UNH - Earnings call transcript Q1 2019 | UnitedHealth Group Incorporated

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Operator

Good morning, and welcome to the UnitedHealth Group First Quarter 2019 Earnings Conference Call. A question-and-answer session will follow UnitedHealth Group's prepared remarks.

As a reminder, this call is being recorded.

Here is some important introductory information. This call contains forward-looking statements under the U.S. laws. securities federal subject actual are or and that uncertainties expectations. These to to differ cause results experience materially could statements risks from present historical A in the Securities uncertainties Exchange Commission, risks the of cautionary that and and description statements periodic the found included reports with be current in and file we including of some our can the filings. will reference amounts. non-GAAP also This call Investors on the section the to is at company’s Financial of and of GAAP non-GAAP reconciliation available A Filings Reports SEC the page www.unitedhealthgroup.com. amounts Information this release is Form in we website. XXXX, from contained issued April company’s our the accessed which dated presented in the call on on the Investors may be this earnings morning X-K page XX, and UnitedHealth Wichmann. Group, now David the I'll over conference of turn the to Officer Chief Executive

David Wichmann

adaptive continued thank equity and Today, share Good Optum nearly and start what we refer X%, XXXX. to decisions you The orientation a This strong revenues pursued its us. our capacities size providing mission. Group's did a continued innovation strategy, and and not earnings mission and on clinical It's XX-year fast XXXX to well health competencies UnitedHealth capital the by the and growth per plans returns growing towards and informs market healthcare period, in business affordability, of our are adjusted focus strong growth byproduct and our allocation capabilities performance. well-formed operating approach experience, data, each since our market. do and our for strength current and change earnings on earnings that attaining technology, fully for tenth Group in when strategy UnitedHealth momentum, line raising for to ambitions exceptional return than reported for insights of joining Over was drive end directed our performance same to when has our and traits to time all system we with this grow Group XXXX, nearly and society the up positions contributed healthcare less triple With the and they aim. and XX%. improving is shapes the expectations today. we confidence UnitedHealthcare have businesses, patient large as XX% a outcomes of UnitedHealth of applied as some the match morning, that frames growing and our promise

today coverage improved change way. a as and Our of in the and for in capacities outlook our sensible value, advance access and a continues achieving for restless for growth durable innovation pace market

January prepared discounts in per nutrition, Rally such at The and first project people pharmacy and coaching, quarter commercial through shareholder we saw several pharmaceuticals its great million platform even XXXX telemedicine, be of the that consumer sleep, and risk million initial of we point-of-sale – Simultaneously, developments services will Rally enhanced transparency records. considerable Part over incentives consumer people. services expect accelerating. more In OptumRx testing In pharmacy underway quality digital consumers In on health And are enhanced X business. script engagement, XX% to five year, beta approach member UnitedHealthcare our capabilities. $XXX is employee individual fundamental completed provide its built scale the strongest business. greater health programs. about active platform the eligible third-party We effective and on journey, in estimating counter, which point-of-sale to for the value for proprietary value-based well yet now more care for areas health the this X, will already covered announced saving weight, than deployment increase are build illustrating to have as consumer and implementing demo assistance, eight D CMS the consumer At cost participate access discounts with health, million some other progress branded this value. initiatives and its advanced physician are both engagement. We and to exercise, integrates experienced digital in digital a drive record our

those advance numbers We expect other as to the added. and IHR are further functionality

delivery, advance As and capacities part IHR efficacy to health with we and together strategy reinvent our value. OptumCare's to of Rally the practice care apply

social communities. needs Medical of Optum DaVita integrated. forward to transportation, they Medical and financing and We are owned doctors, adding government progressing to Nearly local used to to whether look markets, modernize all to to people's such are social address who social relates codes environmental in housing, them determinative we behavioral Nearly medical or be to who food, American our staff influences for of factors the issues health better those address national the by Association non-traditional consumer trigger across benefit care XX% care, continue accessed to Improving is we new is connecting more and and These segments. what will are care services clinical ICD-XX close will and through their how of serving more more critical most data delivery toward more Group designs initiative regarding society patients. systems, and and and for And as the and person's the transaction more the with and market have affected needs. unique responsive health most modern resources two designs finances. especially standardize collected, dozen greatest referrals UnitedHealthcare processed, behind and complex the be benefit partnership directly

towards our in benefit target value the XXXX. we people XXXX shareholders. quarter advance Promoter The march first in an as continued serve and of we returns as aggressive Finally, quality advance growth will by turn, meaningfully and XX provide for Net we to Scores and

through individual forward care. severe for and and be the and ability wholesale health can and together health economy health the better that impact aligned information that can prism And fair to the burden drive the relationship one, Andrew all aligned practice seek Meaningful Witty while their on modern, and The securely address been nation's these health and their with individuals the surely Changes We would update so their increasing The discussed people work real without to solutions first the digital protections served clinicians in about health informed, national Medicare is of and better talking to information, decisions by to eliminate at as health universal incentives all progress doctors, technology, The medicine interoperable on and work achieve Before a engaged and sustain could coverage these informed, our the the founded I is kind proposals. where access, reached of we and perspective, costly disruption Optum, with to for and conference of between care there call private we infrastructure and discussion health which health, has achieve mission have and sectors a promote you the of better widely at capabilities. in allowing about aligned and state underinvestment care social From be improving performance private made system destabilize platforms. at determinants limit public care that take and through and ask needs. accountability can all. that system individuals best innovative achieving improve significant in you proper and the their that being secured public a and leaders percentage all to be and know people for or unnecessary jeopardize the of with qualified changes to collaboratively I durable cost society clinical to the path frameworks some American discussion proposals a of want, the behaviors and would proven private inherent cost offers a modern outcomes. system jobs, lifetime Together, an whole. be acted lifestyle doctors need for the to the physicians the shared we view the best. changes how upon we care clinical to of our system, on system existing continuing their operationalize taxes and encourage on everyone. substantially and sector this fundamentally is it and that are contrast health welcome surely goals in proposals November choice, reliable, real access of people, coverage have modify with to progress regulatory lives public work discuss to people

encouraged to improving see United an are on States We is the path.

healthcare's society the months, has on lessened. economic XX For burden straight relative

ideas of the of and and X% is over considerably recent we'll growth the further it inflation all price year-over-year level less earlier way, lasting and and to care cost too spending just progress of to the management than have management effective due healthcare health is at quality, Americans. an The and entirely While still settings. system high, better take lower better and we proven more new today and and in cost, serves will ensuring coverage a choice discuss U.S. supports

turn and strong focus, me and to to forward operating Andrew of it momentum. Now, results, CEO Optum's Andrew? discuss Witty, let financial growing Optum

