UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________________________________ 
Form 10-Q
__________________________________________________________ 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2019MARCH 31, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM _______ TO _______
Commission File Number: 1-10864
__________________________________________________________ 
    uhglogoa05.jpg
UnitedHealth Group Incorporated
(Exact name of registrant as specified in its charter)
 __________________________________________________________ 
Delaware 41-1321939
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
UnitedHealth Group Center 55343
9900 Bren Road East 
Minnetonka,Minnesota 
(Address of principal executive offices) (Zip Code)
(952) 936-1300
(Registrant’s telephone number, including area code)
_________________________________________________________  
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $.01 par value UNH NYSE
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act
Large accelerated filer Accelerated filer Non-accelerated filer
Smaller reporting company    Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes No 
As of October 31, 2019,April 30, 2020, there were 947,414,929948,379,502 shares of the registrant’s Common Stock, $.01 par value per share, issued and outstanding.
     



UNITEDHEALTH GROUP
Table of Contents
 
   Page   Page
  
  
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  




PART I
ITEM 1.    FINANCIAL STATEMENTS
UnitedHealth Group
Condensed Consolidated Balance Sheets
(Unaudited)
(in millions, except per share data) September 30,
2019
 December 31,
2018
 March 31,
2020
 December 31,
2019
Assets        
Current assets:        
Cash and cash equivalents $12,363
 $10,866
 $21,569
 $10,985
Short-term investments 3,455
 3,458
 2,876
 3,260
Accounts receivable, net 10,964
 11,388
 14,613
 11,822
Other current receivables, net 10,152
 6,862
 10,275
 9,640
Assets under management 3,051
 3,032
 2,866
 3,076
Prepaid expenses and other current assets 3,556
 3,086
 6,608
 3,851
Total current assets 43,541
 38,692
 58,807
 42,634
Long-term investments 36,840
 32,510
 36,578
 37,209
Property, equipment and capitalized software, net 8,501
 8,458
 8,173
 8,704
Goodwill 65,205
 58,910
 65,302
 65,659
Other intangible assets, net 10,521
 9,325
 10,199
 10,349
Other assets 9,101
 4,326
 10,008
 9,334
Total assets $173,709
 $152,221
 $189,067
 $173,889
Liabilities, redeemable noncontrolling interests and equity        
Current liabilities:        
Medical costs payable $20,939
 $19,891
 $22,772
 $21,690
Accounts payable and accrued liabilities 18,570
 16,705
 22,845
 19,005
Commercial paper and current maturities of long-term debt 6,387
 1,973
Short-term borrowings and current maturities of long-term debt 15,828
 3,870
Unearned revenues 2,500
 2,396
 2,509
 2,622
Other current liabilities 14,245
 12,244
 14,652
 14,595
Total current liabilities 62,641
 53,209
 78,606
 61,782
Long-term debt, less current maturities 38,507
 34,581
 35,779
 36,808
Deferred income taxes 2,902
 2,474
 3,030
 2,993
Other liabilities 9,912
 5,730
 10,048
 10,144
Total liabilities 113,962
 95,994
 127,463
 111,727
Commitments and contingencies (Note 7) 


 


Commitments and contingencies (Note 6) 


 


Redeemable noncontrolling interests 1,991
 1,908
 1,741
 1,726
Equity:        
Preferred stock, $0.001 par value - 10 shares authorized; no shares issued or outstanding 
 
 
 
Common stock, $0.01 par value - 3,000 shares authorized; 947 and 960 issued and outstanding 9
 10
Common stock, $0.01 par value - 3,000 shares authorized; 947 and 948 issued and outstanding 10
 9
Additional paid-in capital 
 7
Retained earnings 58,696
 55,846
 62,327
 61,178
Accumulated other comprehensive loss (3,709) (4,160) (5,360) (3,578)
Nonredeemable noncontrolling interests 2,760
 2,623
 2,886
 2,820
Total equity 57,756
 54,319
 59,863
 60,436
Total liabilities, redeemable noncontrolling interests and equity $173,709
 $152,221
 $189,067
 $173,889

See Notes to the Condensed Consolidated Financial Statements

UnitedHealth Group
Condensed Consolidated Statements of Operations
(Unaudited)
 Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended March 31,
(in millions, except per share data) 2019 2018 2019 2018 2020 2019
Revenues:            
Premiums $47,397
 $44,613
 $142,074
 $133,155
 $50,640
 $47,513
Products 7,546
 7,344
 23,971
 21,050
 8,431
 8,072
Services 4,942
 4,217
 13,756
 12,590
 4,985
 4,318
Investment and other income 466
 382
 1,453
 1,035
 365
 405
Total revenues 60,351
 56,556
 181,254
 167,830
 64,421
 60,308
Operating costs:            
Medical costs 39,041
 36,158
 117,164
 108,448
 41,000
 38,939
Operating costs 8,960
 8,479
 25,892
 25,371
 10,015
 8,517
Cost of products sold 6,627
 6,718
 21,606
 19,373
 7,687
 7,381
Depreciation and amortization 709
 611
 2,002
 1,791
 723
 639
Total operating costs 55,337
 51,966
 166,664
 154,983
 59,425
 55,476
Earnings from operations 5,014
 4,590
 14,590
 12,847
 4,996
 4,832
Interest expense (449) (353) (1,267) (1,026) (437) (400)
Earnings before income taxes 4,565
 4,237
 13,323
 11,821
 4,559
 4,432
Provision for income taxes (936) (953) (2,752) (2,603) (1,094) (875)
Net earnings 3,629
 3,284
 10,571
 9,218
 3,465
 3,557
Earnings attributable to noncontrolling interests (91) (96) (273) (272) (83) (90)
Net earnings attributable to UnitedHealth Group common shareholders $3,538
 $3,188
 $10,298
 $8,946
 $3,382
 $3,467
Earnings per share attributable to UnitedHealth Group common shareholders:            
Basic $3.73
 $3.31
 $10.82
 $9.29
 $3.56
 $3.62
Diluted $3.67
 $3.24
 $10.65
 $9.09
 $3.52
 $3.56
Basic weighted-average number of common shares outstanding 949
 962
 952
 963
 949
 958
Dilutive effect of common share equivalents 14
 21
 15
 21
 13
 17
Diluted weighted-average number of common shares outstanding 963
 983
 967
 984
 962
 975
Anti-dilutive shares excluded from the calculation of dilutive effect of common share equivalents 12
 7
 10
 7
 10
 8

See Notes to the Condensed Consolidated Financial Statements

 
UnitedHealth Group
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)

 Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended March 31,
(in millions) 2019 2018 2019 2018 2020 2019
Net earnings $3,629
 $3,284
 $10,571
 $9,218
 $3,465
 $3,557
Other comprehensive (loss) income:            
Gross unrealized gains (losses) on investment securities during the period 230
 (91) 1,243
 (512)
Gross unrealized (losses) gains on investment securities during the period (349) 520
Income tax effect (53) 21
 (285) 117
 80
 (119)
Total unrealized gains (losses), net of tax 177
 (70) 958
 (395)
Gross reclassification adjustment for net realized gains included in net earnings (69) (3) (70) (58)
Total unrealized (losses) gains, net of tax (269) 401
Gross reclassification adjustment for net realized (gains) losses included in net earnings (18) 4
Income tax effect 16
 
 16
 13
 4
 (1)
Total reclassification adjustment, net of tax (53) (3) (54) (45) (14) 3
Total foreign currency translation losses (560) (233) (453) (1,303) (1,499) (2)
Other comprehensive (loss) income (436) (306) 451
 (1,743) (1,782) 402
Comprehensive income 3,193
 2,978
 11,022
 7,475
 1,683
 3,959
Comprehensive income attributable to noncontrolling interests (91) (96) (273) (272) (83) (90)
Comprehensive income attributable to UnitedHealth Group common shareholders $3,102
 $2,882
 $10,749
 $7,203
 $1,600
 $3,869

See Notes to the Condensed Consolidated Financial Statements

UnitedHealth Group
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
  Common Stock Additional Paid-In Capital Retained Earnings 
Accumulated Other Comprehensive
Income (Loss)
 Nonredeemable Noncontrolling Interests 
Total
Equity
Three months ended September 30,
(in millions)
 Shares Amount   Net Unrealized Gains (Losses) on Investments Foreign Currency Translation Losses  
Balance at June 30, 2019 948
 $9
 $
 $56,367
 $516
 $(3,789) $2,751
 $55,854
Net earnings       3,538
     82
 3,620
Other comprehensive income (loss)         124
 (560)   (436)
Issuances of common stock,
and related tax effects
 2
 
 277
         277
Share-based compensation     130
         130
Common share repurchases (3) 
 (415) (185)       (600)
Cash dividends paid on common shares ($1.08 per share)       (1,024)       (1,024)
Redeemable noncontrolling interests fair value and other adjustments     8
         8
Acquisition and other adjustments of nonredeemable noncontrolling interests             (7) (7)
Distribution to nonredeemable noncontrolling interests             (66) (66)
Balance at September 30, 2019 947
 $9
 $
 $58,696
 $640
 $(4,349) $2,760
 $57,756
                 
Balance at June 30, 2018 962
 $10
 $
 $52,363
 $(356) $(3,724) $2,490
 $50,783
Net earnings       3,188
     71
 3,259
Other comprehensive loss         (73) (233)   (306)
Issuances of common stock, and related tax effects 2
 
 239
         239
Share-based compensation     146
         146
Common share repurchases (2) 
 (201) (299)       (500)
Cash dividends paid on common shares ($0.90 per share)       (866)       (866)
Redeemable noncontrolling interests fair value and other adjustments     (184)         (184)
Acquisition and other adjustments of nonredeemable noncontrolling interests             102
 102
Distribution to nonredeemable noncontrolling interests             (77) (77)
Balance at September 30, 2018 962
 $10
 $
 $54,386
 $(429) $(3,957) $2,586
 $52,596

See Notes to the Condensed Consolidated Financial Statements

UnitedHealth Group
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
  Common Stock Additional Paid-In Capital Retained Earnings 
Accumulated Other Comprehensive (Loss)
Income
 Nonredeemable Noncontrolling Interests 
Total
Equity
Nine months ended September 30,
(in millions)
 Shares Amount   Net Unrealized (Losses) Gains on Investments Foreign Currency Translation Losses  
Balance at January 1, 2019 960
 $10
 $
 $55,846
 $(264) $(3,896) $2,623
 $54,319
Adjustment to adopt ASU 2016-02       (13)     (5) (18)
Net earnings       10,298
     196
 10,494
Other comprehensive income (loss)         904
 (453)   451
Issuances of common stock,
and related tax effects
 8
 
 438
         438
Share-based compensation     521
         521
Common share repurchases (21) (1) (573) (4,527)       (5,101)
Cash dividends paid on common shares ($3.06 per share)       (2,908)       (2,908)
Redeemable noncontrolling interests fair value and other adjustments     (277)         (277)
Acquisition and other adjustments of nonredeemable noncontrolling interests     (109)       157
 48
Distribution to nonredeemable noncontrolling interests             (211) (211)
Balance at September 30, 2019 947
 $9
 $
 $58,696
 $640
 $(4,349) $2,760
 $57,756
                 
Balance at January 1, 2018 969
 $10
 $1,703
 $48,730
 $(13) $(2,654) $2,057
 $49,833
Adjustment to adopt ASU 2016-01       (24) 24
     
Net earnings       8,946
     183
 9,129
Other comprehensive loss         (440) (1,303)   (1,743)
Issuances of common stock, and related tax effects 9
 
 761
         761
Share-based compensation     493
         493
Common share repurchases (16) 
 (2,838) (812)       (3,650)
Cash dividends paid on common shares ($2.55 per share)       (2,454)       (2,454)
Redeemable noncontrolling interests fair value and other adjustments     (119)         (119)
Acquisition and other adjustments of nonredeemable noncontrolling interests             518
 518
Distribution to nonredeemable noncontrolling interests             (172) (172)
Balance at September 30, 2018 962
 $10
 $
 $54,386
 $(429) $(3,957) $2,586
 $52,596

