UnitedHealth Group (“United”) reported strong profits of $4.1 billion for the third quarter of 2026, up 75% year over year, well exceeding analysts’ expectations. United’s consolidated revenues were $112.7 billion. United’s strong profits and revenues prompted United to boost its adjusted net earnings forecast for the year to at least $20.50 per share.
United reported a medical cost ratio (“MCR”) of 88.4%, down from 89.9% from the prior year quarter. A health insurer’s MCR represents the insurer’s spending on claims compared with its earnings from premiums. In its press release announcing its earnings, United attributed the decrease in MCR in part to “cost management.” Unfortunately, the attorneys at Whatley Kallas, LLP are seeing health insurance companies deny and underpay legitimate claims submitted by our provider clients for medically necessary services provided to the insurers’ members. United’s low MCR has increased its profits.
In an interview with CNBC, United’s Chief Financial Officer Wayne S. DeVeydt stated that the independent dispute resolution process under the No Suprises Act had added at least 100 basis points to total medical costs. Overall, as of 2025, medical providers were prevailing in 85% of the out-of-network claims submitted to arbitration under the No Surprises Act, in part due to the low out-of-network rates offered by the health insurance plans.
United’s press release announcing its third quarter 2026 earnings is linked here.