Following strong profits in 2022 and the first three quarters of 2023, UnitedHealth Group (“United”) again reported strong profits for the fourth quarter and full year 2023. United reported fourth quarter profits of $5.5 billion compared with $4.8 billion from the prior year quarter and revenues of $94.4 billion, up from $82.8 billion from the prior year quarter. Both profits and revenues exceeded analysts’ expectations.
For the full year, United reported profits of $22.4, compared to $20.1 billion in 2022 and revenues of $371.6 billion, compared with $324.2 billion in 2022, a 15% increase.
United attributed its strong earnings to double-digit growth at both UnitedHealthcare and Optum. UnitedHealthcare posted revenues of $281.4 billion for the full year, an increase of 12.7% from 2022. Optum’s full year 2023 revenues were $226.6 billion, an increase of 24% from 2022. Optum Health Group’s revenues increased by a staggering 33.9% over 2022.
Membership in United’s commercial plans grew by 800,000 in 2023 and by 950,000 in its products for seniors and individuals with complex needs, including its Medicare Advantage products. At Optum Health, the number of patients served in value-based arrangements grew by nearly 900,000 to more than 4.1 million people.
United also reported a medical cost ratio (”MCR”) of 83.2%. A health insurer’s MCR represents the insurer’s spending on claims compared with its earnings from premiums. Unfortunately, the attorneys of 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.
United’s fourth quarter and full year 2023 earnings report is linked here.