Andrew Witty

you, Dave. Thank

through accelerating OptumCare. healthcare transforming involves digital, services pharmacy care OptumRx chapter next through Our and reinventing

health of participate and we local work health of downstream. has While, accessed and rate, advanced alongside health and and we also primary who care plans across offer together plans quality aligned of the on system in serve options of year in Primary serve allowing millions that supporting arrangement. hospitals patients other value-based Today, this virtually of care XX% the the improving OptumHealth under directly operated represents a a influence densely of all payers, care of better used networks, Optum's serve and profound well foundation Within every physicians, resources cost OptumCare medical and is will to care. practice XX built on local the XX% patients care cost the approximately owned them. how

advance Medicare Advantage Advantage, XX% XX. with as XX% higher as with through XX% NPS our lower under to star four stars typical to rating of lower higher. Medicare outcomes with participants and and lower than original better a at much than continues XX% of advance arrangements value-based Delivering costs served physicians serving with delivering, performance to or practices cost receiving quality with team an clinical Our just satisfaction seniors Medicare,

In addition some specialty we and community dispensaries, oncology pharmaceuticals in communities, care care and care markets, care specialty ancillary space services. operate surgical capabilities, own to as of pharmacy centers, office neighborhood primary and urgent center, consist local and and hospitalist and such

care, OptumCare and care. and outpatient This setting. palliative oncology, to and program an centric delivers in XX-hour care community example, of compassionate For medical, Nevada is and urgent ways takes care enhanced professional radiation in value-based integrated, uniquely aligns capabilities, patient model academic by Cancer medicine in and grounding and specialty our integrated providing are multidisciplinary surgical evidence-based of partnerships. approach the our new oncology exploring immunotherapy, Center led chemotherapy that ambulatory This while a a one imaging, primary we culture and physician

outcomes and comprehensive fullest of to alternative because physicians outdated better their on patients costly the the fiercely experience at while informed seeking high All connecting is than seamlessly we a serve, supporting basis, elements capabilities. generate distinctively practices the NPS, systems multi-payer We're of services all operate facility-based process patient create these open-market clinical accelerating care supporting produce and these to better.

to improve of our reach, while clinical our new the extend impact journey come. enabling adding to years will locations offerings and deepening for to continue Our

are to a consumer healthcare responds aligned architecting preferences burden and broadly We engaged one of easing more better on the while that system, healthcare society. informed,

business benefit replaces to which of consumer will lower premiums. to This XXXX after serving point to new revenue and employer's consumer's XX% flow are provides back plan per a quarter's approach we’re consumer compressively. Benefits year our taking of indicates that of On last them pharmacy XX, X, in negotiated all current from served the onto the serve responsibility This typically sale. January drug employees to that OptumRx this by more we announcing more clear. their participants extended system, leadership rebate and new on deeply discounts elect health discounts a of growth March only

health are the Our achieve proven up employer for employers, XXX,XXX to and and strong PreCheck improves cost on physician's leaders. ultimately from coalitions, year since they policy we within positive up patients have also using care Nearly XX% this data follow strongly approach physician workflow. know providers to shows observers, up orders to drug which regulators seeing $XXX MyScript is to feedback alternative patient's response and instant directly prescription industry per regimens. offers efficacy physicians We're choices depending improved, This on and now, information cost XX% December. technology drug plan medical savings member when adherence been of per design received we

administered integration outcomes, Our including near-term to our net newly cost deeply approaches care be administrative enterprise Market patient and lowest plans state to enhancing best to for on with develop with Medicaid the analytics provide outstanding. in advanced technologies remain XXXX of effectiveness focused offerings breadth these the offerings. Optum significant and XXXX experience. state of used continues system capabilities for our process engine the for the of of quality us. offerings, was depth and achieving comprehensive even launching robust our technology cutting-edge a customers. services drug the highest better. strategic services continues year pharmacy end-to-end to patients, Analytics the of a modernize performance. improve RFP should couple activity traditional of These And technology customers and insights good We're services sales be OptumInsight a health wins and the and already, response

As digital Dave consumer beta mentioned health, the stage mid-year. in IHR consumer and a around of envision version starting testing deployment the started we've

billion a of the better When earned found the million to grown by and system, available for the their thinking March In having health. the adoption healthcare registered finder. lower rewards outcomes, who've engagements. a reduces of annual value-based MyScript cost markets $X in in first Consumers And employers impact people We and MyScript improve more their consumer quarter, demonstrating high-performing record of the this Medicare, IHR people deploying and experience. million PreCheck meaningfully qualified in actions now rewards the users, high XX Rally to forward people the in over IHR in than also have Medicaid taken alone. own two costs. similar in a made has $XXX over on XX, a patient called Commercial million in a placed studied improve quarter way, launched we version hands doctor technology

scheduling patients and Our payment artificial recovery system. visits capabilities data and building the of more modern support two health physicians coupled and digital and readmissions. reduce at software are engineering hospital platforms scale. IHR critical rewards the more now office improve physician their are just like post-acute they deploying elements and biometric patient information manage tool and and to intelligence Rally digitally when enable Particularly with to enabled effectively

Turning to results. Optum's financial

and people by revenues First and added OptumHealth XX% These of basis illustrate contributing margin $XX.X last the million growth momentum to that now serve XX% nearly to $X Optum's of XX%. operated billion XX%, in scripts to growth of XX steady million innovation We Optum led respond as quarter grew billion first point customers year's operating in OptumHealth. achieved X.X% more adjusted $X.X backlog quarter, the quarter. value growth results over at insight the earnings our in two provides. expanded

Nelson, Now Steve I'll CEO. over to the call turn UnitedHealth's

Steve Nelson

on we've practical innovations, awarded growth to And responding needs is market Advantage been in in serve. and we dual people quarter, personalization Carolina The in Medicaid Medicare North behalf to and the UnitedHealthcare's Within and those beneficiaries serve Arizona. drove just Andrew. again past strong you, of serving Thank special plans. contracts service performance

concierge like innovative service senior complex NavigateXMe multiple Medicare chronic a of service contact needs of issues as X,XXX the conditions dedicated the Our holistic serves received point failure nearly addresses personalized with heart population. congestive Each or Advantage for care experts. seniors seniors. diabetes, health single our from

patients seen virtual highly XX% We've physical capable point overall data, and administrative coordinate is and navigators in locally patient impressive. services proprietary address care reduction navigators direct clinical people been to And of plans, analytics who for personal health. congestive with to have in delivery. a of Key coordinating specific technology help Our from also received integrated flexible and We're of care, care increase this their support. and for support systems each hospitalization with better social patients information through that our XX follow the digital failure. platform the needs, medical supports organized results care provide service and heart delivering determinants personalized NPS

in those experience gaps are state C a in sector original Medicaid of coordinating original seniors use a including system plans strong doctors private invest and not of savings none become the and pharmacy, Medicare personal average health are responsibility record Advantage one-half significant This private coverage Medicare asking while number Medicare. provide seniors use wellness the the Advantage better the is Medicare of toward trend served record of superior and savings them using vision, Again, of most that coincidence Medicare, for similar about a means needs. complex care Our hearing simpler, under reducing market. today This less our fills one-third and in better private beneficiaries. includes healthier. has care covered original that programs, Collectively, care enrolling outcomes It the dental, plans Medicare Advantage at fitness resources the benefits by data seniors for pace of significant track by original not Plan available nation's with cost states people, Medicare. seniors greater in are by Managed private left have confusing of patients better for chronically the and to increasingly ill take Medicare. shows a them these scarce overall. and their for helping for by services on

billion operating first Medicare billion, quarter, in benefits serving basis financial the expanding employers. XX% to X%. medical self-funded growth serving XX to over earnings with in UnitedHealthcare's more the our nearly last in in Advantage performance, and revenues year UnitedHealthcare's margins grew with $XX.X at domestically $X quarter operating three-quarters-of-a-million Looking points grew to people X% quarter, by led