  Common Stock Additional Paid-In Capital Retained Earnings 
Accumulated Other Comprehensive
Income (Loss)
 Nonredeemable Noncontrolling Interests 
Total
Equity
  Shares Amount   Net Unrealized Gains (Losses) on Investments Foreign Currency Translation Losses  
Balance at January 1, 2020 948
 $9
 $7
 $61,178
 $589
 $(4,167) $2,820
 $60,436
Adjustment to adopt ASU 2016-13       (28)       (28)
Net earnings       3,382
     59
 3,441
Other comprehensive (loss) income         (283) (1,499)   (1,782)
Issuances of common stock,
and related tax effects
 5
 1
 320
         321
Share-based compensation     234
         234
Common share repurchases (6) 
 (510) (1,181)       (1,691)
Cash dividends paid on common shares ($1.08 per share)       (1,024)       (1,024)
Redeemable noncontrolling interests fair value and other adjustments     (51)         (51)
Acquisition and other adjustments of nonredeemable noncontrolling interests             50
 50
Distribution to nonredeemable noncontrolling interests             (43) (43)
Balance at March 31, 2020 947
 $10
 $
 $62,327
 $306
 $(5,666) $2,886
 $59,863
                 
Balance at January 1, 2019 960
 $10
 $
 $55,846
 $(264) $(3,896) $2,623
 $54,319
Adjustment to adopt ASU 2016-02       (13)     (5) (18)
Net earnings       3,467
     60
 3,527
Other comprehensive income (loss)         404
 (2)   402
Issuances of common stock, and related tax effects 5
 
 56
         56
Share-based compensation     239
         239
Common share repurchases (12) 
 (34) (2,968)       (3,002)
Cash dividends paid on common shares ($0.90 per share)       (860)       (860)
Redeemable noncontrolling interests fair value and other adjustments     (152)         (152)
Acquisition and other adjustments of nonredeemable noncontrolling interests     (109)       132
 23
Distribution to nonredeemable noncontrolling interests             (83) (83)
Balance at March 31, 2019 953
 $10
 $
 $55,472
 $140
 $(3,898) $2,727
 $54,451
See Notes to the Condensed Consolidated Financial Statements

UnitedHealth Group
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 Nine Months Ended September 30, Three Months Ended March 31,
(in millions) 2019 2018 2020 2019
Operating activities        
Net earnings $10,571
 $9,218
 $3,465
 $3,557
Noncash items:        
Depreciation and amortization 2,002
 1,791
 723
 639
Deferred income taxes 177
 9
 202
 134
Share-based compensation 525
 512
 231
 243
Other, net (181) (136) 45
 42
Net change in other operating items, net of effects from acquisitions and changes in AARP balances:        
Accounts receivable 957
 (984) (2,652) (1,421)
Other assets (2,181) (1,641) (4,249) (1,495)
Medical costs payable 223
 1,745
 1,120
 1,125
Accounts payable and other liabilities 105
 2,783
 4,137
 318
Unearned revenues 60
 20
 (79) 92
Cash flows from operating activities 12,258

13,317
 2,943

3,234
Investing activities        
Purchases of investments (13,386) (11,316) (3,866) (3,540)
Sales of investments 6,198
 2,872
 2,170
 1,510
Maturities of investments 5,160
 4,715
 1,726
 1,711
Cash paid for acquisitions, net of cash assumed (8,200) (5,824) (929) (689)
Purchases of property, equipment and capitalized software (1,421) (1,505) (469) (562)
Other, net 338
 (187) (165) 154
Cash flows used for investing activities (11,311) (11,245) (1,533) (1,416)
Financing activities        
Common share repurchases (5,101) (3,650) (1,691) (3,002)
Cash dividends paid (2,908) (2,454) (1,024) (860)
Proceeds from common stock issuances 740
 745
 557
 323
Repayments of long-term debt (1,250) (2,600) 
 (1,250)
Proceeds from (repayments of) commercial paper, net 3,998
 (164)
Proceeds from issuance of long-term debt 5,444
 3,964
Proceeds from short-term borrowings, net 10,797
 3,101
Customer funds administered 420
 1,552
 1,062
 1,784
Other, net (756) (1,086) (398) (368)
Cash flows from (used for) financing activities 587
 (3,693) 9,303
 (272)
Effect of exchange rate changes on cash and cash equivalents (37) (97) (129) (5)
Increase (decrease) in cash and cash equivalents 1,497
 (1,718)
Increase in cash and cash equivalents 10,584
 1,541
Cash and cash equivalents, beginning of period 10,866
 11,981
 10,985
 10,866
Cash and cash equivalents, end of period $12,363
 $10,263
 $21,569
 $12,407
        

See Notes to the Condensed Consolidated Financial Statements

UnitedHealth Group
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
1.    Basis of Presentation
UnitedHealth Group Incorporated (individually and together with its subsidiaries, “UnitedHealth Group” and the “Company”“the Company”) is a diversified health care company dedicated to helping people live healthier lives and helping make the health system work better for everyone.
Through its diversified family of businesses, the Company leverages core competencies in data and health information; advanced technology; and clinical expertise. These core competencies are deployed within two distinct, but strategically aligned, business platforms: health benefits operating under UnitedHealthcare and health services operating under Optum.
The Company has prepared the Condensed Consolidated Financial Statements according to U.S. Generally Accepted Accounting Principles (GAAP) and has included the accounts of UnitedHealth Group and its subsidiaries. The year-end condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP. In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC), the Company has omitted certain footnote disclosures that would substantially duplicate the disclosures contained in its annual audited Consolidated Financial Statements. Therefore, these Condensed Consolidated Financial Statements should be read together with the Consolidated Financial Statements and the Notes included in Part II, Item 8, “Financial Statements and Supplementary Data” in the Company’s Annual Report on Form 10-K for the year ended December 31, 20182019 as filed with the SEC (2018(2019 10-K). The accompanying Condensed Consolidated Financial Statements include all normal recurring adjustments necessary to present the interim financial statements fairly.
Use of Estimates
These Condensed Consolidated Financial Statements include certain amounts based on the Company’s best estimates and judgments. The Company’s most significant estimates include medical costs payable and goodwill. Certain of these estimates require the application of complex assumptions and judgments, often because they involve matters that are inherently uncertain and will likely change in subsequent periods. The impact of any change in estimates is included in earnings in the period in which the estimate is adjusted.
Revenue from Products
For the quarter ended March 31, 2020, the Company recognized revenue and cost of products sold for retail pharmacy co-payments related to its OptumRx business. Revenue recognized in prior periods related to retail pharmacy transactions excludes the member’s applicable co-payment. There was no impact on earnings from operations, net earnings, earnings per share or total equity.
Recently Adopted Accounting Standards
In FebruaryJune 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2016-02, “Leases2016-13, “Financial Instruments - Credit Losses (Topic 842)326)as modified by ASUs 2018-01, 2018-10, 2018-11, 2018-20(ASU 2016-13). ASU 2016-13 requires the use of the current expected credit loss impairment model to develop an estimate of expected credit losses for certain financial assets. ASU 2016-13 also requires expected credit losses on available-for-sale debt securities to be recognized through an allowance for credit losses and 2019-01 (collectively, ASU 2016-02). Under ASU 2016-02, an entity is required to recognize assets and liabilities for the rights and obligations created by leases on the entity’s balance sheet for both finance and operating leases.revises certain disclosure requirements. The Company adopted ASU 2016-022016-13 on January 1, 2020 using a cumulative-effectcumulative effect upon adoption approach as of January 1, 2019. Upon adoption, the Company recognized $3.3 billion of lease right-of-use (ROU) assets and liabilities for operating leases on its Condensed Consolidated Balance Sheet, of which, $668 million were classified as current liabilities.approach. The adoption of ASU 2016-022016-13 was immaterial to the Company’s consolidated balance sheet, results of operations, equity and cash flows. The
Under the current expected credit loss impairment model, the Company has included the disclosures requiredevaluates an available-for-sale debt security for credit-related impairment by ASU 2016-02 below and in Note 7, “Commitments and Contingencies.”
The Company leases facilities and equipment under long-term operating leases that are non-cancelable and expire on various dates. At the lease commencement date, lease ROU assets and lease liabilities are recognized based onconsidering the present value of expected cash flows relative to a security’s amortized cost, the future minimum lease payments overextent to which fair value is less than amortized cost, the lease term, which includes all fixed obligations arising fromfinancial condition and near-term prospects of the lease contract.issuer and specific events or circumstances that may influence the operations of the issuer. Credit-related impairments are recorded as an allowance, with an offset to investment and other income. Non-credit related impairments are recorded through other comprehensive income. If an interest rate is not implicit in a lease, the Company utilizes its incremental borrowing rate forintends to sell an impaired security, or will likely be required to sell a period that closely matchessecurity before recovery of the lease term.
The Company’s ROU assets areentire amortized cost, the entire impairment is included in other assets, and lease liabilities are included in other current liabilities and other liabilities in the Company’s Condensed Consolidated Balance Sheet.net earnings.
The Company has determined that there have been no other recently adopted or issued accounting standards that had, or will have, a material impact on its Condensed Consolidated Financial Statements.

2.    Investments
A summary of debt securities by major security type is as follows:
(in millions) 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
September 30, 2019        
March 31, 2020        
Debt securities - available-for-sale:                
U.S. government and agency obligations $3,591
 $83
 $(2) $3,672
 $3,146
 $183
 $(1) $3,328
State and municipal obligations 5,657
 256
 (3) 5,910
 5,724
 214
 (20) 5,918
Corporate obligations 17,824
 352
 (9) 18,167
 17,923
 182
 (411) 17,694
U.S. agency mortgage-backed securities 6,361
 113
 (6) 6,468
 6,508
 260
 
 6,768
Non-U.S. agency mortgage-backed securities 1,685
 48
 (1) 1,732
 1,932
 28
 (36) 1,924
Total debt securities - available-for-sale 35,118
 852
 (21) 35,949
 35,233
 867
 (468) 35,632
Debt securities - held-to-maturity:                
U.S. government and agency obligations 272
 2
 
 274
 410
 9
 
 419
State and municipal obligations 32
 1
 
 33
 31
 2
 
 33
Corporate obligations 547
 
 
 547
 284
 
 (1) 283
Total debt securities - held-to-maturity 851
 3
 
 854
 725
 11
 (1) 735
Total debt securities $35,969
 $855
 $(21) $36,803
 $35,958
 $878
 $(469) $36,367
December 31, 2018        
December 31, 2019        
Debt securities - available-for-sale:                
U.S. government and agency obligations $3,434
 $13
 $(42) $3,405
 $3,502
 $55
 $(4) $3,553
State and municipal obligations 7,117
 61
 (57) 7,121
 5,680
 251
 (5) 5,926
Corporate obligations 15,366
 14
 (218) 15,162
 17,910
 343
 (11) 18,242
U.S. agency mortgage-backed securities 4,947
 11
 (106) 4,852
 6,425
 109
 (6) 6,528
Non-U.S. agency mortgage-backed securities 1,376
 2
 (20) 1,358
 1,811
 37
 (3) 1,845
Total debt securities - available-for-sale 32,240
 101
 (443) 31,898
 35,328
 795
 (29) 36,094
Debt securities - held-to-maturity:                
U.S. government and agency obligations 255
 1
 (2) 254
 402
 2
 
 404
State and municipal obligations 11
 
 
 11
 32
 2
 
 34
Corporate obligations 355
 
 
 355
 538
 
 (1) 537
Total debt securities - held-to-maturity 621
 1
 (2) 620
 972
 4
 (1) 975
Total debt securities $32,861
 $102
 $(445) $32,518
 $36,300
 $799
 $(30) $37,069

The Company held $1.7 billion and $2.0 billion of equity securities as of both September 30, 2019March 31, 2020 and December 31, 2018.2019, respectively. The Company’s investments in equity securities primarily consist of employee savings plan related investments and shares of Brazilian real denominated fixed-income funds and dividend paying stocks with readily determinable fair values. Additionally, the Company’s investments included $1.4 billion and $1.5 billion of equity method investments in operating businesses in the health care sector as of September 30, 2019March 31, 2020 and December 31, 2018, respectively.2019. The allowance for credit losses on held-to-maturity securities at March 31, 2020 was not material.

