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 ~~June 30, 2020~~March 31, 2021


☐			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

__________________________________________________________

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~~New York Stock Exchange

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 ~~July~~April 30, ~~2020,~~2021, there were ~~950,335,762~~943,702,120 shares of the registrant’s Common Stock, $.01 par value per share, issued and outstanding.

UNITEDHEALTH GROUP

Table of Contents


				Page							Page

Part I. Financial Information	Part I. Financial Information									Part I. Financial Information
Item 1.	Item 1.		Financial Statements (unaudited)			1		Item 1.			Financial Statements (unaudited)		1
		Condensed Consolidated Balance Sheets as of June 3 0 , 2020 and December 31, 2019			1
		Condensed Consolidated Statements of Operations for the Thre e and Six M onths Ended June 3 0 , 2020 and 2019			2				Condensed Consolidated Balance Sheets as of March 31 , 202 1 and December 31, 2020			1
		Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 3 0 , 2020 and 2019			3				Condensed Consolidated Statements of Operations for the Three Months Ended March 31 , 202 1 and 2020			2
		Condensed Consolidated Statements of Changes in Equity for the Three a nd Six Months Ended June 3 0 , 2020 and 2019			4				Condensed Consolidated Statements of Comprehensive Income for the Three Months End ed March 31 , 202 1 and 2020			3
		Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 3 0 , 2020 and 2019			6				Condensed Consolidated Statements of Changes in Equity for the Three Months Ended March 31 , 202 1 and 2020			4
		Notes to the Condensed Consolidated Financial Statements			7				Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020			5
		1.	Basis of Presentation	7			Notes to the Condensed Consolidated Financial Statements				6
		2.	Investments	8			1.		Basis of Presentation		6
		3.	Fair Value	10			2.		Investments		7
		4.	Medical Costs Payable	11			3.		Fair Value		9
		5.	Short-Term Borrowings and Long-Term Debt	12			4.		Medical Costs Payable		10
		6.	Dividends	13			5.		Short-Term Borrowings and Long-Term Debt		11
		7.	Commitments and Contingencies	13			6 .		Commitments and Contingencies		12
		8.	Segment Financial Information	14			7 .		Segment Financial Information		13
Item 2.	Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations			16		Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations		14
Item 3.	Item 3.		Quantitative and Qualitative Disclosures About Market Risk			25		Item 3.			Quantitative and Qualitative Disclosures About Market Risk		22
Item 4.	Item 4.		Controls and Procedures			25		Item 4.			Controls and Procedures		23
Part II. Other Information	Part II. Other Information									Part II. Other Information
Item 1.	Item 1.		Legal Proceedings			25		Item 1.			Legal Proceedings		23
Item 1A.	Item 1A.		Risk Factors			26		Item 1A.			Risk Factors		23
Item 2.	Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds			26		Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds		23
Item 6.	Item 6.		Exhibits			27		Item 6.			Exhibits		24
Signatures	Signatures							28		Signatures				25

PART I

ITEM 1. FINANCIAL STATEMENTS

UnitedHealth Group

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions, except per share data)	(in millions, except per share data)	June 30, 2020		December 31, 2019		(in millions, except per share data)	March 31, 2021		December 31, 2020
Assets	Assets					Assets
Current assets:	Current assets:					Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	22,327	$	10,985	Cash and cash equivalents	$	19,955	$	16,921
Short-term investments	Short-term investments	3,266		3,260		Short-term investments	2,962		2,860
Accounts receivable, net	Accounts receivable, net	12,546		11,822		Accounts receivable, net	15,980		12,870
Other current receivables, net	Other current receivables, net	11,430		9,640		Other current receivables, net	11,546		12,534
Assets under management	Assets under management	3,417		3,076		Assets under management	4,094		4,076
Prepaid expenses and other current assets	Prepaid expenses and other current assets	5,932		3,851		Prepaid expenses and other current assets	4,971		4,457
Total current assets	Total current assets	58,918		42,634		Total current assets	59,508		53,718
Long-term investments	Long-term investments	36,778		37,209		Long-term investments	42,406		41,242
Property, equipment and capitalized software, net	Property, equipment and capitalized software, net	8,126		8,704		Property, equipment and capitalized software, net	8,496		8,626
Goodwill	Goodwill	67,872		65,659		Goodwill	72,162		71,337
Other intangible assets, net	Other intangible assets, net	10,552		10,349		Other intangible assets, net	10,842		10,856
Other assets	Other assets	10,237		9,334		Other assets	11,757		11,510
Total assets	Total assets	$	192,483	$	173,889	Total assets	$	205,171	$	197,289
Liabilities, redeemable noncontrolling interests and equity	Liabilities, redeemable noncontrolling interests and equity					Liabilities, redeemable noncontrolling interests and equity
Current liabilities:	Current liabilities:					Current liabilities:
Medical costs payable	Medical costs payable	$	19,200	$	21,690	Medical costs payable	$	24,833	$	21,872
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	25,423		19,005		Accounts payable and accrued liabilities	22,997		22,495
Short-term borrowings and current maturities of long-term debt	Short-term borrowings and current maturities of long-term debt	6,156		3,870		Short-term borrowings and current maturities of long-term debt	8,838		4,819
Unearned revenues	Unearned revenues	2,299		2,622		Unearned revenues	2,612		2,842
Other current liabilities	Other current liabilities	16,805		14,595		Other current liabilities	21,361		20,392
Total current liabilities	Total current liabilities	69,883		61,782		Total current liabilities	80,641		72,420
Long-term debt, less current maturities	Long-term debt, less current maturities	39,901		36,808		Long-term debt, less current maturities	37,420		38,648
Deferred income taxes	Deferred income taxes	3,286		2,993		Deferred income taxes	3,602		3,367
Other liabilities	Other liabilities	11,056		10,144		Other liabilities	12,926		12,315
Total liabilities	Total liabilities	124,126		111,727		Total liabilities	134,589		126,750
Commitments and contingencies (Note 7)
Commitments and contingencies (Note 6)						Commitments and contingencies (Note 6)	0		0
Redeemable noncontrolling interests	Redeemable noncontrolling interests	1,842		1,726		Redeemable noncontrolling interests	1,269		2,211
Equity:	Equity:					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; 950 and 948 issued and outstanding		10		9
Preferred stock, $0.001 par value - 10 shares authorized; 0 shares issued or outstanding						Preferred stock, $0.001 par value - 10 shares authorized; 0 shares issued or outstanding	0		0
Common stock, $0.01 par value - 3,000 shares authorized; 944 and 946 issued and outstanding						Common stock, $0.01 par value - 3,000 shares authorized; 944 and 946 issued and outstanding	10		10
Additional paid-in capital	Additional paid-in capital	388		7		Additional paid-in capital	0		0
Retained earnings	Retained earnings	67,776		61,178		Retained earnings	71,220		69,295
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(4,550)		(3,578)		Accumulated other comprehensive loss	(4,826)		(3,814)
Nonredeemable noncontrolling interests	Nonredeemable noncontrolling interests	2,891		2,820		Nonredeemable noncontrolling interests	2,909		2,837
Total equity	Total equity	66,515		60,436		Total equity	69,313		68,328
Total liabilities, redeemable noncontrolling interests and equity	Total liabilities, redeemable noncontrolling interests and equity	$	192,483	$	173,889	Total liabilities, redeemable noncontrolling interests and equity	$	205,171	$	197,289

See Notes to the Condensed Consolidated Financial Statements

Table of Contents

UnitedHealth Group

Condensed Consolidated Statements of Operations

(Unaudited)


		Three Months Ended June 30,						Six Months Ended June 30,							Three Months Ended March 31,
(in millions, except per share data)	(in millions, except per share data)	2020		2019		2020		2019		(in millions, except per share data)	2021		2020
Revenues:	Revenues:									Revenues:
Premiums	Premiums	$	49,394	$	47,164	$	100,034	$	94,677	Premiums	$	55,486	$	50,640
Products	Products	8,247		8,353		16,678		16,425		Products	8,340		8,431
Services	Services	4,156		4,496		9,141		8,814		Services	5,918		4,985
Investment and other income	Investment and other income	341		582		706		987		Investment and other income	452		365
Total revenues	Total revenues	62,138		60,595		126,559		120,903		Total revenues	70,196		64,421
Operating costs:	Operating costs:									Operating costs:
Medical costs	Medical costs	34,678		39,184		75,678		78,123		Medical costs	44,904		41,000
Operating costs	Operating costs	10,001		8,415		20,016		16,932		Operating costs	10,223		10,015
Cost of products sold	Cost of products sold	7,501		7,598		15,188		14,979		Cost of products sold	7,572		7,687
Depreciation and amortization	Depreciation and amortization	717		654		1,440		1,293		Depreciation and amortization	758		723
Total operating costs	Total operating costs	52,897		55,851		112,322		111,327		Total operating costs	63,457		59,425
Earnings from operations	Earnings from operations	9,241		4,744		14,237		9,576		Earnings from operations	6,739		4,996
Interest expense	Interest expense	(430)		(418)		(867)		(818)		Interest expense	(397)		(437)
Earnings before income taxes	Earnings before income taxes	8,811		4,326		13,370		8,758		Earnings before income taxes	6,342		4,559
Provision for income taxes	Provision for income taxes	(2,115)		(941)		(3,209)		(1,816)		Provision for income taxes	(1,364)		(1,094)
Net earnings	Net earnings	6,696		3,385		10,161		6,942		Net earnings	4,978		3,465
Earnings attributable to noncontrolling interests	Earnings attributable to noncontrolling interests	(59)		(92)		(142)		(182)		Earnings attributable to noncontrolling interests	(116)		(83)
Net earnings attributable to UnitedHealth Group common shareholders	Net earnings attributable to UnitedHealth Group common shareholders	6,637		3,293		$	10,019	$	6,760	Net earnings attributable to UnitedHealth Group common shareholders	$	4,862	$	3,382
Earnings per share attributable to UnitedHealth Group common shareholders:	Earnings per share attributable to UnitedHealth Group common shareholders:									Earnings per share attributable to UnitedHealth Group common shareholders:
Basic	Basic	$	6.99	$	3.47	$	10.56	$	7.09	Basic	$	5.14	$	3.56
Diluted	Diluted	$	6.91	$	3.42	$	10.43	$	6.97	Diluted	$	5.08	$	3.52
Basic weighted-average number of common shares outstanding	Basic weighted-average number of common shares outstanding	949		950		949		954		Basic weighted-average number of common shares outstanding	945		949
Dilutive effect of common share equivalents	Dilutive effect of common share equivalents	11		14		12		16		Dilutive effect of common share equivalents	12		13
Diluted weighted-average number of common shares outstanding	Diluted weighted-average number of common shares outstanding	960		964		961		970		Diluted weighted-average number of common shares outstanding	957		962
Anti-dilutive shares excluded from the calculation of dilutive effect of common share equivalents	Anti-dilutive shares excluded from the calculation of dilutive effect of common share equivalents	11		11		11		9		Anti-dilutive shares excluded from the calculation of dilutive effect of common share equivalents	3		10

See Notes to the Condensed Consolidated Financial Statements

Table of Contents

UnitedHealth Group

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


		Three Months Ended June 30,						Six Months Ended June 30,							Three Months Ended March 31,
(in millions)	(in millions)	2020		2019		2020		2019		(in millions)	2021		2020
Net earnings	Net earnings	$	6,696	$	3,385	$	10,161	$	6,942	Net earnings	$	4,978	$	3,465
Other comprehensive income (loss):
Gross unrealized gains on investment securities during the period		1,120		493		771		1,013
Other comprehensive loss:										Other comprehensive loss:
Gross unrealized losses on investment securities during the period										Gross unrealized losses on investment securities during the period	(764)		(349)
Income tax effect	Income tax effect	(257)		(113)		(177)		(232)		Income tax effect	174		80
Total unrealized gains, net of tax		863		380		594		781
Total unrealized losses, net of tax										Total unrealized losses, net of tax	(590)		(269)
Gross reclassification adjustment for net realized gains included in net earnings	Gross reclassification adjustment for net realized gains included in net earnings	(11)		(5)		(29)		(1)		Gross reclassification adjustment for net realized gains included in net earnings	(7)		(18)
Income tax effect	Income tax effect	3		1		7		—		Income tax effect	2		4
Total reclassification adjustment, net of tax	Total reclassification adjustment, net of tax	(8)		(4)		(22)		(1)		Total reclassification adjustment, net of tax	(5)		(14)
Total foreign currency translation (losses) gains		(45)		109		(1,544)		107
Other comprehensive income (loss)		810		485		(972)		887
Total foreign currency translation losses										Total foreign currency translation losses	(417)		(1,499)
Other comprehensive loss										Other comprehensive loss	(1,012)		(1,782)
Comprehensive income	Comprehensive income	7,506		3,870		9,189		7,829		Comprehensive income	3,966		1,683
Comprehensive income attributable to noncontrolling interests	Comprehensive income attributable to noncontrolling interests	(59)		(92)		(142)		(182)		Comprehensive income attributable to noncontrolling interests	(116)		(83)
Comprehensive income attributable to UnitedHealth Group common shareholders	Comprehensive income attributable to UnitedHealth Group common shareholders	$	7,447	$	3,778	$	9,047	$	7,647	Comprehensive income attributable to UnitedHealth Group common shareholders	$	3,850	$	1,600