Medicare at growth. believe Medicare group growth. progress, the our commercial our for we in to we positioned we diversified is coupled and sustained hard advance market our on in strong share. for are business Medicaid expect work to In work enabling markets to well implementation Further are drive future Advantage, and continue awards recent We activity with global

Rex. Officer, turn to call the Group's Financial over John I'll Chief Now UnitedHealth

John Rex

Thank you, Steve.

than considering initial insurance commitments. even full Our financial X.X% $XX.X X.X% positions us impact this by the access the In $XXX adds tax quarter grew year XXXX. our to to to Americans. people to negative we system This constrains for revenues affordability health cost well deferral for quarter and first after deferral To alone, more million. and benefits for billion, recap, helped XXXX for tax the deliver improve billions in related on serve the

We hopeful continue revenue are permanent the cost trends be growth, platforms. quarter, benefits and increase managed was well for services to its In to more advocate same-store repeal. led than $X by our and continue balanced across consistent. the well Medical and billion

of XX.X%, quarter medical $XXX up development, trends view outlook minus ratio XX% of support our to and of year plus an our million first with reserve Our medical care year Favorable points. driven our operating basis XX for MCR was or forward at full ago by the cost year also with also the in level. And in stable XX Earnings improvements consistent days was quarter the payables ago growth were level. continue position.

improvements drive the investments this health our lowers deferral factor, While future. strong beyond productivity operating than more to tax in offsets the the for insurance growth ratio, cost ongoing

grew year basis X%. pursue such remains share ahead. to quarter first points up continue year. the adjusted margins will our over And XX% last Overall, earnings expanded firmly XX as to last operating on investments We over $X.XX, focus decade per

by from the that health deferral. collecting the tax cash and flows Treasury. by limited cash billion reported in our over with the the of quarter quarters year with by comparison the affected impacted was to $X.X U.S. that expectations, of quarter were were last customers $X.X three year Recall of first the billion health recognizing tax insurance flows course fourth First payment insurance XXXX then in the the consistent

second third notably we half second of above quarter until to would will the due certain not quarter be year's, the commence simply most All-in, slightly quarter government note scheduled with quarter, lower. year, to received in second last Additionally, are third expect received this flows that be we payments calendar XXXX time. XXXX the in cash of meaningfully

percentage XXXX operations expect cash $XX.X of billion. range to continue a We double-digit from flows billion growth in in to $XX.X to

to and to of benefit shareholders continue the put for organic with the robust build society inorganic growth business capital work We our and agenda. a to both

each inside to look and as active we are in and ahead this the pillars earnings We expect XX detailed currently streams health of care diversify growth years our five company. grow focused, dedicated previously

through returned repurchase the on points We year ago. basis $X.X share was at XXX XX.X%, activity. present And from also million one to equity this return strong quarter and rising shareholders

entered second quarter the we into forward, far with rising positive and Looking and this impact strength, in we future. the year have confidence flexibility, can the

a in of bring increased continue expect outlook strong approximately and Dave? growth to earnings would growth earnings per to one-year share. rate $XX.XX That earnings XX-year and to We five have rates XXXX, for XX% year. range adjusted to in per growth our XX% net to $XX.XX and to XX%, our compound

David Wichmann

John. you, Thank

Over care, the to macroeconomic, value past XX pace. through range adjusting the in Group health environment. grown That an of at conditions, adapting we ever-changing accelerated all policy for those is and deliver years, rising serve and value UnitedHealthcare full legislative, consistently has

agenda as to for our suited consumer delivering benefits society. delivery, global. us uniquely digital, efforts As results These position we and multidimensional care against distinctive response a and execute scale our healthcare customers health company, to and growth pharmacy, to technology-enabled

and for benefit sustained we and customers, XXXX, to operating Group in beyond. year, together our our Taken cost lead NPS, quality, innovation, wave our movement coming we a investments and care to intend in and commitments many years medical for effort multi-year, this with Thank growth service, the the health UnitedHealth our you. to multibillion-dollar of improve performance and expect for basis our of

question caller please. We one take will now per

Operator

first Securities. is Costa with ahead. from Our Instructions] coming Peter Fargo Wells go question [Operator Please

open. is line Your

Peter Costa

you Medicare for discussion. the for morning, Good All thank and

us. members understand gave your employees your workers job and to to it's get healthcare to and you the same Now that message

tell to on rebates margins in will away, do healthcare structure, the go PBM to premiums your you plans? that your rebate to can and what in drug Moving us as

David Wichmann

All First, acknowledgment of for the you for Peter thank Medicare the commentary.

fall-through definitely run make clear options will We are because sponsored offer. government between and have we the that government the think we to well sure this to system or is understood one the

So do to pharmacy you keep in moving question? we'll take you make sure Andrew, that the we want direction.

Andrew Witty

couple Peter introductory ask then thanks the Prince a just specifically and question. make questions for I'll John say, margin of the I to like to comment on element.

I think terms of whole going there that's rebate to in were two close this a really on, that conversation need very keep eye elements on. this to been we really

first what The and discipline for to pricing most is ensure to products. important be of all going pharmaceutical is of this ongoing mechanism the

only was in control that risk years set efforts a rebates there if a being because bring As list at exists who is and their companies know amount achieved aggregated to with you or prices. XX to is the to mechanism That’s be huge drug would this able inflation, the area. not replace complete situation back going on price on negotiate more the a to OptumRx where by the essentially rebate and over companies next the of well over last with that which that years mechanism that this not is or have There are place a which pharmaceutical set this lost they otherwise effectively then to real today what in time. try something, volume independence that’s must do of XX would the be like conversations discussions, significant

And you from consumers. of has is, for diversifying first your secondly more is migration detail all at really bit a John point-of-sale OptumRx, strategy into very offering ask little part I'll this the obviously, successful to a passing led forward John and of and servicing modern second the moving physician a pharmacy in -- a company to to question like The give OptumRx.

you You've John, way seen compensation service we developing ensure is to for the vast lot to passed on detail? and there of any this we majority quarter, less which the customers our customers. to less of and like the our of dependent are we rebates, through also work mechanism a if progress delivered there add which in with specific

