James P. Cronin

As some insurers in the region have cut jobs and services, UnitedHealthcare of the mid-Atlantic is going the opposite direction.

The subsidiary of Minnesota-based UnitedHealth Group is setting a goal of increasing its Maryland membership by 10% this year by adding jobs and rolling out a new advertising campaign, according to CEO James P. Cronin.

“UnitedHealthcare has identified a need in the City of Baltimore and in Baltimore County for more affordable health insurance solutions,” Cronin told IFAwebnews.com.

“We have launched a number of options that can assist employers in reducing their costs while providing access to affordable care for their employees. The advertising campaign, along with our broker partners, will raise awareness in the employer community, then we will need staff to support this increase in business,” he added.

According to a recent report by the American Medical Association, UnitedHealthcare has an uphill battle in the Baltimore-Towson, Md. region, with CareFirst commanding a 41% combined HMO/PPO market share to UnitedHealthcare’s 23% share.

Statewide, CareFirst has a 39% share and UnitedHealthcare 24%.

UnitedHealth anticipates adding 15 to 20 new jobs in sales and administration as a result.

The company would not disclose the cost of the advertising campaign. Officials would only say that the campaign will run from May through November to supplement its national campaign.

Targeting local businesses

Cronin said while UnitedHealth care is a national company, the focus of the new endeavor is to appeal to small, local businesses.

“We work with local companies by providing local solutions – whether it is a three-person print shop, a 70-person technology company or a company with 12,000 employees in five states,” he said. “In the Baltimore area, we know small business are looking for new solutions and we have several new products that will be great options.”

Outside of the Baltimore market, Cronin said that Pennsylvania and portions of Virginia are also “growth markets” for UnitedHealthcare.  Currently, UnitedHealthcare of the mid-Atlantic has nearly 2 million members in Delaware, Maryland, Virginia, Washington D.C. and West Virginia.

In recent months, insurers including Aetna and CIGNA have announced job cuts amid the tough economy.

Cronin said that UnitedHealthcare of the mid-Atlantic’s expansion is possible “because as we become more efficient in our business we have funds to reinvest in other areas such as expansion in important geographical areas” and that the new efforts will not add costs to members or customers.

Cronin added that agents and brokers are an “integral part” to the success of the insurer’s growth plans.

“These partners are the advisors to employers helping them to answer their health care needs with affordable options for the business as well as the employees,” he said.
“Employers each have different needs because they have different combinations of employees working for them.  Brokers help employers to understand the composition of the workforce then seek insurance products to answer the needs identified,”?Cronin added.

This story originally appeared in the March 2009 print edition of Insurance & Financial Advisor.