Following strong profits in 2022 and in the first half of 2023, UnitedHealth Group (“United”) again reported strong profits for the third quarter of 2023, with double-digit revenue growth at both UnitedHealthcare and Optum.
United posted profits of $5.8 billion for the third quarter, an 11% increase from the prior year quarter. United also posted revenues of $92.4 billion for the third quarter of 2023, an increase of 14% year over year. UnitedHealthcare’s revenues grew 13% to 69.9 billion and Optum’s revenues grew by 22% to $56.7 billion.
United attributed its strong earnings to an increase in the number of people served by both UnitedHealthcare and Optum, with increases in both the commercial and public sector markets, including Medicare Advantage.
United also reported a medical cost ratio (“MCR”) of 82.3%. 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.
As a result of its strong profits, UnitedHealth Group raised its full year net earnings outlook to $23.60 to $23.75 per share and its adjusted net earnings to $24.85 to $25.00 per share.