John Prince

care to care transparent the model total medical align transforming pharmacy value consumer Peter sharing leading also for integrated cost for expanding thanks administrative of more OptumRx. deliver our ways; the driving behavioral client's are coming on with very more We've where services from outcomes. been two value question on on been on our pharmacy working we is business one, needs. who focus clients in how lets experience, mechanisms years revenues that focused health of We've and us the and fees our

clients. And disclosed the us, the passed is on from our our in market, that that time with impact on fully rebates only are because rebates passed is to of today we XX% we market at it's our look Medicare drug, you manage with brand managed. context, rebates, rebatable discounts So CMS when margins, passed prescription, X% discounts what within our of minimal that on of the and of total none generic from no over value is look exist held by and subset to our XX% XX% on see XXX% the at Overall, base. we’ve Medicaid managed you a is discount XXX% that client if we is is to with rebate clients.

standpoint, client. look our Over we're when passing that So time an is for that driving you at overall on pay our and value a to remaining want and how to client they X% services. choice

how for with them to services, believe get work we X% our are our paid so look encouraging to our which we we alternatives services. for manage, our overtime would other clients remaining our that pay for actively to is And that for

Operator

from We'll next our question go Jefferies. Windley take ahead. with Please Dave

is open. line Your

Dave Windley

and the decision maybe the of to fixing calls exit On Medicaid, performance Iowa? in prior wondered the of your in if on you've in you handful comment markets or could comment out called improving on that that context Thanks. progress

David Wichmann

CEO think in - I do saw business. nice you. our Cianfrocco Dave. in you have nice quarter. of We're Year-over-year We'll that we to seeing Sure. progress I'll But for Medicaid. the progress Over Heather those

Heather Cianfrocco

Heather Cianfrocco leading Community & State.

quarter as Wichmann as So some nice operating wins. of a saw we continue saw highlighted had Last also we make our pressure in that of this to a handful we year, David noted. yes we year-over-year mentioned, couple in good earnings progress markets. growth and you We

you Developmental So as Intellectual Arizona North talk our Carolina and us heard Disabilities about contracts. well as

with We growth. I'll decent most and performance. tell improve also handful of in our saw to that respect them that, markets, working to we've we're you strong made of progress

to you performance funding put expected exactly there a Iowa even of to work improvement there. where be, But due though year through to program years, to unfortunately, we and the systemic elements to some deliver not and that that by continue medical was program on expect the unique of UnitedHealthcare. have is for believe Our a over that those the market deserves what unable us the from same the increase see we'll to high-quality to underfunding the system Iowa markets. really we we still we Iowa, was continue and continue administration, year into some And make design last and were work services inability can sustainable with be industry across pressure recognized cost catch-up to that that of

to the So did exit that make decision market. we

and on we've see made that – optimizations. over rest improvement the the to But make our the that are with few the funding Iowa, XXth. some are of Medicaid have think months continuing cycles exit markets, unfortunately are progress. to we'll predominantly employers the with we're thousands track us of next think upcoming We of we're respect services that performance market of see in they on and We're June proud by You'll the impact hundreds delivered we in members.

Dave Windley

Great. you. Thank

David Wichmann

until to said negative improvement underperforming it's somewhere a get quarter-over-quarter, take expectation probably of and solid still in summary Dave full -- business at a that growth X% despite first the us the it'll margin in operating performance performing I quarter, HIF. we're should impact But to also XXXX our be to which this nice think we're X% zone. earnings in

Operator

comes Our next question with Please ahead. from go Justin Research. Lake Wolfe

Your line is open.

Justin Lake

share of you two-thirds progress also on quarter? with the Can us the around commentary in would first any the full about And Thanks. management DMG give do the an to appreciate decision year government repo update around acquisition?

David Wichmann

take repo. Sure. I'll then can and Rex John take DMG share

a is time then more delivery markets and DMG serve the we more comment at much critical transaction, health have work opportunity remain we expand It or and reinventing access further the about So strategy but around excited unfortunately, of in more very to we part those that have closing stage, reach clear path to effectively. this of deeper care this at geographic make cannot to we to same with timing At this stage. a markets the to details much approval into on go them people.

We of repo? you on are John, touch a remain. that want through matters working to couple

John Prince

year outlook. year is share against to about in the percentage our repo in in $X The ago did ago billion billion quarter is of we Sure. quarter. XQ. we that we $X It year full the billion the did that same the billion $X did Also $X.XX

program flexibility that portion we conditions our and approach that terms if we in I to year significant share we this a of in that warranted full did overall. also that warranted in market of also look good timing we on at try We So maintained good balance XQ. how particularly our that say would flexibility Certainly, sheet repurchase. accelerate year maintain our

So that really kind that of was was on. premised decision was --

Operator

Steven Barclays. go comes Please Valiquette Our with ahead. next question from

is open. line Your

Steven Valiquette

high-level a have rebate question I Medicare on Part proposal. to the So related D

we for CMS plan was that stating with when and with D think sponsorship our conference demo all could that guidance the current Even quo, last Part we'll other provide to UNH program. that but I prepare multiple the bids the cover different the protection then on data players view XXXX. status month and spoke at now scenarios

program this you think Part curious Or year? perhaps fair bidding Now rethink compromise for next D make if have to a your you Thanks. the strategy this plan D sponsors? question Part is is for does I'm demo

David Wichmann

Thompson? Brian, Brian want Yes, to you But touch be. that can on it certainly

Brian Thompson

seniors. administration's have here. certainly to Steven, the better support Brian effort to balance lower against suggested but we he for in cost over premium do drug long-term, We the want that this pricing, that we as I could provide lower Thompson here term. think transparency, increases short the

that in and they mute timing plans won't apply suggest suggest we in had protections they uncertain, in say fully of competitive but providing partial change clarified going lowered think the if rebates will helpful. CMS whether will corridor, with when. should without rule two-thirds members need we one-third to rules I the in they cost It's right context. the to new that leading will meaningful We're ever For the to only this will the to we're regardless. to you sharing, rule some participate demonstration are premium as protections premiums soft passes, it remains and that the the talking mentioned, be corridor apply. so or around perhaps. perhaps current and as extent as apply term disciplined the benefit bid assume And apply, don't in now mentioned important near context, been risk retained exclude behaviors. if about Important the I that's the these today CMS are just our remember, bids protections able where they've strategies, and member plans, or appreciative form be be a remember, to of only an intend does you to rebates, comment it increase I premiums, plans we'll that as pricing certainly plans. guidance. will is leave in impact their We certainly with but we're by that any point-of-sale I

addition uncertainty, June clarity CMS here like appreciate So are. that and from there's in always bid we've to some certainly early we we be the while ready we'll received

David Wichmann

we a the forward carriers and So collaboration program. constructive Part it and in is D is between participating born look One Part the step that in the to D forward. CMS

