In an effort to expand its international business
UnitedHealthcare International, a unit of U.S. health insurer
UnitedHealth Group Inc.
) has announced a global health insurance program called Global
The program will be available for all the employers, small as
well as big, based internationally.
UnitedHealth has tied up with MAXIMA Insurance, Inc., to
provide its international health insurance service in the Czech
Republic. In this region the company will be targeting all the
expatriates which are mandated to hold a medical coverage as per
the immigration rules of the country.
The insurer has also tied up with Medical Services
Organisation in South Africa to provide cashless claim service.
UnitedHealth will be providing its service to more than 30
countries in the African continent.
Yet another instance of UnitedHealth expanding its
international operation was its buyout of Amil Participações S.A.
It is the long term strategy of the company to expand its
international operations which provide a healthy margin. The roll
out of this new program marks a strategic move by UnitedHealth,
indicating aggressive international expansion at a time when
growth in the domestic markets is facing pressures from the new
regulations. Over time we expect more deals from the company,
pertaining to its international expansion where it faces less
UnitedHealthcare International has business operations in 123
countries across the globe.
The U.S. commercial market is fully penetrated and becoming
increasingly concentrated among efficient and large providers. As
they seek ways to achieve greater top line growth, many U.S.
insurers are looking to the international markets. Also increased
regulation on account of Health Care Reform has also led the move
by health insurance players
) to look for business opportunities overseas.
UnitedHealth retains a Zacks Rank #3 (Hold).
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