EX-99.1 2 dex991.htm INVESTOR PRESENTATION DATED JANUARY 10, 2007 Investor presentation dated January 10, 2007
The Strategically Adaptive Enterprise
Stephen J. Hemsley
Chief Executive Officer
“It is not the strongest of the species that survives, nor the
most intelligent that survives. It is the one that is the most
adaptable to change.”
Charles Darwin, Origin of Species
Exhibit 99.1

January 10, 2007
On November 7, 2006, UNH announced that due solely to the stock option
matter, all previously issued financial information should no longer be relied upon
The 2006 and 2007 Outlook provided today includes the current estimated range
of additional non-cash charges  for stock-based compensation expense for each
applicable year arising from the stock option review
These estimates are not yet final and subject to change based upon
completion of restatement of historic financial statements
The outlook does not reflect any adjustment for any non-operating cash charges
which may be required in connection with the resolution of stock
option related
tax matters, litigation and regulatory matters, the amount and timing of which are
uncertain but which are likely to be material
The outlook is also subject to other risks and uncertainties described in our
"Forward-Looking Statements“
Share repurchases have been temporarily suspended until UNH becomes current
in its filings with the SEC
Important qualifications.

We are…
Cultivating a highly adaptive organization
To optimize a highly attractive, fast growing and evolving              
$2 trillion social/commercial health care environment
We cultivate
adaptive skills
and
capabilities…
To participate in the multiple sub-markets of health care
To seek advantages that allow us to thrive in existing sub-markets
that are mature or crowded (e.g. CDHP in insured market)
To rapidly expand into new sub-markets that are emerging or
unformed (e.g. technology and banking)
To drive proactive evolution by setting an aggressive pace for
innovation and change (e.g. predictive modeling)
The result 
will be…
A strong vehicle to fundamentally improve health care delivery
A unique investment opportunity that will methodically capitalize on
the best returns in the vast health care environment
UnitedHealth Group
The Adaptive Enterprise.

UnitedHealth is Well Positioned In
Attractive Markets
85
88
83
64
80
73
95
87
96
82
99
98
15
12
17
36
20
27
5
13
4
18
1
2
Mbrs
(M)
Total
Fully
Insured
ASO
CDHP
MA
PDP
Medi-
caid
Behavioral
Dental
Vision
CRO
HCIT
171
79
92
5
7.5
16.6
29
236
168
97
$15 B
$45 B
Specialty Markets
Government
Sponsored Markets
Commercial
Benefits
Business to
Business
Sources:  Kaiser Family Foundation; BCG; UNH 10-Q; ICDC; Open Minds; NADP; HIMSS; Equity Research Reports
UNH (%)
Others (%)
Significant Market Share Potential

2,016
4,043
915
1,927
51
146
109
37
706
1,397
We Believe Evolution Provides an 
Extraordinary Growth Opportunity
15
101
249
421
2005
2015
U.S. Health
Spend
Government Sponsored
Markets
Commercial
Benefits
Out-of-Pocket
Spend
Size ($B)
Total
Medicare
Advantage
Part D*
Total
CDHP
Total
CAGR
7%
8%
7%
21%
11%
11%
5%
Sources:  CMS National Health Expenditures; Kaiser Family Foundation; CBO; ICDC
* Initial Part D number is for 2006.
Large and growing market environments over the next 10 years.

0
10
20
30
40
50
60
1919
1936
1950
1961
1973
1985
1997
2003
Food and clothing
are declining
1.4% per year
Health care, pensions,
and insurance are
growing 2.1% per year
% of Household Spending
Source: Bureau of Labor Statistics
Growth in the Sector is Driven by
Unprecedented Social Change

