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UNITED HEALTHCARE’S WORKERS COMPENSATION EXPERTS SIGN LETTER OF INTENT WITH NORTH DAKOTA WORKERS COMPENSATION BUREAU

UNITED HEALTHCARE’S WORKERS COMPENSATION EXPERTS SIGN LETTER OF

INTENT

WITH NORTH DAKOTA WORKERS COMPENSATION BUREAU

WC/CS to Provide Cost Management Services to 22,500 Employers

MINNEAPOLIS, Dec. 18 /PRNewswire/ — Workers Compensation/Casualty Services (WC/CS) today announced that it has signed a letter of intent to provide cost management services to the North Dakota Workers Compensation Bureau, the state’s sole workers compensation insurance fund. Workers Compensation/Casualty Services, a member of the United HealthCare Corporation (UHC) (NYSE: UNH) family of services, will provide services for 22,500 employers representing 225,000 workers statewide. North Dakota is one of the first states to require utilization review and managed care for workers compensation medical claims.

Workers Compensation/Casualty Services will conduct prospective and retrospective utilization management of inpatient services. It also will provide ambulatory case management, including innovative programs in diagnostic imaging review, carpal tunnel syndrome management and back injury treatment. Other outpatient services, such as chiropractic and physical therapy, also will be managed.

“We are very impressed with WC/CS’s capabilities, and their willingness to work very closely with our claims staff in managing claims and the treatment process,” said Hiram Shaw, deputy director of the North Dakota Workers Compensation Bureau. “WC/CS is an integral part of our strategy of controlling our medical and indemnity costs by supplementing our own capabilities with those of some of the nation’s leaders in cost management.”

“Our contract with the North Dakota Workers Compensation Bureau signals WC/CS’ expansion into a new segment of the workers compensation market, one with an extraordinary potential for growth,” said T. Stevens Spruth, president of WC/CS. “Our depth of experience and our innovations in ambulatory care management position us uniquely to provide comprehensive services to large insurers.”

In 1990, job-related injuries cost American employers more than $60 billion in direct workers compensation expenses, 40 percent of which was for medical care. These costs have doubled in the past five years, and, if left unchecked, are expected to double again by 1995. Workers compensation costs now average more than 2 percent of payroll for a majority of industries.

UHC began workers compensation utilization review in 1985. Since then, the company has reviewed more than 22,000 cases. Individual clients report saving as much as $2.5 million per year in workers compensation costs since implementing UHC utilization review services.

United HealthCare Corporation is the nation’s leader in health care management, serving both the providers and purchasers of health care since 1974. The company’s services include HMOs, PPOs, multiple option and point-of-service plans, pharmaceutical cost management, managed mental health and substance abuse services, utilization management, workers compensation/casualty services, specialized provider networks, employee assistance services, Medicare and managed care programs for the aged, health care evaluation services, information systems and administrative services.

NOTE: Marketing inquiries should be directed to Michael S. Larson, director of sales and marketing, Workers Compensation/Casualty Services, P.O. Box 1373, Mail Route 6230, Minneapolis, MN 55440. Larson’s telephone number is 612-945-6205.

-0- 12/18/91

/CONTACT: David Koppe, 612-939-7760 or Jane Powers, 612-936-3649, both of United HealthCare Corporation/

(UNH) CO: United HealthCare Corporation; Workers Compensation/Casualty

Services; North Dakota Workers Compensation Bureau ST: Minnesota, North Dakota IN: HEA SU:

DS — MN003 — 3297 12/18/91 09:48 EST EST

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