See Notes to the Condensed Consolidated Financial Statements

Table of Contents

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			Common Stock							Additional Paid-In Capital				Retained Earnings		Accumulated Other Comprehensive Income (Loss)					Nonredeemable Noncontrolling Interests	Total Equity
Three months ended June 30,		Shares	Amount								Net Unrealized Gains on Investments		Foreign Currency Translation (Losses) Gains
Balance at March 31, 2020		947	$	10	$	—	$	62,327	$	306	$	(5,666)	$	2,886	$	59,863
Three months ended March 31, (in millions)																	Three months ended March 31, (in millions)		Shares		Amount		Additional Paid-In Capital			Retained Earnings						Net Unrealized Gains (losses) on Investments				Foreign Currency Translation Losses		Nonredeemable Noncontrolling Interests			Total Equity
Balance at January 1, 2021																	Balance at January 1, 2021		946		$	10						$	1,336			$	(5,150)
Net earnings	Net earnings						6,637						38		6,675		Net earnings									4,862										80		4,942
Other comprehensive income (loss)									855		(45)				810
Other comprehensive loss																	Other comprehensive loss													(595)				(417)				(1,012)
Issuances of common stock, and related tax effects	Issuances of common stock, and related tax effects	3	—		287										287		Issuances of common stock, and related tax effects		3		0				256															256
Share-based compensation	Share-based compensation				144										144		Share-based compensation						242															242
Common share repurchases	Common share repurchases	—	—		—		—								—		Common share repurchases		(5)		0		0			(1,650)												(1,650)
Cash dividends paid on common shares ($1.25 per share)	Cash dividends paid on common shares ($1.25 per share)						(1,188)								(1,188)		Cash dividends paid on common shares ($1.25 per share)									(1,181)												(1,181)
Redeemable noncontrolling interests fair value and other adjustments	Redeemable noncontrolling interests fair value and other adjustments				(43)										(43)		Redeemable noncontrolling interests fair value and other adjustments						(498)			(106)												(604)
Acquisition and other adjustments of nonredeemable noncontrolling interests																	Acquisition and other adjustments of nonredeemable noncontrolling interests																			66		66
Distribution to nonredeemable noncontrolling interests	Distribution to nonredeemable noncontrolling interests												(33)		(33)		Distribution to nonredeemable noncontrolling interests																			(74)		(74)
Balance at June 30, 2020		950	$	10	$	388	$	67,776	$	1,161	$	(5,711)	$	2,891	$	66,515
Balance at March 31, 2021																	Balance at March 31, 2021		944		$	10	$	0		$	71,220			$	741			$	(5,567)	$	2,909	$	69,313

Balance at March 31, 2019		953	$	10	$	—	$	55,472	$	140	$	(3,898)	$	2,727	$	54,451
Balance at January 1, 2020																	Balance at January 1, 2020		948		$	9	$	7		$	61,178			$	589			$	(4,167)	$	2,820	$	60,436
Adjustment to adopt ASU 2016-13																	Adjustment to adopt ASU 2016-13									(28)												(28)
Net earnings	Net earnings						3,293						54		3,347		Net earnings									3,382										59		3,441
Other comprehensive income									376		109				485
Other comprehensive loss																	Other comprehensive loss													(283)				(1,499)				(1,782)
Issuances of common stock, and related tax effects	Issuances of common stock, and related tax effects	1	—		105										105		Issuances of common stock, and related tax effects		5		1		320															321
Share-based compensation	Share-based compensation				152										152		Share-based compensation						234															234
Common share repurchases	Common share repurchases	(6)	(1)		(124)		(1,374)								(1,499)		Common share repurchases		(6)		0		(510)			(1,181)												(1,691)
Cash dividends paid on common shares ($1.08 per share)	Cash dividends paid on common shares ($1.08 per share)						(1,024)								(1,024)		Cash dividends paid on common shares ($1.08 per share)									(1,024)												(1,024)
Redeemable noncontrolling interests fair value and other adjustments	Redeemable noncontrolling interests fair value and other adjustments				(133)										(133)		Redeemable noncontrolling interests fair value and other adjustments						(51)															(51)
Acquisition and other adjustments of nonredeemable noncontrolling interests	Acquisition and other adjustments of nonredeemable noncontrolling interests												32		32		Acquisition and other adjustments of nonredeemable noncontrolling interests																			50		50
Distribution to nonredeemable noncontrolling interests	Distribution to nonredeemable noncontrolling interests												(62)		(62)		Distribution to nonredeemable noncontrolling interests																			(43)		(43)
Balance at June 30, 2019		948	$	9	$	—	$	56,367	$	516	$	(3,789)	$	2,751	$	55,854
Balance at March 31, 2020																	Balance at March 31, 2020		947		$	10	$	0		$	62,327			$	306			$	(5,666)	$	2,886	$	59,863

See Notes to the Condensed Consolidated Financial Statements

~~Table of Contents~~

~~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
Six months ended June 30, Shares Amount Net Unrealized Gains (Losses) on Investments Foreign Currency Translation (Losses) Gains
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 10,019 97 10,116
Other comprehensive income (loss) 572 (1,544) (972)
Issuances of common stock, and related tax effects 8 1 607 608
Share-based compensation 378 378
Common share repurchases (6) — (510) (1,181) (1,691)
Cash dividends paid on common shares ($2.33 per share) (2,212) (2,212)
Redeemable noncontrolling interests fair value and other adjustments (94) (94)
Acquisition and other adjustments of nonredeemable noncontrolling interests 50 50
Distribution to nonredeemable noncontrolling interests (76) (76)
Balance at June 30, 2020 950 $ 10 $ 388 $ 67,776 $ 1,161 $ (5,711) $ 2,891 $ 66,515
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 6,760 114 6,874
Other comprehensive income 780 107 887
Issuances of common stock, and related tax effects 6 — 161 161
Share-based compensation 391 391
Common share repurchases (18) (1) (158) (4,342) (4,501)
Cash dividends paid on common shares ($1.98 per share) (1,884) (1,884)
Redeemable noncontrolling interests fair value and other adjustments (285) (285)
Acquisition and other adjustments of nonredeemable noncontrolling interests (109) 164 55
Distribution to nonredeemable noncontrolling interests (145) (145)
Balance at June 30, 2019 948 $ 9 $ — $ 56,367 $ 516 $ (3,789) $ 2,751 $ 55,854

~~See~~ ~~Notes to the Condensed Consolidated Financial Statements~~

Table of Contents

UnitedHealth Group

Condensed Consolidated Statements of Cash Flows

(Unaudited)


		Six Months Ended June 30,							Three Months Ended March 31,
(in millions)	(in millions)	2020		2019		(in millions)	2021		2020
Operating activities	Operating activities					Operating activities
Net earnings	Net earnings	$	10,161	$	6,942	Net earnings	$	4,978	$	3,465
Noncash items:	Noncash items:					Noncash items:
Depreciation and amortization	Depreciation and amortization	1,440		1,293		Depreciation and amortization	758		723
Deferred income taxes	Deferred income taxes	114		195		Deferred income taxes	341		202
Share-based compensation	Share-based compensation	388		398		Share-based compensation	256		231
Other, net	Other, net	124		(127)		Other, net	(55)		45
Net change in other operating items, net of effects from acquisitions and changes in AARP balances:	Net change in other operating items, net of effects from acquisitions and changes in AARP balances:					Net change in other operating items, net of effects from acquisitions and changes in AARP balances:
Accounts receivable	Accounts receivable	(439)		2,196		Accounts receivable	(2,895)		(2,652)
Other assets	Other assets	(3,784)		(1,774)		Other assets	(955)		(4,249)
Medical costs payable	Medical costs payable	(2,353)		447		Medical costs payable	2,968		1,120
Accounts payable and other liabilities	Accounts payable and other liabilities	7,591		(33)		Accounts payable and other liabilities	870		4,137
Unearned revenues	Unearned revenues	(296)		(429)		Unearned revenues	(261)		(79)
Cash flows from operating activities	Cash flows from operating activities	12,946		9,108		Cash flows from operating activities	6,005		2,943
Investing activities	Investing activities					Investing activities
Purchases of investments	Purchases of investments	(6,412)		(7,649)		Purchases of investments	(4,612)		(3,866)
Sales of investments	Sales of investments	3,548		2,680		Sales of investments	643		2,170
Maturities of investments	Maturities of investments	3,437		3,315		Maturities of investments	2,255		1,726
Cash paid for acquisitions, net of cash assumed	Cash paid for acquisitions, net of cash assumed	(3,952)		(4,751)		Cash paid for acquisitions, net of cash assumed	(1,193)		(929)
Purchases of property, equipment and capitalized software	Purchases of property, equipment and capitalized software	(920)		(977)		Purchases of property, equipment and capitalized software	(568)		(469)
Other, net	Other, net	(186)		504		Other, net	(232)		(165)
Cash flows used for investing activities	Cash flows used for investing activities	(4,485)		(6,878)		Cash flows used for investing activities	(3,707)		(1,533)
Financing activities	Financing activities					Financing activities
Common share repurchases	Common share repurchases	(1,691)		(4,501)		Common share repurchases	(1,650)		(1,691)
Cash dividends paid	Cash dividends paid	(2,212)		(1,884)		Cash dividends paid	(1,181)		(1,024)
Proceeds from common stock issuances	Proceeds from common stock issuances	870		448		Proceeds from common stock issuances	436		557
Repayments of long-term debt	Repayments of long-term debt	—		(1,250)		Repayments of long-term debt	(1,150)		0
Proceeds from short-term borrowings, net	Proceeds from short-term borrowings, net	351		6,924		Proceeds from short-term borrowings, net	4,057		10,797
Proceeds from issuance of long-term debt		4,864		—
Customer funds administered	Customer funds administered	1,263		1,435		Customer funds administered	2,131		1,062
Other, net	Other, net	(421)		(529)		Other, net	(1,856)		(398)
Cash flows from financing activities	Cash flows from financing activities	3,024		643		Cash flows from financing activities	787		9,303
Effect of exchange rate changes on cash and cash equivalents	Effect of exchange rate changes on cash and cash equivalents	(143)		6		Effect of exchange rate changes on cash and cash equivalents	(51)		(129)
Increase in cash and cash equivalents	Increase in cash and cash equivalents	11,342		2,879		Increase in cash and cash equivalents	3,034		10,584
Cash and cash equivalents, beginning of period	Cash and cash equivalents, beginning of period	10,985		10,866		Cash and cash equivalents, beginning of period	16,921		10,985
Cash and cash equivalents, end of period	Cash and cash equivalents, end of period	$	22,327	$	13,745	Cash and cash equivalents, end of period	$	19,955	$	21,569

See Notes to the Condensed Consolidated Financial Statements

Table of Contents

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”) is a diversified health care company ~~dedicated~~with a mission to ~~helping~~help people live healthier lives and ~~helping~~help make the health system work better for everyone.

~~Through its diversified family of businesses,~~ Our two complementary business platforms — Optum and UnitedHealthcare — are driven by this unified mission and vision to improve health care access, affordability, experiences and outcomes for the ~~Company leverages core competencies in data~~individuals and ~~health information; advanced technology; and clinical expertise. These core competencies~~organizations we are ~~deployed within two distinct, but strategically aligned, business platforms: health benefits operating under UnitedHealthcare and health services operating under Optum.~~privileged to serve.

