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This growth is well diversified across customer types, products, and geographies, providing a healthy base for 2017 revenue growth. In 2016, UnitedHealthcare also added 335,000 self-funded or commercial-fee based members mostly from its existing accounts due to increasing employment rate. The year 2016 proved to be the best year for UnitedHealth Group in terms of Medicare business. The company added 625,000 Medicare members organically to its portfolio, of which two-thirds are enrolled in various Medicare Advantage plans. The spectacular performance has been on account of the company focusing on offering stable benefits at appropriate price points and improving stars for majority of its Medicare Advantage plans. Besides new enrollment, UnitedHealth Group also demonstrated a robust customer retention rate in 2016. All these factors point to an inherently strong business model with diversified customer base and high focus on clinical performance and customer service levels. I believe that these factors can enable UnitedHealth Group to hit its target of 1 million Medicare members in 2017. In 2016, UnitedHealth Group added 585,000 new Medicaid members to its portfolio, both from existing and new contracts with states. The year 2017 is expected to see UnitedHealth Group become a state partner for Medicaid program in Virginia, Missouri, and Colarado. The robust enrollment trends ensured that every business segment of UnitedHealthcare has grown its revenues by double-digit percentage in 2016. Further, UnitedHealth Group has been consistently witnessing higher net promoter scores. In 2016, customers earned healthy behavior incentives worth $255 million.This is testimony to the solid business fundamentals of UnitedHealth Group. The ghosts of struggling individual business will not be haunting UnitedHealth Group in 2017 The ACA-compliant public exchange business has been a pain point for majority of health insurers such as Aetna (NYSE: AET ), Anthem (NYSE: ANTM ), and UnitedHealth Group. In January 2016, UnitedHealth Group announced its estimation of losses from public exchange business in 2015 and 2016 to be greater than $1.0 billion. The company recognized $450 million losses in year 2015 and close to $650 million in first half of 2016. The company does not expect any major financial exposure from its individual business in 2017. Being the first health insurer to completely understand the problems in the individual insurance market, UnitedHealth Group managed to safeguard its margins with minimal impact. Peers such as Aetna and Anthem are still facing the brunt of the delay in their decision to pull out from certain unprofitable individual exchanges. Optum has entered into multiple strategic partnerships in 2016 Under the Optum platform, UnitedHealth Group operates three distinct businesses, a pharmacy care services company called OptumRx, a healthcare delivery business called OptumHealth, and technology and consulting services business, OptumInsight. In January 2016 , Optum partnered with technology provider, Availity, to improve the claims submission process.
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