UnitedHealth Group (UNH) is the largest health insurance company in the United States and a component of the Dow Jones Industrial Average. With over 300,000 employees serving 130 million customers worldwide, UnitedHealth Group leads the U.S. managed health care industry.
UnitedHealthcare
UnitedHealthcare is the health benefits segment of UnitedHealth Group which offers health care products and insurance services. UnitedHealthcare provides health care coverage and administers health plan benefits directly or through its affiliates to individuals and employer groups throughout the United States. The company offers a full spectrum of health benefit programs to large national employers, public sector employers, mid-sized employers, small businesses and individuals nationwide.
Major Divisions
UnitedHealthcare’s major divisions include:
- Employer & Individual – Provides health solutions to help employers and individuals manage health expenses
- Medicare & Retirement – Serves the health needs of Medicare beneficiaries, retirees and military members and their families
- Community & State – Manages health care delivery systems for states, municipalities and community organizations
- Global – Delivers health benefits and related services to health plans and other clients worldwide
Key Competitors
As the largest health insurer in the U.S., UnitedHealth Group competes with other major national insurers as well as regional players. Its key competitors include:
Anthem
Anthem Inc. is the second largest health insurer in the U.S. serving over 40 million medical members. Anthem offers employer-sponsored, individual and government-sponsored plans to meet the health care needs of their diverse customer base. The company operates Blue Cross and Blue Shield plans in 14 states.
Aetna
Aetna Inc. is the third largest health insurer offering traditional and consumer-directed health care insurance products. Aetna serves an estimated 47 million people with information and resources to help them make better informed decisions about their health care. The company provides services through employer-paid, privately purchased and publicly funded health care programs.
Cigna
Cigna Corporation is a global health insurer offering medical, dental, disability, life and accident insurance along with related products and services. Cigna works with over 1.5 million health care professionals and facilities worldwide to provide choice, predictability, affordability and access to quality care. The company serves over 165 million customers and patients in over 30 countries.
Humana
Humana Inc. is one of the nation’s leading health insurance companies serving around 17 million medical members. Humana offers Medicare Advantage, Medicare Supplement, and specialty products including dental, vision and other supplemental health insurance policies. The company focuses on wellness, helping their members achieve lifelong well-being.
Company | 2020 Revenue | Members/Customers |
---|---|---|
UnitedHealth Group | $257 billion | 130 million |
Anthem | $121 billion | Over 40 million |
Aetna | $70 billion | 47 million |
Cigna | $160 billion | 165 million |
Humana | $77 billion | 17 million |
As evidenced by the data above, UnitedHealth Group is the clear market leader based on 2020 revenue and number of customers/members served. Anthem and Aetna are UnitedHealth’s closest competitors as the #2 and #3 health insurers in the U.S. market.
UnitedHealth Group Market Position
With presence across all 50 U.S. states and over 130 countries globally, UnitedHealth Group serves the most customers worldwide. Some key facts about UnitedHealth Group’s market position include:
- Serves 1 in 8 Americans through its UnitedHealthcare and Optum platforms
- Covers 51 million people under employer-sponsored plans
- Serves 20 million people under Medicare Advantage and Part D plans
- Processes over 1.3 billion health care transactions annually
- Manages prescription drug benefits for more than 27 million Americans
- Operates in all major geographies globally with leading market positions
UnitedHealth Group has maintained its #1 position through continued investment in growth platforms, innovation and strategic acquisitions. The company aims to continue expanding its health services offerings to drive future growth and value creation.
Sources of Competitive Advantage
UnitedHealth Group sustains its market leadership through several competitive advantages:
Scale and Reach
With over 300,000 employees globally, UnitedHealth Group can leverage its large size and scale to drive efficiencies across its platforms. Its expanded reach also provides members with enhanced access to high-quality care.
Diversification
UnitedHealth Group operates two distinct but complementary platforms – UnitedHealthcare provides health benefits while Optum delivers health services. This diversification across payer and provider markets reduces exposure to industry risks.
Innovation
UnitedHealth Group is an established innovator in the health care sector. The company is focused on using technology to simplify the consumer experience and make health care more personalized, affordable and accessible.
Reputation and Trust
Built over its 50+ year history, UnitedHealth Group’s strong brand and reputation for service quality, integrity and reliability engenders trust among its customers, care providers and stakeholders.
Financial Strength
With steady revenue growth and high cash flow generation, UnitedHealth Group has significant financial capacity to invest in strategic growth initiatives both organically and through M&A.
Conclusion
UnitedHealth Group is the undisputed market leader in the U.S. health insurance industry based on membership, revenue, geographic coverage and services offered. It faces competition primarily from Anthem, Aetna, Cigna and Humana but maintains its #1 position through advantages in scale, innovation, reputation and financial strength. With its strong performance and competitive advantages, UnitedHealth Group is well positioned to retain its leadership in the global health care marketplace.