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, ~~2019~~2020 as filed with the SEC ~~(2019~~(2020 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~~relate to estimates and judgments for 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 three and six months ended June 30, 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 June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326)” (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 revises certain disclosure requirements. The Company adopted ASU 2016-13 on January 1, 2020 using a cumulative effect upon adoption approach. The adoption of ASU 2016-13 was immaterial to the Company’s consolidated balance sheet, results of operations, equity and cash flows.

Under the current expected credit loss impairment model, the Company evaluates an available-for-sale debt security for credit-related impairment by considering the present value of expected cash flows relative to a security’s amortized cost, the extent to which fair value is less than amortized cost, the financial condition and near-term prospects of the 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 the Company intends to sell an impaired security, or will likely be required to sell a security before recovery of the entire amortized cost, the entire impairment is included in 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.~~

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2. Investments

A summary of debt securities by major security type is as follows:


(in millions)	(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2020
March 31, 2021										March 31, 2021
Debt securities - available-for-sale:	Debt securities - available-for-sale:									Debt securities - available-for-sale:
U.S. government and agency obligations	U.S. government and agency obligations	$	3,402	$	178	$	—	$	3,580	U.S. government and agency obligations	$	3,372	$	86	$	(26)	$	3,432
State and municipal obligations	State and municipal obligations	5,872		330		(3)		6,199		State and municipal obligations	6,941		345		(22)		7,264
Corporate obligations	Corporate obligations	17,324		728		(68)		17,984		Corporate obligations	20,395		533		(122)		20,806
U.S. agency mortgage-backed securities	U.S. agency mortgage-backed securities	6,005		274		—		6,279		U.S. agency mortgage-backed securities	6,784		185		(48)		6,921
Non-U.S. agency mortgage-backed securities	Non-U.S. agency mortgage-backed securities	1,875		83		(14)		1,944		Non-U.S. agency mortgage-backed securities	2,382		66		(19)		2,429
Total debt securities - available-for-sale	Total debt securities - available-for-sale	34,478		1,593		(85)		35,986		Total debt securities - available-for-sale	39,874		1,215		(237)		40,852
Debt securities - held-to-maturity:	Debt securities - held-to-maturity:									Debt securities - held-to-maturity:
U.S. government and agency obligations	U.S. government and agency obligations	421		8		—		429		U.S. government and agency obligations	418		5		0		423
State and municipal obligations	State and municipal obligations	31		2		—		33		State and municipal obligations	31		2		0		33
Corporate obligations	Corporate obligations	285		—		—		285		Corporate obligations	190		0		0		190
Total debt securities - held-to-maturity	Total debt securities - held-to-maturity	737		10		—		747		Total debt securities - held-to-maturity	639		7		0		646
Total debt securities	Total debt securities	$	35,215	$	1,603	$	(85)	$	36,733	Total debt securities	$	40,513	$	1,222	$	(237)	$	41,498
December 31, 2019
December 31, 2020										December 31, 2020
Debt securities - available-for-sale:	Debt securities - available-for-sale:									Debt securities - available-for-sale:
U.S. government and agency obligations	U.S. government and agency obligations	$	3,502	$	55	$	(4)	$	3,553	U.S. government and agency obligations	$	3,335	$	133	$	(3)	$	3,465
State and municipal obligations	State and municipal obligations	5,680		251		(5)		5,926		State and municipal obligations	6,893		435		0		7,328
Corporate obligations	Corporate obligations	17,910		343		(11)		18,242		Corporate obligations	18,886		863		(12)		19,737
U.S. agency mortgage-backed securities	U.S. agency mortgage-backed securities	6,425		109		(6)		6,528		U.S. agency mortgage-backed securities	6,849		245		(3)		7,091
Non-U.S. agency mortgage-backed securities	Non-U.S. agency mortgage-backed securities	1,811		37		(3)		1,845		Non-U.S. agency mortgage-backed securities	2,116		95		(4)		2,207
Total debt securities - available-for-sale	Total debt securities - available-for-sale	35,328		795		(29)		36,094		Total debt securities - available-for-sale	38,079		1,771		(22)		39,828
Debt securities - held-to-maturity:	Debt securities - held-to-maturity:									Debt securities - held-to-maturity:
U.S. government and agency obligations	U.S. government and agency obligations	402		2		—		404		U.S. government and agency obligations	420		6		0		426
State and municipal obligations	State and municipal obligations	32		2		—		34		State and municipal obligations	31		2		0		33
Corporate obligations	Corporate obligations	538		—		(1)		537		Corporate obligations	187		1		0		188
Total debt securities - held-to-maturity	Total debt securities - held-to-maturity	972		4		(1)		975		Total debt securities - held-to-maturity	638		9		0		647
Total debt securities	Total debt securities	$	36,300	$	799	$	(30)	$	37,069	Total debt securities	$	38,717	$	1,780	$	(22)	$	40,475

The Company held ~~$2.0~~$2.6 billion and $2.3 billion of equity securities as of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019.~~2020, 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 with readily determinable fair values. Additionally, the Company’s investments included ~~$1.4~~$1.3 billion of equity method investments in operating businesses in the health care sector ~~as of June 30, 2020~~for both March 31, 2021 and December 31, ~~2019.~~2020, respectively. The allowance for credit losses on held-to-maturity securities at ~~June 30,~~March 31, 2021 and December 31, 2020 was not material.

Table of Contents

The amortized cost and fair value of debt securities as of ~~June 30, 2020,~~March 31, 2021, by contractual maturity, were as follows:


		Available-for-Sale						Held-to-Maturity							Available-for-Sale				Held-to-Maturity
(in millions)	(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	Due in one year or less	$	3,414	$	3,433	$	429	$	429	Due in one year or less	$	3,037	$	3,053	$	354	$	355
Due after one year through five years	Due after one year through five years	10,974		11,365		255		261		Due after one year through five years	12,571		12,922		238		242
Due after five years through ten years	Due after five years through ten years	8,481		9,083		31		33		Due after five years through ten years	10,945		11,263		25		26
Due after ten years	Due after ten years	3,729		3,882		22		24		Due after ten years	4,155		4,264		22		23
U.S. agency mortgage-backed securities	U.S. agency mortgage-backed securities	6,005		6,279		—		—		U.S. agency mortgage-backed securities	6,784		6,921		—		—
Non-U.S. agency mortgage-backed securities	Non-U.S. agency mortgage-backed securities	1,875		1,944		—		—		Non-U.S. agency mortgage-backed securities	2,382		2,429		—		—
Total debt securities	Total debt securities	$	34,478	$	35,986	$	737	$	747	Total debt securities	$	39,874	$	40,852	$	639	$	646

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)	(in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		(in millions)		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
June 30, 2020
Debt securities - available-for-sale:
State and municipal obligations		$	284	$	(3)	$	—	$	—	$	284	$	(3)
Corporate obligations		1,908		(58)		375		(10)		2,283		(68)
Non-U.S. agency mortgage-backed securities		249		(12)		42		(2)		291		(14)
Total debt securities - available-for-sale		$	2,441	$	(73)	$	417	$	(12)	$	2,858	$	(85)
December 31, 2019
March 31, 2021														March 31, 2021
Debt securities - available-for-sale:	Debt securities - available-for-sale:													Debt securities - available-for-sale:
U.S. government and agency obligations	U.S. government and agency obligations	$	616	$	(4)	$	—	$	—	$	616	$	(4)	U.S. government and agency obligations		$	924	$	(26)	$	0	$	0	$	924	$	(26)
State and municipal obligations	State and municipal obligations	440		(5)		—		—		440		(5)		State and municipal obligations		1,141		(22)		3		0		1,144		(22)
Corporate obligations	Corporate obligations	1,903		(7)		740		(4)		2,643		(11)		Corporate obligations		5,266		(120)		367		(2)		5,633		(122)
U.S. agency mortgage-backed securities	U.S. agency mortgage-backed securities	657		(3)		333		(3)		990		(6)		U.S. agency mortgage-backed securities		2,552		(48)		1		0		2,553		(48)
Non-U.S. agency mortgage-backed securities	Non-U.S. agency mortgage-backed securities	406		(3)		—		—		406		(3)		Non-U.S. agency mortgage-backed securities		650		(17)		77		(2)		727		(19)
Total debt securities - available-for-sale	Total debt securities - available-for-sale	$	4,022	$	(22)	$	1,073	$	(7)	$	5,095	$	(29)	Total debt securities - available-for-sale		$	10,533	$	(233)	$	448	$	(4)	$	10,981	$	(237)
December 31, 2020														December 31, 2020
Debt securities - available-for-sale:														Debt securities - available-for-sale:
U.S. government and agency obligations														U.S. government and agency obligations		$	346	$	(3)	$	0	$	0	$	346	$	(3)
Corporate obligations														Corporate obligations		1,273		(9)		456		(3)		1,729		(12)
U.S. agency mortgage-backed securities														U.S. agency mortgage-backed securities		601		(3)		0		0		601		(3)
Non-U.S. agency mortgage-backed securities														Non-U.S. agency mortgage-backed securities		195		(1)		93		(3)		288		(4)
Total debt securities - available-for-sale														Total debt securities - available-for-sale		$	2,415	$	(16)	$	549	$	(6)	$	2,964	$	(22)

The Company’s unrealized losses from debt securities as of ~~June 30, 2020~~March 31, 2021 were generated from approximately ~~3,000~~8,000 positions out of a total of ~~31,000~~37,000 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 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 ~~June 30, 2020,~~March 31, 2021, 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 ~~June 30,~~March 31, 2021 and December 31, 2020 was not material.

Table of Contents

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 ~~2019~~2020 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)	(in millions)	Quoted Prices in Active Markets (Level 1)			Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)			Total Fair and Carrying Value			(in millions)	Quoted Prices in Active Markets (Level 1)			Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)			Total Fair and Carrying Value
June 30, 2020
March 31, 2021														March 31, 2021
Cash and cash equivalents	Cash and cash equivalents	$	22,215		$	112		$	—		$	22,327		Cash and cash equivalents	$	19,880		$	75		$	0		$	19,955
Debt securities - available-for-sale:	Debt securities - available-for-sale:													Debt securities - available-for-sale:
U.S. government and agency obligations	U.S. government and agency obligations	3,419			161			—			3,580			U.S. government and agency obligations	3,208			224			0			3,432
State and municipal obligations	State and municipal obligations	—			6,199			—			6,199			State and municipal obligations	0			7,264			0			7,264
Corporate obligations	Corporate obligations	63			17,654			267			17,984			Corporate obligations	29			20,497			280			20,806
U.S. agency mortgage-backed securities	U.S. agency mortgage-backed securities	—			6,279			—			6,279			U.S. agency mortgage-backed securities	0			6,921			0			6,921
Non-U.S. agency mortgage-backed securities	Non-U.S. agency mortgage-backed securities	—			1,944			—			1,944			Non-U.S. agency mortgage-backed securities	0			2,429			0			2,429
Total debt securities - available-for-sale	Total debt securities - available-for-sale	3,482			32,237			267			35,986			Total debt securities - available-for-sale	3,237			37,335			280			40,852
Equity securities	Equity securities	1,530			23			—			1,553			Equity securities	1,975			27			0			2,002
Assets under management	Assets under management	1,441			1,932			44			3,417			Assets under management	1,753			2,286			55			4,094
Total assets at fair value	Total assets at fair value	$	28,668		$	34,304		$	311		$	63,283		Total assets at fair value	$	26,845		$	39,723		$	335		$	66,903
Percentage of total assets at fair value	Percentage of total assets at fair value	45		%	54		%	1		%	100		%	Percentage of total assets at fair value	40		%	59		%	1		%	100		%
December 31, 2019
December 31, 2020														December 31, 2020
Cash and cash equivalents	Cash and cash equivalents	$	10,837		$	148		$	—		$	10,985		Cash and cash equivalents	$	16,841		$	80		$	0		$	16,921
Debt securities - available-for-sale:	Debt securities - available-for-sale:													Debt securities - available-for-sale:
U.S. government and agency obligations	U.S. government and agency obligations	3,369			184			—			3,553			U.S. government and agency obligations	3,241			224			0			3,465
State and municipal obligations	State and municipal obligations	—			5,926			—			5,926			State and municipal obligations	0			7,328			0			7,328
Corporate obligations	Corporate obligations	70			17,923			249			18,242			Corporate obligations	25			19,424			288			19,737
U.S. agency mortgage-backed securities	U.S. agency mortgage-backed securities	—			6,528			—			6,528			U.S. agency mortgage-backed securities	0			7,091			0			7,091
Non-U.S. agency mortgage-backed securities	Non-U.S. agency mortgage-backed securities	—			1,845			—			1,845			Non-U.S. agency mortgage-backed securities	0			2,207			0			2,207
Total debt securities - available-for-sale	Total debt securities - available-for-sale	3,439			32,406			249			36,094			Total debt securities - available-for-sale	3,266			36,274			288			39,828
Equity securities	Equity securities	1,734			22			—			1,756			Equity securities	1,795			33			0			1,828
Assets under management	Assets under management	1,123			1,918			35			3,076			Assets under management	1,774			2,250			52			4,076
Total assets at fair value	Total assets at fair value	$	17,133		$	34,494		$	284		$	51,911		Total assets at fair value	$	23,676		$	38,637		$	340		$	62,653
Percentage of total assets at fair value	Percentage of total assets at fair value	33		%	66		%	1		%	100		%	Percentage of total assets at fair value	38		%	61		%	1		%	100		%

There were no0 transfers in or out of Level 3 financial assets or liabilities during the ~~six~~three months ended ~~June 30, 2020~~March 31, 2021 or ~~2019.~~2020.