88.1
94.5
103.8
A dramatic increase in age…
Growth in the Sector is Driven by
Unprecedented Social Change
67.2
76.3
87.3
Evolution of 55+ Population (M)
…with a resulting increase in health spending
2005
2010
2015
Lives Covered by Government Programs (M)
A steady rise in the population
covered by government programs…
2005
2010
2015
…and an employer base with a changing
social contract about benefits
Consumers are the central theme in the transformation of health care.
Sources: Census Bureau; Mature Market Institute; CMS; HHS; Kaiser/Hewitt 2004 Survey; Mercer HR Consulting; Watson Wyatt; CPS March Supplement
15
25
35
45
55
1993
95
97
99
01
03
500+ Employers Offering Retiree Health Benefits (%)
Pre-65
65+
4.5%
4.9%
6.9%
35-45
45-54
55-64
Consumer Health Care Expenditures by Age (%)
%
Millions
Millions

Consumers Are Driving A Dramatic
Evolution In Health Care
They are
changing behavior
They are
changing technology
They are
changing products
They are
changing distribution
channels
They are
changing cost and
quality drivers
Intuitive and interactive
Consumer Integrated
Information transparency
Simpler –
modular
Self customized –
“my product”
Broad price sensitivity range
Break-down of group, broker
and consultant channels
Internet Channels
Cost and price transparency
Decision support tools
Pay-for-performance
Quality measurement and
transparency
Provider differential networks
Consumers are reshaping and expanding the health care environment.

Consumers will demand
the same simplicity and
reliability they experience
through other consumer
technologies
Consumers will “melt”
the
legacy boundaries of health
care —
opening market
solutions and opportunities
Consumers as the focal point
of everything we do
Thrives on change
Explicit behaviors
Social responsibility
Market-leading ethics and
governance
Information
Facilitation
Affordability
Technology
Consumer financial services
Industrial financial services
Toward Consumers/
End Users
Toward
Diversification
Toward Effective
Consumer Technologies
Where Will We Take This Highly
Adaptive Organization?
Six clear directions for further adaptation.
Toward Healthcare
Financial Services
Toward the Re-cultivation
of Competencies
Toward an
Enlightened Culture
Shareholders will participate in diverse growth
opportunities across the health care market.
Consumer
Integration

Toward Consumers –
An “End User”
View of Every  
Market Need
Validates our focus on
Affordability
Access to quality
Consumer simplicity
Will cause the redefinition and
reformation of:
Care delivery relationships
Service experience
Direction of technology investment
Decision-making information
models
The clinical relationship and role in
consumer education and coaching
13.9
13.3
Unprecedented historic forces are transforming health care
the same way they transformed sectors like food and transportation.
Consumer Spending
(% of Household Income)
Sources:  Bureau of Labor Statistics
18.9
18.0
Food
Transportation
Health Care
1996
2004
5.2
5.9

Provider services 
Government services
Financial services
New distribution channels
Global pharma and device services
Toward Diversification –
Consumers Will Define New Services
Consumers will “melt”
the legacy boundaries of health care —
opening up market
solutions and opportunities
Global Pharma
Services
Working Uninsured
Singles Ages 34-54
Micro Diversification
Macro Diversification
Ethnic markets / demographic niches
New group aggregations
New product types —
product elements
Product consolidation and customization
Horizontal and vertical growth opportunities.

Toward Effective Consumer
Technology –
Intuitive and Reliable
User Experience
More “front-end”
consumer applications
Engaging –
intuitive –
personalized
Achieves integration and navigation
Informational
Financial
Clinical
Operational
Consumer
Reduced technology costs
360°
transparency
Anchors consumer relationship and
loyalty
New distribution channel and
technologies
Building consumer loyalty.

