United Health Care, listed on the NYSE as UNH, was born in 1977 with the acquisition of Charter Med Incorporated. As UNH, it went on to become one of the largest health insurers in the U.S, serving more than 26 million customers. The company also introduced the first network-based health plan for seniors in 1979, leading to its transformation as a publicly traded company in 1984.

In 1995, more changes occurred as the company purchased The MetraHealth Companies Inc for $1.65 billion, which resulted from combining the group health care operations of The Travelers Insurance Company and Metropolitan Life Insurance Company.

William McGuire, United Health Care CEO from 1989 - 2006, was with the company through both difficult and easy times, and witnessed still more changes in the growing force of United Health Care. From the 1989 annual revenue of just over $400 million, the company grew and flourished until by 2005, McGuire himself was earning $124 million a year in compensation. In December 2006, however, journalist allegations of backdating led to his replacement by Stephen Hemsley, the new CEO.

In July 2004 United Health Care made another acquisition - Oxford Health Plans, a large company that also includes all of United Health Care's small group contracts in New York. PacifiCare Health Systems joined United Health Care in December 2005, a $9.2 billion purchase that added commercial health insurance businesses in Arizona and Colorado. This purchase agreement also included ending its network access agreement with Blue Shield of California, which helped placate the concerns of antitrust regulators and solidified its standing in the health care industry.


The most recent United Health Care acquisition, Sierra Health Services in March 2007 for $2.6 billion, added another 310,000 members in Nevada and 320,000 to people in senior and government programs throughout the U.S.

The company was rewarded for its efforts, when named Business Insurance Readers Choice winner 2007 for Best Managed Care Organization.

SEC Investigation
In 2006, United Health Care faced the first of its difficult hurdles in the form of investigations by the Securities and Exchange Commission, as well as by the IRS and the US Attorney's office for the Southern District of New York. Their suspicions arose after a series of probing stories in the May 2006 Wall street Journal raised the issue of the alleged backdating of hundreds of millions of dollars in United Health Care stock options.

The Journal claimed that the backdating had occurred with the knowledge and approval of the directors, including McGuire, who was forced to resign, relinquishing hundreds of millions of dollars in stock options. Lawsuits have been filed by major shareholders accusing former New Jersey governor Thomas Kean and United Health Care's other directors of failing in their fiduciary duty.[1][2]

The company faced more problems when the American Chiropractic Association filed a national class action lawsuit against United Health Care and its subsidiary ACN (American Chiropractic Network). The claims involve accusations against United Health Care for violating the federal RICO act.

More About
The health care system isn't healthy. At United Health Care, we're committed to improving the health care system. We aim to take what's wrong and make it right.

That's a bold statement - we know. No one, however, is better prepared to lead a health care revolution than the strongest, most committed health care company in the nation - a company that has experienced the best and the worst in the health care field. Serving more than 26 million individual consumers, United Health Care also provides access to high quality care from more than 535,000 physicians and care professionals, and partners with more than 4,700 hospitals.

That's the strength of the United Health Care network.

United Health Care offers consumer-oriented health benefit plans and services, 24-hour support access, and of course, streamlined online resources for consumers, employees, brokers, and physicians.

Simpler processes, smarter solutions, and better results - that's the promise of United Health Care, and that's what we offer to bring to you.