109

Table of Contents

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)	(in millions)	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total Fair Value		Total Carrying Value		(in millions)	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total Fair Value		Total Carrying Value
June 30, 2020
March 31, 2021												March 31, 2021
Debt securities - held-to-maturity	Debt securities - held-to-maturity	$	566	$	96	$	85	$	747	$	737	Debt securities - held-to-maturity	$	463	$	110	$	73	$	646	$	639
Long-term debt and other financing obligations	Long-term debt and other financing obligations	$	—	$	53,119	$	—	$	53,119	$	45,284	Long-term debt and other financing obligations	$	0	$	46,315	$	0	$	46,315	$	40,903
December 31, 2019
December 31, 2020												December 31, 2020
Debt securities - held-to-maturity	Debt securities - held-to-maturity	$	541	$	181	$	253	$	975	$	972	Debt securities - held-to-maturity	$	466	$	108	$	73	$	647	$	638
Long-term debt and other financing obligations	Long-term debt and other financing obligations	$	—	$	45,078	$	—	$	45,078	$	40,278	Long-term debt and other financing obligations	$	0	$	51,254	$	0	$	51,254	$	42,171

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 no0 significant fair value adjustments for these assets and liabilities recorded during either the ~~six~~three months ended ~~June 30, 2020~~March 31, 2021 or ~~2019.~~2020.

4. Medical Costs Payable

The following table shows the components of the change in medical costs payable for the ~~six~~three months ended ~~June 30:~~March 31:


(in millions)	(in millions)	2020		2019		(in millions)	2021		2020
Medical costs payable, beginning of period	Medical costs payable, beginning of period	$	21,690	$	19,891	Medical costs payable, beginning of period	$	21,872	$	21,690
Acquisitions	Acquisitions	41		522		Acquisitions	12		0
Reported medical costs:	Reported medical costs:					Reported medical costs:
Current year	Current year	76,338		78,523		Current year	45,914		41,580
Prior years	Prior years	(660)		(400)		Prior years	(1,010)		(580)
Total reported medical costs	Total reported medical costs	75,678		78,123		Total reported medical costs	44,904		41,000
Medical payments:	Medical payments:					Medical payments:
Payments for current year	Payments for current year	(59,482)		(60,707)		Payments for current year	(25,960)		(23,471)
Payments for prior years	Payments for prior years	(18,727)		(16,922)		Payments for prior years	(15,995)		(16,447)
Total medical payments	Total medical payments	(78,209)		(77,629)		Total medical payments	(41,955)		(39,918)
Medical costs payable, end of period	Medical costs payable, end of period	$	19,200	$	20,907	Medical costs payable, end of period	$	24,833	$	22,772

For the ~~six~~three months ended ~~June 30,~~March 31, 2021 and March 31, 2020, prior years medical cost reserve development was primarily driven by lower than expected health system utilization. ~~For the six months ended June 30, 2019, 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 ~~$13.7~~$16.3 billion and ~~$13.8~~$14.8 billion at ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, respectively.

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5. Short-Term Borrowings and Long-Term Debt

Short-term borrowings and senior unsecured long-term debt consisted of the following:

June 30, 2020 December 31, 2019
(in millions, except percentages) Par Value Carrying Value Fair Value Par Value Carrying Value Fair Value
Commercial paper $ 773 $ 773 $ 773 $ 400 $ 400 $ 400
2.700% notes due July 2020 1,500 1,500 1,501 1,500 1,499 1,506
Floating rate notes due October 2020 300 300 300 300 300 300
3.875% notes due October 2020 450 452 451 450 450 455
1.950% notes due October 2020 900 900 904 900 899 900
4.700% notes due February 2021 400 405 406 400 403 410
2.125% notes due March 2021 750 749 759 750 749 753
Floating rate notes due June 2021 350 350 350 350 349 350
3.150% notes due June 2021 400 399 411 400 399 407
3.375% notes due November 2021 500 511 517 500 501 512
2.875% notes due December 2021 750 768 778 750 753 765
2.875% notes due March 2022 1,100 1,117 1,139 1,100 1,087 1,121
3.350% notes due July 2022 1,000 998 1,061 1,000 998 1,036
2.375% notes due October 2022 900 897 942 900 896 911
0.000% notes due November 2022 15 13 14 15 13 14
2.750% notes due February 2023 625 648 659 625 624 638
2.875% notes due March 2023 750 798 799 750 770 770
3.500% notes due June 2023 750 748 817 750 747 786
3.500% notes due February 2024 750 746 825 750 746 792
2.375% notes due August 2024 750 747 801 750 747 760
3.750% notes due July 2025 2,000 1,991 2,279 2,000 1,990 2,161
3.700% notes due December 2025 300 298 344 300 298 325
1.250% notes due January 2026 500 496 509 — — —
3.100% notes due March 2026 1,000 996 1,116 1,000 996 1,048
3.450% notes due January 2027 750 746 855 750 746 804
3.375% notes due April 2027 625 620 712 625 620 667
2.950% notes due October 2027 950 940 1,060 950 939 988
3.850% notes due June 2028 1,150 1,143 1,360 1,150 1,142 1,269
3.875% notes due December 2028 850 843 1,017 850 843 941
2.875% notes due August 2029 1,000 1,111 1,116 1,000 993 1,029
2.000% notes due May 2030 1,250 1,233 1,309 — — —
4.625% notes due July 2035 1,000 992 1,308 1,000 992 1,215
5.800% notes due March 2036 850 838 1,202 850 838 1,129
6.500% notes due June 2037 500 492 761 500 492 712
6.625% notes due November 2037 650 641 994 650 641 940
6.875% notes due February 2038 1,100 1,077 1,713 1,100 1,076 1,631
3.500% notes due August 2039 1,250 1,241 1,454 1,250 1,241 1,313
2.750% notes due May 2040 1,000 963 1,071 — — —
5.700% notes due October 2040 300 296 438 300 296 396
5.950% notes due February 2041 350 345 521 350 345 475
4.625% notes due November 2041 600 589 787 600 589 716
4.375% notes due March 2042 502 484 642 502 484 580
3.950% notes due October 2042 625 608 749 625 607 688
4.250% notes due March 2043 750 735 938 750 735 856
4.750% notes due July 2045 2,000 1,973 2,694 2,000 1,973 2,463
4.200% notes due January 2047 750 738 951 750 738 861
4.250% notes due April 2047 725 717 931 725 717 839
3.750% notes due October 2047 950 934 1,134 950 934 1,023
4.250% notes due June 2048 1,350 1,330 1,726 1,350 1,330 1,569
4.450% notes due December 2048 1,100 1,086 1,440 1,100 1,086 1,316
3.700% notes due August 2049 1,250 1,235 1,479 1,250 1,235 1,344
2.900% notes due May 2050 1,250 1,208 1,320 — — —
3.875% notes due August 2059 1,250 1,228 1,531 1,250 1,228 1,350
3.125% notes due May 2060 1,000 967 1,072 — — —
Total short-term borrowings and long-term debt $ 45,190 $ 44,953 $ 52,740 $ 39,817 $ 39,474 $ 44,234


	March 31, 2021						December 31, 2020
(in millions, except percentages)	Par Value		Carrying Value		Fair Value		Par Value		Carrying Value		Fair Value
Commercial paper	$	5,356	$	5,355	$	5,355	$	1,296	$	1,296	$	1,296
4.700% notes due February 2021	0		0		0		400		400		401
2.125% notes due March 2021	0		0		0		750		750		753
Floating rate notes due June 2021	350		350		350		350		350		350
3.150% notes due June 2021	400		400		402		400		400		405
3.375% notes due November 2021	500		505		506		500		507		509
2.875% notes due December 2021	750		759		764		750		762		768
2.875% notes due March 2022	1,100		1,110		1,120		1,100		1,113		1,127
3.350% notes due July 2022	1,000		999		1,038		1,000		999		1,048
2.375% notes due October 2022	900		898		929		900		897		935
0.000% notes due November 2022	15		14		14		15		14		14
2.750% notes due February 2023	625		641		648		625		644		654
2.875% notes due March 2023	750		784		786		750		789		793
3.500% notes due June 2023	750		748		801		750		748		809
3.500% notes due February 2024	750		747		813		750		747		821
2.375% notes due August 2024	750		748		790		750		747		799
3.750% notes due July 2025	2,000		1,992		2,214		2,000		1,992		2,279
3.700% notes due December 2025	300		298		333		300		298		344
1.250% notes due January 2026	500		496		500		500		496		515
3.100% notes due March 2026	1,000		997		1,086		1,000		997		1,121
3.450% notes due January 2027	750		747		831		750		747		859
3.375% notes due April 2027	625		620		686		625		620		714
2.950% notes due October 2027	950		941		1,024		950		940		1,067
3.850% notes due June 2028	1,150		1,144		1,290		1,150		1,143		1,367
3.875% notes due December 2028	850		844		958		850		844		1,019
2.875% notes due August 2029	1,000		1,015		1,057		1,000		1,086		1,137
2.000% notes due May 2030	1,250		1,234		1,226		1,250		1,234		1,326
4.625% notes due July 2035	1,000		992		1,216		1,000		992		1,340
5.800% notes due March 2036	850		839		1,147		850		839		1,271
6.500% notes due June 2037	500		492		725		500		492		800
6.625% notes due November 2037	650		642		959		650		641		1,044
6.875% notes due February 2038	1,100		1,077		1,648		1,100		1,077		1,802
3.500% notes due August 2039	1,250		1,242		1,342		1,250		1,241		1,487
2.750% notes due May 2040	1,000		964		976		1,000		964		1,085
5.700% notes due October 2040	300		296		412		300		296		451
5.950% notes due February 2041	350		346		494		350		346		540
4.625% notes due November 2041	600		589		736		600		589		820
4.375% notes due March 2042	502		485		593		502		485		661
3.950% notes due October 2042	625		608		712		625		608		790
4.250% notes due March 2043	750		735		878		750		735		982
4.750% notes due July 2045	2,000		1,974		2,496		2,000		1,974		2,814
4.200% notes due January 2047	750		738		875		750		738		991
4.250% notes due April 2047	725		718		847		725		717		963
3.750% notes due October 2047	950		934		1,031		950		934		1,180
4.250% notes due June 2048	1,350		1,330		1,592		1,350		1,330		1,803
4.450% notes due December 2048	1,100		1,087		1,345		1,100		1,086		1,517
3.700% notes due August 2049	1,250		1,235		1,354		1,250		1,235		1,567
2.900% notes due May 2050	1,250		1,208		1,193		1,250		1,208		1,384
3.875% notes due August 2059	1,250		1,228		1,391		1,250		1,228		1,618
3.125% notes due May 2060	1,000		963		979		1,000		965		1,161
Total short-term borrowings and long-term debt	$	45,473	$	45,108	$	50,462	$	42,563	$	42,280	$	51,301

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The Company’s long-term debt obligations also included ~~$1.1 billion and~~ $1.2 billion of other financing obligations as of both March 31, 2021 and December 31, 2020, of which ~~$328~~$359 million and ~~$322~~$354 million were classified as current as of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, respectively.

~~Commercial Paper and Bank Credit Facilities~~Short-Term Borrowings

Commercial paper consists of short-duration, senior unsecured debt privately placed on a discount basis through broker-dealers. As of ~~June 30, 2020,~~March 31, 2021, the Company’s outstanding commercial paper had a weighted average annual interest rate of ~~0.3%~~0.2%.

