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UnitedHealth, McKesson vie for overhaul-driven $11B tech market

Bloomberg, August 25, 2010


UnitedHealthGroup, Inc., the biggest U.S. insurer, and McKesson Corp., the largest drug distributor, are vying for billions of dollars in added sales by bulking up their information-technology units. The companies are expanding beyond their core business to help insurers cope with the health overhaul, which threatens to swamp industry computer systems, said Joanne Galimi, a Boston- based analyst for technology researcher Gartner Inc. Bracing for added taxes and regulations, insurers are upgrading long-neglected systems used to enroll members, track care and process claims, Galimi said. They also face a 2013 switch to a new government-mandated system for classifying diseases. Insurer spending on data technology will jump 24% by 2013, to $11.3 billion, according to a March report by IDC Health Insights of Framingham, MA.