The amortized cost and fair value of debt securities as of September 30, 2019,March 31, 2020, by contractual maturity, were as follows:
 Available-for-Sale Held-to-Maturity Available-for-Sale Held-to-Maturity
(in millions) 
Amortized
Cost
 
Fair
Value
 Amortized
Cost
 Fair
Value
 
Amortized
Cost
 
Fair
Value
 Amortized
Cost
 Fair
Value
Due in one year or less $3,571
 $3,577
 $313
 $313
 $3,010
 $3,011
 $319
 $320
Due after one year through five years 11,904
 12,084
 258
 259
 11,565
 11,604
 352
 359
Due after five years through ten years 8,303
 8,669
 141
 141
 8,563
 8,669
 28
 28
Due after ten years 3,294
 3,419
 139
 141
 3,655
 3,656
 26
 28
U.S. agency mortgage-backed securities 6,361
 6,468
 
 
 6,508
 6,768
 
 
Non-U.S. agency mortgage-backed securities 1,685
 1,732
 
 
 1,932
 1,924
 
 
Total debt securities $35,118
 $35,949
 $851
 $854
 $35,233
 $35,632
 $725
 $735

The fair value of available-for-sale debt securities with gross unrealized losses by major security type and length of time that individual securities have been in a continuous unrealized loss position were as follows:
 Less Than 12 Months 12 Months or Greater  Total Less Than 12 Months 12 Months or Greater  Total
(in millions) 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 Gross
Unrealized
Losses
 
Fair
Value
 Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 Gross
Unrealized
Losses
 
Fair
Value
 Gross
Unrealized
Losses
September 30, 2019            
March 31, 2020            
Debt securities - available-for-sale:            
U.S. government and agency obligations $56
 $(1) $
 $
 $56
 $(1)
State and municipal obligations 810
 (20) 
 
 810
 (20)
Corporate obligations 9,294
 (382) 391
 (29) 9,685
 (411)
Non-U.S. agency mortgage-backed securities 841
 (33) 30
 (3) 871
 (36)
Total debt securities - available-for-sale $11,001
 $(436) $421
 $(32) $11,422
 $(468)
December 31, 2019            
Debt securities - available-for-sale:                        
U.S. government and agency obligations $286
 $(1) $228
 $(1) $514
 $(2) $616
 $(4) $
 $
 $616
 $(4)
State and municipal obligations 296
 (2) 83
 (1) 379
 (3) 440
 (5) 
 
 440
 (5)
Corporate obligations 1,360
 (5) 1,022
 (4) 2,382
 (9) 1,903
 (7) 740
 (4) 2,643
 (11)
U.S. agency mortgage-backed securities 570
 (2) 518
 (4) 1,088
 (6) 657
 (3) 333
 (3) 990
 (6)
Non-U.S. agency mortgage-backed securities 217
 (1) 
 
 217
 (1) 406
 (3) 
 
 406
 (3)
Total debt securities - available-for-sale $2,729
 $(11) $1,851
 $(10) $4,580
 $(21) $4,022
 $(22) $1,073
 $(7) $5,095
 $(29)
December 31, 2018            
Debt securities - available-for-sale:            
U.S. government and agency obligations $998
 $(7) $1,425
 $(35) $2,423
 $(42)
State and municipal obligations 1,334
 (11) 2,491
 (46) 3,825
 (57)
Corporate obligations 8,105
 (109) 4,239
 (109) 12,344
 (218)
U.S. agency mortgage-backed securities 1,296
 (22) 2,388
 (84) 3,684
 (106)
Non-U.S. agency mortgage-backed securities 622
 (7) 459
 (13) 1,081
 (20)
Total debt securities - available-for-sale $12,355
 $(156) $11,002
 $(287) $23,357
 $(443)

The Company’s unrealized losses from debt securities as of September 30, 2019March 31, 2020 were generated from 4,000approximately 10,000 positions out of a total of 32,000 positions. The Company believes that it will collect the timely principal and interest due on its debt securities that have an amortized cost in excess of fair value. The unrealized losses were primarily caused by interest rate increases and not by unfavorable changes in the credit quality associated with these securities.securities that impacted our assessment on collectability of principal and interest. At each reporting period, the Company evaluates available-for-sale debt securities for any credit-related impairment when the fair value of the investment is less than its amortized cost. The Company evaluated the expected cash flows, the underlying credit quality and credit ratings of the issuers, and the potential economic impacts of COVID-19 on the issuers, noting no significant credit deterioration since purchase. As of September 30, 2019,March 31, 2020, the Company did not have the intent to sell any of the available-for-sale debt securities in an unrealized loss position. Therefore, the Company believes these losses to be temporary. The allowance for credit losses on available-for-sale debt securities at March 31, 2020 was not material.

3.    Fair Value
Certain assets and liabilities are measured at fair value in the Condensed Consolidated Financial Statements or have fair values disclosed in the Notes to the Condensed Consolidated Financial Statements. These assets and liabilities are classified into one of three levels of a hierarchy defined by GAAP.
For a description of the methods and assumptions that are used to estimate the fair value and determine the fair value hierarchy classification of each class of financial instrument, see Note 4 of Notes to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data” in the 20182019 10-K.
The following table presents a summary of fair value measurements by level and carrying values for items measured at fair value on a recurring basis in the Condensed Consolidated Balance Sheets:
(in millions) 
Quoted Prices
in Active
Markets
(Level 1)
 
Other
Observable
Inputs
(Level 2)
 
Unobservable
Inputs
(Level 3)
 
Total
Fair and Carrying
Value
 
Quoted Prices
in Active
Markets
(Level 1)
 
Other
Observable
Inputs
(Level 2)
 
Unobservable
Inputs
(Level 3)
 
Total
Fair and Carrying
Value
September 30, 2019        
March 31, 2020        
Cash and cash equivalents $12,210
 $153
 $
 $12,363
 $21,450
 $119
 $
 $21,569
Debt securities - available-for-sale:                
U.S. government and agency obligations 3,421
 251
 
 3,672
 3,143
 185
 
 3,328
State and municipal obligations 
 5,910
 
 5,910
 
 5,918
 
 5,918
Corporate obligations 71
 17,879
 217
 18,167
 59
 17,385
 250
 17,694
U.S. agency mortgage-backed securities 
 6,468
 
 6,468
 
 6,768
 
 6,768
Non-U.S. agency mortgage-backed securities 
 1,732
 
 1,732
 
 1,924
 
 1,924
Total debt securities - available-for-sale 3,492
 32,240
 217
 35,949
 3,202
 32,180
 250
 35,632
Equity securities 1,839
 21
 
 1,860
 1,394
 19
 
 1,413
Assets under management 1,116
 1,907
 28
 3,051
 937
 1,890
 39
 2,866
Total assets at fair value
$18,657
 $34,321
 $245
 $53,223

$26,983
 $34,208
 $289
 $61,480
Percentage of total assets at fair value 35% 65% % 100% 44% 56% % 100%
December 31, 2018        
December 31, 2019        
Cash and cash equivalents $10,757
 $109
 $
 $10,866
 $10,837
 $148
 $
 $10,985
Debt securities - available-for-sale:                
U.S. government and agency obligations 3,060
 345
 
 3,405
 3,369
 184
 
 3,553
State and municipal obligations 
 7,121
 
 7,121
 
 5,926
 
 5,926
Corporate obligations 39
 14,950
 173
 15,162
 70
 17,923
 249
 18,242
U.S. agency mortgage-backed securities 
 4,852
 
 4,852
 
 6,528
 
 6,528
Non-U.S. agency mortgage-backed securities 
 1,358
 
 1,358
 
 1,845
 
 1,845
Total debt securities - available-for-sale 3,099
 28,626
 173
 31,898
 3,439
 32,406
 249
 36,094
Equity securities 1,832
 13
 
 1,845
 1,734
 22
 
 1,756
Assets under management 1,086
 1,938
 8
 3,032
 1,123
 1,918
 35
 3,076
Total assets at fair value $16,774
 $30,686
 $181
 $47,641
 $17,133
 $34,494
 $284
 $51,911
Percentage of total assets at fair value 35% 65% % 100% 33% 66% 1% 100%

There were no transfers in or out of Level 3 financial assets or liabilities during the ninethree months ended September 30, 2019March 31, 2020 or 2018.2019.

The following table presents a summary of fair value measurements by level and carrying values for certain financial instruments not measured at fair value on a recurring basis in the Condensed Consolidated Balance Sheets:
(in millions) 
Quoted Prices
in Active
Markets
(Level 1)
 
Other
Observable
Inputs
(Level 2)
 
Unobservable
Inputs
(Level 3)
 
Total
Fair
Value
 Total Carrying Value 
Quoted Prices
in Active
Markets
(Level 1)
 
Other
Observable
Inputs
(Level 2)
 
Unobservable
Inputs
(Level 3)
 
Total
Fair
Value
 Total Carrying Value
September 30, 2019          
March 31, 2020          
Debt securities - held-to-maturity $410
 $176
 $268
 $854
 $851
 $556
 $91
 $88
 $735
 $725
Long-term debt and other financing obligations $
 $45,342
 $
 $45,342
 $40,814
 $
 $45,272
 $
 $45,272
 $40,394
December 31, 2018          
December 31, 2019          
Debt securities - held-to-maturity $260
 $65
 $295
 $620
 $621
 $541
 $181
 $253
 $975
 $972
Long-term debt and other financing obligations $
 $37,944
 $
 $37,944
 $36,554
 $
 $45,078
 $
 $45,078
 $40,278

Nonfinancial assets and liabilities or financial assets and liabilities that are measured at fair value on a nonrecurring basis are subject to fair value adjustments only in certain circumstances, such as when the Company records an impairment. There were no significant fair value adjustments for these assets and liabilities recorded during either the ninethree months ended September 30, 2019March 31, 2020 or 20182019.
4.    Medical Costs Payable
The following table shows the components of the change in medical costs payable for the ninethree months ended September 30:March 31:
(in millions) 2019 2018 2020 2019
Medical costs payable, beginning of period $19,891
 $17,871
 $21,690
 $19,891
Acquisitions 868
 333
 
 35
Reported medical costs:        
Current year 117,624
 108,658
 41,580
 39,239
Prior years (460) (210) (580) (300)
Total reported medical costs 117,164
 108,448
 41,000
 38,939
Medical payments:        
Payments for current year (99,487) (90,348) (23,471) (22,973)
Payments for prior years (17,497) (16,454) (16,447) (14,753)
Total medical payments (116,984) (106,802) (39,918) (37,726)
Medical costs payable, end of period $20,939
 $19,850
 $22,772
 $21,139

For the ninethree months ended September 30,March 31, 2020, prior years medical cost reserve development was primarily driven by lower than expected health system utilization. For the three months ended March 31, 2019, and 2018, the prior years medical cost reserve development included no individual factors that were significant. Medical costs payable included reserves for claims incurred by insured customers but not yet reported to the Company of $14.2$14.3 billion and $13.2$13.8 billion at September 30, 2019March 31, 2020 and December 31, 2018,2019, respectively.