The Company has $4.4 billion five-year, $4.4 billion three-year and $3.8 billion 364-day revolving bank credit facilities with 2526 banks, which mature in December ~~2024,~~2025, December ~~2022~~2023 and December ~~2020,~~2021, respectively. These facilities provide liquidity support for the Company’s commercial paper program and are available for general corporate purposes. As of ~~June 30, 2020,~~March 31, 2021, 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 amounts had been drawn on the bank credit facilities as of ~~June 30, 2020,~~March 31, 2021, annual interest rates would have ranged from 0.8% to ~~1.1%~~0.9%.

Debt Covenants

The Company’s bank credit facilities contain various covenants, including covenants requiring the Company to maintain adefined debt to debt-plus-shareholders’ equity ratio of not more than 60%. The Company was in compliance with its debt covenants as of ~~June 30, 2020.~~March 31, 2021.

6. ~~Dividends~~

In June 2020, the Company’s Board of Directors increased the Company’s quarterly cash dividend to shareholders to an annual rate of $5.00 compared to $4.32 per share, which the Company had paid since June 2019. 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 2020 dividend payments:~~

Payment Date Amount per Share Total Amount Paid
(in millions)
March 24 $1.08 $ 1,024
June 30 $1.25 1,188

7. Commitments and Contingencies

Pending Acquisitions

The Company has entered into agreements to purchase companies in the health care sector, most notably Change Healthcare (NASDAQ: CHNG), which is expected to close in the second half of 2021, subject to regulatory approvals and other customary closing conditions. The total anticipated capital required for these acquisitions, excluding the payoff of acquired indebtedness, is approximately $12 billion.

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, 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 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.

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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.

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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.

8.7. Segment Financial Information

The Company’s 4 reportable segments are UnitedHealthcare, OptumHealth, OptumInsight and ~~OptumRx~~. OptumRx. For more information on the Company’s segments see Part I, Item I, “Business” and Note 14 of Notes to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data” in the ~~2019~~2020 10-K.

The following tables present reportable segment financial information:


				Optum																									Optum
(in millions)	(in millions)	UnitedHealthcare		OptumHealth		OptumInsight		OptumRx		Optum Eliminations		Optum		Corporate and Eliminations		Consolidated		(in millions)	UnitedHealthcare		OptumHealth		OptumInsight		OptumRx		Optum Eliminations		Optum		Corporate and Eliminations		Consolidated
Three Months Ended June 30, 2020
Three Months Ended March 31, 2021																		Three Months Ended March 31, 2021
Revenues - unaffiliated customers:	Revenues - unaffiliated customers:																	Revenues - unaffiliated customers:
Premiums	Premiums	$	47,039	$	2,355	$	—	$	—	$	—	$	2,355	$	—	$	49,394	Premiums	$	52,558	$	2,928	$	0	$	0	$	0	$	2,928	$	0	$	55,486
Products	Products	—		7		27		8,213		—		8,247		—		8,247		Products	0		8		37		8,295		0		8,340		0		8,340
Services	Services	1,895		1,225		764		272		—		2,261		—		4,156		Services	2,350		2,336		961		271		0		3,568		0		5,918
Total revenues - unaffiliated customers	Total revenues - unaffiliated customers	48,934		3,587		791		8,485		—		12,863		—		61,797		Total revenues - unaffiliated customers	54,908		5,272		998		8,566		0		14,836		0		69,744
Total revenues - affiliated customers	Total revenues - affiliated customers	—		5,423		1,823		12,865		(447)		19,664		(19,664)		—		Total revenues - affiliated customers	0		6,952		1,821		13,004		(475)		21,302		(21,302)		0
Investment and other income	Investment and other income	173		129		18		21		—		168		—		341		Investment and other income	206		179		33		34		0		246		0		452
Total revenues	Total revenues	$	49,107	$	9,139	$	2,632	$	21,371	$	(447)	$	32,695	$	(19,664)	$	62,138	Total revenues	$	55,114	$	12,403	$	2,852	$	21,604	$	(475)	$	36,384	$	(21,302)	$	70,196
Earnings from operations	Earnings from operations	$	7,007	$	841	$	561	$	832	$	—	$	2,234	$	—	$	9,241	Earnings from operations	$	4,108	$	962	$	779	$	890	$	0	$	2,631	$	0	$	6,739
Interest expense	Interest expense	—		—		—		—		—		—		(430)		(430)		Interest expense	0		0		0		0		0		0		(397)		(397)
Earnings before income taxes	Earnings before income taxes	$	7,007	$	841	$	561	$	832	$	—	$	2,234	$	(430)	$	8,811	Earnings before income taxes	$	4,108	$	962	$	779	$	890	$	0	$	2,631	$	(397)	$	6,342
Three Months Ended June 30, 2019
Three Months Ended March 31, 2020																		Three Months Ended March 31, 2020
Revenues - unaffiliated customers:	Revenues - unaffiliated customers:																	Revenues - unaffiliated customers:
Premiums	Premiums	$	46,030	$	1,134	$	—	$	—	$	—	$	1,134	$	—	$	47,164	Premiums	$	48,593	$	2,047	$	0	$	0	$	0	$	2,047	$	0	$	50,640
Products	Products	—		9		22		8,322		—		8,353		—		8,353		Products	0		9		29		8,393		0		8,431		0		8,431
Services	Services	2,188		1,370		790		148		—		2,308		—		4,496		Services	2,278		1,548		891		268		0		2,707		0		4,985
Total revenues - unaffiliated customers	Total revenues - unaffiliated customers	48,218		2,513		812		8,470		—		11,795		—		60,013		Total revenues - unaffiliated customers	50,871		3,604		920		8,661		0		13,185		0		64,056
Total revenues - affiliated customers	Total revenues - affiliated customers	—		4,449		1,521		10,439		(381)		16,028		(16,028)		—		Total revenues - affiliated customers	0		5,452		1,562		12,876		(404)		19,486		(19,486)		0
Investment and other income	Investment and other income	376		186		6		14		—		206		—		582		Investment and other income	197		136		12		20		0		168		0		365
Total revenues	Total revenues	$	48,594	$	7,148	$	2,339	$	18,923	$	(381)	$	28,029	$	(16,028)	$	60,595	Total revenues	$	51,068	$	9,192	$	2,494	$	21,557	$	(404)	$	32,839	$	(19,486)	$	64,421
Earnings from operations	Earnings from operations	$	2,642	$	688	$	525	$	889	$	—	$	2,102	$	—	$	4,744	Earnings from operations	$	2,888	$	712	$	536	$	860	$	0	$	2,108	$	0	$	4,996
Interest expense	Interest expense	—		—		—		—		—		—		(418)		(418)		Interest expense	0		0		0		0		0		0		(437)		(437)
Earnings before income taxes	Earnings before income taxes	$	2,642	$	688	$	525	$	889	$	—	$	2,102	$	(418)	$	4,326	Earnings before income taxes	$	2,888	$	712	$	536	$	860	$	0	$	2,108	$	(437)	$	4,559

~~Table of Contents~~

Optum
(in millions) UnitedHealthcare OptumHealth OptumInsight OptumRx Optum Eliminations Optum Corporate and Eliminations Consolidated
Six Months Ended June 30, 2020
Revenues - unaffiliated customers:
Premiums $ 95,632 $ 4,402 $ — $ — $ — $ 4,402 $ — $ 100,034
Products — 16 56 16,606 — 16,678 — 16,678
Services 4,173 2,773 1,655 540 — 4,968 — 9,141
Total revenues - unaffiliated customers 99,805 7,191 1,711 17,146 — 26,048 — 125,853
Total revenues - affiliated customers — 10,875 3,385 25,741 (851) 39,150 (39,150) —
Investment and other income 370 265 30 41 — 336 — 706
Total revenues $ 100,175 $ 18,331 $ 5,126 $ 42,928 $ (851) $ 65,534 $ (39,150) $ 126,559
Earnings from operations $ 9,895 $ 1,553 $ 1,097 $ 1,692 $ — $ 4,342 $ — $ 14,237
Interest expense — — — — — — (867) (867)
Earnings before income taxes $ 9,895 $ 1,553 $ 1,097 $ 1,692 $ — $ 4,342 $ (867) $ 13,370
Six Months Ended June 30, 2019
Revenues - unaffiliated customers:
Premiums $ 92,531 $ 2,146 $ — $ — $ — $ 2,146 $ — $ 94,677
Products — 17 45 16,363 — 16,425 — 16,425
Services 4,329 2,644 1,544 297 — 4,485 — 8,814
Total revenues - unaffiliated customers 96,860 4,807 1,589 16,660 — 23,056 — 119,916
Total revenues - affiliated customers — 8,736 2,928 20,052 (740) 30,976 (30,976) —
Investment and other income 630 318 11 28 — 357 — 987
Total revenues $ 97,490 $ 13,861 $ 4,528 $ 36,740 $ (740) $ 54,389 $ (30,976) $ 120,903
Earnings from operations $ 5,596 $ 1,314 $ 957 $ 1,709 $ — $ 3,980 $ — $ 9,576
Interest expense — — — — — — (818) (818)
Earnings before income taxes $ 5,596 $ 1,314 $ 957 $ 1,709 $ — $ 3,980 $ (818) $ 8,758

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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 ~~2019~~2020 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 ~~2019~~2020 10-K and in the discussion below.

EXECUTIVE OVERVIEW

General

UnitedHealth Group is a diversified health care company ~~dedicated~~with a mission to ~~helping~~help people live healthier lives and ~~helping~~help make the health system work better for everyone. ~~Through our diversified family of~~Our two complementary businesses ~~we leverage core competencies in data~~— Optum and ~~health information, advanced technology,~~UnitedHealthcare — are driven by this unified mission and ~~clinical expertise, focused on improving health outcomes, lowering~~vision to improve health care ~~costs~~access, affordability, experiences and ~~creating a better experience~~outcomes for ~~patients, their caregivers~~the individuals and ~~physicians. These core competencies~~organizations we are ~~deployed within~~privileged to serve.

We have four reportable segments across our two ~~distinct, but strategically aligned,~~ business ~~platforms: health benefits operating under~~ platforms, Optum and UnitedHealthcare:

•OptumHealth;

•OptumInsight;

•OptumRx; and

•UnitedHealthcare, which includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, UnitedHealthcare Community & State and ~~health services operating under Optum.~~UnitedHealthcare Global.

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 ~~2019~~2020 10-K and additional information on our segments can be found in this Item 2 and in Note 87 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 continues to evolve and the ultimate impact on our business, results of operations, financial condition and cash flows remains ~~uncertain and difficult to predict.~~uncertain. During the ~~quarter,~~three months ended March 31, 2021, overall care activity, including COVID-19 related care, was nearly at seasonal baselines. This was primarily the ~~global health system experienced unprecedented levels~~result of temporary deferral of elective care activity, which generally tracked with COVID-19 incidence rates during the quarter. For the three months ended March 31, 2021, the temporary deferral of care ~~deferral, which meaningfully impacted all~~was more than offset by COVID-19 related care and testing costs, rebate requirements, and general economic impacts, such as impacts of our businesses. As the pandemic advanced, access to and demand for care was most constrained from mid-March through April, began to recover in May and approached more typical levels by the end of the second quarter.unemployment. The temporary deferral of care, along with continued COVID-19 related care costs, may cause care patterns to moderately exceed normal baselines in ~~the second half of this year~~future periods as utilization of health system capacity ~~continues~~increases and consumers resume elective care. From time to ~~increase. Health~~time, health system capacity may be subject to possible increased volatility due to the ~~pandemic from time to time.~~pandemic. Specific trends and uncertainties related to our two business platforms are as follows:

~~UnitedHealthcare~~Optum.~~. We have expanded benefit coverage in areas such as~~ COVID-19 ~~testing and treatment, telemedicine, and pharmacy benefits; provided customers assistance in the form of co-pay waivers and premium forgiveness; offered additional enrollment opportunities~~related care costs continued to those who previously declined employer-sponsored offerings; extended certain premium payment terms for customers experiencing financial hardship; simplified administrative practices; and accelerated payments toimpact our OptumHealth risk-based care providers, all with the aim of assisting our customers, providers and members in addressing the COVID-19 crisis. Temporary care deferrals significantly impacted UnitedHealthcare’s results of operations for the three-months ended June 30, 2020, contributing to significantly lower medical costs and higher operating earnings than previous periods. The impact of care disruption has been, and will continue to bedelivery businesses, which were partially offset by ~~factors such as COVID-19 related treatment and testing, potential future vaccines and~~ the financial assistance we continue to provide our customers. As health system capacity continues to approach normal levels, consumer demand for care, potentially even higher acuity care, is expected to result in increased future medical costs. Disrupted care patterns, as a resultcontinued temporary deferral of the pandemic, may temporarily affect the ability to obtain complete member health status information, impacting future revenue in businesses that utilize risk adjustment methodologies. Depending on the future pacing and intensity of the virus, as well as the duration of policies and initiatives to address COVID-19, the ultimate impact is uncertain.

