UnitedHealth Group Incorporated is an American multinational for-profit company based in Eden Prairie, Minnesota specializing in health insurance and health care services. Selling insurance products under UnitedHealthcare, and health care services under the Optum brand, it is the world's seventh-largest company by revenue and the largest health care company by revenue. The company is ranked seventh on the 2025 Fortune Global 500.[6]
UnitedHealth Group had a market capitalization of more than $300 billion as of year-end 2025.[7] The company is the largest health insurer in the United States, insuring over 50 million people,[8][9] and operates globally.[10][11]
UnitedHealth Group has faced numerous[12][13][14] investigations, lawsuits, and fines, including SEC enforcement for stock option backdating, Medicare over-billing, unfair claims practices, mental health treatment denials, and anticompetitive behavior.
History
1970s–1990s
UnitedHealth Group originated in late 1974, when Minnesota-based Charter Med Incorporated was founded by Richard Taylor Burke. It originally processed claims for doctors at the Hennepin County Medical Society.[15] UnitedHealthcare Corporation was founded in 1977 to purchase Charter Med and create a network-based health plan for seniors.[16] It became a publicly traded company in 1984 and changed its name to UnitedHealth Group in 1998.[17]
In 1988, UnitedHealthcare started its first pharmacy benefit management, through its Diversified Pharmaceutical Services subsidiary. It managed pharmacy benefits delivered both through retail pharmacies and mail. The subsidiary was sold to SmithKline Beecham
Organizational structure
UnitedHealth Group has about 2700 subsidiaries and affiliates[90] worldwide,[91][92][93] the highest profile being Optum and UnitedHealthcare.
Optum
Formed in 2011, Optum says that it provides "data and analytics, pharmacy care services, population health, healthcare delivery, and healthcare operations".[94]
It is organized into three businesses:
Finance
[[File:UnitedHealth Group quarterly earnings.webp|thumb|Quarterly earnings
]] For the fiscal year 2022, UnitedHealth Group reported earnings of US$20.64 billion, with an annual revenue of US$324.16 billion.[99] UnitedHealth Group's 2023 revenue grew by $47.5 billion, or 14.6%, on annualized revenue of $371.6 billion. Operating income for 2023 was $32.4 billion (up 13.8%). Cash flows from operations were $29.1 billion.[100] UnitedHealth Group’s 2024 revenues grew $28.7 billion or 8% year-over-year to $400.3 billion. Earnings from operations of $32.3 billion compared to $32.4 billion in 2023. Cash flows from operations were $24.2 billion.[101]
Lobbying and political activity
In 2009, according to OpenSecrets, people affiliated with UnitedHealth Group gave $4.77million to political candidates and groups.[117] The Affordable Care Act was being discussed in Congress at the time and was subsequently passed in the first quarter of 2010. In 2010 UnitedHealth Group hired nine different lobbying firms to work on its behalf.[118] In addition, its corporate political action committee (PAC), called United for Health, spent an additional $1million on lobbying activities.[119] UnitedHealth Group subsequently spent $4.11million to $4.75million from 2011 to 2021.[117]
The Lewin Group
The Lewin Group is a policy research and consulting firm that provides an economic analysis of health care and human services issues and policies.
Criticism and controversies
SEC investigation
In 2006, the U.S. Securities and Exchange Commission (SEC) began investigating the conduct of UnitedHealth Group's management and directors, for backdating of stock options. Investigations were also started by the Internal Revenue Service and prosecutors in the U.S. attorney's office for the Southern District of New York, who subpoenaed documents from the company. The investigations came to light after a series of probing stories in the Wall Street Journal in May 2006, discussing the apparent backdating of hundreds of millions of dollars' worth of stock options by UHC management. The backdating apparently occurred with the knowledge and approval of the directors, according to the Journal. Major shareholders have filed lawsuits accusing former New Jersey governor Thomas Kean and UHC's other directors of failing in their fiduciary duty.[126] On October 15, 2006, CEO William W. McGuire was forced to resign, and relinquish hundreds of millions of dollars in stock options.[127][128]
Foundations
Foundations affiliated with UnitedHealth Group include the UnitedHealth Foundation (UHF) and the UnitedHealthcare Children's Foundation (UHCCF), both of which were established in 1999.[164]
UHF pledged $100 million over ten years to fund scholarships and workforce development programs focused on increasing ethnic and racial diversity within the health care industry.[165] UHF's investment will support 10,000 physicians from underrepresented communities: 5,000 students with a primary care focus and 5,000 physicians who want to advance careers in mental health, nursing, midwifery and medicine.[166] The work of this fund is part of a broader initiative in which UnitedHealth Group has teamed up with nine organizations to provide scholarships to more than 3,000 students through the Diverse Scholars Initiative.[166]
UHCCF administers grants to help pay for medical costs for families with coverage gaps. According to UHCCF, the foundation raises money for medical grants by selling gift items such as backpacks, books, cards, and games, some of which are created by children.[167]
See also
- America's Health Rankings reports released annually (in conjunction with UnitedHealth Group's UnitedHealth Foundation) since 1990
- 2024 Change Healthcare ransomware attack
- Killing of Brian Thompson
- nH Predict
- "United Health", a protest song by Jesse Welles
External links
- UnitedHealth Group Incorporated recipient profile on USAspending.gov
References
- FORM 8-K UNITEDHEALTH GROUP INCORPORATED United States Securities and Exchange Commission, July 31, 2025^
- UnitedHealth Group 2025 Annual Report (Form 10-K) www.sec.gov, U.S. Securities and Exchange Commission, retrieved 6 March 2026^
- UnitedHealth Group 2024 Annual Report (Form 10-K) U.S. Securities and Exchange Commission, February 27, 2025, retrieved February 28, 2025