5.    Commercial PaperShort-Term Borrowings and Long-Term Debt
Commercial paperShort-term borrowings and senior unsecured long-term debt consisted of the following:
 September 30, 2019 December 31, 2018 March 31, 2020 December 31, 2019
(in millions, except percentages) Par Value Carrying Value Fair Value Par Value Carrying Value Fair Value Par Value Carrying Value Fair Value Par Value Carrying Value Fair Value
Commercial paper $4,082
 $4,080
 $4,080
 $
 $
 $
 $1,214
 $1,213
 $1,213
 $400
 $400
 $400
1.700% notes due February 2019 
 
 
 750
 750
 749
1.625% notes due March 2019 
 
 
 500
 500
 499
2.300% notes due December 2019 500
 499
 500
 500
 494
 497
Bank credit facilities 10,000
 10,000
 10,000
 
 
 
2.700% notes due July 2020 1,500
 1,499
 1,508
 1,500
 1,498
 1,494
 1,500
 1,500
 1,500
 1,500
 1,499
 1,506
Floating rate notes due October 2020 300
 300
 300
 300
 299
 298
 300
 300
 296
 300
 300
 300
3.875% notes due October 2020 450
 450
 457
 450
 443
 456
 450
 452
 452
 450
 450
 455
1.950% notes due October 2020 900
 898
 900
 900
 897
 884
 900
 899
 900
 900
 899
 900
4.700% notes due February 2021 400
 404
 412
 400
 398
 412
 400
 406
 407
 400
 403
 410
2.125% notes due March 2021 750
 748
 752
 750
 747
 734
 750
 749
 750
 750
 749
 753
Floating rate notes due June 2021 350
 349
 349
 350
 349
 347
 350
 349
 347
 350
 349
 350
3.150% notes due June 2021 400
 399
 408
 400
 399
 400
 400
 399
 406
 400
 399
 407
3.375% notes due November 2021 500
 502
 512
 500
 489
 503
 500
 510
 512
 500
 501
 512
2.875% notes due December 2021 750
 755
 764
 750
 735
 748
 750
 768
 764
 750
 753
 765
2.875% notes due March 2022 1,100
 1,088
 1,120
 1,100
 1,051
 1,091
 1,100
 1,114
 1,130
 1,100
 1,087
 1,121
3.350% notes due July 2022 1,000
 997
 1,036
 1,000
 997
 1,005
 1,000
 998
 1,034
 1,000
 998
 1,036
2.375% notes due October 2022 900
 895
 909
 900
 894
 872
 900
 896
 912
 900
 896
 911
0.000% notes due November 2022 15
 13
 13
 15
 12
 13
 15
 13
 14
 15
 13
 14
2.750% notes due February 2023 625
 627
 637
 625
 602
 611
 625
 646
 640
 625
 624
 638
2.875% notes due March 2023 750
 776
 769
 750
 750
 739
 750
 797
 777
 750
 770
 770
3.500% notes due June 2023 750
 747
 786
 750
 746
 756
 750
 747
 788
 750
 747
 786
3.500% notes due February 2024 750
 745
 790
 750
 745
 755
 750
 746
 794
 750
 746
 792
2.375% notes due August 2024 750
 746
 756
 
 
 
 750
 747
 767
 750
 747
 760
3.750% notes due July 2025 2,000
 1,990
 2,150
 2,000
 1,989
 2,025
 2,000
 1,991
 2,161
 2,000
 1,990
 2,161
3.700% notes due December 2025 300
 298
 323
 300
 298
 303
 300
 298
 323
 300
 298
 325
3.100% notes due March 2026 1,000
 996
 1,045
 1,000
 995
 965
 1,000
 996
 1,056
 1,000
 996
 1,048
3.450% notes due January 2027 750
 746
 798
 750
 746
 742
 750
 746
 804
 750
 746
 804
3.375% notes due April 2027 625
 619
 663
 625
 619
 611
 625
 620
 668
 625
 620
 667
2.950% notes due October 2027 950
 939
 982
 950
 938
 898
 950
 939
 992
 950
 939
 988
3.850% notes due June 2028 1,150
 1,142
 1,259
 1,150
 1,142
 1,163
 1,150
 1,143
 1,281
 1,150
 1,142
 1,269
3.875% notes due December 2028 850
 843
 936
 850
 842
 861
 850
 843
 953
 850
 843
 941
2.875% notes due August 2029 1,000
 1,022
 1,021
 
 
 
 1,000
 1,104
 1,047
 1,000
 993
 1,029
4.625% notes due July 2035 1,000
 992
 1,208
 1,000
 992
 1,060
 1,000
 992
 1,190
 1,000
 992
 1,215
5.800% notes due March 2036 850
 838
 1,134
 850
 838
 1,003
 850
 838
 1,107
 850
 838
 1,129
6.500% notes due June 2037 500
 492
 711
 500
 492
 638
 500
 492
 691
 500
 492
 712
6.625% notes due November 2037 650
 641
 940
 650
 641
 841
 650
 641
 910
 650
 641
 940
6.875% notes due February 2038 1,100
 1,076
 1,625
 1,100
 1,076
 1,437
 1,100
 1,077
 1,613
 1,100
 1,076
 1,631
3.500% notes due August 2039 1,250
 1,241
 1,301
 
 
 
 1,250
 1,241
 1,348
 1,250
 1,241
 1,313
5.700% notes due October 2040 300
 296
 397
 300
 296
 355
 300
 296
 405
 300
 296
 396
5.950% notes due February 2041 350
 345
 476
 350
 345
 426
 350
 345
 484
 350
 345
 475
4.625% notes due November 2041 600
 589
 710
 600
 588
 627
 600
 589
 742
 600
 589
 716
4.375% notes due March 2042 502
 484
 572
 502
 484
 503
 502
 484
 601
 502
 484
 580
3.950% notes due October 2042 625
 607
 676
 625
 607
 596
 625
 608
 711
 625
 607
 688
4.250% notes due March 2043 750
 735
 844
 750
 734
 744
 750
 735
 885
 750
 735
 856
4.750% notes due July 2045 2,000
 1,973
 2,431
 2,000
 1,973
 2,116
 2,000
 1,973
 2,547
 2,000
 1,973
 2,463
4.200% notes due January 2047 750
 738
 852
 750
 738
 745
 750
 738
 881
 750
 738
 861
4.250% notes due April 2047 725
 717
 823
 725
 717
 719
 725
 717
 853
 725
 717
 839
3.750% notes due October 2047 950
 933
 1,005
 950
 933
 869
 950
 934
 1,050
 950
 934
 1,023
4.250% notes due June 2048 1,350
 1,329
 1,550
 1,350
 1,329
 1,349
 1,350
 1,330
 1,592
 1,350
 1,330
 1,569
4.450% notes due December 2048 1,100
 1,086
 1,301
 1,100
 1,087
 1,132
 1,100
 1,086
 1,333
 1,100
 1,086
 1,316
3.700% notes due August 2049 1,250
 1,235
 1,323
 
 
 
 1,250
 1,235
 1,385
 1,250
 1,235
 1,344
3.875% notes due August 2059 1,250
 1,231
 1,327
 
 
 
 1,250
 1,229
 1,372
 1,250
 1,228
 1,350
Total commercial paper and long-term debt $43,999
 $43,690
 $48,141
 $35,667
 $35,234
 $36,591
Total short-term borrowings and long-term debt $50,631
 $50,509
 $55,388
 $39,817
 $39,474
 $44,234


The Company’s long-term debt obligations also included $1.2$1.1 billion and $1.3$1.2 billion of other financing obligations, of which $309 million and $229$322 million were classified as current as of September 30, 2019March 31, 2020 and December 31, 2018,2019, respectively.
Commercial Paper and Bank Credit Facilities
Commercial paper consists of short-duration, senior unsecured debt privately placed on a discount basis through broker-dealers. As of September 30, 2019,March 31, 2020, the Company’s outstanding commercial paper had a weighted average annual interest rate of 2.2%2.4%.
The Company has $3.5$4.4 billion five-year, $3.5$4.4 billion three-year and $3.0$3.8 billion 364-day revolving bank credit facilities with 2625 banks, which mature in December 2023,2024, December 20212022 and December 2019,2020, respectively. The Company additionally has a $2.5 billion 364-day revolving bank credit facility with 6 banks that matures in May 2020. These facilities provide liquidity support for the Company’s commercial paper program and are available for general corporate purposes. As of September 30, 2019, no amounts had been drawn on any of the bank credit facilities. The annual interest rates, which are variable based on term, are calculated based on the London Interbank Offered Rate (LIBOR) plus a credit spread based on the Company’s senior unsecured credit ratings. If amountsAs of March 31, 2020, the Company had been drawn $1.8 billion, $4.4 billion and $3.8 billion at annual interest rates of 1.6%, 1.6% and 1.7% on theits $4.4 billion five-year, $4.4 billion three-year and $3.8 billion 364-day revolving bank credit facilities, as of September 30, 2019, annual interest rates would have ranged from 2.7% to 2.8%.respectively.
Debt Covenants
The Company’s bank credit facilities contain various covenants, including covenants requiring the Company to maintain a defined debt to debt-plus-shareholders’ equity ratio of not more than 60%. The Company was in compliance with its debt covenants as of September 30, 2019.March 31, 2020.
6.    Dividends
In June 2019, the Company’s Board of Directors increased the Company’s annual dividend rate to shareholders to $4.32 compared to $3.60 per share, which the Company had paid since June 2018. Declaration and payment of future quarterly dividends is at the discretion of the Board and may be adjusted as business needs or market conditions change.
The following table provides details of the Company’s 2019 dividend payments:
Payment Date Amount per Share Total Amount Paid
    (in millions)
March 19 $0.90
 $860
June 25 1.08
 1,024
September 24 1.08
 1,024

7.    Commitments and Contingencies
Leases
Operating lease costs were $275 million and $760 million for the three and nine months ended September 30, 2019, respectively, and included immaterial variable and short-term lease costs. Cash payments made on the Company’s operating lease liabilities were $552 million for the nine months ended September 30, 2019, which were classified within operating activities in the Condensed Consolidated Statements of Cash Flows. As of September 30, 2019, the Company’s weighted-average remaining lease term and weighted-average discount rate for its operating leases were 8.6 years and 3.9%, respectively.

As of September 30, 2019, future minimum annual lease payments under all non-cancelable operating leases were as follows:
(in millions) Future Operating Lease Payments
2019 $198
2020 782
2021 693
2022 580
2023 477
Thereafter 1,978
Total future minimum lease payments 4,708
Less imputed interest (758)
Total $3,950

Legal Matters
Because of the nature of its businesses, the Company is frequently made party to a variety of legal actions and regulatory inquiries, including class actions and suits brought by members, care providers, consumer advocacy organizations, customers and regulators, relating to the Company’s businesses, including management and administration of health benefit plans and other services. These matters include medical malpractice, employment, intellectual property, antitrust, privacy and contract claims and claims related to health care benefits coverage and other business practices.
The Company records liabilities for its estimates of probable costs resulting from these matters where appropriate. Estimates of costs resulting from legal and regulatory matters involving the Company are inherently difficult to predict, particularly where the matters: involve indeterminate claims for monetary damages or may involve fines, penalties or punitive damages; present novel legal theories or represent a shift in regulatory policy; involve a large number of claimants or regulatory bodies; are in the early stages of the proceedings; or could result in a change in business practices. Accordingly, the Company is often unable to estimate the losses or ranges of losses for those matters where there is a reasonable possibility or it is probable that a loss may be incurred.
Government Investigations, Audits and Reviews
The Company has been involved or is currently involved in various governmental investigations, audits and reviews. These include routine, regular and special investigations, audits and reviews by the Centers for Medicare and Medicaid Services (CMS), state insurance and health and welfare departments, the Brazilian national regulatory agency for private health insurance and plans (the Agência Nacional de Saúde Suplementar), state attorneys general, the Office of the Inspector General, the Office of Personnel Management, the Office of Civil Rights, the Government Accountability Office, the Federal Trade Commission, U.S. Congressional committees, the U.S. Department of Justice, the SEC, the Internal Revenue Service, the U.S. Drug Enforcement Administration, the Brazilian federal revenue service (the Secretaria da Receita Federal), the U.S. Department of Labor, the Federal Deposit Insurance Corporation, the Defense Contract Audit Agency and other governmental authorities. Similarly, our international businesses are also subject to investigations, audits and reviews by applicable foreign governments, including South American and other non-U.S. governmental authorities. Certain of the Company’s businesses have been reviewed or are currently under review, including for, among other matters, compliance with coding and other requirements under the Medicare risk-adjustment model. CMS has selected certain of the Company’s local plans for risk adjustment data validation (RADV) audits to validate the coding practices of and supporting documentation maintained by health care providers and such audits may result in retrospective adjustments to payments made to the Company’s health plans.
On February 14, 2017, the Department of Justice (DOJ) announced its decision to pursue certain claims within a lawsuit initially asserted against the Company and filed under seal by a whistleblower in 2011. The whistleblower’s complaint, which was unsealed on February 15, 2017, alleges that the Company made improper risk adjustment submissions and violated the False Claims Act. On February 12, 2018, the court granted in part and denied in part the Company’s motion to dismiss. In May 2018, DOJ moved to dismiss the Company’s counterclaims, which were filed in March 2018, and moved for partial summary judgment. In March 2019, the court denied the government’s motion for partial summary judgment and dismissed the

Company’s counterclaims without prejudice. The Company cannot reasonably estimate the outcome that may result from this matter given its procedural status.


