Optum concludes oversight for HealthCare.gov

The UnitedHealth Group division won praise for its work on HealthCare.gov.

May 16, 2015 at 2:52AM
This is the sign outside the headquarters of UnitedHealth Group Inc., in Minnetonka, Minnesota, April 14, 2005. UnitedHealth Group Inc., the second- biggest U.S. health insurer, said first-quarter profit rose 41 percent as acquisitions added customers. The company raised its forecast for 2005. Photographer: Dawn Villella/Bloomberg News.
UnitedHealth's Optum unit has finished work on the federal health insurance exchange. (Dml - Bloomberg News/The Minnesota Star Tribune)

Optum's rescue work on the federal government's HealthCare.gov website is done.

The technology division of Minnetonka-based UnitedHealth Group said Friday it won't continue work as the senior adviser overseeing the federal website, which was created as part of the federal Affordable Care Act.

When Optum was hired as senior adviser in October 2013, the website had become an embarrassment for the Obama administration.

In a matter of months, Optum was winning praise for a dramatic turnaround. The company was called on by states including Minnesota to help fix troubled insurance exchanges.

"The goal was to make HealthCare.gov a stable, reliable platform for people seeking coverage," said Matt Stearns, a vice president with Optum. "We did it."

The senior adviser work came with a contract valued at roughly $40 million per year. While that job is done, Optum will continue to work on other portions of the federal website.

HealthCare.gov serves as the health insurance exchange in more than 30 states. The federal health law called for the creation of marketplaces for all 50 states, designating the exchanges as the vehicle for individuals to obtain tax credits that discount premium costs.

Minnesota is one of more than a dozen states that opted to create its own health exchange, and asked Optum for advice in January 2014 on strategies for fixing its MNsure system. Optum's highest-profile work on state-based health exchanges, Stearns said, has come in Maryland, Massachusetts and Vermont.

Optum's ongoing work includes a federal data hub that helps confirm whether applicants qualify for tax credits or public health insurance programs.

Christopher Snowbeck • 612-673-4744

Twitter: @chrissnowbeck

John Penrod, one of the architects of the computer system in Eden Prairie that powers Optum Labs medical database partnership with Mayo Clinic . ] GLEN STUBBE * gstubbe@startribune.com July 21, 2014
Optum is the technology division of UnitedHealth Group Inc. (The Minnesota Star Tribune)
about the writer

about the writer

Christopher Snowbeck

Reporter

Christopher Snowbeck covers health insurers, including Minnetonka-based UnitedHealth Group, and the business of running hospitals and clinics.

See More

More from Business

card image

The funding is expected to give more than 5,000 Minnesotans, especially in rural areas, high-speed broadband access across the state and help at least 139 businesses and 368 farms.

card image