abrooklyn
2 months ago
UnitedHealth Group Reports Third Quarter 2024 Results
Source: Business Wire
Revenues of $100.8 Billion Grew $8.5 Billion Year Over Year
Consumers Served by UnitedHealthcare’s Commercial Domestic Offerings Grew 2.4 Million Year to Date
Third Quarter Earnings of $6.51 Per Share Include Cyberattack Impacts
Adjusted Earnings of $7.15 Per Share Include $0.12 in Business Disruption Impacts; Exclude $0.28 Direct Response Costs
UnitedHealth Group (NYSE: UNH) reported third quarter 2024 results reflecting broad-based growth in the number of people served by Optum and UnitedHealthcare.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241015234962/en/
UnitedHealth Group corporate headquarters (Photo: Business Wire)
UnitedHealth Group corporate headquarters (Photo: Business Wire)
“Our continued growth, which positions us well for the coming years, is rooted in the innovative products and responsive service of our people that are embraced each day across the full range of health care participants,” said Andrew Witty, chief executive officer of UnitedHealth Group.
The company’s full year 2024 net earnings outlook of $15.50 to $15.75 per share reflects the South America operations disposition activities reported in the first half of 2024 and Change Healthcare cyberattack impacts.
The company’s adjusted net earnings outlook of $27.50 to $27.75 continues within the $27.50 to $28.00 range established nearly a year ago, even as it absorbs an estimated $0.75 per share of business disruption impacts for the affected Change Healthcare services, which have increased ~$0.10 per share from the estimate provided last quarter.
Quarterly Financial Performance
Three Months Ended
September 30,
2024
September 30,
2024 (Adj)
September 30,
2023
December 31,
2023
Revenues
$100.8 billion
$100.8 billion
$92.4 billion
$94.4 billion
Earnings from Operations
$ 8.7 billion
$ 9.0 billion
$ 8.5 billion
$ 7.7 billion
Net Margin
6.0%
6.3%
6.3%
5.8%
Third quarter 2024 revenues grew nearly $8.5 billion to $100.8 billion, led by strong expansion in people served at Optum and UnitedHealthcare. Third quarter earnings from operations were $8.7 billion, including $0.3 billion in unfavorable cyberattack effects. Adjusted earnings from operations of $9.0 billion include the Change Healthcare business disruption impacts and exclude the cyberattack direct response costs.
The third quarter 2024 medical care ratio was 85.2% compared to 82.3% last year. Among factors contributing to the increase were the previously noted CMS Medicare funding reductions, medical reserve development effects and business and member mix. The company did not have any favorable earnings impacting medical reserve development in the quarter.
Days claims payable of 47.4 compared to 45.2 in the second quarter of 2024 and 50.7 in the third quarter of 2023. The increase from the second quarter 2024 was due to a return to more normal claims submission patterns from care providers. The change from the year ago level reflected continued impact due to the accelerated claims payment timeframes.
The third quarter of 2024 operating cost ratio of 13.2% compares to 13.3% in the second quarter of 2024 and 15.0% in the prior year, reflecting continued strong operating cost efficiency.
Cash flows from operations from the third quarter of 2024 were $14.0 billion, or 2.2 times net income, in part reflecting the timing of cash receipts. The company returned over $9.6 billion to shareholders through the first nine months of 2024 through dividends and share repurchases. Return on equity of 26.3% in the quarter reflected the company’s consistent, broad-based earnings and efficient capital structure.
UnitedHealthcare provides health care benefits globally, serving individuals and employers, and Medicare and Medicaid beneficiaries. UnitedHealthcare is dedicated to improving the value customers and consumers receive by improving health and wellness, enhancing the quality of care received, simplifying the health care experience, and reducing the total cost of care.
Quarterly Financial Performance
Three Months Ended
September 30,
2024
September 30,
2023
December 31,
2023
Revenues
$74.9 billion
$69.9 billion
$70.8 billion
Earnings from Operations
$ 4.2 billion
$ 4.6 billion
$ 3.1 billion
Operating Margin
5.6%
6.6%
4.4%
UnitedHealthcare third quarter revenues of $74.9 billion increased $5 billion over the prior year, reflecting growth in the number of people served domestically. Operating earnings were $4.2 billion.
