UNH - Earnings call transcript Q3 2020 | UnitedHealth Group Incorporated

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Operator

Good morning and welcome to the UnitedHealth Group Third Quarter 2020 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 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 Relations on the of the to is at Investor financial the earnings of GAAP non-GAAP reconciliation available A section and reports company’s page www.unitedhealthgroup.com. amounts Information this release is Form in we website. XXXX, the contained issued October company’s our the from which dated presented in Investor call on of the Relations maybe accessed this earnings morning X-K page XX, and of Mr. UnitedHealth will Group, to I conference the Officer now turn over Executive the Chief David Wichmann. ahead, sir. go Please

David Wichmann

today. to how thank X in patients, fortunate our us challenge. into and of adaptable an you, our people, driven growing highly of up both close of providing unprecedented customers, team them Good I on you over innovative, past and their families hopefully you of us am our exceptional restless capabilities they team care everyday, and compassion, and and care the investors, spirit a expertise by enterprise our frontlines. providers, joining the of period XXX,XXX for work XXX,XXX witness the this a The provided and organization enable the window members have and months serve morning to values

which our affordable, deeply next to and the collective is and Our help year this about one made simpler health even experiences over potential fair, system, effective. generation committed an have energized organization us more advance

delivering sharp results focus team the well-balanced Our strong across division on day-to-day enterprise. with execution, combines

we to quarter arising pandemic. from forward financial full to with from and those estimate In a pandemic earnings our very actions are were of adjusted of remain this any quarter $XX.XX proactively year customer pandemic beginning swift year the we performance range of Based the consumer XXXX we updating to and outlook ago the imbalances per $X.XX share. earnings from adjusted for $XX.XX Third support serve. upon the ensuring this, and the are we reflecting fairly addressed impacts, COVID-XX to committed share decline committed per the

done have the unclear. outcomes this consistently even period We ultimate as over this remain

timeliness the service, this is As view, with and is long-term continue relief to what to could you of us. our from critical, stakeholders a expect fairness performance

require. innovative a You should ways also as its expect and in circumstances new enterprise this spirit contribute our different apply will and expand to capabilities

supply on PPE resolve have the keeping trials, and workforce scale, enabling while health considerable critical led helping and We and partnered more nation’s testing the clinical PCR chain rapid safe. issues at

North state We are California, and New Indiana York and in New Carolina tracing testing contact City. operations in supporting Jersey,

most convalescent development plasma trials. vaccine of Mayo and We are some the of supporting antibody promising Clinic’s the and

schools We as of of processing a of protocol opening technology have businesses, to safe well safety as the homes. safety workforce helped enabled the health ProtectWell, workforce through the and the enable nursing development

$X including rebates. jobs. being lost $X health offered and $X to coverage employers our system assist and working relief, liquidity our have realize by health sharing who are with campaign now the customers We through for We and will assist in to transitions relief in estimated their employees’ billion consumers people GetCovered billion premium cost over provided billion in

because you telehealth sense a would serve. to we work. are and and our like of businesses capacities million communities of the X set and of most of give and operate Early expanding of of brief the chronic vulnerable have a the and for development system in care of of more to are and rapidly to millions emerging the crisis. will Today, the possible, of leading adapt to patients needs well next that and advancing health, health creating generation I for opportunities UnitedHealthcare’s connections physicians These health effective $XXX meals conditions. their ensuring own This pandemic, a insecurity, expand this meet from highly its food physicians, patients extend than included enabled financial We physicians we opt-in direct digital capable disparities. efforts support beyond and by adoption to pounds between critical contributed million element suffering quickly homelessness, patients

patients. develop you physicians rapidly distinctive tools telehealth this and a are have proprietary how digital developing our year, high into overall sure of set aligning care. directly I visits facilitated capability. performing this their systems OptumCare to and see amplify our practices X build can am to far So million modern further fits And clinical with of we strategy clinical advancing

are Our capacities therapeutics impacting management the growing diseases. of positively chronic

X intelligence introduction artificial diabetes, digital XX the to the are in X, producing therapy of the people With Type health X we better the improve uniquely Level and signals patients with measures engaging Level of developed a applies outcomes. million move toward of lives disease. people remission helping

can You more and from coming the years. in months therapeutics digital expect us

to especially patient-centered members global XX platform, over patients, X.X million Medicare growing serve outcomes, and clinician across where substantial million intelligence patient health enable leveraging experiences. data of facilities and arrangements, industry with relationship patient X.X creates to better under treat building apparent leading million and artificial value within Advantage proactively form or by model physicians clinical our risk and our in nearly capacities deeper disease leading OptumCare to OptumCare and are of these XX,XXX Our intercept dually-eligible X,XXX value capitation. some local a by early

offerings success than offerings. in fee-for-service. our NPS deliver considerable days lifestyles, mid-XXs. fulfilling delivery value class OptumCare and Medicare skilled traditional experienced a days the growth facility term XX% costs costs nursing Moreover, by for the all supported improved also on commercial than bed demonstrates traditional in fewer to safer, and are fully per patients goals at potential proven reflected in Our Care fewer upwards and lower scores equivalent patients Medicare and benefit advanced care most hospital greatly the more a clinical lower with this benefit, year at in care Senior the average XX% longer Optum of seniors high-quality spending for consumers our supports one-third The healthier, world benefits of practices

