AARP extends UnitedHealth agreement |
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Published
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Tue, 17 Apr 2007 18:56
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MINNEAPOLIS (AP) - AARP extended an agreement on Tuesday with UnitedHealth Group Inc., the biggest drug provider under Medicare, and also announced a new deal for Aetna Inc. to offer insurance aimed at younger retirees.UnitedHealth has become the largest provider in the Medicare prescription drug program in part because it made a deal to be the only provider of an AARP-branded drug plan. That deal was set to expire at the end of 2007 but now will run through 2014, the company said on Tuesday.The deal also covers AARP-branded Medicare Advantage,and Medicare Supplement products across all markets.AARP, a nonprofit organization for people older than 50, will continue its UnitedHealth-run insurance for members between the ages of 50 and 64. On Tuesday, AARP said it would now also carry an Aetna plan for people in that age range. The Aetna deal also begins on Jan. 1, 2008 and runs through 2014. Aetna said AARP has 18 million members in the 50 to 64 age range.In February UnitedHealth reduced its 2007 revenue forecast because of lower-than-expected enrollment in programs for older people. The company projected revenue in its Ovations division for older people would be $28 billion, down from $29 million it had projected earlier.UnitedHealth is set to report earnings on Thursday.None of the parties disclosed how much money changed hands in the deals. But AARP said it would dedicate $500 million in royalty payments from the UnitedHealth and Aetna agreements over 10 years to a new program aimed at helping people find health information and assistance.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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UnitedHealth, AARP extend, broaden deal 