UnitedHealth enrolls over 2 mln in Medicare plans

12/15/2005

NEW YORK (Reuters) - UnitedHealth Group Inc. (UNH), the largest U.S. health insurer by market capitalization, on Thursday said more than 2 million Medicare beneficiaries have enrolled in new programs offering prescription drug coverage.

The enrollment is “very consistent with our expectations,” said UnitedHealth spokesman Mark Lindsay, especially given the company’s history of providing a drug discount card to seniors.

The figure appears to show UnitedHealth will reach its forecast for 2006 enrollment in the Medicare drug plans. UnitedHealth has forecast that by the end of next year, 2.4 million to 3.4 million beneficiaries will enroll in its Medicare drug programs, including Medicare Advantage plans.

Medicare, the federal health insurance program for 42 million elderly and disabled Americans, will begin offering prescription benefits January 1 through private companies. Enrollment in the plans began November 15.

UnitedHealth said the first month of enrollment shows “strong interest” in its plans.

“We are finding seniors understand that the value of Medicare’s new prescription drug benefit outweighs the complexity,” Lois Quam, chief executive of Ovations, the UnitedHealth business unit that serves older Americans, said in a statement.

The company said it has seen a sharp increase in online enrollment through the Web site for its plan endorsed by AARP, the large advocacy organization for seniors.

The enrollment includes individual, government-sponsored and employer-sponsored program participants in the stand-alone and Medicare Advantage prescription drug plans, the company said.