8.    Business Combinations
During the nine months ended September 30, 2019, the Company completed several business combinations for total cash consideration of $9.7 billion.
The total consideration exceeded the estimated fair value of the net tangible assets acquired by $8.6 billion, of which $2.0 billion has been allocated to finite-lived intangible assets and $6.6 billion to goodwill. The goodwill is not deductible for income tax purposes.
Acquired tangible assets (liabilities) at acquisition date were:
(in millions)  
Cash and cash equivalents $1,537
Accounts receivable and other current assets 1,775
Property, equipment and other long-term assets 1,941
Medical costs payable (868)
Accounts payable and other current liabilities (1,669)
Other long-term liabilities (1,283)
Total net tangible assets $1,433

The preliminary purchase price allocations for the various business combinations are subject to adjustment as valuation analyses, primarily related to intangible assets and contingent and tax liabilities, are finalized.
The acquisition date fair values and weighted-average useful lives assigned to acquired finite-lived intangible assets were:
(in millions, except years) Fair Value Weighted-Average Useful Life
Customer-related $1,670
 14
Trademarks and technology 117
 4
Other 164
 10
Total acquired finite-lived intangible assets $1,951
 13


The results of operations and financial condition of acquired entities have been included in the Company’s consolidated results and the results of the corresponding operating segment as of date of acquisition. Through September 30, 2019, acquired entities’ impact on revenues and net earnings was not material.
Unaudited pro forma revenues for the nine months ended September 30, 2019 and 2018 as if the acquisitions had occurred on January 1, 2018 were immaterial for both periods. The pro forma effects of the acquisitions on net earnings were immaterial for both years.
9.7.    Segment Financial Information
The Company’s 4 reportable segments are UnitedHealthcare, OptumHealth, OptumInsight and OptumRx. For more information on the Company’s segments see Part I, Item I, “Business” and Note 1314 of Notes to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data” in the 20182019 10-K. Total assets at OptumHealth increased to $40.1 billion as of September 30, 2019 compared to $29.8 billion as of December 31, 2018, primarily due to goodwill and other intangibles assets from a second quarter 2019 acquisition and the recognition of ROU assets from ASU 2016-02. Total assets at OptumInsight increased to $15.1 billion as of September 30, 2019 compared to $11.0 billion as of December 31, 2018, primarily due to goodwill and other intangibles assets from a third quarter 2019 acquisition.

The following tables present reportable segment financial information:
    Optum    
(in millions) UnitedHealthcare OptumHealth OptumInsight OptumRx Optum Eliminations Optum 
Corporate and
Eliminations
 Consolidated
Three Months Ended September 30, 2019                
Revenues - unaffiliated customers:                
Premiums $45,557
 $1,840
 $
 $
 $
 $1,840
 $
 $47,397
Products 
 6
 29
 7,511
 
 7,546
 
 7,546
Services 2,274
 1,487
 988
 193
 
 2,668
 
 4,942
Total revenues - unaffiliated customers 47,831
 3,333
 1,017
 7,704
 
 12,054
 
 59,885
Total revenues - affiliated customers 
 4,630
 1,594
 10,734
 (441) 16,517
 (16,517) 
Investment and other income 274
 170
 6
 16
 
 192
 
 466
Total revenues $48,105
 $8,133
 $2,617
 $18,454
 $(441) $28,763
 $(16,517) $60,351
Earnings from operations $2,655
 $748
 $632
 $979
 $
 $2,359
 $
 $5,014
Interest expense 
 
 
 
 
 
 (449) (449)
Earnings before income taxes $2,655
 $748
 $632
 $979
 $
 $2,359
 $(449) $4,565
Three Months Ended September 30, 2018                
Revenues - unaffiliated customers:                
Premiums $43,628
 $985
 $
 $
 $
 $985
 $
 $44,613
Products 
 13
 29
 7,302
 
 7,344
 
 7,344
Services 2,067
 1,196
 790
 164
 
 2,150
 
 4,217
Total revenues - unaffiliated customers 45,695
 2,194
 819
 7,466
 
 10,479
 
 56,174
Total revenues - affiliated customers 
 3,733
 1,431
 9,960
 (352) 14,772
 (14,772) 
Investment and other income 242
 125
 4
 11
 
 140
 
 382
Total revenues $45,937
 $6,052
 $2,254
 $17,437
 $(352) $25,391
 $(14,772) $56,556
Earnings from operations $2,559
 $622
 $534
 $875
 $
 $2,031
 $
 $4,590
Interest expense 
 
 
 
 
 
 (353) (353)
Earnings before income taxes $2,559
 $622
 $534
 $875
 $
 $2,031
 $(353) $4,237

   Optum       Optum    
(in millions) UnitedHealthcare OptumHealth OptumInsight OptumRx Optum Eliminations Optum Corporate and
Eliminations
 Consolidated UnitedHealthcare OptumHealth OptumInsight OptumRx Optum Eliminations Optum Corporate and
Eliminations
 Consolidated
Nine Months Ended September 30, 2019                
Three Months Ended March 31, 2020                
Revenues - unaffiliated customers:                                
Premiums $138,088
 $3,986
 $
 $
 $
 $3,986
 $
 $142,074
 $48,593
 $2,047
 $
 $
 $
 $2,047
 $
 $50,640
Products 
 23
 74
 23,874
 
 23,971
 
 23,971
 
 9
 29
 8,393
 
 8,431
 
 8,431
Services 6,603
 4,131
 2,532
 490
 
 7,153
 
 13,756
 2,278
 1,548
 891
 268
 
 2,707
 
 4,985
Total revenues - unaffiliated customers 144,691
 8,140
 2,606
 24,364
 
 35,110
 
 179,801
 50,871
 3,604
 920
 8,661
 
 13,185
 
 64,056
Total revenues - affiliated customers 
 13,366
 4,522
 30,786
 (1,181) 47,493
 (47,493) 
 
 5,452
 1,562
 12,876
 (404) 19,486
 (19,486) 
Investment and other income 904
 488
 17
 44
 
 549
 
 1,453
 197
 136
 12
 20
 
 168
 
 365
Total revenues $145,595
 $21,994
 $7,145
 $55,194
 $(1,181) $83,152
 $(47,493) $181,254
 $51,068
 $9,192
 $2,494
 $21,557
 $(404) $32,839
 $(19,486) $64,421
Earnings from operations $8,251
 $2,062
 $1,589
 $2,688
 $
 $6,339
 $
 $14,590
 $2,888
 $712
 $536
 $860
 $
 $2,108
 $
 $4,996
Interest expense 
 
 
 
 
 
 (1,267) (1,267) 
 
 
 
 
 
 (437) (437)
Earnings before income taxes $8,251
 $2,062
 $1,589
 $2,688
 $
 $6,339
 $(1,267) $13,323
 $2,888
 $712
 $536
 $860
 $
 $2,108
 $(437) $4,559
Nine Months Ended September 30, 2018                
Three Months Ended March 31, 2019                
Revenues - unaffiliated customers:                                
Premiums $130,361
 $2,794
 $
 $
 $
 $2,794
 $
 $133,155
 $46,501
 $1,012
 $
 $
 $
 $1,012
 $
 $47,513
Products 
 37
 72
 20,941
 
 21,050
 
 21,050
 
 8
 23
 8,041
 
 8,072
 
 8,072
Services 6,248
 3,587
 2,306
 449
 
 6,342
 
 12,590
 2,141
 1,274
 754
 149
 
 2,177
 
 4,318
Total revenues - unaffiliated customers 136,609
 6,418
 2,378
 21,390
 
 30,186
 
 166,795
 48,642
 2,294
 777
 8,190
 
 11,261
 
 59,903
Total revenues - affiliated customers 
 10,979
 4,115
 29,062
 (1,026) 43,130
 (43,130) 
 
 4,287
 1,407
 9,613
 (359) 14,948
 (14,948) 
Investment and other income 633
 355
 15
 32
 
 402
 
 1,035
 254
 132
 5
 14
 
 151
 
 405
Total revenues $137,242
 $17,752
 $6,508
 $50,484
 $(1,026) $73,718
 $(43,130) $167,830
 $48,896
 $6,713
 $2,189
 $17,817
 $(359) $26,360
 $(14,948) $60,308
Earnings from operations $7,316
 $1,680
 $1,382
 $2,469
 $
 $5,531
 $
 $12,847
 $2,954
 $626
 $432
 $820
 $
 $1,878
 $
 $4,832
Interest expense 
 
 
 
 
 
 (1,026) (1,026) 
 
 
 
 
 
 (400) (400)
Earnings before income taxes $7,316
 $1,680
 $1,382
 $2,469
 $
 $5,531
 $(1,026) $11,821
 $2,954
 $626
 $432
 $820
 $
 $1,878
 $(400) $4,432



ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read together with the accompanying Condensed Consolidated Financial Statements and Notes and with our 20182019 10-K, including the Consolidated Financial Statements and Notes in Part II, Item 8, “Financial Statements and Supplementary Data” in that report. Unless the context indicates otherwise, references to the terms “UnitedHealth Group,” “we,” “our” or “us” used throughout this Management’s Discussion and Analysis of Financial Condition and Results of Operations refer to UnitedHealth Group Incorporated and its consolidated subsidiaries.
Readers are cautioned that the statements, estimates, projections or outlook contained in this Management's Discussion and Analysis of Financial Condition and Results of Operations, including discussions regarding financial prospects, economic conditions, trends and uncertainties contained in this Item 2, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). These forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the results discussed or implied in the forward-looking statements. A description of some of the risks and uncertainties is set forth in Part I, Item 1A, “Risk Factors” in our 20182019 10-K and in the discussion below.
EXECUTIVE OVERVIEW
General
UnitedHealth Group is a diversified health care company dedicated to helping people live healthier lives and helping make the health system work better for everyone. Through our diversified family of businesses, we leverage core competencies in data and health information;information, advanced technology;technology, and clinical expertise.expertise, focused on improving health outcomes, lowering health care costs and creating a better experience for patients, their caregivers and physicians. These core competencies are deployed within our two distinct,

but strategically aligned, business platforms: health benefits operating under UnitedHealthcare and health services operating under Optum.
Further information on our business is presented in Part I, Item 1, “Business” and Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 20182019 10-K and additional information on our segments can be found in this Item 2 and in Note 97 of Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this report.
COVID-19 Trends and Uncertainties
The COVID-19 pandemic is rapidly evolving and the ultimate impact on our business, results of operations, financial condition and cash flows is uncertain and difficult to predict. For additional information regarding risks and uncertainties relating to COVID-19, seeRisk Factors” in Part II, Item 1A of this report. Specific trends and uncertainties related to our two business platforms are as follows:
UnitedHealthcare.We have expanded benefit coverage in areas such as COVID-19 testing and treatment, telemedicine, and pharmacy benefits; offered additional enrollment opportunities to those who previously declined employer-sponsored offerings; extended certain premium payment terms for customers experiencing financial hardship; simplified administrative practices; and began accelerating payments to care providers, all with the aim of assisting our customers, providers and members in addressing the COVID-19 crisis. Potential economic costs, including cost of care and loss of commercial membership due to higher rates of unemployment, may initially be more than offset by temporary deferrals of elective care and increased membership in Medicaid and individual programs. Following the crisis, consumer demand for care is expected to return, resulting in potentially increased future medical costs. Depending on the pacing and intensity of the virus, as well as the duration of policies and initiatives to address COVID-19, such as stay-at-home and social distancing guidelines,the ultimate impact is uncertain.
Optum. The reduction of elective and routine procedures also impacts the Optum business. For example, most traditional procedure work at our ambulatory surgery centers has been postponed, while our capitated care delivery businesses have experienced lower care demand. COVID-19 will also continue to influence customer and consumer behavior, both during and after the pandemic, which could impact how care is delivered and the manner in which consumers wish to receive their prescription drugs or infusion services. The impact of COVID-19 on our care provider and payer clients could impact the volume and types of services that Optum provides, as well as the pacing of potential new business opportunities. As a result of the dynamic situation and broad-reaching impact to the health system, the ultimate impact of COVID-19 is uncertain.

