Medicare Boosts UnitedHealth Revenue -- WSJ
16 January 2020 - 7:02PM
Dow Jones News
By Robert Barba
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (January 16, 2020).
UnitedHealth Group Inc. said Wednesday that revenue rose 4.25%
in the latest quarter as the number of people it served in Medicare
Advantage and commercial benefits programs rose.
The parent of the nation's largest health insurer posted
fourth-quarter sales of $60.9 billion, up from $58.42 billion a
year earlier. Analysts polled by FactSet expected revenue of $60.96
billion.
Its UnitedHealthcare unit had revenue of $48.2 billion, up from
$46.2 billion a year earlier. The company said the number of people
with commercial benefits rose 845,000 from a year earlier, while
those served under Medicare Advantage grew 325,000.
Sales for the Optum health-services business totaled $29.8
billion, up from $27.6 billion a year earlier.
UnitedHealth's results will likely reassure managed-care
investors that medical costs aren't seeing a big uptick due to
strong flu activity. The medical loss ratio -- the percentage of
premium revenue spent on health care -- at its insurance unit was
82.5%, lower than analysts had expected. On a call with analysts,
UnitedHealth said flu had a "very modest impact" on its
fourth-quarter insurance results, with some increase in outpatient
care but inpatient activity close to normal. UnitedHealth said that
the impact on its Optum health-care-provider results was also
limited.
Overall, earnings were $3.54 billion, or $3.68 a share, compared
with $3.04 billion, or $3.10 a share. Adjusted earnings of $3.90
beat analysts expectations of $3.78 a share.
The company also affirmed 2020 guidance it released last month
that calls for adjusted earnings of $16.25 to $16.55 a share.
Anna Wilde Mathews contributed to this article.
Write to Robert Barba at Robert.Barba@wsj.com
Corrections & Amplifications United UnitedHealth Group's
UnitedHealthcare unit reported revenue of $46.2 billion in the
fourth quarter of 2018. An earlier version of this article
incorrectly stated the figure as $46.2 million. (Jan. 15, 2020)
(END) Dow Jones Newswires
January 16, 2020 02:47 ET (07:47 GMT)
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