UnitedHealth Group Awarded TRICARE Managed Care Support Contract to Provide Services for Three Million People in the South Region

MINNETONKA, MN .- UnitedHealth Group (NYSE: UNH) announced today that its UnitedHealth Military & Veterans Services has been awarded the Department of Defense’s TRICARE Managed Care Support South Region contract to provide health care services for active duty and retired military service members and their families. UnitedHealth Military & Veterans Services is a new UnitedHealth Group business dedicated to providing the nation’s military, veterans, and their families with high-quality, affordable health care.

UnitedHealth Military & Veterans Services will be the Managed Care Support contractor serving approximately three million TRICARE beneficiaries in Alabama, Arkansas, Florida, Georgia, Kentucky (Fort Campbell area), Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and portions of Texas. The contract includes a transition period and five one-year option periods for health care operations. The first year of operations is anticipated to begin April 1, 2010.

Stephen J. Hemsley, president and chief executive officer of UnitedHealth Group said, “All Americans should have access to high quality, affordable health care, in particular the men and women who have volunteered to serve and protect our nation, and their families. We believe that bringing together the proven achievements of the Military Health System with UnitedHealth Group’s capabilities will further enhance the effectiveness and quality of health care provided to TRICARE beneficiaries.”

Lori C. McDougal, chief executive officer of UnitedHealth Military & Veterans Services, said, “We look forward to working in partnership with the Military Health System to apply our resources and experience to serve the health care needs of the men and women in the uniformed services and their families. It is a privilege for us to work with the TRICARE program to enhance access and quality of care, continue to improve medical outcomes, and control overall costs.”

The contract award has a gross value of $21.8 billion over the term of the contract, comprising more than $20.3 billion in government-forecasted health care costs and $1.5 billion for management support and services. The Company also has the opportunity to earn additional incentive fees based on its performance against contract standards. UnitedHealth Military & Veterans Services will provide medical and referral management, care provider networks, customer services and claims processing, as well as management support including cost trend risk management, fraud and abuse detection, and quality management services.