UnitedHealth Group (“United”) reported strong revenues of $99.8 billion for the first quarter of 2024, growing nearly $8 billion from the prior year quarter. United’s strong revenues beat analysts’ expectations and caused its stock price to soar by more than 5%.
UnitedHealthcare’s revenues were $75.4 billion in the first quarter, an increase of nearly $5 billion from the prior year quarter. United attributed this increase to growth of nearly 2 million in the number of consumers served, led by the commercial and senior sectors.
United’s strong earnings report came despite a cyberattack at its Change Healthcare unit that disrupted healthcare transactions throughout the country, greatly impacting both United and medical providers.
With respect to healthcare costs, United Chief Executive Officer, Andrew Witty, stated that “[e]verything looks pretty much as expected.” United reported a medical cost ratio (”MCR”) of 84.3%. A health insurer’s MCR represents the insurer’s spending on claims compared with its earnings from premiums. 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.
Despite the cyberattack, as a result of its strong revenues, United maintained its full year adjusted net earnings outlook of $27.50 to $28.00 per share.
United’s press release announcing its first quarter 2024 earnings is linked here.