UnitedHealth to Create Jobs in CA - Analyst Blog


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In sync with its commitment to create jobs under the "100,000 Jobs Mission" program, UnitedHealth Group Inc. ( UNH ) announced its plans to hire 115 new employees at its Chico operations in California. Currently, the operation's employee strength is around 385.

A number of leading U.S. companies, including UnitedHealth, are part of the 100,000 Jobs Mission launched in March 2011 with the goal of hiring 100,000 transitioning service members and military veterans by 2020. WellPoint Inc. ( WLP ), another health insurance company, is also a member in this mission.

The company inaugurated a new office space on Independence Day, July 4, for the new employees.

UnitedHealth's initiative to create employment opportunities indicates its continued efforts towards economic development of the region.

UnitedHealth's presence in the city of Chico dates back to 1998. The company has been doing significant business in the state of California and has made investments amounting to $266 million in 45 health care organizations that provide service to less-advantaged Californians.

UnitedHealth has been on a recruitment drive. Recently, the company announced its plans to hire 1500 employees in the state of Texas. The company will create 115, 250, 800 and 330 new jobs across four cities namely Harlingen, San Antonio, Irving, and Sugar Land, respectively.

Recently, the Government Accountability Office (GAO) confirmed the U.S. Department of Defense's (DoD) TRICARE Managed Care Support contract award to UnitedHealth. This TRICARE contract for the West region would be effective from April 2013.

Under this administrative services contract, the company will support health care delivery to approximately 2.9 million eligible beneficiaries who are active duty service members, retirees and family members based in 21 states of TRICARE's West region. The contract consists of five one-year option periods and is valued at $20.5 billion.

UnitedHealth is scheduled to release its second quarter earnings on July 19, before the market opens. The Zacks Consensus Estimate for second quarter earnings is pegged at $1.19 per share, reflecting year-over-year growth of 2.54%.

UnitedHealth currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.  We are also maintaining our long-term Neutral recommendation on its shares.

UNITEDHEALTH GP (UNH): Free Stock Analysis Report
WELLPOINT INC (WLP): Free Stock Analysis Report
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