Year to date, the number of consumers served domestically with the company’s commercial offerings grew by 2.4 million to 29.7 million, as UnitedHealthcare’s innovative and consumer-focused product portfolio continues to resonate with consumers and employers.
UnitedHealthcare serves 9.4 million seniors and people with complex needs and the company’s 2025 Medicare Advantage plans will reach 96% of eligible Medicare beneficiaries. Recently released Stars scores by CMS for plan year 2026 are consistent with initial levels for plan year 2025 and company expectations.
Total people served by the company’s state-based community offerings grew from the second quarter to 7.5 million, as the state-driven Medicaid eligibility redeterminations process concluded. The UnitedHealthcare team is continuing its comprehensive outreach to help families maintain, reinstate, or find other affordable coverage.
The Optum health services businesses serve the global health care marketplace, including payers, care providers, employers, governments, life sciences companies and consumers. Using market-leading information, analytics and technology to yield clinical insights, Optum helps improve overall health system performance by optimizing care quality, reducing care costs and improving the consumer experience.
abrooklyn
4 months ago
UnitedHealth Group Board Authorizes Payment of Quarterly Dividend
Source: Business Wire
The UnitedHealth Group (NYSE: UNH) board of directors has authorized payment of a cash dividend of $2.10 per share, to be paid on September 24, 2024, to all shareholders of record of UNH common stock as of the close of business September 16, 2024.
About UnitedHealth Group
UnitedHealth Group (NYSE: UNH) is a health care and well-being company with a mission to help people live healthier lives and help make the health system work better for everyone through two distinct and complementary businesses. Optum delivers care aided by technology and data, empowering people, partners and providers with the guidance and tools they need to achieve better health. UnitedHealthcare offers a full range of health benefits, enabling affordable coverage, simplifying the health care experience and delivering access to high-quality care. Visit UnitedHealth Group at www.unitedhealthgroup.com and follow UnitedHealth Group on LinkedIn.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807859542/en/
Media:
Eric Hausman
Eric.Hausman@uhg.com
952-936-3963
Investors:
Zack Sopcak
Zack.Sopcak@uhg.com
952-936-7215
abrooklyn
1 year ago
https://www.unitedhealthgroup.com/newsroom/2023/2023-10-13-uhg-reports-third-quarter-results.html
UnitedHealth Group Reports Third Quarter Results
October 13, 2023 | 5 min Read
Share:
Revenues of $92.4 Billion Grew 14% Year-Over-Year
Earnings from Operations Grew 14%
Cash Flows from Operations were $6.9 Billion
Earnings were $6.24 Per Share, Adjusted Earnings $6.56 Per Share
UnitedHealth Group (NYSE: UNH) reported third quarter 2023 performance led by broad-based growth at Optum and UnitedHealthcare.
“As a result of our colleagues’ steadfast focus on helping people access and receive the care they need, we are well-positioned to help even more people and continue to generate strong, diversified growth in the coming years,” said Andrew Witty, chief executive officer of UnitedHealth Group.
Growth in the third quarter was driven by the continuing increase in the number of people served by Optum and UnitedHealthcare and the broadening scope of services offered. The company strengthened the range of its full year 2023 net earnings outlook to $23.60 to $23.75 per share and adjusted net earnings to $24.85 to $25.00 per share.
abrooklyn
1 year ago
https://www.cnbc.com/2023/07/14/unitedhealth-group-unh-earnings-q2-2023.html
UnitedHealth stock jumps after earnings top estimates despite rising medical costs
UnitedHealth Group’
s stock price jumped Friday after the health-care conglomerate reported second-quarter revenue and adjusted earnings that topped Wall Street’s expectations despite rising medical costs.
The results eased investor concerns after the Minnesota-based company flagged a surge in demand for non-urgent surgeries and outpatient services last month and spooked the market.
Shares of UnitedHealth closed up more than 7% Friday. The stock is down more than 9% so far this year, however.
UnitedHealth Group is the biggest health-care company in the U.S. by market cap and revenue, and is even bigger than the nation’s largest banks. Given its size, UnitedHealth Group is considered a bellwether for the broader health insurance sector. Its market value was around $447 billion as of Friday’s close.