Business Trends
Our businesses participate in the United States, South American and certain other international health markets. In the United States, health care spending has grown consistently for many years and comprises approximately 18% of gross domestic product. Overall spending on health care is impacted by inflation; utilization; medical technology and pharmaceutical advancement; regulatory requirements; demographic trends in the population and national interest in health and well-being, mitigated by our continued efforts to control health care costs.well-being. The rate of market growth may be affected by a variety of factors, including macro-economic conditions, such as the economic impact of COVID-19, and regulatory changes, which could impact our results of operations.operations, including our continued efforts to control health care costs.
Pricing Trends. To price our health care benefit products, we start with our view of expected future costs, including any impact from the Health Insurance Industry Tax. We frequently evaluate and adjust our approach in each of the local markets we serve, considering all relevant factors, such as product positioning, price competitiveness and environmental, competitive, legislative and regulatory considerations, including minimum medical loss ratio (MLR) thresholds. We will continue seeking to balance growth and profitability across all of these dimensions.
The commercial risk market remains highly competitive in both the small group and large group segments. We expect broad-based competition to continue as the industry adapts to individual and employer needs amid reform changes. Pricing for contracts that cover some portion of calendar year 2020 reflects2021 will reflect the returnpermanent repeal of the Health Insurance Industry Tax after a moratorium in 2019.Tax.
Government programs in the public and senior sector tend to receive lower rates of increase than the commercial market due to governmental budget pressures and lower cost trends.
Medical Cost Trends. Our medical cost trends primarily relate to changes in unit costs, health system utilization and prescription drug costs. We endeavor to mitigate those increases by engaging physicians and consumers with information and helping them make clinically sound choices, with the objective of helping them achieve high quality, affordable care. The uncertain impact of COVID-19 may impact our ability to estimate medical costs payable, which could result in increased variability to medical cost reserve development in future periods.
Regulatory Trends and Uncertainties
Following is a summary of management’s view of regulatory trends and uncertainties. For additional information regarding regulatory trends and uncertainties, see Part I, Item 1 “Business - Government Regulation,” Part 1, Item 1A, “Risk Factors” andFactors,” Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2018 10-K.2019 10-K and “Risk Factors” in Part II, Item 1A of this report.
Medicare Advantage Rates. Final 20202021 Medicare Advantage rates resulted in an increase in industry base rates of approximately 2.5%1.7%, short of the industry forward medical cost trend, including the return of the non-reimbursable Health Insurance Industry Tax, creating continued pressure in the Medicare Advantage program.
Health Insurance IndustryAffordable Care Act (ACA) Tax. There isAfter a one year moratorium onin 2019, the industry-wide amount of the Health Insurance Industry Tax in 2019. This moratoriumfor 2020, which is primarily borne by customers, is $15.5 billion, with our portion being approximately $3.0 billion. The return of the tax impacts year-over-year comparability of our financial statements, including revenues, operating costs, medical care ratio (MCR), operating cost ratio, effective tax rate and cash flows from operations. The ACA Tax was permanently repealed by Congress, effective January 1, 2021.
SELECTED OPERATING PERFORMANCE AND OTHER SIGNIFICANT ITEMS
The following summarizes select thirdfirst quarter 20192020 year-over-year operating comparisons to thirdfirst quarter 2018.2019.
Consolidated revenues grew 7%, UnitedHealthcare revenues grew 5%4% and Optum revenues grew 13%25%.
UnitedHealthcare served 415,000 additional670,000 fewer people domestically primarily asdue to expected attrition in commercial group and the proactive withdrawal from a result of acquisitions and growth in services to self-funded employers and seniors.Medicaid market.
Consolidated earnings from operations increased 9%3%, including increasesa decrease of 4%2% at UnitedHealthcare and 16%an increase of 12% at Optum.
Diluted earnings per common share increased 13%.decreased 1% to $3.52.
Cash flows from operations for the ninethree months ended September 30, 2019March 31, 2020 were $12.3$2.9 billion.
Return on equity was 26.2%
Return on equity was 23.6%.

RESULTS SUMMARY
The following table summarizes our consolidated results of operations and other financial information:
(in millions, except percentages and per share data) Three Months Ended September 30, Increase/(Decrease) Nine Months Ended September 30, Increase/(Decrease) Three Months Ended March 31, Increase/(Decrease)
2019 2018 2019 vs. 2018 2019 2018 2019 vs. 2018 2020 2019 2020 vs. 2019
Revenues:                        
Premiums $47,397
 $44,613
 $2,784
 6% $142,074
 $133,155
 $8,919
 7% $50,640
 $47,513
 $3,127
 7 %
Products 7,546
 7,344
 202
 3
 23,971
 21,050
 2,921
 14
 8,431
 8,072
 359
 4
Services 4,942
 4,217
 725
 17
 13,756
 12,590
 1,166
 9
 4,985
 4,318
 667
 15
Investment and other income 466
 382
 84
 22
 1,453
 1,035
 418
 40
 365
 405
 (40) (10)
Total revenues 60,351
 56,556
 3,795
 7
 181,254
 167,830
 13,424
 8
 64,421
 60,308
 4,113
 7
Operating costs:                     

 

Medical costs 39,041
 36,158
 2,883
 8
 117,164
 108,448
 8,716
 8
 41,000
 38,939
 2,061
 5
Operating costs 8,960
 8,479
 481
 6
 25,892
 25,371
 521
 2
 10,015
 8,517
 1,498
 18
Cost of products sold 6,627
 6,718
 (91) (1) 21,606
 19,373
 2,233
 12
 7,687
 7,381
 306
 4
Depreciation and amortization 709
 611
 98
 16
 2,002
 1,791
 211
 12
 723
 639
 84
 13
Total operating costs 55,337
 51,966
 3,371
 6
 166,664
 154,983
 11,681
 8
 59,425
 55,476
 3,949
 7
Earnings from operations 5,014
 4,590
 424
 9
 14,590
 12,847
 1,743
 14
 4,996
 4,832
 164
 3
Interest expense (449) (353) (96) 27
 (1,267) (1,026) (241) 23
 (437) (400) (37) 9
Earnings before income taxes 4,565
 4,237
 328
 8
 13,323
 11,821
 1,502
 13
 4,559
 4,432
 127
 3
Provision for income taxes (936) (953) 17
 (2) (2,752) (2,603) (149) 6
 (1,094) (875) (219) 25
Net earnings 3,629
 3,284
 345
 11
 10,571
 9,218
 1,353
 15
 3,465
 3,557
 (92) (3)
Earnings attributable to noncontrolling interests (91) (96) 5
 (5) (273) (272) (1) 
 (83) (90) 7
 (8)
Net earnings attributable to UnitedHealth Group common shareholders $3,538
 $3,188
 $350
 11 % $10,298
 $8,946
 $1,352
 15% $3,382
 $3,467
 $(85) (2)%
Diluted earnings per share attributable to UnitedHealth Group common shareholders $3.67
 $3.24
 $0.43
 13 % $10.65
 $9.09
 $1.56
 17% $3.52
 $3.56
 $(0.04) (1)%
Medical care ratio (a) 82.4% 81.0% 1.4 %   82.5% 81.4% 1.1 %   81.0% 82.0% (1.0)% 

Operating cost ratio 14.8
 15.0
 (0.2)   14.3
 15.1
 (0.8)   15.5
 14.1
 1.4
 

Operating margin 8.3
 8.1
 0.2
   8.0
 7.7
 0.3
   7.8
 8.0
 (0.2) 

Tax rate 20.5
 22.5
 (2.0)   20.7
 22.0
 (1.3)   24.0
 19.7
 4.3
 

Net earnings margin (b) 5.9
 5.6
 0.3
   5.7
 5.3
 0.4
   5.2
 5.7
 (0.5) 

Return on equity (c) 26.2% 25.9% 0.3 %   26.0% 24.6% 1.4 %   23.6% 26.8% (3.2)% 

                   
(a)Medical care ratio is calculated as medical costs divided by premium revenue.
(b)Net earnings margin attributable to UnitedHealth Group shareholders.
(c)Return on equity is calculated as annualized net earnings attributable to UnitedHealth Group common shareholders divided by average shareholders’ equity. Average shareholders’ equity is calculated using the shareholders’ equity balance at the end of the preceding year and the shareholders’ equity balances at the end of each of the quarters in the year presented.
20192020 RESULTS OF OPERATIONS COMPARED TO 20182019 RESULTS OF OPERATIONS
Consolidated Financial Results
Revenue
The increases in revenue were primarily driven by the increase in the number of individuals served through Medicare Advantage; pricing trends; and acquisition and organic growth across the Optum business, primarily due to expansion in pharmacy care services and care delivery; partially offset by the moratorium of the Health Insurance Industry Tax in 2019.delivery.
Medical Costs and MCR
Medical costs increased due to growth in people served through Medicare Advantage, and medical cost trends and calendar day impacts, partially offset by decreased people served in Medicaid due to a proactive market withdrawal and increased prior year favorable medical cost development. The MCR increaseddecreased primarily due to the revenue effects of the return of the Health Insurance Industry Tax, moratorium.partially offset by calendar day impacts.
Operating Cost Ratio
The operating cost ratio decreasedincreased primarily due to the impact of the return of the Health Insurance Industry Tax moratorium and changes in business mix, partially offset by effective operating cost management.

