Cigna vs United Health Healthcare Environment Analysis

1. Cigna vs United Health Healthcare Environment Analysis Eric Dosch Devin Dockter AlenPajazetovic Luis Portela Monica Kruck Andrew Malsam

2. History, CEO, Background • United Health Group • A managed health care company headquartered in Minnetonka, Minnesota • History: • United Healthcare Inc was created as the parent company for Charter Med Inc in 1977 by a group of healthcare providers looking to offer a wider array of health coverage options for consumers. • The company went public in 1984 and changed their name to UnitedHealth Group in 1998 with the launch of a realignment into independent but strategically linked business segments. • CEO • President and CEO: Stephen J. Hemsley since November 2006 • Relationship to Cigna: • Direct competitor

3. Primary Products and Services, Geographic Operations, Key Customer or Demographics • UnitedHealth Group is a diversified health & well-being company strategically aligned into two business platforms: • UnitedHealthcare  provides health care benefits • Employer & Individual = serve sole proprietorships; large multi-national corporations; students; individuals; military (thru TriCare) • Medicare & Retirement = serves Medicare beneficiaries and retirees • Community & State = manages health care programs for state Medicaid and community programs • International = includes Amil, a health care company that provides services to Brazil and other global health businesses • Optum  provides health services to a broad healthcare market through: OptumHealth, OptumInsight and OptumRX • Payers, care providers, employers, government, as well as life sciences companies and consumers • Primary Product Group Portfolio • Choice Plans • Options PPO • Edge • Select (California Only) • Navigate (CO, WI, WA, IL, OR) • Catalyst (CO, NY, NJ, NV, PA, VA, W-DC) • SIgnatureValue Plans (CA, OR, WA) • Multi-choice • Plan Bien • Tiered Benefits Plans • Total commercial membership = 24.8 M

4. *Areas of Dominance include: New York & Western States (CA & NV) • U.S. Geographical Operations by Commercial Market Penetration, July 2013 • Main Distribution Channels by Key Customer Base **Members 23% 27% 27% 48% 20% 30% 25% ***UnitedHealth Group Enrollment Mix

5. Primary Products and Services, Geographic Operations, Key Customer or Demographics • UnitedHealth Group Commercial Enrollment Trends*

6. Core Strategies, Value Proposition, Relationship to 5 Drivers • Core Strategies: • United Healthcare is advancing strategies to improve the way health care is delivered and financed, offering • consumers a simpler, more affordable health care experience. Our market position is built on: • a national scale; • strong local market relationships; • the breadth of product offerings, which are responsive to many distinct market segments in health care; • service and advanced technology; • competitive medical and operating cost positions; • effective clinical engagement; • extensive expertise in distinct market segments; and • innovation for customers.

7. Core Strategies, Value Proposition, Relationship to 5 Drivers • Value Proposition: • Integrity. We are dedicated to the highest levels of personal and institutional integrity. We make honest commitments and work to consistently honor those commitments. We do not compromise ethics. We strive to deliver on our promises and we have the courage to acknowledge mistakes and do whatever is needed to address them. • Compassion (Core 5=People). We try to walk in the shoes of the people we serve and the people we work with across the health care community. Our job is to listen with empathy and then respond appropriately and quickly with service and advocacy for each individual, each group or community and for society as a whole. We celebrate our role in serving people and society in an area so vitally human as their health. • Relationships (Core 5=People) We build trust through cultivating relationships and working in productive collaboration with government, employers, physicians, nurses and other health care professionals, hospitals and the individual consumers of health care. Trust is earned and preserved through truthfulness, integrity, active engagement and collaboration with our colleagues and clients. We encourage the variety of thoughts and perspectives that reflect the diversity of our markets, customers and workforce. • Innovation (Core 5= Assets). We pursue a course of continuous, positive and practical innovation, using our deep experience in health care to be thoughtful advocates of change and to use the insights we gain to invent a better future that will make the health care environment work and serve everyone more fairly, productively and consistently. • Performance (Core 5= Profit, Growth). We are committed to deliver and demonstrate excellence in everything we do. We will be accountable and responsible for consistently delivering high-quality and superior results that make a difference in the lives of the people we touch. We continue to challenge ourselves to strive for even better outcomes in all key performance areas.

8. Financial Statement Analysis

9. Competitor SWOT **PBM

10. Key Considerations • Largest health plan in the US • Primary competitor in the US market place • Similar product lines of business • Better financial position than Cigna • Experiencing a reduction in earnings