UnitedHealth’s Profit Jumps on Health-Services Growth

via Wall Street Journal

UnitedHealth Group Inc. on Tuesday posted strong earnings for its latest quarter as revenue continued to surge in its pharmacy-services business. The company, which is the biggest U.S. health insurer, also gave a slightly rosier full-year outlook.

But amid the positive news, there was one abiding dark spot: Affordable Care Act plans, which UnitedHealth will almost completely stop selling next year. The insurer booked another $200 million in full-year ACA-plan losses in the second quarter, bringing its projected total loss for the year to about $850 million. About $245 million of that was included in 2015 results and $605 million this year.

ACA-plan enrollments were larger than expected, including more limited attrition. Also, costs mounted because enrollees were even sicker than projected, with more chronic conditions than last year, including AIDS, hepatitis C, diabetes and chronic obstructive pulmonary disease.

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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