UnitedHealth Group reported a $5.8 billion third quarter profit as its health insurance plans and … [+]
UnitedHealth Group reported a $5.8 billion third quarter profit as its health insurance plans and Optum medical provider businesses grew by “double-digit” percentages, the company said Friday.
UnitedHealth, a nationwide provider of medical care benefits under the Optum umbrella and a company that pays for benefits through its UnitedHealthcare health insurance plans, said net income increased to $5.8 billion, or $6.24 a share, compared to $5.26 billion, or $5.55 per share, in the third quarter of 2022.
Revenue increased 14% to $92.4 billion in the quarter from $80.9 billion a year ago thanks to “double-digit growth at both Optum and UnitedHealthcare.”
Friday’s third quarter report once again showed the strength of UnitedHealth’s diversified portfolio of health insurance and medical care services. The company also raised its full year 2023 net earnings outlook to $23.60 to $23.75 per share and adjusted net earnings to $24.85 to $25.00 per share.
“Year-to-date, total people served by UnitedHealthcare with medical benefits has increased by 1.1 million, driven by growth in the company’s commercial and public sector businesses,” the company said in its earnings report. “The number of consumers served with commercial benefits has grown by nearly 700,000 in 2023, reflecting the company’s focus on innovative and affordable benefit plans. The number of people served by the company’s senior and community offerings grew by over 400,000 due to product designs tailored to meet the specific needs of seniors as well as people and their families with limited economic resources and who often are underserved.”
The enrollment growth triggered a 13% increase in UnitedHealthcare revenues to $69.9 billion while the health insurance unit’s operating earnings were $4.6 billion compared to $3.8 billion last year.
Meanwhile, Optum’s third quarter revenues rose 22% to $56.7 billion and operating earnings grew to $3.9 billion from $3.7 billion last year, led by Optum Health.
UnitedHealth’s Optum businesses include an array of healthcare services that include surgery centers, clinics, doctor practices and the pharmacy benefit management (PBM) company, OptumRx, which reported a 14% increase in revenue in the third quarter.