Operator

Markets. next our Frank Capital take question RBC Morgan We'll from with

go Your open. Please line ahead. is

Frank Morgan

customer We'll any color or business current interest that's Thanks. that being you self-insured stay any the I'm made, XXXX? will And into announcement on think what just around far rebates. so your when regard any do new affect recent base? you with curious received? going way to you How

David Wichmann

broadly. But, interest, growing there's think start I with OptumRx? John want you Prince, to

John Prince

first consumer Prince we I'd pleased we with all, from it, John are because bias It's why there's of one; standpoint. affordability with a did OptumRx. significant say,

with is stakeholders, what its interested very negotiated in of think, behalf conversations clients they're and have have on material. I we discounts with that when customers other our you so, And and the impact the of

So value also driving scripts higher is its outcome. per from of The eligible which material. important health script adherence $XXX in -- per terms value of a is

it. very our conversations on understand So, with it's positive clients, in interested impacted they're very our and consumers. interactions have and how when feedback we We've had data

in of health when incorporate other So look lot would health I'd UnitedHealthcare, market say, are how the to addition you looking XX that. them interest where they with actually at plans, at plan we've our had strong a

basis we it. so everybody think, season. are in And that health I interested X/X/XX, in clients adopt as in When clients other is strong you as interest of in requires This at X/X/XX interest the does terms new plan that on how what in January not so, announced, selling affect well there's look XXXX. And existing to X, market, there employer strong our remember, after to this phase overtime. starting just clients

David Wichmann

line to which for sure are designs Frank, question, that And plan So we a position the there's getting faster see for taking that, Frank. are you growing hopefully those to discounts their make market. little bottom interest apply and bit Thank at We'd improve consumers adopt. the a a clearly It's certain the point-of-sale, least, to to, of was will improves in health. adherence to long-term a slower like at adoption. we know it

please. question, Next

Operator

Our America. ahead. Please next question with comes from go of Bank Kevin Fischbeck

is line Your open.

Kevin Fischbeck

good to to after market guess away these the and point-of-sale side degree some rebates managed-care I from The on PBM rebates entirely. side about or concerned move seems -- are be both maybe

PBM want I get in assume it may as that to bit points. far So, you margin those profile the in so is XXXX assume far that new confirm post-XXXX, I about to little from color similar comment also commercial these the you on business business, about with that. on the economics risk there that be a just your experience may contracts that your business just side, talking more previously, core I may on but side you're so is And just then the similar the be that was over? be as moved two what to

David Wichmann

per And part in we're I'll Dan is the as application the a fact Kevin improvements Yes, that the as consumers UnitedHealthcare eligible as comment serving much rebate script. point-of-sale we're compelling markets I per rates -- seeing have and on a as script, commercial think but moment as and XX%. of well, for adherence high this most $XXX

part and most So, is that impact want the society compelling people probably the to I the unnoticed. serve we on remain

with pretty any comments? additional what the to as but it fairly it much of are were I relates effects expectations financial have you think is Dan -- in overall, line much do

Dan Schumacher

Dave. right That's

it's on. expectations mentioned it's And for very on very overall impact. for keeping medical medications at with is, and individuals thought we impact in But and going modest reality meaningful the it are Dave are they specialty Our outcomes that what much when you the very the compelling savings that pharmacy them. the look high-cost for more a offering, taking

David Wichmann

was an the place in are John exposed exist and as is there inflation market to for a you a it the example. part plan that designed the like pharmacy is overall that And and modest protections to people pharmacy broaden price deeply OptumRx? because the today up price in that that co-pay have reality that impact most in significant perception still want

John Prince

I economics. rebates impact our actually we a in plan point the manufacturers not extract to Yes sure. negotiated why the control just or our core pharma order This in We and overall discount like sure mechanisms we're consumers that driving it. to drive that doing years. with Maybe it. that's element to cost believe the set consumers making This bottom-line solutions was goes around affordability value we driving to does the serve and on for the that do the we is that is that's outer from have the market the it's that to so think important

check think also left the discussion increases mechanisms be years. that there the future price in that's I that the So, against to needs is in

Operator

James with go from Please ahead. Jaffray. Piper Sarah comes Next question

open. Your line is

Sarah James

to pacing the Thanks. growth the and business that I larger of initiatives for growth on to the chunk of growing would was multiples growth may if target size or update hoping OptumCare. is, going to recent that Thinking from you've on that want it's us made XX. be focus over during to if come be it about of then think that XX it M&A. markets the growing we to in should some our comments about you time due How about you that that ratable products could mix

David Wichmann

Witty? Andrew

Andrew Witty

today, have Arizona. should conventions Yes, the growth Sarah when just for Wyatt delivery business. here make to see already also building be ongoing really the closes It's over And, very, see cities. specifically And way. at you'll and you. He's some speaks debt leader the to where a and taken your he's develop, basis. platforms network cities the introduce also expect over opportunities portfolio. significant is efforts expansion to very portfolio that who coordinated essentially in OptumCare's hand obviously, of of will very just new comments in good of a anticipate care We further leadership from in OptumHealth thanks that the Network DMG acquisition as second course, is within the OptumHealth network to very with you Hayek to which portfolio OptumHealth much. me those fill the And we and something, And and be Andrew will networks growth But, Andrew that that extension in the out it going see ranges building to direct really to a on presence. and we Mayo - those elsewhere. to me let directly of Decker. wide that our major within across alongside looking deal the that That's identifying through relentless country continued and at of specific of us from the in there. to Dr. we now Witty. senior In Clinic joined a range I'm of me opportunity just working in questions

more literally the I across see As and potential think portfolio. for quarter-by-quarter, we we're that building the more OptumCare network ambulatory

cancer I opening the the our in I’ll Las center care this to Vegas remarks, first prepared just all of follow. my direction in want mentioned I signaling As think is probably quarter,

his some Let to may Wyatt? be Wyatt from just position. specific Dr. me add Decker, ask thoughts

Wyatt Decker

and health be am I Thank you, tell It’s pleasure question. have through physician where system do this United can to centric we markets morning, here assets you joined Andrew, to thank this patient for can't you I and and States a weave the in you already to value-based care UnitedHealth is the touched care we OptumCare's that on local the together the has leading will through please be this ambulatory Andrew to Sarah do XX growth with is we're surgical better Group. -- I future create I vision MedExpress include this our already for is no And organic organization than confident just would positioned have of will would that and we add that markets. how centers, that and in it our if there healthcare you XX one. create markets.

to have physicians, in and layer reimbursement providers affiliate committed XX,XXX a value-based and of you in bring grow as commitment exciting But We a happens this to on and to Thank - OptumCare. continue employed with together, what doing system at is you. what we're organically will And patients when technology. well as inorganically. that's culture most

Operator

next question comes Research. Raskin with Please go from Josh Our ahead. Nephron

is open. line Your

Josh Raskin

Question just really the around segment. membership broad risk

any little individual the in to areas? we Iowa the you is the obvious by came were color segments? numbers there outlook the the Or changes a you membership any can update than I the of don't exit. quarters, I commercial, stayed It with So risk know Medicaid but and membership broadly typically guess lower the than other of expecting. Any give in Medicare, revenues