Income Tax Rate
Our effective tax rate decreasedincreased primarily due to the impact of the moratoriumreturn of the nondeductible Health Insurance Industry Tax.
Reportable Segments
See Note 97 of Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this report for more information on our segments. We utilize various metrics to evaluate and manage our reportable segments, including individuals served by UnitedHealthcare by major market segment and funding arrangement, people served by OptumHealth and adjusted scripts for OptumRx. These metrics are the main drivers of revenue, earnings and cash flows at each business. The metrics also allow management and investors to evaluate and understand business mix, customer penetration and pricing trends when comparing the metrics to revenue by segment.
The following table presents a summary of the reportable segment financial information:
 Three Months Ended September 30, Increase/(Decrease) Nine Months Ended September 30, Increase/(Decrease) Three Months Ended March 31, Increase/(Decrease)
(in millions, except percentages) 2019 2018 2019 vs. 2018 2019 2018 2019 vs. 2018 2020 2019 2020 vs. 2019
Revenues                        
UnitedHealthcare $48,105
 $45,937
 $2,168
 5% $145,595
 $137,242
 $8,353
 6% $51,068
 $48,896
 $2,172
 4 %
OptumHealth 8,133
 6,052
 2,081
 34
 21,994
 17,752
 4,242
 24
 9,192
 6,713
 2,479
 37
OptumInsight 2,617
 2,254
 363
 16
 7,145
 6,508
 637
 10
 2,494
 2,189
 305
 14
OptumRx 18,454
 17,437
 1,017
 6
 55,194
 50,484
 4,710
 9
 21,557
 17,817
 3,740
 21
Optum eliminations (441) (352) (89) 25
 (1,181) (1,026) (155) 15
 (404) (359) (45) 13
Optum 28,763
 25,391
 3,372
 13
 83,152
 73,718
 9,434
 13
 32,839
 26,360
 6,479
 25
Eliminations (16,517) (14,772) (1,745) 12
 (47,493) (43,130) (4,363) 10
 (19,486) (14,948) (4,538) 30
Consolidated revenues $60,351
 $56,556
 $3,795
 7% $181,254
 $167,830
 $13,424
 8% $64,421
 $60,308
 $4,113
 7 %
Earnings from operations                        
UnitedHealthcare $2,655
 $2,559
 $96
 4% $8,251
 $7,316
 $935
 13% $2,888
 $2,954
 $(66) (2)%
OptumHealth 748
 622
 126
 20
 2,062
 1,680
 382
 23
 712
 626
 86
 14
OptumInsight 632
 534
 98
 18
 1,589
 1,382
 207
 15
 536
 432
 104
 24
OptumRx 979
 875
 104
 12
 2,688
 2,469
 219
 9
 860
 820
 40
 5
Optum 2,359
 2,031
 328
 16
 6,339
 5,531
 808
 15
 2,108
 1,878
 230
 12
Consolidated earnings from operations $5,014
 $4,590
 $424
 9% $14,590
 $12,847
 $1,743
 14% $4,996
 $4,832
 $164
 3 %
Operating margin                        
UnitedHealthcare 5.5% 5.6% (0.1)%   5.7% 5.3% 0.4 %   5.7% 6.0% (0.3)%  
OptumHealth 9.2
 10.3
 (1.1)   9.4
 9.5
 (0.1)   7.7
 9.3
 (1.6)  
OptumInsight 24.1
 23.7
 0.4
   22.2
 21.2
 1.0
   21.5
 19.7
 1.8
  
OptumRx 5.3
 5.0
 0.3
   4.9
 4.9
 
   4.0
 4.6
 (0.6)  
Optum 8.2
 8.0
 0.2
   7.6
 7.5
 0.1
   6.4
 7.1
 (0.7)  
Consolidated operating margin 8.3% 8.1% 0.2 %   8.0% 7.7% 0.3 %   7.8% 8.0% (0.2)%  
UnitedHealthcare
The following table summarizes UnitedHealthcare revenues by business:
 Three Months Ended September 30, Increase/(Decrease) Nine Months Ended September 30, Increase/(Decrease) Three Months Ended March 31, Increase/(Decrease)
(in millions, except percentages) 2019 2018 2019 vs. 2018 2019 2018 2019 vs. 2018 2020 2019 2020 vs. 2019
UnitedHealthcare Employer & Individual $14,291
 $13,734
 $557
 4 % $42,407
 $40,856
 $1,551
 4% $14,280
 $14,084
 $196
 1 %
UnitedHealthcare Medicare & Retirement 20,698
 18,789
 1,909
 10
 62,649
 56,573
 6,076
 11
 23,152
 21,096
 2,056
 10
UnitedHealthcare Community & State 10,670
 11,054
 (384) (3) 33,038
 32,471
 567
 2
 11,453
 11,182
 271
 2
UnitedHealthcare Global 2,446
 2,360
 86
 4
 7,501
 7,342
 159
 2
 2,183
 2,534
 (351) (14)
Total UnitedHealthcare revenues $48,105
 $45,937
 $2,168
 5 % $145,595
 $137,242
 $8,353
 6% $51,068
 $48,896
 $2,172
 4 %

The following table summarizes the number of individuals served by our UnitedHealthcare businesses, by major market segment and funding arrangement:
 September 30, Increase/(Decrease) March 31, Increase/(Decrease)
(in thousands, except percentages) 2019 2018 2019 vs. 2018 2020 2019 2020 vs. 2019
Commercial:                
Risk-based 8,605
 8,450
 155
 2 % 8,215
 8,340
 (125) (1)%
Fee-based 19,230
 18,365
 865
 5
 18,825
 19,175
 (350) (2)
Total commercial 27,835
 26,815
 1,020
 4
 27,040
 27,515
 (475) (2)
Medicare Advantage 5,230
 4,915
 315
 6
 5,575
 5,165
 410
 8
Medicaid 5,965
 6,630
 (665) (10) 5,880
 6,425
 (545) (8)
Medicare Supplement (Standardized) 4,510
 4,540
 (30) (1) 4,440
 4,500
 (60) (1)
Total public and senior 15,705
 16,085
 (380) (2) 15,895
 16,090
 (195) (1)
Total UnitedHealthcare - domestic medical 43,540
 42,900
 640
 1
 42,935
 43,605
 (670) (2)
International 5,845
 6,070
 (225) (4) 5,605
 6,125
 (520) (8)
Total UnitedHealthcare - medical 49,385
 48,970
 415
 1 % 48,540
 49,730
 (1,190) (2)%
Supplemental Data:                
Medicare Part D stand-alone 4,415
 4,725
 (310) (7)% 4,150
 4,480
 (330) (7)%
Fee-based and risk-based commercial group business increaseddecreased primarily due to an acquisition.expected attrition. Medicare Advantage increased due to growth in people served through individual and employer-sponsored group Medicare Advantage plans. The decrease in people served through Medicaid was primarily driven by the proactive withdrawal from the Iowaa market as well as by states adding new carriers to existing programs and managing eligibility, partially offset by increases in Dual Special Needs Plans. The decrease in people served internationally is a result of our continued affordability efforts and underwriting discipline.
UnitedHealthcare’s revenue and earnings from operations increased due to growth in the number of individuals served through Commercial and Medicare Advantage, including a greater mix of people with higher acuity needs. Revenue increases wereneeds and the return of the Health Insurance Tax, partially offset by a decrease in the number of individuals served through the commercial and Medicaid businesses. Earnings from operations decreased primarily due to the return of the Health Insurance Tax and calendar day impacts, partially offset by the moratorium on the Health Insurance Industry Tax in 2019. Earnings from operations were also favorably impacted by operating cost management.factors impacting revenue.
Optum
Total revenues and earnings from operations increased as each segment reported increased revenues and earnings from operations as a result of productivity and overall cost management initiatives in addition to the factors discussed below.
The results by segment were as follows:
OptumHealth
Revenue and earnings from operations increased at OptumHealth primarily due to organic growth and acquisitions in care delivery, increased care services and organic growth in behavioral health. Increased operating earnings were primarily due to care delivery and care services.delivery. OptumHealth served approximately 9596 million people as of September 30, 2019March 31, 2020 compared to 9293 million people as of September 30, 2018.March 31, 2019.
OptumInsight
Revenue and earnings from operations at OptumInsight increased primarily due to organic growth and acquisition growthacquisitions in managed services.
OptumRx
Revenue at OptumRx and the corresponding eliminations increased primarily due to acquisitionsthe inclusion of retail pharmacy co-payments. See Note 1 of Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this report for further detail. Revenue at OptumRx also increased due to organic and organicacquisition growth in specialty pharmacy and new client wins, partially offset by an expected large client transition. Earnings from operations increased primarily due to the factors that increased revenue as well as improved supply chain management. OptumRx fulfilled 325 million and 331339 million adjusted scripts in the thirdfirst quarter of 2020 and 2019, and 2018, respectively. The decrease was due towith organic growth in adjusted scripts being offset by the expected large client transition.

LIQUIDITY, FINANCIAL CONDITION AND CAPITAL RESOURCES
Liquidity
Summary of our Major Sources and Uses of Cash and Cash Equivalents
 Nine Months Ended September 30, Increase/(Decrease) Three Months Ended March 31, Increase/(Decrease)
(in millions) 2019 2018 2019 vs. 2018 2020 2019 2020 vs. 2019
Sources of cash:            
Cash provided by operating activities $12,258
 $13,317
 $(1,059) $2,943
 $3,234
 $(291)
Issuances of commercial paper and long-term debt, net of repayments 8,192
 1,200
 6,992
Issuances of short-term borrowings and long-term debt, net of repayments 10,797
 1,851
 8,946
Proceeds from common stock issuances 740
 745
 (5) 557
 323
 234
Customer funds administered 420
 1,552
 (1,132) 1,062
 1,784
 (722)
Other 338
 
 338
Sales and maturities of investments, net of purchases 30
 
 30
Total sources of cash 21,948
 16,814
   15,389
 7,192
  
Uses of cash:            
Common stock repurchases (5,101) (3,650) (1,451) (1,691) (3,002) 1,311
Cash paid for acquisitions, net of cash assumed (8,200) (5,824) (2,376) (929) (689) (240)
Purchases of investments, net of sales and maturities (2,028) (3,729) 1,701
 
 (319) 319
Purchases of property, equipment and capitalized software (1,421) (1,505) 84
 (469) (562) 93
Cash dividends paid (2,908) (2,454) (454) (1,024) (860) (164)
Other (756) (1,273) 517
 (563) (214) (349)
Total uses of cash (20,414) (18,435)   (4,676) (5,646)  
Effect of exchange rate changes on cash and cash equivalents (37) (97) 60
 (129) (5) (124)
Net increase (decrease) in cash and cash equivalents $1,497
 $(1,718) $3,215
Net increase in cash and cash equivalents $10,584
 $1,541
 $9,043
20192020 Cash Flows Compared to 20182019 Cash Flows
Decreased cash flows provided by operating activities were primarily driven by changes in working capital accounts, partially offset by higher net earnings.accounts. Other significant changes in sources or uses of cash year-over-year included increased issuances of commercial papershort-term borrowings and decreased net purchases of investmentscommon stock repurchases, partially offset by increasesa decrease in cash paid for acquisitions and common stock repurchases.customer funds administered.
Financial Condition
As of September 30, 2019,March 31, 2020, our cash, cash equivalent, available-for-sale debt securities and equity securities balances of $50.4$58.9 billion included approximately $12.4$21.6 billion of cash and cash equivalents (of which $1.5$10.9 billion was available for general corporate use), $35.9$35.6 billion of debt securities and $2.0$1.7 billion of investments in equity securities. Cash available for general corporate use was intentionally higher than previous periods as a prudent response to more volatile financial markets. Given the significant portion of our portfolio held in cash and cash equivalents, we do not anticipate fluctuations in the aggregate fair value of our financial assets to have a material impact on our liquidity or capital position. Our available-for-sale debt portfolio had a weighted-average duration of 3.33.5 years and a weighted-average credit rating of “Double A” as of September 30, 2019.March 31, 2020. When multiple credit ratings are available for an individual security, the average of the available ratings is used to determine the weighted-average credit rating.
Capital Resources and Uses of Liquidity
In addition to cash flows from operations and cash and cash equivalent balances available for general corporate use, our capital resources and uses of liquidity are as follows:
Commercial Paper and Bank Credit Facilities. Our revolving bank credit facilities provide liquidity support for our commercial paper borrowing program, which facilitates the private placement of unsecured debt through third-partyindependent broker-dealers, and are available for general corporate purposes. For more information on our commercial paper and bank credit facilities, see Note 5 of Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this report.
Our revolving bank credit facilities contain various covenants, including covenants requiring us to maintain a defined debt to debt-plus-shareholders’ equity ratio of not more than 60%. As of September 30, 2019,March 31, 2020, our debt to debt-plus-shareholders’ equity ratio, as defined and calculated under the credit facilities, was approximately 41%44%.