Here’s what UnitedHealth Group reported compared with Wall Street’s expectations, based on a survey of analysts by Refinitiv:
Earnings per share: $6.14 adjusted vs. $5.99 expected
Revenue: $92.9 billion vs. $91.01 billion expected
UnitedHealth Group reported a net income of $5.47 billion, or $5.82 per share, for the quarter. That compares with $5.07 billion, or $5.34 per share, for the same period a year ago. Excluding certain items, the company’s adjusted earnings per share were $6.14 for the period.
The company reported total revenue of $92.9 billion for the quarter, up 16% from the same period a year ago. That excludes $33.6 billion in “eliminations,” which are payments from the company’s UnitedHealthcare business to its other division, Optum. UnitedHealth Group can’t record those transactions as revenue because it is paying itself.
UnitedHealthcare, which provides insurance coverage and benefits services to more than 50 million people, saw second-quarter revenue grow 13% from a year ago to $70.2 billion.
The company’s other platform, Optum, saw revenue increase nearly 25% from a year ago to $56.3 billion. Optum offers health services and runs one of the largest pharmacy benefit managers, or middlemen who negotiate drug discounts with drug manufacturers on behalf of health insurers and large employers.
Optum’s growth was helped in part by UnitedHealth Group’s roughly $8 billion acquisition of the health care technology company Change Healthcare.
It was also driven by a more than 900,000 year-over-year increase in the number of patients served by Optum’s health services business under value-based care arrangements.
UnitedHealth Group raised the low end of its full-year adjusted earnings outlook to $24.70 to $25.00 per share, from a previous forecast of $24.50 to $25.00 per share.
The company’s medical cost ratio – the percentage of payout on claims compared with premiums – came in at 83.2%. Analysts had estimated that ratio would be 83.3% for the quarter, according to FactSet.
The medical cost ratio is up almost 2% from the same period a year ago. UnitedHealth Care said that was driven by the previously noted uptick in elective surgeries and outpatient care activity, primarily among seniors.
“To illustrate, in the second quarter, outpatient care activity among seniors was a few hundred basis points above our expectations,” UnitedHealth Group CFO John Rex said during an earnings call.
Rex noted that much of that care has come from seniors who are getting heart procedures and hip and knee replacements at outpatient clinics, reiterating his previous remarks at the Goldman Sachs health-care conference last month.
UnitedHealth Group expects its medical cost ratio to “be a little bit lower” in the third quarter compared with the second quarter, Rex said during the call.
He added that the company also expects the medical cost ratio in the third quarter to be “higher marginally” than it will be in the fourth quarter, noting that it’s “just a seasonality factor.”
But overall, the company expects the “general pacing of care activity to remain consistent,” according to Rex.
Insurance companies have benefited in recent years from a delay in nonurgent procedures due to hospital staffing shortages and the pandemic, which saw hospitals inundated with Covid patients. Hospitals at that time were widely seen as too risky to enter for elective procedures.
But UnitedHealth Group executives indicated that the trend may be reversing.
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abrooklyn
2 years ago
UnitedHealth Group Reports First Quarter Results
April 14, 2023
Share:
Revenues of $91.9 Billion, Grew 15% Year-Over-Year
Earnings from Operations Grew 16%
Cash Flows from Operations were $16.3 Billion; Adjusted Cash Flows from Operations were $5.1 Billion
Earnings were $5.95 Per Share, Adjusted Earnings $6.26 Per Share
MINNETONKA, Minn.: UnitedHealth Group (NYSE: UNH) reported first quarter 2023 results reflecting consistent broad-based growth at Optum and UnitedHealthcare.
“Our strong, enterprise-wide growth this quarter is a direct result of our colleagues’ unwavering commitment to offering more health services to more people and connecting consumers with greater access to high-quality, affordable care,” said Andrew Witty, chief executive officer of UnitedHealth Group.