David Wichmann

overall Nelson, update growth do Joshua, we comment Steve team this early typically want in those engage year. on the and your accordingly? don't to you particularly

Steve Nelson

about the think such forward, product look grow great members as track growth? capabilities towards, and then different over businesses grow intention and be some grow do products we and and the to ourselves as know look is we're and growth in this our year, is mentioned continue grow, focus of my as continue grow there May and so really by innovative that, particularly those grow. that in strengthen so us not segments year And Medicare positions for really you innovative, across to start as Having and offerings really the growth all And market we're continued As disciplined strong where long-term Special mentioned of about sustainable our about are Needs to remain and to think the we - all add and going to strategic invested to build medical UnitedHealthcare share we growth collaborations you have have for with we Optum just only that, looking intentional a needs is a record. ambition pricing Advantage and and with directed for as positions. we that be end we some businesses, we positions look our just really in well comments how really as risks be we across the a really comments continued forward. but where in million Such our we this earlier I you position those said the very growth we overall history offer about need on of few need the broad that I'll to our as to path a Plans, that they just that consumer value we help. saying how to where

lower adamant We experience, cost while the are outcomes. improve driving the we better very a about and

bit we're thoughtful and talk we’re little growth and more really seeing to about Dan insured a of progress continue ask we it, for there. So about commercial maybe bullish and going I'd be that but to our really optimistic to opportunities, the be how some about

Dan Schumacher

based contributions are some sector public first pattern the I'll was tell we experienced the by expect we over in that risk of as a enrollment multibillion grow from you, relates some we heard and as also as And performing of to our of multi-year very dollar growing to the OptumCare we earlier, it important And very year. you driven focused our we of markets the remaining collaborations As effort. increasing providers, And segments similar us. to and quarters We results, clients, the two well and do enrollment, offerings. the do had and largely are on in high the combination that year. care quarter innovations inside expected cost declines commercial last others, so with to are deeper Steve value through mentioned, that the of

we results then very feel we've side. be driven positioned. that remiss that, We've we effort also focused I with some an to that quarter. nicely supplemented basis, on to also we're well first organic return We well. on and that And as the did the strongly mention the if self-funded grew didn't with growth So M&A and had a pleased we nice I'd in

well overall, So and feel positioned about good it.

Operator

Our Taylor is go Please next with Gary question from JPMorgan. ahead.

Gary Taylor

into delve out I and roughly if some MLR just little to the just tie numbers. maybe I could see want a bit

and So, maybe you up XX is points – with flu basis the XXX, year then faster better government roughly the ago looks last bps MLR points, insurance XX fee estimate I commercial guidance we XX it basis contributing that about it or comments for growing given might your full year-over-year, XXX in MLR might what think made like health than a year. push up But be about looks line very about quarter still would up number than another so.

still So HIF. And true right, still of if excluding of if you kind XXX improvement? improving of underlying so, the trend just to real see underlying the I'm up numbers sort if ballpark? looks And an are seeing the where like, primarily I those is wanted sort adjusted it

David Wichmann

Rex. Thanks, Gary. John

John Prince

Thanks, Gary. morning. Good Yes.

with the expectations quarter So for it medical line was the XQ. ratio the I'd start with in care our in

XQ some quarter the in wanted XQ year, around of I that you're seeing that's of course comments create such. around some out to correct things of having your content one that terms think you're is and observations we versus the which being some of workday the there are the would of point stable XXXX across And the I of just one the quarters. fairly movement that. of XXXX reasons differences in impact last in was the awareness terms over we would XQ made create but in calendar's

out. And you point that would when that we content have so sometimes

opposite one in XQ one XQ XXXX the had occur year. XXXX. have in is Actually, affect weak XQ XXXX we than day the in this we XXXX. XQ fewer than XQ more day The So

the impact, no year. it's annual flows So how timing it just across quarterly the

gets you XQ day the expected where this a… That's that fall. weak really benefit XQ So content that's offsetting

Gary Taylor

on higher guidance MA clarification any if usually year? the that much not MLR growth, enrollment really in the material could. this I is MLR Medicaid is One there's growth the much which Since year effect is for

David Wichmann

it call I No, wouldn't material.

Operator

question We our Stephens. go Scott ahead. will from take with next Fidel Please

Your open. line is

Scott Fidel

have Medicare in your interested rates we HIF outlook in early the the Just sort year. sort assuming visibility of on of MA comes the now terms now final thoughts and sustaining of growth for profile, that XXXX back that the next

maybe you this up sort shaping how group on of view a maybe the thinking of an the right net then well? And as So MA an for on at sort for update about outlook individual XXXX basis point is pipeline XXXX how MA.

David Wichmann

Thompson. Brian

Brian Thompson

for question Thanks Sure. the Scott.

positioning. XXXX with growth pleased our quarter the first and we're our year for off, First in

for before, As view we in the have we XXXX. potential term that of the of at return expecting looked tax long said headwind because XXXX

expectant return headwind. as But that thoughtful rate still of about benefits this our I in cover expected the now, I these UnitedHealthcare XXXX point and term rates we in pressure particular that advanced a view As with health despite stable and keeping to margins seeing I We're be point, went we've And wide. as insurance and what the up since we're improvement disciplined by that'll to goal a XXXX tax. and long market of our of possible is say approach to said, intend headwinds. enough the like with can but not to the the industry encouraged the we're notice, seen think

been time demonstrated formula the overall. executed course now do same improving the operating we've intend the to over like last we the in again of so six and here successfully continued XXXX. That's at growth that While five to and our earnings years have against driving

first the XXXX. quarter and ending optimistic are here outlook positioning So about the

Operator

with comes next Our Steve question Tanal Sachs. from Goldman

Please ahead. is open. Your line go

Steve Tanal

any that give you. just was prior today, ground, XXXX in color business lot quarter the contemplated combination helpful. announced You year us covered a that, earnings maybe revenue for guidance? on That'll could of and whether the you and if the on the Thank and one be the impact maybe

David Wichmann

our XXX,XXX small tuck-in a quite business, a relatively Steve, not it's the lives, new It's and an year. small. business very technologies. earnings brings about price, influencing And or but for align expectations Relatively recall with capabilities correctly. of based small us self-funded purchase company, really ASO I acquisition, if acquisition, a nice But pleased this few to

Operator

Suisse. Rice Credit Next question comes with go ahead. A.J. from Please

open. is line Your

A.J. Rice

I I for just season thought we're about now. I'd ask the selling PBM assume into XXXX. well that

think guess, to I may I there's successes ask aspects early that out. some it comments be Andrew's you about. flush about two I'd

synchronization people the you? Transformation present the challenges now that Alliance for dynamics ago, Health big to them some that be opportunities you to Those changing years sound was the any a Does or discussion seem like few season You a And a have renewal. point. contracts may up of be coming I got of for in the selling trying anyway? is guys been know more strategies doing while, that pitch for then,

David Wichmann

Andrew?

