Bad Omen: UnitedHealth’s High Costs Portend Rocky 3Q for Payers
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Oct 18, 2024
UnitedHealth Group, whose earnings reports are often seen as a bellwether for the entire managed care sector, disclosed third-quarter results on Oct. 15 that did not bode well for its fellow publicly traded health insurers. Still, some Wall Street analysts expressed optimism that the headwinds may be temporary, at least for UnitedHealth.
UnitedHealth’s medical loss ratio (MLR) in the quarter — the closely watched metric indicating how much premium dollars are being spent on medical care — was 85.2%. That figure was higher (worse) than the Wall Street consensus estimate of 84.4%, providing one reason why UnitedHealth’s stock dipped after its quarterly results were released.
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