Growth in the first quarter was led by serving more people across the enterprise and the company’s expanding capabilities to care for them more comprehensively. The company increased its full year net earnings outlook to $23.25 to $23.75 per share and adjusted net earnings to $24.50 to $25.00 per share.
https://www.unitedhealthgroup.com/content/dam/UHG/PDF/investors/2023/UNH-Q1-2023-Release.pdf
abrooklyn
2 years ago
UnitedHealth on Pace for Largest Percent Increase Since July 2022, Best Performer in the DJIA So Far Today -- Data Talk
Source: Dow Jones News
UnitedHealth Group Incorporated (UNH) is currently at $494.72, up $22.13 or 4.68%
--Would be highest close since Feb. 17, 2023, when it closed at $499.08
--On pace for largest percent increase since July 15, 2022, when it rose 5.44%
--Currently up three consecutive days; up 6.03% over this period
--Best three day stretch since the three days ending July 19, 2022, when it rose 6.17%
--Down 6.69% year-to-date
--Down 10.89% from its all-time closing high of $555.15 on Oct. 31, 2022
--Down 3.00% from 52 weeks ago (April 4, 2022), when it closed at $510.02
--Down 10.89% from its 52-week closing high of $555.15 on Oct. 31, 2022
--Up 9.44% from its 52-week closing low of $452.06 on June 17, 2022
--Traded as high as $494.85; highest intraday level since Feb. 21, 2023, when it hit $501.40
--Up 4.71% at today's intraday high; largest intraday percent increase since July 15, 2022, when it rose as much as 5.88%
--Best performer in the DJIA today
--Contributed 145.85 points to the DJIA so far today
All data as of 2:19:28 PM ET
Source: Dow Jones Market Data, FactSet
(END) Dow Jones Newswires
April 03, 2023 14:39 ET (18:39 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
realfast95
11 years ago
UNH - reference - Contractor behind HealthCare.gov to testify extra testing could not have saved site
Published October 24, 2013 FoxNews.com
http://www.foxnews.com/politics/2013/10/23/obamacare-site-fixer-no-amount-testing-could-have-prevented-disastrous-launch/
A top executive with CGI Federal, one of the contractors paid millions to create the ObamaCare website, says “no amount of testing” could have prevented the site’s problem-plagued start.
Senior Vice President Cheryl Campbell’s remarks are part of prepared testimony she will give before a Republican-led House hearing Thursday on the insurance-marketplace site. They also appear to challenge new claims by the administration that a lack of adequate testing was part of the problem.
The House Energy and Commerce Committee hearing is the first since the site’s disastrous Oct. 1 launch -- marked by crashes, slow response times and its inability to let customers make purchases.
Several contractors are set to testify Thursday, and will likely face tough questioning from lawmakers on both sides of the aisle, though prepared testimony indicates the witnesses may try to spread the blame around -- including to government officials overseeing the project.
Prepared testimony from contractor Optum/QSSI blamed in part a "late decision" to require customers to register before browsing for insurance, which could have helped overwhelm the registration system.
"This may have driven higher simultaneous usage of the registration system that wouldn't have occurred if consumers could window-shop anonymously," said Andy Slavitt, representing QSSI's parent company.
In the prepared testimony, Campbell argues that with a system “this complex with so many concurrent users, it is not unusual to discover problems that need to be addressed once the software goes into a live production environment.”
“No amount of testing within reasonable time limits can adequately replicate a live environment of this nature,” she adds, according to the prepared testimony.
Campbell said issues with HealthCare.gov have continued to improve over the past two weeks, but additional challenges are occurring as more users get past the registration screen and buy insurance -- including “data assurance issues.”
She said such problems can be fixed through “tuning, optimization and application improvements.” However, Campbell also said that the buck ultimately stops with the Department of Health and Human Services, which she said "serves the important role of systems integrator or "quarterback' on this project and is the ultimate responsible party for the end-to-end performance."
The testimony comes as the Obama administration offered new details and explanations on Wednesday. The administration said the system didn't get enough testing, especially at a high user volume. It blamed a compressed time frame for meeting the Oct. 1 deadline to open the insurance markets. Basic "alpha and user testing" are now completed, but that's supposed to happen before a launch, not after.
The Health and Human Services explanation identified some bugs that have gotten little outside attention.
For example, technical problems have surfaced that are making it hard for people to complete the application and plan-shopping functions. That's a big concern because those stages are further along in the signup process than the initial registration, where many consumers have been getting tripped up. The problems are being analyzed and fixes are planned, the department said.
The explanation, posted online in a department blog and accompanying graphic, identified other broad areas of problems and outlined fixes underway but in most cases incomplete:
-- Unexpectedly high consumer interest that overwhelmed the system in its initial days. Equipment has been added to handle the load and system design has been improved. More fixes are in progress.