Long-Term Debt. Periodically, we access capital markets and issue long-term debt for general corporate purposes, such as, to meet our working capital requirements, to refinance debt, to finance acquisitions or for share repurchases. For more information on our long-term debt, see Note 5 of Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this report.
Credit Ratings. Our credit ratings as of September 30, 2019March 31, 2020 were as follows:
  
Moody’s S&P Global Fitch A.M. Best
 Ratings Outlook Ratings Outlook Ratings Outlook Ratings Outlook
Senior unsecured debtA3 Stable A+ Stable A-A Stable A- StablePositive
Commercial paperP-2 n/a A-1 n/a F1 n/a AMB-1 n/a
The availability of financing in the form of debt or equity is influenced by many factors, including our profitability, operating cash flows, debt levels, credit ratings, debt covenants and other contractual restrictions, regulatory requirements and economic and market conditions. For example, aconditions, including the impacts of COVID-19 and related governmental market stabilization programs. A significant downgrade in our credit ratings or adverse conditions in the capital markets may increase the cost of borrowing for us or limit our access to capital.
Share Repurchase Program. During the ninethree months ended September 30, 2019,March 31, 2020, we repurchased 216 million shares at an average price of $245.18$271.32 per share. As of September 30, 2019,March 31, 2020, we had Board authorization to purchase up to 7466 million shares of our common stock.
Dividends. In June 2019, our Board increased ourOur quarterly cash dividend to shareholders toreflects an annual dividend rate of $4.32 per share. For more information on our dividend, see Note 6 of Notes to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this report.
For additional liquidity discussion, see Note 10 of Notes to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 in our 20182019 10-K.
CONTRACTUAL OBLIGATIONS AND COMMITMENTS
A summary of future obligations under our various contractual obligations and commitments as of December 31, 20182019 was disclosed in our 20182019 10-K. During the ninethree months ended September 30, 2019,March 31, 2020, there were no material changes to this previously disclosed information outside the ordinary course of business. However, we continually evaluate opportunities to expand our operations, including through internal development of new products, programs and technology applications and acquisitions.
RECENTLY ISSUED ACCOUNTING STANDARDS
See Note 1 of Notes to the Condensed Consolidated Financial Statements in Part I, Item 1 of this report for a discussion of new accounting pronouncements that affect us.
CRITICAL ACCOUNTING ESTIMATES
In preparing our Condensed Consolidated Financial Statements, we are required to make judgments, assumptions and estimates, which we believe are reasonable and prudent based on the available facts and circumstances. These judgments, assumptions and estimates affect certain of our revenues and expenses and their related balance sheet accounts and disclosure of our contingent liabilities. We base our assumptions and estimates primarily on historical experience and consider known and projected trends. On an ongoing basis, we re-evaluate our selection of assumptions and the method of calculating our estimates. Actual results, however, may materially differ from our calculated estimates, and this difference would be reported in our current operations.
Our critical accounting estimates include medical costs payable and goodwill. For a detailed description of our critical accounting estimates, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 in our 20182019 10-K. For a detailed discussion of our significant accounting policies, see Note 2 of Notes to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data” in our 20182019 10-K.

FORWARD-LOOKING STATEMENTS
The statements, estimates, projections, guidance or outlook contained in this document include “forward-looking” statements which are intended to take advantage of the “safe harbor” provisions of the federal securities law. The words “believe,”

“expect, “expect,” “intend,” “estimate,” “anticipate,” “forecast,” “outlook,” “plan,” “project,” “should” and similar expressions identify forward-looking statements. These statements may contain information about financial prospects, economic conditions and trends and involve risks and uncertainties.
Actual results could differ materially from those that management expects, depending on the outcome of certain factors including: risks associated with public health crises, large-scale medical emergencies and pandemics, such as the COVID-19 pandemic; our ability to effectively estimate, price for and manage medical costs; new or changes in existing health care laws or regulations, or their enforcement or application; the DOJ’s legal action relating to the risk adjustment submission matter; our ability to maintain and achieve improvement in quality scores impacting revenue; reductions in revenue or delays to cash flows received under government programs; changes in Medicare, the CMS star ratings program or the application of risk adjustment data validation audits; failure to maintain effective and efficient information systems or if our technology products do not operate as intended; cyber-attacks, other privacy/data security incidents, or our failure to comply with related regulations; risks and uncertainties associated with the pharmacy benefits management industry; competitive pressures; changes in or challenges to our public sector contract awards; our ability to contract on competitive terms with physicians, hospitals and other service providers; failure to achieve targeted operating cost productivity improvements; increases in costs and other liabilities associated with litigation, government investigations, audits or reviews; failure to manage successfully our strategic alliances or complete or receive anticipated benefits of strategic transactions; fluctuations in foreign currency exchange rates; downgrades in our credit ratings; our investment portfolio performance; impairment of our goodwill and intangible assets; failure to maintain effective and efficient information systems or if our technology products do not operate as intended; and our ability to obtain sufficient funds from our regulated subsidiaries or from external financings to fund our obligations, maintain our debt to total capital ratio at targeted levels, maintain our quarterly dividend payment cycle, or continue repurchasing shares of our common stock.
This above list is not exhaustive. We discuss these matters, and certain risks that may affect our business operations, financial condition and results of operations more fully in our filings with the SEC, including our reports on Forms 10-K, 10-Q and 8-K. By their nature, forward-looking statements are not guarantees of future performance or results and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Actual results may vary materially from expectations expressed or implied in this document or any of our prior communications. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking statements, except as required by law.
ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We manage exposure to market interest rates by diversifying investments across different fixed-income market sectors and debt across maturities, as well as by endeavoring to match our floating-rate assets and liabilities over time, either directly or through the use of interest rate swap contracts. Unrealized gains and losses on investments in available-for-sale debt securities are reported in comprehensive income.
The following table summarizes the impact of hypothetical changes in market interest rates across the entire yield curve by 1% point or 2% points as of September 30, 2019March 31, 2020 on our investment income and interest expense per annum, and the fair value of our investments and debt (in millions, except percentages):
 September 30, 2019 March 31, 2020
Increase (Decrease) in Market Interest Rate 
Investment
Income Per
Annum
 
Interest
Expense Per
Annum
 Fair Value of
Financial Assets
 
Fair Value of
Financial Liabilities
 
Investment
Income Per
Annum (a)
 
Interest
Expense Per
Annum (a)
 Fair Value of
Financial Assets (b)
 
Fair Value of
Financial Liabilities
2 % $310
 $268
 $(2,607) $(6,824) $491
 $404
 $(2,514) $(6,673)
1 155
 134
 (1,293) (3,709) 246
 202
 (1,250) (3,628)
(1) (155) (134) 1,227
 4,440
 (160) (202) 784
 3,735
(2) (310) (268) 1,954
 9,440
 (160) (267) 877
 4,694

(a)Given the low absolute level of short-term market rates on our floating-rate assets and liabilities as of March 31, 2020, the assumed hypothetical change in interest rates does not reflect the full 100 and 200 basis point reduction in interest income or the full 200 basis point reduction in interest expense, as the rate cannot fall below zero.

(b)As of March 31, 2020, some of our investments had interest rates below 2% so the assumed hypothetical change in the fair value of investments does not reflect the full 100 and 200 basis point reduction.

ITEM 4.    CONTROLS AND PROCEDURES
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
We maintain disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (Exchange Act) that are designed to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in SEC rules and forms; and (ii) accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

In connection with the filing of this quarterly report on Form 10-Q, management evaluated, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2019.March 31, 2020. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of September 30, 2019.March 31, 2020.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
There have been no changes in our internal control over financial reporting during the quarter ended September 30, 2019March 31, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
ITEM 1.LEGAL PROCEEDINGS
A description of our legal proceedings is included in and incorporated by reference to Note 76 of Notes to the Condensed Consolidated Financial Statements contained in Part I, Item 1 of this report.
ITEM 1A.    RISK FACTORS
In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors” of our 20182019 10-K, which could materially affect our business, financial condition or future results. The risks described in our 20182019 10-K and in this Item 1A, are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results.
There have been no other material changes to the risk factors disclosed in our 2018 10-K.2019 10-K except that we have added the following risk factor to provide details on our risks associated with COVID-19:
We are subject to risks associated with public health crises, large-scale medical emergencies and pandemics, such as the COVID-19 pandemic, which could have a material adverse effect on our business, results of operations, financial condition and financial performance.
The rapidly developing COVID-19 global health crisis is having major impacts on health systems, businesses, governments and customer and consumer activities. UnitedHealth Group continues to mobilize the full strength of its resources to deliver the best care for patients, support for its members and care provider partners, and deliver innovative solutions and support for the communities we serve and the entire health system. The impact to our business is primarily dependent upon the ultimate pacing, intensity and duration of the crisis, factors which we cannot predict at this time. These factors will drive the related treatment, testing, coverage and other services we provide for the people we serve. The health system has recently experienced deferrals of elective care, which impacts both the UnitedHealthcare and Optum businesses through decreased utilization of health care services. As the crisis abates, we may experience an increase in medical care costs as people seek care which was deferred during the pandemic and individuals with chronic conditions may require additional care needs resulting from missed treatments. There can be no assurance that the premiums and fees we charge will be sufficient to cover the medical and administrative costs associated with COVID-19. In addition, we may experience reduced demand for certain services Optum provides to care providers and health plans as a result of reduced clinical and claims activity and changes in business priorities resulting from COVID-19. We cannot at this time measure the impact or duration of changing customer, consumer and member behavior to our overall business.
Governmental policies and initiatives to address COVID-19 have resulted in our customers having to close or severely curtail their operations. Among other impacts, we may experience loss of commercial membership due to customer reductions in workforce and an adverse impact on the timing and collectability of premium payments. In addition, governments have modified, and may continue to modify, regulatory standards around various aspects of health care in response to COVID-19,

and these rapidly changing standards may create challenges for us to ensure timely compliance and meet various contractual obligations.
Disruptions in public and private infrastructure, including supply chains providing medical supplies and pharmaceutical products, could adversely disrupt our business operations. Additionally, the enactment of emergency powers by governments could disrupt our business operations, including restricting pharmaceuticals or other supplies, and could increase the risk of shortages of necessary items.
We have transitioned a significant number of our team members to at-home work environments in an effort to mitigate the spread of COVID-19. This transition may increase our operating costs and effectiveness, including our ability to maintain service levels and ratings, and exacerbate certain risks to our business, including demand for information technology resources, increased vulnerabilities to cybersecurity attacks, and increased risk of unauthorized dissemination of sensitive personal information or proprietary or confidential information about us, our customers or our members.
The COVID-19 crisis has also adversely impacted global access to capital and caused significant volatility in financial markets. Significant deterioration of the U.S. and global economies could have a significant adverse impact on our investment income, the value of our investments, or future liquidity needs.
Because of the unknown pacing, intensity and duration of this pandemic, we cannot predict the impact of its ultimate disruption to business activities, its employment and economic effects, its near and long-term impacts on the patterns of care and services across the healthcare system, or the ultimate resulting impact on our business, results of operations, financial position or cash flows.
ITEM 2.UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS
In November 1997, our Board of Directors adopted a share repurchase program, which the Board evaluates periodically. There is no established expiration date for the program. During the thirdfirst quarter 2019,2020, we repurchased approximately 36 million shares at an average price of $233.38$271.32 per share. As of September 30, 2019,March 31, 2020, we had Board authorization to purchase up to 7466 million shares of our common stock.

ITEM 6.EXHIBITS*
The following exhibits are filed or incorporated by reference herein in response to Item 601 of Regulation S-K. The Company files Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K pursuant to the Securities Exchange Act of 1934 under Commission File No. 1-10864.

 

 

 

 

 

 


 

 
101.INS
 XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH
 Inline XBRL Taxonomy Extension Schema Document.
101.CAL
 Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF
 Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB
 Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE
 Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104
 Cover Page Interactive Data File (formatted as Inline XBRL and embedded within Exhibit 101).
 ________________
* Pursuant to Item 601(b)(4)(iii) of Regulation S-K, copies of instruments defining the rights of certain holders of long-term debt are not filed. The Company will furnish copies thereof to the SEC upon request.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
UNITEDHEALTH GROUP INCORPORATED
 
/s/ DAVID S. WICHMANN
 Chief Executive Officer
(principal executive officer)
Dated:NovemberMay 6, 20192020
David S. Wichmann    
   
/s/ JOHN F. REX
 
Executive Vice President and
Chief Financial Officer
(principal financial officer)
Dated:NovemberMay 6, 20192020
John F. Rex    
   
/s/    THOMAS E. ROOS
 
Senior Vice President and
Chief Accounting Officer
(principal accounting officer)
Dated:NovemberMay 6, 20192020
Thomas E. Roos    


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