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~~Optum.~~ care. The temporary deferral of care ~~also meaningfully impacted the Optum businesses for the three-months ended June 30, 2020. For example, our~~reduced fee-for-service care delivery ~~business, such~~volume, as ~~traditional procedure work at our ambulatory surgery centers, was negatively impacted, while our risk-based care delivery business performance reflected lower demand for care. Our~~well as OptumInsight and OptumRx volume-based businesses were negatively impacted by the lower level of care encounters which took place, contributing to lower managed services and prescription volume. As the health system continues to return nearer to normal seasonally adjusted levels of care, we have seen business ~~activity approach more normal levels.~~activity. We believe 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~~We expect COVID-19 related care costs and other economic impacts to only partially be offset by temporary deferrals of ~~COVID-19 on our~~ care ~~provider and payer clients could impact~~in the ~~volume and types~~second half of ~~services that Optum provides,~~the year as ~~well as the pacing~~health systems return to seasonally adjusted levels of ~~potential new business opportunities.~~care. As a result of the dynamic situation and broad-reaching impact to the health system, the ultimate impact of COVID-19 on our Optum businesses is uncertain.

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UnitedHealthcare. In 2021, we have continued expanded benefit coverage in areas such as COVID-19 related care and testing, telemedicine, and pharmacy; continuing to assist our customers, care providers, members and communities in addressing the COVID-19 crisis. Temporary care deferrals continued to impact UnitedHealthcare’s results of operations for the three months ended March 31, 2021, offset by COVID-19 related care and testing, rebate requirements and other revenue impacts and broader economic impacts. Enrollment in our commercial products declined primarily due to employer actions in response to the pandemic.

Increased consumer demand for care, potentially even higher acuity care, along with continued COVID-19 related care and testing costs are expected to result in increased future medical costs in the second half of the year. Disrupted care patterns, as a result of the pandemic, have and may continue to temporarily affect the ability to obtain complete member health status information, impacting revenue in businesses utilizing risk adjustment methodologies. The ultimate overall impact is uncertain and dependent on the future pacing and intensity of the pandemic, the duration of policies and initiatives to address COVID-19, and general economic uncertainty.

Business Trends

Our businesses participate in the United States, South American and certain other international health markets. 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. The rate of market growth may be affected by a variety of factors, including macro-economic conditions, such as the ~~economic impact~~impacts of COVID-19, and regulatory changes, which could impact our results of operations, including our continued efforts to control health care costs.

Pricing ~~Trends~~Trends.. To price our health care benefit products, we start with our view of expected future costs, including any potential impacts from ~~COVID-19 and the Health Insurance Tax.~~COVID-19. 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.~~thresholds and similar revenue adjustments. We will continue seeking to balance growth and profitability across all 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 2021 will reflect the permanent repeal of the Health Insurance Tax.~~

Government programs in the ~~public~~community 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. COVID-19 related care and testing costs as well as the deferral of care have also impacted medical cost trends in the current year and may continue in future years. 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 continued uncertain impact of COVID-19 may impact our ability to estimate medical costs payable, which has resulted in, and could result in, increased variability to medical cost reserve ~~development in future periods. As a result of higher than expected care deferrals, favorable reserve development of $1.4 billion occurred in the second quarter.~~development.

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,” Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our ~~2019~~2020 10-K and “Risk Factors” in Part II, Item 1A of this report.

Medicare Advantage Rates.Final ~~2021~~2022 Medicare Advantage rates resulted in an increase in industry base rates of approximately ~~1.7%~~4.1%, short of the industry forward medical cost ~~trend, creating continued pressure in the Medicare Advantage program.~~trend. We continue to manage costs through improving and expanding our coordinated care models, value-based care arrangements and various consumer engagement tools.

Affordable Care Act (ACA) Tax. ~~After a moratorium in 2019, the industry-wide amount of the~~The Health Insurance Tax ~~for 2020, which is primarily borne~~was permanently repealed by ~~customers, is $15.5 billion, with our portion being approximately $3.0 billion.~~Congress, effective January 1, 2021. The ~~return~~permanent repeal 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.~~

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SELECTED OPERATING PERFORMANCE AND OTHER SIGNIFICANT ITEMS

The following summarizes select ~~second~~first quarter ~~2020~~2021 year-over-year operating comparisons to ~~second~~first quarter ~~2019, which were significantly impacted by the effects of COVID-19 on the health system.~~2020.

•Consolidated revenues grew 3%9%, UnitedHealthcare revenues grew 1%8% and Optum revenues grew ~~17%~~11%.

•UnitedHealthcare served ~~425,000~~ ~~fewer~~1.1 million more people domestically, ~~primarily due to increased unemployment~~driven by growth in community and ~~expected attrition in~~senior programs, partially offset by decreased people served by our commercial ~~group~~ benefits ~~and the proactive withdrawal from a Medicaid market.~~business.

•Consolidated earnings from operations increased ~~primarily due to temporary care deferrals caused by COVID-19,~~35%, including increases of 42% at UnitedHealthcare and 25% at Optum.

•Diluted earnings per common share increased 44% to ~~$6.91.~~$5.08.

•Cash flows from operations for the ~~six~~three months ended ~~June 30, 2020~~March 31, 2021 were ~~$12.9~~$6.0 billion.

•Return on equity was ~~44.0%~~29.5%.

RESULTS SUMMARY

The following table summarizes our consolidated results of operations and other financial information:


(in millions, except percentages and per share data)	(in millions, except percentages and per share data)	Three Months Ended June 30,												Increase/(Decrease)									Six Months Ended June 30,										Increase/(Decrease)										(in millions, except percentages and per share data)			Three Months Ended March 31,		Increase/(Decrease)
					2020				2019				2020 vs. 2019									2020				2019			2020 vs. 2019								(in millions, except percentages and per share data)				2021				2020		2021 vs. 2020
Revenues:	Revenues:																												Revenues:
Premiums	Premiums	$	49,394			$	47,164			$	2,230			5	%	$	100,034		$	94,677			$	5,357			6	%	Premiums	$	55,486			$	50,640			$	4,846			10		%
Products	Products	8,247				8,353				(106)				(1)		16,678			16,425				253				2		Products	8,340				8,431				(91)				(1)
Services	Services	4,156				4,496				(340)				(8)		9,141			8,814				327				4		Services	5,918				4,985				933				19
Investment and other income	Investment and other income	341				582				(241)				(41)		706			987				(281)				(28)		Investment and other income	452				365				87				24
Total revenues	Total revenues	62,138				60,595				1,543				3		126,559			120,903				5,656				5		Total revenues	70,196				64,421				5,775				9
Operating costs:	Operating costs:																												Operating costs:
Medical costs	Medical costs	34,678				39,184				(4,506)				(11)		75,678			78,123				(2,445)				(3)		Medical costs	44,904				41,000				3,904				10
Operating costs	Operating costs	10,001				8,415				1,586				19		20,016			16,932				3,084				18		Operating costs	10,223				10,015				208				2
Cost of products sold	Cost of products sold	7,501				7,598				(97)				(1)		15,188			14,979				209				1		Cost of products sold	7,572				7,687				(115)				(1)
Depreciation and amortization	Depreciation and amortization	717				654				63				10		1,440			1,293				147				11		Depreciation and amortization	758				723				35				5
Total operating costs	Total operating costs	52,897				55,851				(2,954)				(5)		112,322			111,327				995				1		Total operating costs	63,457				59,425				4,032				7
Earnings from operations	Earnings from operations	9,241				4,744				4,497				95		14,237			9,576				4,661				49		Earnings from operations	6,739				4,996				1,743				35
Interest expense	Interest expense	(430)				(418)				(12)				3		(867)			(818)				(49)				6		Interest expense	(397)				(437)				40				(9)
Earnings before income taxes	Earnings before income taxes	8,811				4,326				4,485				104		13,370			8,758				4,612				53		Earnings before income taxes	6,342				4,559				1,783				39
Provision for income taxes	Provision for income taxes	(2,115)				(941)				(1,174)				125		(3,209)			(1,816)				(1,393)				77		Provision for income taxes	(1,364)				(1,094)				(270)				25
Net earnings	Net earnings	6,696				3,385				3,311				98		10,161			6,942				3,219				46		Net earnings	4,978				3,465				1,513				44
Earnings attributable to noncontrolling interests	Earnings attributable to noncontrolling interests	(59)				(92)				33				(36)		(142)			(182)				40				(22)		Earnings attributable to noncontrolling interests	(116)				(83)				(33)				40
Net earnings attributable to UnitedHealth Group common shareholders	Net earnings attributable to UnitedHealth Group common shareholders	$	6,637			$	3,293			$	3,344			102	%	$	10,019		$	6,760			$	3,259			48	%	Net earnings attributable to UnitedHealth Group common shareholders	$	4,862			$	3,382			$	1,480			44		%
Diluted earnings per share attributable to UnitedHealth Group common shareholders	Diluted earnings per share attributable to UnitedHealth Group common shareholders	$	6.91			$	3.42			$	3.49			102	%	$	10.43		$	6.97			$	3.46			50	%	Diluted earnings per share attributable to UnitedHealth Group common shareholders	$	5.08			$	3.52			$	1.56			44		%
Medical care ratio (a)	Medical care ratio (a)	70.2		%		83.1		%		(12.9)		%				75.7		%	82.5		%		(6.8)		%				Medical care ratio (a)	80.9		%		81.0		%		(0.1)		%
Operating cost ratio	Operating cost ratio	16.1				13.9				2.2						15.8			14.0				1.8						Operating cost ratio	14.6				15.5				(0.9)
Operating margin	Operating margin	14.9				7.8				7.1						11.2			7.9				3.3						Operating margin	9.6				7.8				1.8
Tax rate	Tax rate	24.0				21.8				2.2						24.0			20.7				3.3						Tax rate	21.5				24.0				(2.5)
Net earnings margin (b)	Net earnings margin (b)	10.7				5.4				5.3						7.9			5.6				2.3						Net earnings margin (b)	6.9				5.2				1.7
Return on equity (c)	Return on equity (c)	44.0		%		25.1		%		18.9		%				33.7		%	25.9		%		7.8		%				Return on equity (c)	29.5		%		23.6		%		5.9		%

(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.

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~~2020~~2021 RESULTS OF OPERATIONS COMPARED TO ~~2019~~2020 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;~~Advantage and Medicaid; pricing trends; and ~~acquisition~~organic and ~~organic~~acquisition growth across the Optum business, primarily due to expansion in ~~pharmacy~~ care ~~services~~delivery and ~~care delivery.~~managed services. The increases were partially offset by decreased individuals served through our ~~Medicaid,~~ commercial ~~and Global~~ benefits ~~businesses; decreases in our fee-for-service care delivery and other volume-based businesses, primarily as a result of~~business due to the continued economic impacts of ~~COVID-19 on the economy and health system; and certain customer assistance programs.~~COVID-19.

Medical Costs and MCR

Medical costs ~~decreased~~increased as a result of ~~the temporary deferral of care due to COVID-19 and decreased people served in Medicaid, commercial and Global, partially offset by~~ growth in people served through Medicare Advantage and Medicaid, medical cost ~~trends.~~trends and COVID-19 related care and testing costs, partially offset by the temporary deferral of care continued to be caused by COVID-19, decreased people served in commercial, increased prior year favorable reserve development and calendar day impacts. The MCR ~~decreased primarily~~was stable due to the temporary deferral of care, increased prior year favorable reserve development and calendar day impacts, being offset by the ~~revenue effects of the return~~permanent repeal of the Health Insurance ~~Tax.~~Tax and COVID-19 related care and testing costs.

