UnitedHealth Group Issues Statement Regarding California Department of Insurance Exam Findings

Business Wire, Jan 29, 2008

CYPRESS, Calif. -- The following is a statement by UnitedHealth Group (NYSE:UNH) regarding the exam findings by the California Department of Insurance (CDI):

At this time UnitedHealth Group has not received notice of a fine by the CDI. The CDI has indicated to us that it has not determined a penalty amount related to its exam findings. Department representatives have told us that they want to continue to work with us to finalize and confirm the effectiveness of our corrective-action plans. The CDI has further stated that these ongoing interactions will inform their thinking related to a penalty.

While there is a theoretical maximum penalty, we believe the Commissioner will take into consideration the fact that the vast majority of the violations were identified by the company, administrative in nature and did not result in harm to our members.

For example, more than 80,000 of the noted violations were related to not sending providers an acknowledgement letter for claims received. However, the majority of these claims were paid timely. We therefore do not believe that the majority of the violations found by the CDI warrant the maximum penalty. In addition, the company is fully cooperating with the CDI and the California Department of Managed Health Care to correct violations and to provide the agencies with clear information related to our progress.

We believe the Commissioner will consider the fact that it is not necessary to invoke a fine for the purpose of demanding cooperation from the company. We are continuing to work closely and cooperatively with the CDI.

About UnitedHealth Group

UnitedHealth Group is a diversified health and well-being company dedicated to making health care work better. Headquartered in Minneapolis, Minn., UnitedHealth Group offers a broad spectrum of products and services through seven operating businesses: UnitedHealthcare, Ovations, AmeriChoice, Uniprise, OptumHealth, Ingenix and Prescription Solutions. Through its family of businesses, UnitedHealth Group serves approximately 70 million individuals nationwide.

Forward-Looking Statements

This press release may contain statements, estimates, projections, guidance or outlook that constitute "forward-looking" statements as defined under U.S. federal securities laws. Generally the words "believe," "expect," "intend," "estimate," "anticipate," "plan," "project," "will" and similar expressions, identify forward-looking statements, which generally are not historical in nature. These statements may contain information about financial prospects, economic conditions, trends and uncertainties. We caution that actual results could differ materially from those that management expects, depending on the outcome of certain factors. These forward-looking statements involve risks and uncertainties that may cause UnitedHealth Group's actual results to differ materially from the results discussed in the forward-looking statements. Factors that could cause results to differ materially from the forward-looking statements include the amount of fines and penalties, if any, actually levied by the California Department of Insurance as a result of its examination of the Company's PacifiCare health plans.