at his company are saving more than many anticipated. Wendy’s began offering HSAs in 2005, and by the end of the year employees had accumulated a collective $4 million in their accounts. “We took money that used to go to a third-party payer to help pay health claims, and gave it to employees who will use it to offset their health care costs,” he said. “How many other companysponsored health plans are there that transfer wealth?”

Across UnitedHealth Group, more than 1.75 million individuals are now enrolled in a consumer-driven health plan connected to an HRA or HSA, spanning both the commercial and individual markets. More than 14,000 employers offer a CDHP through a UnitedHealth Group company, and membership sponsored by large, national employers recently topped 1 million individuals.
Contact: Mark Lindsay
Director, Public
952-992-4297
www.definityhealth.com