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UnitedHealthcare Enhances Affordable Health Care Options for Small Businesses By Expanding HRA Product

Posted on: Wednesday, 7 December 2005, 12:00 CST

Nation's largest provider of consumer-driven health plans will begin offering a Health Reimbursement Account to businesses with two to 149 employees

UnitedHealthcare is expanding opportunities for small businesses to offer health benefits to their employees through a new consumer-driven health product that features a Health Reimbursement Account (HRA) created specifically for employers with two to 149 employees. Called UnitedHealthcare's Definity HRA, the plan option will help small businesses access affordable health care through the comprehensive focus on consumer engagement that has made UnitedHealth Group's consumer-driven programs the fastest growing in the nation.

"Since HRAs were introduced in 2002, mid-sized and large employers have been able to use them to realize significant cost savings and advance consumer engagement, and UnitedHealthcare believes the same options should be made available to small businesses," said Simeon Schindelman, president of UnitedHealthcare's Small Business Group. "By using an HRA to help activate employees in their health care decision-making, small businesses have the opportunity to make health care more affordable - and therefore more accessible - for their workers. Additionally, this new plan structure can help slow the rate of increases in health costs for this group of employers, allowing them to continue to offer comprehensive coverage to their employees."

UnitedHealthcare's Definity HRA allows employers to pair a nontaxable, employer-funded account with virtually any UnitedHealthcare medical plan. The employer has the flexibility to determine the funding level of the HRA, which employees can then apply toward their health care purchases. Through this combination, employers can offer their workers first-dollar coverage of medical costs, preventive care covered up to 100 percent, and catastrophic coverage to protect employees and their families. Additionally, UnitedHealthcare's Definity HRA offers:

-- Automatic rollover of claims to the HRA account, so no paperwork is required;

-- Employees and their dependents have access to real-time account information through UnitedHealthcare's member portal, myuhc.com(R); and

-- Direct payments to hospitals and physicians, leveraging UnitedHealthcare's national network savings.

"We know that small employers embrace creative ways to provide affordable health benefits and engage their employees in health care decisions," Schindelman said. "This is another way we will continue to work with our agent and broker partners to enable them to support employers in pursuing those goals."

UnitedHealthcare's Definity HRA enhances a suite of products available to small businesses interested in consumerism. Over the past year, Health Savings Accounts (HSAs) have become the fastest growing product in the UnitedHealthcare small business market. Golden Rule Insurance Company, a UnitedHealthcare company and HSA pioneer in the individual market, also reports that HSAs continue to gain popularity among sole proprietors and the self-employed because of the affordability, control and tax advantages they offer. Today, 42 percent of Golden Rule customers choose HSAs over more traditional plans.

UnitedHealthcare's Definity HRA will be available to employers with two to 149 employees anywhere UnitedHealthcare sells health coverage for Jan. 1, 2006 effective dates. Brokers and agents can start quoting and selling the product immediately.

About UnitedHealthcare

UnitedHealthcare (www.unitedhealthcare.com) provides a comprehensive array of consumer-oriented health benefit plans and services to small and mid-sized employers and individuals nationwide. UnitedHealthcare is an operating business of UnitedHealth Group (NYSE:UNH), a diversified Fortune 50 company that provides a full spectrum of products, resources and services designed to make health care work better. UnitedHealth Group offers products and services through six operating businesses: UnitedHealthcare, AmeriChoice, Ovations, Uniprise, Specialized Care Services and Ingenix. Through its family of businesses, UnitedHealth Group serves more than 55 million people.

Source: Business Wire

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