-- Lack of a way for consumers to browse their health plan options without first having to set up a user account. A partial fix is in place.
-- Incorrect or duplicate information in enrollments is being delivered to insurance companies. Some software fixes that should help address the issue have been completed, others are underway.
-- Difficulties for consumers trying to create user accounts, including drop-down menus that didn't work. Design changes and software fixes should address the situation.
On Thursday, the House Energy and Commerce Committee will line up contractors, including CGI Federal, the lead developer of the website, and QSSI, which designed a back-room operation known as the federal data services hub. The hub is integral to verifying applicants' personal information and income details, and the administration says it is working as designed.
The Associated Press contributed to this report.
realfast95
11 years ago
UNH reference: UnitedHealth deal draws concern
Updated: November 9, 2012 - 8:16 PM
http://m.startribune.com/business/?id=178249741
UnitedHealth Group Inc. has drawn scrutiny from a congressional leader after purchasing a technology company that the U.S. government has hired to help build a federal insurance exchange.
The exchanges, which will launch in 2014 as part of the Affordable Care Act, are online marketplaces where Minnetonka-based UnitedHealth will be competing with other plans to sign up new enrollees.
Sen. Orrin Hatch, R-Utah, raised concerns about potential conflict of interest in an Oct. 19 letter to U.S. Health and Human Services Secretary Kathleen Sebelius.
At issue is a contract awarded to Quality Software Services Inc., or QSSI, a Columbia, Md.-based company that specializes in building sophisticated health care IT architecture and systems integration.
The federal government hired QSSI to build a data services "hub," that will help states verify eligibility for consumers using the exchanges. The hub will tap into a variety of federal agencies, such as Homeland Security, Social Security, Treasury and Justice, providing real-time access at a single location.
The Centers for Medicare and Medicaid Services originally awarded the contract to QSSI on Sept. 30, 2011, but the agency spent several months investigating the decision after it came under protest by an unnamed firm that also had received an IT contract.
QSSI was re-awarded the contract on Jan. 18, according to Inside Health Policy, a Washington publication that covers federal health and safety regulations. The five-year contract is worth about $93.7 million, with the first year valued at $55.7 million. Including all options, it could be worth $144.6 million when completed in March 2017.
Questions arose after UnitedHealth Group's health services division, Optum, purchased QSSI. That transaction closed at the end of September, according to Jenner & Block, which represented Optum.
Other questions surround Steve Larsen, a former official at the government agency charged with developing rules for the federal exchange, who started working at Optum this summer. Hatch's letter seeks details about who was involved in awarding the contract.
UnitedHealth, the nation's largest health insurer with sales of more than $100 billion, was not required to report the deal to the SEC, and Optum officials declined to provide any details. A material event requiring disclosure typically represents 5 percent of sales. QSSI, a private company, reported annual sales of $12.6 million in February 2011.
The Hill, a daily that covers Congress, first reported on the concerns. It quoted Optum Vice President Andy Slavitt describing UnitedHealthcare as "an arm's-length client, separately reported financially and separately managed."
Optum spokesman Brian Kane told the Star Tribune that QSSI is "not involved in judgments or evaluations related to regulatory oversight," and stressed that responsibility for vetting lies with the Centers for Medicare and Medicaid.
Hatch called for a more thorough review and transparency of contractors and subcontractors selected to build the federal exchange.
Officials with the Centers for Medicare and Medicaid could not be reached for comment but told the Hill that contracts were evaluated to "ensure there are no conflicts of interest."
MiamiGent
12 years ago
UNH UnitedHealth Group Inc. Set to Join the Dow Jones Industrial Average
BY PR Newswire— 9:25 AM ET 09/14/2012
http://stockcharts.com/h-sc/ui?s=UNH
NEW YORK, Sept. 14, 2012 /PRNewswire/ -- UnitedHealth Group Inc. (UNH) will replace Kraft Foods Inc. (KFT) in the Dow Jones Industrial Average (DJIA) after the close of trading on Friday, September 21, and the change will be effective with the opening of trading on Monday, September 24. The index change was prompted by Kraft Foods' (KFT) plan to spin-off its North American grocery business, to be named Kraft Foods Group, Inc. on Oct. 1, 2012. Following the spin-off, Kraft Foods Inc. (KFT) will be renamed Mondelez International, Inc. The Dow Jones Averages Index Committee believes that Mondelez's reduced market capitalization and projected lower percentage of revenue generated from the U.S. makes the company less representative of the U.S. Large Cap market space.