Andrew Witty

to John I more XXXX. ask comment before about Just specifically

environment that PBM technology touched been brought alongside traditional policy that seeing we I the design on changes innovation in this OptumRx. and conversation, developing, are is, have benefits very have of our and around obviously advantage his the taking in a John of of think amount substantial what been already in call of that other anticipation team of also partly but the been offering of levers some core

start in those very a of has of to propositions set I really which way extremely that dynamic exploring bring all some of leaning we to that combination things, these created being think bear into offerings. tools value-based really, different it's of in competitive the and

how next year. you describe and for just ask projected me this John for Let landing to year that's us

John Prince

John it's Prince. Jay,

have early, variety plans. we of XXXX our some health announcement already clinical outcomes, We've of us still sort the They really a around is Andrew cost Witty partnership of terms early wins a of care, very consumer clinical what because and just of already opportunities. wins outcomes. experience several the selling January. good large sold our around Hubbard resonating, program They Two it innovation total of partnership -- We've that XXXX. In employers. pipeline healthy in season large but had for good examples our of in was selected around large consumer our and mentioned, of stayed

years. think, for In for market. OptumRx of performance as Fortune we've with proposition value be HealthTrust exclusive at XXXX XXXX Another asked overall this their for example our win Others of I you in care our division for same selected vocabulary as now story, companies. market, be their value they using a partner to five their services working key we around, might their systems strategic but have, provider health CoreTrust, is resonating the good pharmacy the is, been and improve healthcare. the We'll channel

expand offering, also to you. to that's continued continue modernize services a that we around the innovate the I we continue to have communities differentiation support also think partnerships. market. Thank and to We for unique and outcomes And our us in

David Wichmann

and of innovation synchronization, pharmacy a to modern, there development is more the and continues stay seeing and a of needs out business others modern It's really the What question. is the seeing care that a as a with the result. growth marketplace health but responding starting there and much great employers, out play, plans, to services of really you're

Operator

with Leerink. comes Please Gupte Ana Our ahead. next from go SVB question

Your line is open.

Ana Gupte

on management. your was this sort you on Health could it also is think UnitedHealthcare. saw Virtual question My urgent to strategy national of I what was comment TV for I ads mostly a wondering about or I care is, care is if panic Telehealth, belongs

So, multi-vendor thinking single are is differ you Telehealth physicians or with of your MedExpress anything? strategy that OptumCare the dovetails how of this talk CMS by and bundle mix any how can contracts or vendor the inclusion and preparing -- about you for and then the employed pair in

David Wichmann

Thank Ana. you, Andrew?

Andrew Witty

question. Yes. Ana thanks so much the for

ingredient needs that we a empowered so, with how is ensure and physical delivering real-time. part think insight, central central information, clinical to and to Telehealth the think for That interesting to value I improved strong core very the be I really by is think really really patients needs as platform. within environment. I -- engagement patients be But an customers a have So, integrated for much potential about we and OptumCare's outcome think our really,

very So, much building. that's with we are

I envision But engagement we I they on portfolios runway, platform think of Telehealth. such own, and frankly. that, have as relatively around limited digital then substantial their wrapped also think

the a platform, the seeing or an think alongside the envisioned, within role, environment, very delivery modern I focused around which which the of as experience clearly very comprehensive physical patient patient-centric, more care technologies but as think strategy, outcome, clinical that we technologies, much fundamentally possible OptumCare's like very be a physician-led best a what is it the will Telehealth, lowest the component has of ingredient but built possible what is at you're possible on patient. innovative We require much cost. will a much on much engagement focused best developed

Operator

Our next Lance go ahead. Sanford Wilkes question with Please Bernstein. comes from

is line Your open.

Lance Wilkes

had to just given? and Yes, tracking as that? question for talk are seeing Can a than you results side on little you the expected cost performance just well a cost else quarter. it's about offsetting better medical trend guys And first kind in have of general medical just pharmacy you the the anything how as guidance particular, on

David Wichmann

referring I assume commercial to you're Lance?

Lance Wilkes

cost medical was your target commercial X%. thinking I trend about Yes, of

David Wichmann

Dan?

Dan Schumacher

you full minus our Lance. would we much expectation basis plus the look track wouldn't line Frankly, call had year. I as Sure, or XX with than we our in cost the different expected That's were and tell what I good that in in. very points. to anything on medical morning X% as coming out quarter being

Operator

question James. Ransom next go John Please Raymond with comes from Our ahead.

is line Your open.

John Ransom

growth the that We The organic organic publicly. that of organic that's trees some the Xx attempted which services track out stand-alone of calculated from was the providers last to kind tease at kill least OptumHealth, me we growth any the of would growth. number was astounding acquired mid-teens numbers know growth at you week and to some be as

are you those market? how get help wondering, else some you to to that just the give frankly anything see as So if stand-alone Xx in Thanks. we out I there us could was numbers

David Wichmann

to hoped growth Andrew? exactly do. designed it And It's compelling it's doing platform. we what had and

Andrew Witty

much Yes, listen, for I thanks John mean question. so the

series the stream Hayek's leadership all OptumHealth by reinforcing you'll I deserve to I self a is think of of beginning now team kick Decker, Wyatt complementary together. Dr. think what credit drivers very within these growth in all bringing activities. Andrew whole for various And led leadership think team, of lot see on I really a

As of geographic the great clearly. can a growth you after you making deliver level physician through, membership That seeing as growth; think of seeing amplify greater across, groups of velocity shift business. each we're for you care, groups physician We're And quality more -- those the to kind layer attractive level practices better you're on and clinical them a of value. cost. of seeing look those

feel expansion OptumCare alongside OptumCare on business alongside good platform. So for of cancer Rally or it agenda. the business see is delivering. Andrew like the very in We've And platform directly OptumCare's in we that ambitions innovation up OptumHealth Hayek the things further work this heard OptumHealth, for as the layer for the the the evolution track me days the leading developing open about now over in degrees very the got Honestly, I that look example and still to and OptumCare's next substantial two. points you’ll the another begins is at dimension yet think prepared remarks, was the the of to you record of significant year early and center

So feel about good very far. early of together to we gear many days, of a beginning are where function so Very positively. streams we work clearly

David Wichmann

Yes.

capacity difference Just to on make a and years invest build real five expect category experience frankly, out in to that outcomes costs we're health system and and strong… XX this to has talking to quality us really delivering continue patient to this the

John Ransom

permit doctor the me is of full How Is it? of the If Or a a on move you mousetrap getting to $X.XX growth? goes $X than that from much just the that the can care is $X.XX, it in a bigger terms where piece primary of overall follow-up. getting small dollar.

