UnitedHealth Group Inc (NYSE: UNH) operates as a diversified health care company in the United States. It operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage, and health and well-being services to individuals age 50 and older addressing their needs; Medicaid plans, children’s health insurance and health care programs; and health and dental benefits, and hospital and clinical services, as well as health care benefits products and services to state programs caring for the economically disadvantaged, medically underserved, and those without the benefit of employer-funded health care coverage. The OptumHealth segment provides care delivery, care management, wellness and consumer engagement, and health financial services for consumers, care delivery systems, providers, employers, payers, and public-sector entities. The OptumInsight segment offers software and information products, advisory consulting arrangements, and managed services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations. The OptumRx segment provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and community health pharmacy services, and purchasing and clinical capabilities, as well as develops programs in the areas of step therapy, formulary management, drug adherence, and disease/drug therapy management. UnitedHealth Group Incorporated was incorporated in 1977 and is based in Minnetonka, Minnesota.
- Market Cap: 497.036 billion
- PE Ratio: 23.31
- EPS: 23.05
- Dividend Yield: 1.40%
Most people are familiar with UnitedHealth because of the company’s health insurance segment and is doing just fine with its employer-based plans and within the individual marketplace. Its subsidiary, Optum, is an even bigger growth driver for UnitedHealth. Optum provides prescription refilling services, care delivery, and software solutions for healthcare companies, among a bevy of other solutions. Not only is Optum growing faster than the health insurance segment, but it often generates a considerably juicier operating margin.
UnitedHealth Group has a history of making its shareholders richer. It has made its shareholders money in 20 of the past 22 years, based on total returns, which includes dividends paid. Therefore, UNH is the best healthcare stock to own for long-term investors.