Toward Healthcare Financial Services
Real Time and Really Easy
Consumer financial services
100% card-based products
In all geographies
For all payment options
With line of credit services
New distribution for consumer
information
More consumer market
segmentation approches
1,250,000 financial
accounts
15,000 active employer
groups
260,000 HSA accounts
with $400M in assets
Environmental forces are driving the growth of health care     
financial services for consumers.
2007P

Toward Healthcare Financial Services
Real Time and Really Easy
Health industry financial services
Industry payment system
Industry credit / financial
services
Transactional clearinghouse
Real-time payment interchange
Information distribution
Real-time adjudication –
10 second processing
Clinical segmentation
New distribution channels
$1.7 billion in electronic payments/month by
year end
50,000 provider groups (TIN’s) accepting
electronic payment
Provider Payments Example
Environmental forces are driving the growth of health care financial services
for the health industry.
2007P

Toward Continued Re-Cultivation of
Core Competencies
Information
Consumer connectivity
and loyalty
Quality / effectiveness
Informed consumption
Personalization
Integration
Clinical
Informational
Operational
Financial
Technological
Consumer
Technologies
Consumer applications
Low-cost scale and
development
Interactive engagement
Putting
it
all
together
–
For
the
Consumer.

Toward an Enlightened Culture
Tone at the top
Positive explicit behaviors inside and out
Social responsibility
Market-leading ethics and governance
Relationship equity
Health care policy formation
Public / Private partnerships
For-profit / Not-for-profit partnerships
Thrives on change
High performance with high integrity.
a
Employee Giving

From 2000
Diversified consumer-
driven business model
Solutions for evolving
consumer healthcare
needs
Broadly diversified
across micro/macro
markets
Distinctive social image
and public reputation
Enables the industry with
consumer services and
information
Diversified business model
All product, all payer
National scope / Matrix
More open philosophies
All products / groups
Broader choice and
option
Full spectrum care
approaches
Broadest spectrum of 
products and price
points
Single
product
–
group
HMO
HMO-centric networks
Geographic HMO
confederacy
Open market philosophies
Access
Choice
Care coordination
Rich benefits
What Will That Look and Feel Like?
The transition and adaptation will accelerate…
To Transition 2006
To Consumer-Driven 2010
A diversified consumer-driven health enterprise.

Financial Overview

$79.5
$71.5
2006E
2007P
Revenue
2006E
2007P
Operating Margin
2006E
2007P
Operating Earnings
2007 Outlook
Management Outlook
Well-positioned for growth
$ in billions
$6.0
2006E
2007P
Operating Cash Flows
$6.95 -
$6.98
$6.0 -
$6.2
9.7% -
9.8%
$7.95 -
$8.02
10.0% -
10.1%

14.1
14.8
15.3
10.5
10.9
11.2
2.8
3.2
4.5
5.0
Government
(Medicare / Medicaid)
Uniprise
UnitedHealthcare
Total
27.0
2005
33.0
2006E
34.7
2007P
Expected
to
serve
30
million
medical
members
Note: Health Care Services and Uniprise
enrollment only; excludes Evercare Medicare, Evercare Medicaid and AARP
2007 Outlook
Total Medical and Part D Enrollment
Stand-alone Part D
Enrollment in millions
2.4

0.7
0.6
0.7
1.0
0.8
1.2
0.5
0.4
3.0
3.6
0.7
M&A Adds
Organic
Growth
Total
1.2
2002
1.0
2003
3.7
2004
4.6
2005
1.5
2006E
1.2
2007P
Balanced
growth
–
12
million
lives
added
since
2002
Note: Health Care Services and Uniprise
enrollment only; excludes Part D, Evercare Medicare, Evercare Medicaid and AARP
2007 Outlook
Medical Enrollment Growth
Enrollment in millions

Consumer Affordability
Focus Areas
Two principle areas of focus:
Higher
quality,
more
affordable
and
more
accessible
health care
Operating
efficiencies
and
productivity
gains

0
150,000
300,000
450,000
600,000
0
1,000
2,000
3,000
4,000
5,000
Affordability
Network Overview
National scope, local presence
One national network
Clinically integrated approach
Focused on quality and efficiency
More choice for consumers
4,700
hospitals
More
than
500,000
physicians
and other health care
professionals
Stable and growing
One system with a common data set
National Choice Plus Network
(Hospitals)
2003
2004
2005
2006E
National Choice Plus Network
(Physicians / Other Health Care Professionals)
2003
2004
2005
2006E
36 Month
Growth:
31%
36 Month
Growth:
29%