Andrew Witty

with best very developing believe of you that's physicians see key the decisions to that care helps patients, OptumCare of part. their mean, possible important. know delivered and how and is ensure philosophy a a up of behalf best I make the that great as we’re John, cost. repeatedly key we the free We on exactly that facilitate part journey is

of that's set key clinics, So how of certainly yes of philosophy yes. it's a the a journey, that we of and part part run

Operator

go from next our take Cowen. Rhyee with ahead. We'll Please question Charles

open. Your line is

Charles Rhyee

clarification, your want headline to just earlier across said headlines your earlier? you you a you because XXXX, just you some probably Dave get coming that, I but target Can I hearing recall came by the take about regarding get across had business. there's XXXX. margins that what saying Medicaid us commentary are clarify saying to expect

David Wichmann

in be the to of we'll margins end XXXX. that of that our bottom is probably expectation in zone Our the closer target

Charles Rhyee

points was And of if actually, my I around ask could rebates. my question question

just guys mentioned some for had not you, been wasn't available employer that it PBM's all appetite just rebates general really it. point-of-sale You the in for the – have to but market time an

decision You as market attracted ahead this put of employers move be now to making strategy. to guys you forward? kind you here going still aren’t that this that with are of at Does this risk move in type the model to commercial

David Wichmann

are Yes. where that discounts would situations think the prices high the we consumers But that applied case. that important of inflation be or exposed for list it's drugs, possible at point to It's of are service.

there design. or designs that benefit plan the Again, where is a we've high-deductible patients believe there that is And exposed. proper that's so plan we health other

a a And as substantial much the as as improvement long-term XX% seeing we're serve again, adherence. people be we health and So, effects for we believe will the result.

we we think if we the restrictive will. to have people designs more right and doing are we're So offer that that thing means, for

please. question Next

Operator

Zach Stanley. from comes question Sopcak Next with Morgan ahead. go Please

Your line is open.

Zach Sopcak

point and sicker last that the translatable Or think cost you Fed Medicare? you leverage book just more population? your in would you get think seeing improvement in general that adherence the to by commercial do do a you're To is given

David Wichmann

more we'd – be in like benefits Theoretically, immediate to Thanks might population the question. yes, in population. expect it Medicare out believe than we the you in We'd over time, probably commercial the prove a to so. see see but for a

please. question Next

Operator

Please from question go ahead. Research. comes next Our Willoughby with Cleveland Steve

open. Your line is

Steve Willoughby

Just season the PBM year? and selling your on the you. terms way to of for you of of importance in is over positioning could then to this going comments, next that then there this net Duals question. you're one expect if year on provide more on go just quantify bit little basis XXXX year of clarification The Duals just year rest thinking color so your growth, my point a a any you're of far be point to and and a Thank on clarification was where in business? And question the where next just seeing what and you might

David Wichmann

at answer not stage. this to XXXX we're the question. Steve, Yes. Heather? on going comment can Duals we But

Heather Cianfrocco

that has from Medicaid really coordination supplemental Sure. know on The strong Duals, Medicare you special as the of aligned care been because we get get members it's mean, often XX% is and the program really that Duals the results needs over our alone, and needs UnitedHealthcare program of see Duals and cannot consumers. special top today. you this that. or growing market best invest in we our But they for It’s in space benefits, benefits growing the the

federal quarter, in to make a place think year see again, know we this better. the really we experience. you and our quarter even to government We with continue invest. strong to strong states alignment as to continue this the we growth program XXXX in had we're saw and as going It's So another first that's

specialty. surgical Our footprint unique and and programs Medicaid our our brand Optum service program our strong HouseCalls like through

again us a area invest be to and this we see an year this strong So continue XXXX. in will expect growth

Operator

take question from We'll our go Please Evercore ahead. ISI. Newshel with Michael

is open. line Your

Michael Newshel

due Also was the in quickly has on lower rate. past, the first to guidance, the the timing. It stock comp close been but expense quarter tax to full-year

change So is to or year in there any this change seasonality for full-year the expectations any tax rate?

David Wichmann

John?

John Prince

the bit likely was the benefit, It's little and lower fluctuation And John you little there's realize has of there. impact year there XQ Rex. because the No that to reduced due that's just change there full just price of exercise lighter exercise trends why share in as other outlook was terms volume And was a more probably that that than that XQ. but was from activity it. I quarters, a impact a in our would typically say based share

David Wichmann

any Are Thank you, Michael. questions there remaining?

Operator

one the have on We question remaining line.

David Wichmann

Okay.

Operator

BMO. Matthew ahead. Please From go with Borsch

is line Your open.

Matthew Borsch

quick this been make through the I'll patient questions. very going very, all you've

the pricing take the but back add was concerned going lot going something the change with be pricing But to or effectively your you've a clearly that also do ask employee that come stage fee assuming into game, to not on be XXXX. to to of is reduce a are back that the going comes at in be you'll And rebate price got premiums. this industry going to you curious going out XXXX? that's the pricing that employers maybe loading of Just you're pricing, on something if not year? they're maybe factor next PBM to to side using as Is into to into

David Wichmann

Matt. question. Good

million you we're converted the to rebates, the we're think has so commercialize out most or fully-insured played already converting part of as overall. consideration to have know in $X I point-of-sale move already that for process

on of the small made is don't really positioned thing XXXX system multi-year much maintaining that how am there rising in important period Brian in standpoint meaningful about talked entirely concerned modification just recognizing maintaining stability And insurance a that about commentary couple if unacceptable. XXX increase families a the you a and million with these I high-cost of The this increased structures friction billion some coverage will already amount. the $XXX the our cost through for self-funded very layered think and I at to math in either that the That has about is earlier business overall. XXXX. health here earlier do that impact outcome people. for unnecessary our tax on benefits for dollars him And senior he from And what is by return announced care same on by about The the from health strategy market time already year. premiums that margins see and I top $XX the least taxes point-of-sale untenable. is by healthcare we've costs on health is on from too cost

if of repeal is this behalf we we're serve. to a or continue the stage not So pursue We at we outcome if the to that check. And there can't those consumers healthcare on but deferral, we law will to keep an hope deferral, comment costs no where we outright on the and operating these of continue speculate is the in as aggressively advocate on law. behalf certainly on serve

Operator

There questions the queue. in are no further

David Wichmann

to this satisfaction. you. achieved quality up strong operational discussion value healthcare day, patient we our the provider sum every Optum while providing financial We Group higher both improving performance people UnitedHealthcare. UnitedHealth thank Well, from the care great. today and performance Okay, robust with by To and affordable deliver increasing XXXX healthcare, began more and

grow, an an we the In people society to call. pace. to U.S. across offer value As serving ways expect This healthcare for the worldwide. you enabled we concludes and innovative more at continue joining accelerating company, us. is more our turn, Thank technology rising in

Operator

may now your participation program. for you and Thank today's conclude does disconnect. you This

UnitedHealth (UNH) 16 Apr 192019 Q1 Earnings call transcript