UnitedHealth Group reports Q2 2023 results

Strong and well-balanced growth continued across UnitedHealth Group in the second quarter of 2023.

“Our diverse health care capabilities and dedicated colleagues are enabling us to meet the needs of more people in more ways, driving substantial growth and expanding our opportunities to serve well into the future,” said Andrew Witty, chief executive officer of UnitedHealth Group.

Growth in the second quarter was balanced across the company’s businesses. Based upon the first half performance as well as durable growth and operating expectations, the company strengthened the range of its full year net earnings outlook to $23.45 to $23.75 per share and adjusted net earnings to $24.70 to $25.00 per share.

• UnitedHealth Group’s second quarter 2023 revenues grew 16% to $92.9 billion year-over-year, including double-digit growth at both Optum and UnitedHealthcare.
• Second quarter 2023 earnings from operations were $8.1 billion, an increase of 13%, with strong contributions from Optum and UnitedHealthcare even as the company continued to invest to support growth.
• The second quarter 2023 medical care ratio at 83.2% compared to 81.5% last year, driven by previously noted outpatient care activity, primarily among seniors, and business mix. Days claims payable were 48.2, compared to 47.8 in the first quarter 2023 and 50.6 in the second quarter 2022. Favorable medical reserve development of $480 million compared to $470 million in the first quarter 2023 and $890 million in the year-ago second quarter.
• The second quarter 2023 operating cost ratio of 14.9% increased from 14.6% last year due to business mix and the company’s continued investments to accelerate and support future opportunities, partially offset by continued productivity improvements.
• Cash flows from operations for the second quarter 2023 were $11.0 billion or 2-times net income and $10.4 billion or 1.8-times net income adjusted for CMS payment timing. The company returned $4.8 billion to shareholders in the second quarter through dividends and share repurchases and increased its annual dividend rate by 14% in June. Return on equity of 26.8% in the quarter reflected the company’s consistent, broad-based earnings profile 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.

• UnitedHealthcare second quarter revenues grew 13% to $70.2 billion, reflecting growth in the number of people served, and operating earnings grew 13% to $4.4 billion.
• Year-to-date, total people served by UnitedHealthcare with medical benefits has increased by over 1.1 million, with growth across the company’s commercial and public sector program offerings. The number of consumers served with commercial benefit offerings grew by nearly 500,000 in the first half of 2023, reflecting the company’s focus on innovative and affordable benefit plans. The number of people served by the company’s senior and community offerings grew by 625,000 due to responsive product and benefit designs tailored to meet the specific needs of senior populations and people who often are underserved and have limited economic resources.

Optum’s 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: optimizing care quality, reducing care costs and improving the consumer experience.

• Optum second quarter revenues grew 25% to $56.3 billion and operating earnings grew 13% to $3.7 billion. Operating margin of 6.6% compares to 7.3% in the prior year, reflecting investments in services provided to patients and customers to support growth.
• Optum Health revenue per consumer served increased 33% over last year, driven by growth of more than 900,000 patients served under value-based care arrangements and the continued expansion of the types and levels of care services offered. The operating results reflect the previously noted higher care activity patterns and continued investments to improve patient health outcomes and support growth.
• Optum Insight revenue backlog increased nearly $8 billion to over $31 billion, compared to a year ago, in part due to the addition of Change Healthcare and growth in its comprehensive managed services offerings for health systems. Optum Insight continues to focus on building and expanding upon offerings to meet the increasing needs of care providers and health plans.
• Optum Rx revenue growth of 15% in the second quarter resulted from strong growth in serving new clients, expanding membership of existing clients and double-digit growth across its home delivery, specialty, infusion, and community-based pharmacy offerings. Adjusted scripts grew to 381 million compared to 357 million last year.

Business Wire