The United Stocks (UNH) focused on 22% on Thursday after the first quarter revenue missed expectations and the company reduced its year -round gain by downloading the industrial average of Blue Chip Dow Jones (^DJI).
The health insurance giant now expects the adjusted profits for year-round cost to fall in the range between $ 26 and $ 26.50 an share, which is lower than its previous estimated EPS forecast to come between $ 29.50 and $ 30.
At 14:26:18 EDT. Market open.
For his first quarter, United Health reported a corrected profit of $ 7.27 compared to the expected $ 7.27 and the $ 109.6 billion revenue over the expected $ 111.6 billion, according to Bloomberg consensus forecasts.
The decline of the shares put UNITEDHEALT on its way to its oldest day since August 1998, throwing $ 120 billion from the insurer’s market cap.
In a statement, UNITEDHEALT CEO Andrew Viti said the company “did not take advantage of our expectations and we aggressively deal with these challenges to position us well for the coming years.”
The company has reduced its forecast to consider costs with higher than expected, related to its Medicare-protruding private insurance alternatives to Medicare, discussed by healthcare defenses, and Optum Business. Optum provides care for UNH customers, including Medicare Advantage users.
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“UNITED HEALTH GROUP launches 2025 by two seemingly different ways,” Viti said separately in calling with analysts.
“One, a strong growth in our business continues,” he said. He said Business Medicare Advantage will serve an additional 800,000 people this year, while Optum Health is about to add 650,000 net new patients.
“However, the other way was a complete performance, which was frankly unusual and unacceptable.”
UNITEDHEALTH said that changes in policy during the Biden administration, reducing the rate of reimbursement of government funds for Medicare Advantage patients – designed to prevent abuse of the insurers system and reduce taxpayers – unitedhealth and other insurers needed to take the accounts of
Adding to their problems, senior patients in their Medicare Advantage business have started using more services “far above” the increase planned this year, the company said.
In case: Last year, the company reported a coefficient of medical care – or the amount of premiums collected, which were paid as medical expenses – from 85.5%, which is sharply compared to 83.2% in the previous year. This year expects a ratio of 87.5%. UNITEDHEALT quotes the premium campaigns for the problem.
