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UnitedHealth Group posts 10 percent increase in first quarter revenues Posted: April 21st, 2011

By Maryalene LaPonsie

Outpacing Wall Street expectations, UnitedHealth Group reported $25.4 billion in revenues for the first quarter of 2011. The parent company of UnitedHealthcare and Optum added 1.2 million members to its health care plans as it increased revenues 10 percent compared to the first quarter of 2010.

The company's performance was led by UnitedHealthcare Community & State plans as well as the Optum group of businesses. OptumHealth and OptumInsight experienced the greatest gains with a 30 percent year-over-year increase in revenues. Meanwhile, revenues for Community & State plans grew by 21 percent.

"Demand is increasing for greater connectivity, transparency and sustainable cost structures across the health system, as consumers, payers and care providers call for quality care at affordable prices," said Stephen J. Hemsley, president and chief executive officer of UnitedHealth Group, in a press release announcing the results. "UnitedHealth Group is well-positioned for sustained growth as we address these expanding market needs with consistent performance, solid fundamental execution and practical innovation that helps customers achieve their goals."

UnitedHealth Group reported an overall medical care ratio of 81.4 percent for the first quarter of 2011 which means that 81.4 cents of every premium dollar received was spent on member health care.