UnitedHealth Group, the largest US health insurer, reported strong second-quarter earnings, exceeding analysts’ expectations. However, the company expects a bigger hit to its annual profit from a February hack at its technology unit, Change Healthcare. The cyberattack disrupted payments to doctors and healthcare facilities, leading to a 30-cent per share reduction in the full-year adjusted profit forecast. Despite the challenges, UnitedHealth maintained its overall profit outlook and plans to resume share buybacks. The company’s Optum healthcare services unit saw a 12% increase in revenue. The hack has had a widespread impact on the industry, leading to elevated medical costs for UnitedHealth. The company attributed the increase to a shift toward sicker patients in Medicaid plans, as states re-determine eligibility following the pandemic. However, UnitedHealth expects the trend to stabilize by 2025 as utilization rates are updated. Shares of UnitedHealth rose over 5% on the positive news, while other health insurers like Humana and Elevance Health also saw gains.
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