UnitedHealth Group (UNH), headquartered in Minnetonka, MN, is a diversified health care services company that provides health care coverage and benefits services to tens of millions of individuals across the U.S., and information and technology-enabled health services. The Index Committee believes the addition of UnitedHealth Group (UNH) brings added health care diversification to the Dow Jones Industrial Average, and reflects the growing importance of health care spending in the U.S. economy.
The changes won't cause any disruption in the level of the Index. The divisor used to calculate the DJIA from its components' prices on their respective home exchanges will be changed prior to the opening on September 24. This procedure prevents any distortion in the DJIA's reflection of the U.S. stock market.
For more information, see the web site of Dow Jones Indexes at http://www.djaverages.com. The Dow Jones Transportation Average, Dow Jones Utility Average and Dow Jones Composite Average also are members of the Dow Jones Averages family.
Additions to and deletions from the Dow Jones Industrial Average do not in any way reflect an opinion on the investment merits of the companies involved.
Following is a summary of the change:
DOW JONES INDUSTRIAL AVERAGE – Sept. 21, 2012
COMPANY
GICS ECONOMIC SECTOR
GICS SUB-INDUSTRY
ADDED
United Health Group
Health Care
Managed Health Care
DELETED
Kraft Foods
Consumer Staples
Packaged Foods & Meats
ICEQUITY
14 years ago
UNH UnitedHealth Group, a diversified health and well-being company, is partnering with Project Sunshine to host Martin Luther King Jr. birthday events for pediatric patients and their families in children’s hospitals across the country.
UnitedHealth Group and Project Sunshine, a nonprofit organization that provides free educational, recreational and social programs to children facing medical challenges, are hosting 11 Martin Luther King Jr. Day events to benefit patients in children’s hospitals in Minneapolis; Chicago; New York City; Philadelphia; Phoenix; San Francisco; Washington, D.C.; Fort Lauderdale, Fla.; Kansas City, Mo.; Memphis, Tenn.; and Plano, Texas.
Project Sunshine and UnitedHealth Group volunteers are creating “I Have a Dream”-themed art, reading and journaling projects. At the birthday parties, volunteers will work with the children and their families to create personalized “dream” journals using themes such as hope and freedom, and incorporating kids’ expressions of the significance of their own dreams for the future, their families and the world.
“Martin Luther King Jr. Day is a day of hope and dreams for millions of Americans. UnitedHealth Group and Project Sunshine are bringing Martin Luther King Jr. birthday parties to children’s hospital patients – many of whom stay for days and weeks at a time – to help them realize their dreams and bring a sense of normalcy to their lives,” said Kate Rubin, UnitedHealth Group vice president, Social Responsibility.
“In honor of Martin Luther King Jr. Day, more than 400 employees nationwide will volunteer with Project Sunshine throughout the month to bring hope to thousands of young patients with activities that encourage them to remember and follow their dreams,” said Beatrice Kernan, executive director, Project Sunshine.
About Project Sunshine
Project Sunshine is a nonprofit organization that empowers a dynamic and dedicated corps of over 10,000 volunteers to bring key programs – recreational (arts), educational (tutoring and mentoring) and social service (HIV and nutritional counseling) – to over 60,000 children facing medical challenges and their families in 150 major cities across the United States, and in five international satellite sites: Canada, China, Israel, Kenya, and Puerto Rico. Project Sunshine is dedicated to bringing a ray of hope to these hospitalized children.
About UnitedHealth Group
UnitedHealth Group is a diversified health and well-being company dedicated to helping people live healthier lives and making health care work better. With headquarters in Minnetonka, Minn., UnitedHealth Group offers a broad spectrum of products and services through six operating businesses: UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, UnitedHealthcare Community & State, OptumHealth, Ingenix and Prescription Solutions. Through its family of businesses, UnitedHealth Group serves more than 75 million people worldwide. Visit www.unitedhealthgroup.com for more information.