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UNH » Topics » 2008 Revised Outlook as of July 22, 2008

This excerpt taken from the UNH 8-K filed Jul 22, 2008.

2008 Revised Outlook as of July 22, 2008

($ and weighted average shares in millions, except per share data)

 

Business

   

Revenue Range

    Earnings from
Operations, as
adjusted1		    Operating Margin
Range, as adjusted1

UnitedHealthcare

    $41,400 – $41,600      

Ovations

    27,900 – 28,100      

AmeriChoice

    5,900 – 6,000      
          

Health Care Services

    $75,200 – $75,700    $4,900 – $5,100    6.5% – 6.8%

OptumHealth

    5,200 – 5,300    740 – 760    14% – 15%

Ingenix

    1,625 – 1,675    290 – 310    17% – 19%

Prescription Solutions

    12,700 – 13,000    380 – 400    2.9% – 3.1%

Eliminations

    (14,100) – (14,350)    —      —  
              
   Approximately $81,000    Approximately $6,500    Approximately 8%
              

Consolidated UnitedHealth Group

         2008 Targets     

UnitedHealth Group Medical Care Ratio

    82.5% ± 50 bps   

Operating Cost Ratio, as adjusted1

    14.5% ± 20 bps   

Service-based Revenues

    $5,100 – $5,300   

Product Revenues

       $1,650 – $1,800   

Investment and Other Income – Assuming $120 in Capital Gains

    $850 – $900   

Depreciation / Amortization

    $960 – $980   

Interest Expense

    $650 – $675   

Tax Rate, as adjusted1

    35.75% – 36.00%   

Diluted Weighted Average Shares

    1,235 – 1,245   

Diluted Net Earnings Per Common Share, as adjusted1

    $2.95 – $3.05   

Days Medical Costs Claims Payable – Consolidated

    50 – 54 days   

Capital Expenditures

    $900 – $950   

Membership Growth (excluding acquisitions and divestitures):

      

UnitedHealthcare:

      

Risk-Based Decline

    (800,000) or more individuals   

Fee-Based

    flat   

Ovations Growth – Secure Horizons and Evercare Medicare Advantage

    75,000 – 90,000 individuals   

AmeriChoice and Evercare Medicaid Growth

    400,000 – 450,000 individuals   

 

1 Excludes pre-tax Operating Costs of $922 million ($0.47 per share after tax) for settlement of two class action lawsuits related to the Company’s historical stock option practices and related legal costs, and $46 million ($0.02 per share after tax) for employee severance related to operating cost reduction initiatives and other items, partially offset by a $185 million ($0.09 per share after tax) reduction in operating costs for proceeds from the sale of certain assets and membership in the individual Medicare Advantage business in Nevada in May 2008.

Refer to page 10 for further discussion of our use of Non-GAAP financial measures.

 

8

UNITEDHEALTH GROUP

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