Operating Cost Ratio

The operating cost ratio ~~increased~~decreased primarily due to the ~~impact~~permanent repeal of the return of the Health Insurance Tax and ~~the Company’s COVID-19 response efforts.~~operating efficiency gains, partially offset by business mix.

Income Tax Rate

Our effective tax rate ~~increased~~decreased primarily due to the ~~impact of the return~~permanent repeal of the nondeductible Health Insurance Tax.

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Reportable Segments

See Note 87 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.

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The following table presents a summary of the reportable segment financial information:


		Three Months Ended June 30,									Increase/(Decrease)								Six Months Ended June 30,									Increase/(Decrease)									Three Months Ended March 31,	Increase/(Decrease)
(in millions, except percentages)	(in millions, except percentages)	2020			2019			2020 vs. 2019								2020			2019			2020 vs. 2019								(in millions, except percentages)		2021			2020		2021 vs. 2020
Revenues	Revenues																							Revenues
UnitedHealthcare	UnitedHealthcare	$	49,107		$	48,594		$	513		1	%	$	100,175		$	97,490		$	2,685		3	%	UnitedHealthcare	$	55,114			$	51,068		$	4,046		8	%
OptumHealth	OptumHealth	9,139			7,148			1,991			28		18,331			13,861			4,470			32		OptumHealth	12,403				9,192			3,211			35
OptumInsight	OptumInsight	2,632			2,339			293			13		5,126			4,528			598			13		OptumInsight	2,852				2,494			358			14
OptumRx	OptumRx	21,371			18,923			2,448			13		42,928			36,740			6,188			17		OptumRx	21,604				21,557			47			—
Optum eliminations	Optum eliminations	(447)			(381)			(66)			17		(851)			(740)			(111)			15		Optum eliminations	(475)				(404)			(71)			18
Optum	Optum	32,695			28,029			4,666			17		65,534			54,389			11,145			20		Optum	36,384				32,839			3,545			11
Eliminations	Eliminations	(19,664)			(16,028)			(3,636)			23		(39,150)			(30,976)			(8,174)			26		Eliminations	(21,302)				(19,486)			(1,816)			9
Consolidated revenues	Consolidated revenues	$	62,138		$	60,595		$	1,543		3	%	$	126,559		$	120,903		$	5,656		5	%	Consolidated revenues	$	70,196			$	64,421		$	5,775		9	%
Earnings from operations	Earnings from operations																							Earnings from operations
UnitedHealthcare	UnitedHealthcare	$	7,007		$	2,642		$	4,365		165	%	$	9,895		$	5,596		$	4,299		77	%	UnitedHealthcare	$	4,108			$	2,888		$	1,220		42	%
OptumHealth	OptumHealth	841			688			153			22		1,553			1,314			239			18		OptumHealth	962				712			250			35
OptumInsight	OptumInsight	561			525			36			7		1,097			957			140			15		OptumInsight	779				536			243			45
OptumRx	OptumRx	832			889			(57)			(6)		1,692			1,709			(17)			(1)		OptumRx	890				860			30			3
Optum	Optum	2,234			2,102			132			6		4,342			3,980			362			9		Optum	2,631				2,108			523			25
Consolidated earnings from operations	Consolidated earnings from operations	$	9,241		$	4,744		$	4,497		95	%	$	14,237		$	9,576		$	4,661		49	%	Consolidated earnings from operations	$	6,739			$	4,996		$	1,743		35	%
Operating margin	Operating margin																							Operating margin
UnitedHealthcare	UnitedHealthcare	14.3		%	5.4		%	8.9		%			9.9		%	5.7		%	4.2		%			UnitedHealthcare	7.5		%		5.7		%	1.8		%
OptumHealth	OptumHealth	9.2			9.6			(0.4)					8.5			9.5			(1.0)					OptumHealth	7.8				7.7			0.1
OptumInsight	OptumInsight	21.3			22.4			(1.1)					21.4			21.1			0.3					OptumInsight	27.3				21.5			5.8
OptumRx	OptumRx	3.9			4.7			(0.8)					3.9			4.7			(0.8)					OptumRx	4.1				4.0			0.1
Optum	Optum	6.8			7.5			(0.7)					6.6			7.3			(0.7)					Optum	7.2				6.4			0.8
Consolidated operating margin	Consolidated operating margin	14.9		%	7.8		%	7.1		%			11.2		%	7.9		%	3.3		%			Consolidated operating margin	9.6		%		7.8		%	1.8		%

UnitedHealthcare

The following table summarizes UnitedHealthcare revenues by business:


		Three Months Ended June 30,						Increase/(Decrease)						Six Months Ended June 30,							Increase/(Decrease)							Three Months Ended March 31,	Increase/(Decrease)
(in millions, except percentages)	(in millions, except percentages)	2020		2019		2020 vs. 2019						2020		2019		2020 vs. 2019							(in millions, except percentages)	2021		2020		2021 vs. 2020
UnitedHealthcare Employer & Individual	UnitedHealthcare Employer & Individual	$	12,963	$	14,032	$	(1,069)	(8)	%	$	27,243	$	28,116	$	(873)	(3)	%	UnitedHealthcare Employer & Individual	$	14,632		$	14,280	$	352	2	%
UnitedHealthcare Medicare & Retirement	UnitedHealthcare Medicare & Retirement	22,855		20,855		2,000		10		46,007		41,951		4,056		10		UnitedHealthcare Medicare & Retirement	25,474			23,152		2,322		10
UnitedHealthcare Community & State	UnitedHealthcare Community & State	11,523		11,186		337		3		22,976		22,368		608		3		UnitedHealthcare Community & State	12,973			11,453		1,520		13
UnitedHealthcare Global	UnitedHealthcare Global	1,766		2,521		(755)		(30)		3,949		5,055		(1,106)		(22)		UnitedHealthcare Global	2,035			2,183		(148)		(7)
Total UnitedHealthcare revenues	Total UnitedHealthcare revenues	$	49,107	$	48,594	$	513	1	%	$	100,175	$	97,490	$	2,685	3	%	Total UnitedHealthcare revenues	$	55,114		$	51,068	$	4,046	8	%

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The following table summarizes the number of individuals served by our UnitedHealthcare businesses, by major market segment and funding arrangement:


		June 30,			Increase/(Decrease)						March 31,			Increase/(Decrease)
(in thousands, except percentages)	(in thousands, except percentages)	2020	2019	2020 vs. 2019					(in thousands, except percentages)	2021	2020	2021 vs. 2020
Commercial:	Commercial:						Commercial:
Risk-based	Risk-based	8,065	8,325	(260)	(3)	%	Risk-based	7,860		8,215	(355)	(4)	%
Fee-based	Fee-based	18,705	19,090	(385)	(2)		Fee-based	18,455		18,825	(370)	(2)
Total commercial	Total commercial	26,770	27,415	(645)	(2)		Total commercial	26,315		27,040	(725)	(3)
Medicare Advantage	Medicare Advantage	5,605	5,190	415	8		Medicare Advantage	6,335		5,575	760	14
Medicaid	Medicaid	6,210	6,360	(150)	(2)		Medicaid	6,975		5,880	1,095	19
Medicare Supplement (Standardized)	Medicare Supplement (Standardized)	4,450	4,495	(45)	(1)		Medicare Supplement (Standardized)	4,390		4,440	(50)	(1)
Total public and senior		16,265	16,045	220	1
Total community and senior							Total community and senior	17,700		15,895	1,805	11
Total UnitedHealthcare - domestic medical	Total UnitedHealthcare - domestic medical	43,035	43,460	(425)	(1)		Total UnitedHealthcare - domestic medical	44,015		42,935	1,080	3
Global	Global	5,365	6,070	(705)	(12)		Global	5,460		5,605	(145)	(3)
Total UnitedHealthcare - medical	Total UnitedHealthcare - medical	48,400	49,530	(1,130)	(2)	%	Total UnitedHealthcare - medical	49,475		48,540	935	2	%
Supplemental Data:	Supplemental Data:						Supplemental Data:
Medicare Part D stand-alone	Medicare Part D stand-alone	4,120	4,430	(310)	(7)	%	Medicare Part D stand-alone	3,795		4,150	(355)	(9)	%

Fee-based and risk-based commercial business decreased primarily due to increased ~~unemployment and expected attrition.~~unemployment. Medicare Advantage increased due to growth in people served through individual and group Medicare Advantage plans. The ~~decrease~~increase in people served through Medicaid was primarily driven by ~~the proactive withdrawal from a market as well as by~~ states ~~managing eligibility, partially offset by increases~~continuing to ease redetermination requirements due to COVID-19, new state-based awards and growth in people served through Dual Special Needs Plans and states easing redetermination requirements. The decrease in people served by UnitedHealthcare Global is a result of our continued affordability efforts, underwriting discipline and increased unemployment.Plans.

UnitedHealthcare’s revenue increased due to growth in the number of individuals served through Medicare Advantage and Medicaid and a greater mix of people with higher acuity needs, ~~and the return of the Health Insurance Tax,~~ partially offset by a decrease in the number of individuals served through commercial benefits and the ~~commercial, Medicaid and Global businesses and foreign currency impacts.~~permanent repeal of the Health Insurance Tax. Earnings from operations increased due to the continued deferral of care caused by COVID-19 on the health system, the growth in people served through Medicare Advantage and Medicaid and the ~~factors impacting revenue, partially offset by the return~~repeal of the Health Insurance Tax, partially offset by COVID-19 ~~treatment~~related care and testing costs, the reduction in people served through commercial benefits and ~~customer assistance programs.~~broader economic impacts of COVID-19.

Optum

Total revenues ~~increased as each segment reported revenue growth. Earnings~~and earnings from operations increased due to growth at OptumHealth and ~~OptumInsight, partially offset by decreased earnings from operations at OptumRx.~~

OptumInsight. The results by segment were as follows:

OptumHealth

Revenue and earnings at OptumHealth increased primarily due to acquisitions and organic growth in risk-based care delivery, partially offset by reduced care volumes in fee-for-service arrangements as a result of COVID-19. Earnings from operations also increased at our risk-based business due to the deferral of care caused by COVID-19. OptumHealth served approximately 97 million people as of June 30, 2020 compared to 95 million people as of June 30, 2019.

~~OptumInsight~~

Revenue and earnings from operations at ~~OptumInsight~~OptumHealth increased primarily due to organic growth and acquisitions in care delivery. Earnings from operations were also impacted by the temporary deferral of care at our risk-based businesses caused by COVID-19 and cost management initiatives, partially offset by COVID-19 related care costs. OptumHealth served approximately 99 million people as of March 31, 2021 compared to 96 million people as of March 31, 2020.

OptumInsight

Revenue at OptumInsight increased primarily due to growth in technology and managed services, partially offset by decreased activity levels in volume-based services due to the impact of COVID-19 on payer and care provider clients. Earnings from operations increased primarily due to productivity gains and cost management initiatives, as well as the factors impacting revenue.

OptumRx

Revenue and earnings from operations at OptumRx grew modestly due to organic growth and acquisitions in pharmacy care services and pricing trends, offset by lower script volumes. OptumRx fulfilled 329 million and 339 million adjusted scripts in the first quarters of 2021 and 2020, respectively, as the first quarter 2020 included the advance provision of medications to people served in response to COVID-related supply concerns, with script levels then receding with care deferral patterns.

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~~OptumRx~~

~~Revenue at OptumRx and the corresponding eliminations increased due to the 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 acquisition growth in specialty pharmacy and new client wins, partially offset by an expected large client transition and lower script volumes driven by COVID-19 related care deferral, primarily related to first fill script volumes. Earnings from operations decreased primarily due to the impact of lower script volumes, partially offset by improved supply chain management. OptumRx fulfilled 316 million and 343 million adjusted scripts in the second quarters of 2020 and 2019, respectively. The decrease was due to the expected large client transition and lower script volumes due to the impacts of COVID-19, partially offset by organic growth.

