United Healthcare has cut its 2025 forecast.
Transcript:
UNITED HEALTHCARE WAS BACK IN THE HEADLINES AFTER MISSING ANALYST EARNINGS EXPECTATIONS AND CUTTING ITS ANNUAL PROFIT FORECAST.
THE COMPANY SAID HEIGHTENED DEMAND FOR OUTPATIENT AND PHYSICIAN SERVICES IN ITS MEDICARE ADVANTAGE PLANS WAS FAR ABOVE FORECASTED 2025 INCREASES. MEDICARE ADVANTAGE PLANS PRIMARILY SERVE OLDER ADULTS AND THOSE WITH DISABILITIES.
UNITED’S MEDICAL-COST RATIO ROSE TO 84.8%, SUGGESTING THAT IT PAID OUT A LARGER PORTION OF ITS COLLECTED PREMIUMS ON INSURANCE CLAIMS.
THE COMPANY NOW EXPECTS TO EARN BETWEEN $26 AND $26.50 PER SHARE, DOWN FROM ITS EARLY JANUARY ESTIMATE OF BETWEEN $29.50 TO $30 PER SHARE.
THE HEALTHCARE INDUSTRY AT LARGE HAS BEEN IN FOCUS AMID SKY-HIGH COSTS AND THE 2024 MURDER OF UNITEDHEALTH’S CEO BRIAN THOMPSON.
A BELLWETHER OF THE HEALTHCARE SECTOR — UNITED STOCK PLUNGED UPWARDS OF 20% IN PREMARKET TRADING, WITH FELLOW HEALTHCARE STOCKS — ELEVANCE, CVS, HUMANA AND MORE — FOLLOWING IN ITS FOOTSTEPS.
THAT’LL DO IT FOR YOUR DAILY BRIEFING. FROM NEW YORK CITY, I’M KELSEY BARBERIO WITH THESTREET.
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