Ovations to Partner with Walgreens for Medicare Part D Drug Program; R

    Business Editors/Healthcare Editors

    MINNEAPOLIS--(BUSINESS WIRE)--March 17, 2005--Ovations, a business unit of UnitedHealth Group (NYSE:UNH), announced today that it has selected Walgreen Co. and its subsidiary business, Walgreens Health Initiatives (WHI), as its partner for the Medicare Part D Prescription Drug Plan (PDP). Ovations is preparing to offer its Part D program in all 50 states, the District of Columbia and U.S. territories. Ovations is the largest and most recognized business dedicated to the senior market, serving over 5 million older Americans today.
    This partnership represents an important component in the strong consumer orientation and value that Ovations will embed in its new offerings. Walgreens Health Initiatives will assist Ovations in delivering a Part D program that is highly customized for the Medicare population, including individuals enrolled in Medicare Advantage Prescription Drug plans, Special Needs Plans and employer-sponsored plans. Walgreens brings to the partnership an outstanding reputation for quality and customer service, and includes one of the largest networks of retail drug store locations in the nation, comprehensive prescription drug fulfillment capabilities, and state-of-the-art mail order services, all using unique technology capabilities that span these channels. Importantly, this combination enables consumers to seamlessly access the most appropriate and cost-effective fulfillment channels for their particular needs - whether that be traditional mail order, online order, or in person at a retail pharmacy.
    Currently, Ovations provides access to affordable prescription medications through a comprehensive network of more than 54,000 retail pharmacies across the United States and the U.S. territories. A comparable broad network will be part of the new offering. Tom Paul, president of Ovations Pharmacy Solutions said, "We are pleased to draw on our experience with senior health issues to offer a new prescription drug program to consumers. We want to help them understand the Part D drug benefit and how to use the benefit most effectively. Our focus is on developing a program that is consumer friendly, simple in design and easy to use, with emphasis on consumer education, affordability, safety and consumer choice. Walgreen shares this commitment, and we look forward to pursuing the Medicare Part D opportunity with them. By combining the resources of our two organizations, we will be exceptionally well positioned to offer an unparalleled value proposition for older Americans."
    Studies show that consumer education will be critical in ensuring the success of the Part D program. To that end, Ovations will support individuals with extensive information tools and consumer resources. The fact that nearly 30 percent of consumers said they would likely turn to their pharmacist for help in deciding whether to enroll in a Medicare drug plan also underscores the value of a program that includes strong retail pharmacy networks such as that of Ovations and Walgreens.
    "Combining Walgreens' pharmaceutical capabilities and consumer reputation with Ovations' senior market expertise will create a unique product and service proposition," said Greg Wasson, president of Walgreens Health Initiatives. "This will be built first and foremost around the individual patient. We are looking forward to working with Ovations to bring a high-quality senior product to the marketplace, based on the principles of choice, access, relevant information and overall value."
    Ovations is the only company that works with the Medicare program on a national basis across the full spectrum of available Medicare offerings. This includes Medicare Supplement Plans, Medicare health plans, services for the frail elderly, and prescription drug programs. Ovations today operates America's largest pharmaceutical discount card program, serving over 2.5 million seniors.

    About UnitedHealth Group

    UnitedHealth Group (www.unitedhealthgroup.com) 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 six operating businesses: UnitedHealthcare, Ovations, AmeriChoice, Uniprise, Specialized Care Services and Ingenix. Through its family of businesses, UnitedHealth Group serves approximately 55 million individuals nationwide.

    About Walgreens Health Initiatives

    Walgreens Health Initiatives (WHI) is operated by Walgreen Co. (NYSE:WAG), the nation's largest drugstore chain with fiscal 2004 sales of $37.5 billion and 4,738 stores in 45 states and Puerto Rico. In addition to providing pharmacy benefits management through WHI, Walgreens offers services to pharmacy patients and prescription drug plans through Walgreens Mail Service, Walgreens Specialty Pharmacy and Walgreens Home Care.

    Forward-Looking Statements

    Statements that UnitedHealth Group may publish, including those in this announcement, that are not strictly historical are "forward-looking" statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, which may cause actual results and corporate developments to differ materially from those expected. Factors that could cause results and developments to differ materially from expectations include, without limitation, the effects of state and federal regulations, the effects of acquisitions and divestitures, and other risks described from time to time in each of UnitedHealth Group's SEC reports including quarterly reports on Form 10-Q, annual reports on Form 10-K, and reports on Form 8-K.

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CONTACT: UnitedHealth Group, Minneapolis Joyce Larkin, 952-936-3836 or Mark Lindsay, 952-992-4297 or John Penshorn, 952-936-7214 or Walgreen Co. Michael Polzin, 847-914-2925

KEYWORD: MINNESOTA INDUSTRY KEYWORD: INSURANCE MEDICAL PHARMACEUTICAL MARKETING AGREEMENTS SOURCE: UnitedHealth Group

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