Affordability
UHC Commercial Medical Trends
Net Trends
Health Care Affordability Initiatives
$ in millions
Total Net Trends
2006E
2007P
Physician
5.0%
5.0%
Inpatient
8.5% - 9.0%
8.0% - 9.0%
Outpatient
9.0%
8.5% - 9.0%
Pharmacy
6.5% - 7.0%
7.0% - 7.5%
Net Trends
Unit Cost / Price
5.0%
5.0%
Utilization
2.0%
2.5%
Net Trend
7.0% - 
7.5%
7.5%      
+/- 50 bps
Employer Cost
Shifting
(150) to (250) bps
+
Programs
2006E
2007P
Clinical Management
Programs
$60
$200
Network
Management
180
195
Operations
Effectiveness
150
160
Pharmacy
70
100
Other Programs
150
95
Total
$610
$750
Pricing in-line with expected medical trends –
Stable UHC medical care ratio

Affordability
Operating Cost Management
Enterprise-wide focus on efficiencies and productivity gains
2004 –
2006E
Focused Management Actions & Operating Efficiencies
2007P
Productivity Management
$750 million in savings
Estimated $200 -
$300
million in savings
A comprehensive enterprise wide
metric-based approach at the
business and
functional levels
Expect double-digit productivity
gains enterprise-wide
Driving down unit costs and
increasing output
Operating platform consolidation
Business process efficiencies
Workforce productivity
Workforce management
Print / postage eliminations
Technology investment returns
Discretionary spending limits
Vendor management
Professional fees
Reduced square footage
Voice network repatriation
and transport network optimization
Mainframe, distributed and data
network repatriation
Technology utilization

13.5%
+/- 
30bps
14.5%
+/- 
30bps
Affordability
Operating Cost Ratio
Effective cost management
Numerous specific “quality based”
initiatives to fundamentally reduce
labor content and improve
performance for customers in 2007
Focus on consumer quality
Data and technology leverage
Driving operational efficiencies
Focused management actions
Focus on quality driven
productivity management
Expect continued productivity
advancements in 2008 and beyond
2006E
2007P
Operating Cost Ratio
Operating Cost Ratio
(Excluding Prescription Solutions COGS)
2006E
2007P
14.8% -
14.9%
14.2% -
14.3%

What Will Not Change?
A commitment to facilitate and improve the performance of the health
system
Respect for the central patient / physician relationship
A commitment to consumer choice and access
The pursuit of clinical excellence
A commitment to evidence-based care
Disciplined pricing to our cost
Continued executional performance
Demanding a return on capital
15%
EPS
growth
/
strong
cash
flows
–
at
a
minimum
Execution –
Making Commitments

