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UnitedHealth Group: Jockeying for Position.(provides medicare prescription drug benefit)

Byline: Kiplinger Washington Editors

UnitedHealth Group (UNH) is better positioning itself to benefit from the new medicare prescription drug benefit (Part D) that is set to take effect next January. On Monday the company announced that it has formed a partnership with AARP to offer a Part D plan under that senior organization's brand name.

This affiliation "practically guarantees" UnitedHealth will enjoy a powerful share in the large market for Part D plans, says David Shove, who covers health care stocks for Prudential. He figures that AARP and BlueCross/Blue Shield brands account for more than 70% of the medicare supplemental insurance market and that seniors will ...

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