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UnitedHealth Extends Pact with AARP - Analyst Blog

By: Zacks.com
Posted: 10/16/2013 4:46:00 PM
Referenced Stocks: CNC;HNT;HUM;UNH

In an effort to better serve the seniors in America, UnitedHealth Group Inc. ( UNH ) has extended its relationship with the American Association of Retired Persons (AARP). 

The agreement will run through 2020. With this agreement, UnitedHealth intends to serve the 37 million members of AARP through its UnitedHealth Care as well as Optum units. 

As a part of the agreement, UnitedHealthcare  will continue to offer a diversified portfolio of AARP-branded products such as  Medicare Advantage, Medicare Part D and Medicare supplement and indemnity insurance products to Americans aged 50 and above. Optum will continue to provide ancillary health care and decision support services.

The agreement will also lead to AARP becoming the Founding Consumer Advocate Organization of Optum Labs. 

UnitedHealth had been associated with AARP for the past 15 years. Along with AARP UnitedHealth has targeted to provide superior service to its Medicare beneficiaries. 

Through research with AARP, UnitedHealth is continuously striving to find new ways like comprehensive case management programs, decision support and emergency room diversion programs, and web-based tools to better serve the patient population. 

The AARP Medicare Supplement Plans offer retirees freedom and flexibility, such as choice of any doctor or specialist that accepts Medicare patients; predictable out-of-pocket costs; guaranteed renewable coverage, coverage that travels nationwide; and value added services.

This extension of agreement with AARP by UnitedHealth reflects its efforts to make the Medicare product more attractive to the aged population. UnitedHealth is targeting the huge ageing population of America. 

UnitedHealth retains a Zacks Rank #2 (Buy). Other players Humana Inc. ( HUM ), Centene Corp. ( CNC ), Health Net, Inc. ( HNT ) all with Zacks Rank #2 (Buy) are worth considering. 



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