Cautionary Statement
Forward-Looking
Statements
This
presentation
may
contain
statements,
estimates,
projections,
guidance
or
outlook
that
constitute
“forward-looking”
statements
as
defined
under
U.S.
federal
securities
laws. 
Generally
the
words
“believe,”
“expect,”
“intend,”
“estimate,”
“anticipate,”
“project,”
“will”
and
similar
expressions,
identify
forward-looking
statements,
which
generally
are
not
historical
in
nature.
These
statements
may
contain
information
about
financial
prospects,
economic
conditions,
trends
and
unknown
certainties.
We
caution
that
actual
results
could
differ
materially
from
those
that
management
expects,
depending
on
the
outcome
of
certain
factors.
These
forward-looking
statements
involve
risks
and
uncertainties
that
may
cause
our
actual
results
to
differ
materially
from
the
results
discussed
in
the
forward-
looking
statements.
Some
factors
that
could
cause
results
to
differ
materially
from
the
forward-looking
statements
include:
the
potential
consequences
of
the
findings
announced
on
October
15,
2006
of
the
investigation
by
an
Independent
Committee
of
directors
of
our
stock
option
programs
(including
the
consequences
of
our
determination
that
the
Company’s
financial
statements
for
the
years
ended
1994
to
2005,
the
interim
periods
contained
therein,
the
quarter
ended
March
31,
2006
and
all
earnings
and
press
releases,
including
for
the
quarters
ended
June
30,
2006
and
September
30,
2006,
and
similar
communications
issued
by
the
Company
for
such
periods
and
the
related
reports
of
the
Company’s
independent
registered
public
accounting
firm
should
not
be
relied
upon,
the
consequences
of
the
resulting
restatement
of
our
financial
statements
for
those
periods,
and
delays
in
filing
our
quarterly
reports
on
Form
10-Q
for
the
second
and
third
quarters
of
2006),
related
governmental
reviews
by
the
SEC,
IRS,
U.S.
Senate
Finance
Committee,
U.S.
Attorney
for
the
Southern
District
of
New
York
and
Minnesota
Attorney
General,
related
review
of
the
Special
Litigation
Committee
of
the
Company,
and
related
shareholder
derivative
actions,
shareholder
demands
and
purported
securities
class
actions,
the
resolution
of
matters
currently
subject
to
an
injunction
issued
by
the
United
States
District
Court
for
the
District
of
Minnesota,
a
purported
notice
of
acceleration
with
respect
to
certain
of
the
Company’s
debt
securities
based
upon
an
alleged
event
of
default
under
the
indenture
governing
such
securities,
and
recent
management
and
director
changes,
and
the
potential
impact
of
each
of
these
matters
on
our
business,
credit
ratings
and
debt;

Cautionary Statement
(Continued)
increases
in
health
care
costs
that
are
higher
than
we
anticipated
in
establishing
our
premium
rates,
including
increased
consumption
of
or
costs
of
medical
services;
heightened
competition
as
a
result
of
new
entrants
into
our
market,
and
consolidation
of
health
care
companies
and
suppliers;
events
that
may
negatively
affect
our
contract
with
AARP;
uncertainties
regarding
changes
in
Medicare,
including
coordination
of
information
systems
and
accuracy
of
certain
assumptions;
funding
risks
with
respect
to
revenues
received
from
Medicare
and
Medicaid
programs;
increases
in
costs
and
other
liabilities
associated
with
increased
litigation,
legislative
activity
and
government
regulation
and
review
of
our
industry;
our
ability
to
execute
contracts
on
competitive
terms
with
physicians,
hospitals
and
other
service
providers;
regulatory
and
other
risks
associated
with
the
pharmacy
benefits
management
industry;
failure
to
maintain
effective
and
efficient
information
systems,
which
could
result
in
the
loss
of
existing
customers,
difficulties
in
attracting
new
customers,
difficulties
in
determining
medical
costs
estimates
and
appropriate
pricing,
customer
and
physician
and
health
care
provider
disputes,
regulatory
violations,
increases
in
operating
costs,
or
other
adverse
consequences;
possible
impairment
of
the
value
of
our
intangible
assets
if
future
results
do
not
adequately
support
goodwill
and
intangible
assets
recorded
for
businesses
that
we
acquire;
potential
noncompliance
by
our
business
associates
with
patient
privacy
data;
misappropriation
of
our
proprietary
technology;
and
anticipated
benefits
of
acquiring
PacifiCare
that
may
not
be
realized. 
This
list
of
important
factors
is
not
intended
to
be
exhaustive.
A
further
list
and
description
of
some
of
these
risks
and
uncertainties
can
be
found
in
our
reports
filed
with
the
Securities
and
Exchange
Commission
from
time
to
time,
including
our
annual
reports
on
Form
10-K,
quarterly
reports
on
Form
10-Q
and
current
reports
on
Form
8-K.
Any
or
all
forward-looking
statements
we
make
may
turn
out
to
be
wrong.
You
should
not
place
undue
reliance
on
forward-looking
statements,
which
speak
only
as
of
the
date
they
are
made.
Except
to
the
extent
otherwise
required
by
federal
securities
laws,
we
do
not
undertake
to
publicly
update
or
revise
any
forward-looking
statements.