LIQUIDITY, FINANCIAL CONDITION AND CAPITAL RESOURCES

Liquidity

Summary of our Major Sources and Uses of Cash and Cash Equivalents


		Six Months Ended June 30,							Increase/(Decrease)			Three Months Ended March 31,				Increase/(Decrease)
(in millions)	(in millions)	2020		2019		2020 vs. 2019		(in millions)		2021		2020		2021 vs. 2020
Sources of cash:	Sources of cash:							Sources of cash:
Cash provided by operating activities	Cash provided by operating activities	$	12,946	$	9,108	$	3,838	Cash provided by operating activities		$	6,005	$	2,943	$	3,062
Issuances of short-term borrowings and long-term debt, net of repayments	Issuances of short-term borrowings and long-term debt, net of repayments	5,215		5,674		(459)		Issuances of short-term borrowings and long-term debt, net of repayments		2,907		10,797		(7,890)
Proceeds from common stock issuances	Proceeds from common stock issuances	870		448		422		Proceeds from common stock issuances		436		557		(121)
Customer funds administered	Customer funds administered	1,263		1,435		(172)		Customer funds administered		2,131		1,062		1,069
Sales and maturities of investments, net of purchases	Sales and maturities of investments, net of purchases	573		—		573		Sales and maturities of investments, net of purchases		—		30		(30)
Other		—		504		(504)
Total sources of cash	Total sources of cash	20,867		17,169				Total sources of cash		11,479		15,389
Uses of cash:	Uses of cash:							Uses of cash:
Common stock repurchases	Common stock repurchases	(1,691)		(4,501)		2,810		Common stock repurchases		(1,650)		(1,691)		41
Cash paid for acquisitions, net of cash assumed	Cash paid for acquisitions, net of cash assumed	(3,952)		(4,751)		799		Cash paid for acquisitions, net of cash assumed		(1,193)		(929)		(264)
Purchases of investments, net of sales and maturities	Purchases of investments, net of sales and maturities	—		(1,654)		1,654		Purchases of investments, net of sales and maturities		(1,714)		—		(1,714)
Purchases of property, equipment and capitalized software	Purchases of property, equipment and capitalized software	(920)		(977)		57		Purchases of property, equipment and capitalized software		(568)		(469)		(99)
Cash dividends paid	Cash dividends paid	(2,212)		(1,884)		(328)		Cash dividends paid		(1,181)		(1,024)		(157)
Other	Other	(607)		(529)		(78)		Other		(2,088)		(563)		(1,525)
Total uses of cash	Total uses of cash	(9,382)		(14,296)				Total uses of cash		(8,394)		(4,676)
Effect of exchange rate changes on cash and cash equivalents	Effect of exchange rate changes on cash and cash equivalents	(143)		6		(149)		Effect of exchange rate changes on cash and cash equivalents		(51)		(129)		78
Net increase in cash and cash equivalents	Net increase in cash and cash equivalents	$	11,342	$	2,879	$	8,463	Net increase in cash and cash equivalents		$	3,034	$	10,584	$	(7,550)

~~2020~~2021 Cash Flows Compared to ~~2019~~2020 Cash Flows

Increased cash flows provided by operating activities were primarily driven by increased net earnings ~~as a result of the temporary deferral of care experienced at our benefits businesses related to COVID-19~~ and ~~the timing of federal income tax payments, which will be paid~~changes in ~~the third quarter.~~working capital accounts. Other significant changes in sources or uses of cash year-over-year included decreased ~~common stock repurchases~~short-term borrowings and ~~decreased net~~increased purchases of ~~investments.~~investments, partially offset by increased customer funds administered.

Financial Condition

As of ~~June 30, 2020,~~March 31, 2021, our cash, cash equivalent, available-for-sale debt securities and equity securities balances of ~~$60.3~~$63.4 billion included approximately ~~$22.3~~$20.0 billion of cash and cash equivalents (of which ~~$4.2~~$2.1 billion was available for general corporate use), ~~$36.0~~$40.9 billion of debt securities and ~~$2.0~~$2.6 billion of investments in equity securities. 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 securities portfolio had a weighted-average duration of ~~3.5~~3.8 years and a weighted-average credit rating of “Double A” as of ~~June 30, 2020.~~March 31, 2021. 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.

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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~~Cash Requirements. A summary of our cash requirements as of December 31, 2020 was disclosed in Part II, Item 7, “Management’s Discussion and ~~Bank Credit Facilities.~~Analysis of Financial Condition and Results of Operations ” in our 2020 10-K. During the three months ended March 31, 2021, there were no material changes to this previously disclosed information outside the ordinary course of business. We believe our capital resources are sufficient to meet future, short-term and long-term, liquidity needs. We continually evaluate opportunities to expand our operations, including through internal development of new products, programs and technology applications and acquisitions.

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Short-Term Borrowings. Our revolving bank credit facilities provide liquidity support for our commercial paper borrowing program, which facilitates the private placement of unsecured debt through independent 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 ~~June 30, 2020,~~March 31, 2021, our debt to debt-plus-shareholders’ equity ratio, as defined and calculated under the credit facilities, was approximately 39%.

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 ~~June 30, 2020~~March 31, 2021 were as follows:

Moody’s

S&P Global

Fitch

A.M. Best

Ratings

Outlook

Ratings

Outlook

Ratings

Outlook

Ratings

Outlook

Senior unsecured debt

Stable

A+

Stable

A-

Positive

Commercial paper

P-2

n/a

A-1

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, including the impacts of COVID-19 and related governmental market stabilization programs.~~conditions. 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 ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, we repurchased 6approximately 5 million shares at an average price of ~~$271.32~~$345.42 per share. As of ~~June 30, 2020,~~March 31, 2021, we had Board authorization to purchase up to 6653 million shares of our common stock.

Dividends. ~~In June 2020, the Company’s Board of Directors increased the Company’s~~Our quarterly cash dividend to shareholders toreflects an annual dividend rate of $5.00 ~~compared~~per share.

Pending Acquisitions. The Company has entered into agreements to ~~$4.32 per share. For more information on our dividend, see~~ ~~Note 6~~purchase companies in the health care sector, most notably Change Healthcare (NASDAQ: CHNG), which is expected to close in the second half of ~~Notes~~2021, subject to regulatory approvals and other customary closing conditions. The total anticipated capital required for these acquisitions, excluding the ~~Condensed Consolidated Financial Statements~~ ~~included in Part 1, Item 1~~payoff of ~~this report.~~acquired indebtedness, is approximately $12 billion.

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 ~~2019~~2020 10-K.

~~CONTRACTUAL OBLIGATIONS AND COMMITMENTS~~

A summary of future obligations under our various contractual obligations and commitments as of December 31, 2019 was disclosed in our 2019 10-K. During the six months ended June 30, 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~~There are no recently issued accounting standards that are expected to ~~the~~have a material impact on our Condensed Consolidated Financial ~~Statements~~ ~~in Part I, Item 1 of this report for a discussion of new accounting pronouncements that affect us.~~

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Statements.

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 ~~2019~~2020 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”~~Statements” in our ~~2019~~2020 10-K.

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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,” “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,~~cyberattacks, 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 attract, develop, retain, and manage the succession of key employees and executives; the impact of potential changes in tax laws and regulations (including any increase in the U.S. income tax rate applicable to corporations); 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; 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.

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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~~matching a portion of 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 ~~June 30, 2020~~March 31, 2021 on our investment income and interest expense per annum, and the fair value of our investments and debt (in millions, except percentages):


		June 30, 2020															March 31, 2021
Increase (Decrease) in Market Interest Rate	Increase (Decrease) in Market Interest Rate	Investment Income Per Annum (a)		Interest Expense Per Annum (a)		Fair Value of Financial Assets (b)		Fair Value of Financial Liabilities		Increase (Decrease) in Market Interest Rate	Investment Income Per Annum (a)		Interest Expense Per Annum (a)		Fair Value of Financial Assets (b)		Fair Value of Financial Liabilities
2 %	2 %	$	504	$	200	$	(2,567)	$	(8,573)	2 %	$	468	$	245	$	(3,116)	$	(7,467)
1	1	252		100		(1,271)		(4,715)		1	234		122		(1,576)		(4,059)
(1)	(1)	(80)		(16)		623		4,676		(1)	(80)		(14)		1,226		4,741
(2)	(2)	(80)		(16)		657		6,214		(2)	(80)		(14)		1,689		9,821

~~(a)~~Note: Given the low absolute level of short-term market rates on our floating-rate assets and liabilities as of ~~June 30, 2020,~~March 31, 2021, the assumed hypothetical change in interest rates does not reflect the full 100 and 200 basis point reduction in interest income or interest expense, as the ~~rate cannot~~rates are assumed not to fall below zero.

~~(b)~~ As of ~~June 30,~~March 31, 2021 and 2020, some of our investments had interest rates below 1%2% so the assumed hypothetical change in the fair value of investments does not reflect the full ~~100 and~~ 200 basis point reduction.

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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 ~~June 30, 2020.~~March 31, 2021. 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 ~~June 30, 2020.~~March 31, 2021.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There have been no changes in our internal control over financial reporting during the quarter ended ~~June 30, 2020~~March 31, 2021 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.

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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 ~~2019~~2020 10-K, ~~and Part II, Item 1A, “Risk Factors” of our 10-Q for the quarterly period ended March 31, 2020 (“2020 First Quarter 10-Q”),~~ which could materially affect our business, financial condition or future results. The risks described in our ~~2019~~2020 10-K ~~and 2020 First Quarter 10-Q,~~ 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 as disclosed in our ~~2019 10-K and~~ 2020 ~~First Quarter 10-Q.~~10-K.

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 ~~second~~first quarter ~~2020,~~2021, we ~~did not repurchase any~~repurchased approximately 5 million shares at an average price of ~~our common stock.~~$345.42 per share. As of ~~June 30, 2020,~~March 31, 2021, we had Board authorization to purchase up to 6653 million shares of our common stock.

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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.


3.1						Certificate of Incorporation of UnitedHealth Group Incorporated (incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form 8-A/A filed on July 1, 2015)
3.2						Amended and Restated Bylaws of UnitedHealth Group Incorporated, effective ~~August 15, 2017~~February 23, 2021 (incorporated by reference to Exhibit ~~3.1~~3.2 to ~~the Company’s~~UnitedHealth Group Incorporated’s Current Report on Form 8-K filed on ~~August 16, 2017)~~February 26, 2021)
4.1						Senior Indenture, dated as of November 15, 1998, between United HealthCare Corporation and The Bank of New York (incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-3/A, SEC File Number 333-66013, filed on January 11, 1999)
4.2						Amendment, dated as of November 6, 2000, to Senior Indenture, dated as of November 15, 1998, between UnitedHealth Group Incorporated and The Bank of New York (incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2001)
4.3						Instrument of Resignation, Appointment and Acceptance of Trustee, dated January 8, 2007, pursuant to the Senior Indenture, dated as of November 15, 1998, amended November 6, 2000, among UnitedHealth Group Incorporated, The Bank of New York and Wilmington Trust Company (incorporated by reference to Exhibit 4.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007)
4.4						Indenture, dated as of February 4, 2008, between UnitedHealth Group Incorporated and U.S. Bank National Association (incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-3, SEC File Number 333-149031, filed on February 4, 2008)
~~10.1~~						~~UnitedHealth Group 2020 Stock Incentive Plan (incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-8, SEC File Number 333-238854, filed on June 1, 2020)~~
~~10.2~~						~~Form of Agreement for Restricted Stock Unit Award to Executives under UnitedHealth Group Incorporated’s 2020 Stock Incentive Plan~~
~~10.3~~						~~Form of Agreement for Nonqualified Stock Option Award to Executives under UnitedHealth Group Incorporated’s 2020 Stock Incentive Plan~~
~~10.4~~						~~Form of Agreement for Performance-Based Restricted Stock Unit Award to Executives under UnitedHealth Group Incorporated’s 2020 Stock Incentive Plan~~
~~10.5~~						~~Form of Agreement for Deferred Stock Unit Award to Non-Employee Directors under UnitedHealth Group Incorporated’s 2020 Stock Incentive Plan~~
31.1						Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1						Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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.

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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/ DA~~AVID~~NDREW S.P. W~~ICHMANN~~ITTY

Chief Executive Officer
(principal executive officer)

Dated:

~~July 31, 2020~~May 5, 2021

~~David S. Wichmann~~Andrew P. Witty

/s/ JOHN F. REX

Executive Vice President and
Chief Financial Officer
(principal financial officer)

Dated:

~~July 31, 2020~~May 5, 2021

John F. Rex

/s/ THOMAS E. ROOS

Senior Vice President and
Chief Accounting Officer
(principal accounting officer)

Dated:

~~July 31, 2020~~May 5, 2021

Thomas E. Roos

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Payment Date	Amount per Share	Total Amount Paid
		(in millions)
March 24	$1.08	$	1,024
June 30	$1.25	1,188