UnitedHealth Group Inc. reported better-than-expected profits in the fourth quarter of 2024, but revenue fell short due to challenges including Medicare funding cuts and a drop in Medicaid enrollment.
UnitedHealth Group Inc. reported a better-than-expected profit in the final quarter of 2024, but revenue fell short as challenges like Medicare funding cuts and a Medicaid enrollment drop hurt. The company earned $5.5 billion in the quarter, as adjusted results totaled $6.81 per share. Revenue climbed about 7% to $100.8 billion. Analysts expected earnings of $6.73 per share in the fourth quarter on $101.6 billion in revenue, according to the data firm FactSet.
UnitedHealth operates the nation’s largest health insurer, UnitedHealthcare, which covers more than 49 million people in the United States. It also operates a large pharmacy benefit manager that runs prescription drug coverage and a growing business that delivers care and provides technical support. UnitedHealth’s Medicaid enrollment tumbled by about 400,000 people compared with the previous year’s quarter as states went through a lengthy process to determine who was still eligible for the government program after the COVID-19 pandemic. There was an increase in prescriptions for expensive specialty drugs and other cost pressures, the company reported, pushing net income down slightly to $5.54 billion in the quarter. This comes just months after the company faced scrutiny early last year with soaring medical costs in the final quarter of 2023. Weeks later, the company’s Change Healthcare business was hit with a $8 million fine by the Federal Trade Commission for allegedly misleading customers about its services. A few weeks after the shooting found that most Americans believe health insurance profits or coverage denials bear some responsibility for Thompson’s death. Shares of UnitedHealth, a component of the Dow Jones Industrial Average, sank after Thompson’s shooting and fell about 4% on the year.
UNITEDHEALTH GROUP PROFITS REVENUE MEDICAID MEDICARE HEALTH INSURANCE
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