We and continue come. decade over expect it have building strong a for to been grow now rates to years this at to platform double-digit for

and aspect way generation Another and clinicians, the health specialized future for next medications patients, modern which in is a of of managing the employers system a costly payers. works

savings This the integrated enabled cost managing clinically by growing infusion will care grow specialty sites. XX,XXX employing our lower of served will patient with to centers by XX conditions OptumRx approach able to at appropriate convenient total more XXXX solution medical and where which community are per footprint at annual both we pharmacies approach up in grow the a double-digit complex patients Our benefits, across and number generate pharmacy over is brings to in services Optum’s of rates. integrated by

to plans Southern Likewise, savers We chain on services grown In which another serve offerings Put for contribute these value gaining customized the and outcomes. we the coverages. expect durable affordable transform the as managing resides from to meet the experience. with are such healthcare health solutions benefits safer over system, management. as clinically year. personal in the continuing ahead. engagement to has the expanding patient see increasingly set growing system search plays by our differently, our and in of needs generation consumers. highly this to for become needs and individual an XX% as pharmacy to be are This be grown we OptumRx growth to in employer offerings given strong we a expect of XX%. consumer traditional innovative people strengths equivalent and alone, coverage help care centered, to growth We care services. and trend as Harmony pharmacy individual the reception believe tailored in very quality these traction, of having This of not OptumRx enable people all supply seems year with years in this next coverage, people much suite UnitedHealthcare will of increasingly California affordable such health, membership just focus and bind, to simple, health number our consumer the sponsored and UnitedHealthcare in continues to leader flexible line

You XXXX benefit interested The opens of in years, will are year reaching you million XXX period enrollment counties. know the UnitedHealthcare’s Medicare tomorrow. additional many which Annual Advantage X.X an largest people Medicare in be Advantage X in nearly additional expansion footprint

at we what nearly people reduced seniors for have be no year than ever, X.X emphasizing know this all. serve We for most and value. even and will flat or premium Premiums will looking stability are people we million are more

co-pay in zero senior’s product We with annual such continue personal navigator. innovate of as health expansion primary digital and services, assignment dedicated our a Advantage and featuring the visits the offerings, our health clinical Medicare care all assessment of many delivered UnitedHealthcare a for support plans an home to

and growth MA Medicare We shaping growth. expect in strong leading XXXX to be when of another combined year group up gains, with individual is our market

seek everyone, generation for a growth We development geographies. of RFP for of health that in due we pay as What to in transitions a who system, the initiatives I are better more care. to this the in coverage are care, new those for pursuing net also system record and described to to we provide who who market and those experienced Medicaid expect those care a sampling today works continued season forward you is more looking morning help in gains next serve lead have the health people and

over to Now, John Chief Rex. I Officer, Financial it turn will

John Rex

the many quarter lesser quarter, in disrupted normalized you, impacted to levels. stabilize albeit care much extent Thank of country as third near to be Dave. second patterns, regions the speaking, than more Broadly continued by to results a

undertook costs year quarter, well per care proactive COVID-XX the earnings offset care impacts effects. decline economic broader this in by These deferral year-over-year XX% customer resulted as than the more voluntarily and in share. and we testing consumer earlier assistance factors a adjusted were Within measures and as

recover, the saw second our of the year contribute care in The the last our quarter, built more entirely to businesses the assistance even undertook well, to up, and total by now point while to discussed the measure the care accepted categories at of which three adverse earnings makes This period pronounced in baseline, certain a lowest with quarter, two-thirds Optum quarter second closely we businesses continue compares second actions of ways approaching deepest seasonal perform different the about voluntarily more normal. an exceeding Each we recognition in quarter. in which for half operating to overall economic In patterns Optum impact began impact and continual we still deferral, XX% as fee-for-service of third helped while the to ago. As modest XXXX. and benefits quarter bearing deferral year-over-year the third activity of lining and care of practices XX% risk decline quarter some a from surgery recovering ambulatory effects occurred increase from of still mostly of effects. experienced earnings timing UnitedHealthcare’s care. earnings that practices measures activity

in centers baseline safe, FDA convenient XX% Year-to-date, at compared as new the Our they seasonal about SCA efficient and performed X,XXX have the of ambulatory clinical third over operated partner. a procedures quarter quarter. surgery XX% second to surgeons, in seek

billion. durable New rose and strongly state care increasingly fully quarter at provider-facing service in by over settings, X-month these procedures XX% to activity grew expand our with billion volumes. nearly future prefer and earnings XX these year. to businesses last year-over-year, procedural normalized. trends while to the see nearly services growth as These over in year activity OptumInsight lower surgeon affiliations we third increased three government measured to the for more continue $X.X of Payor family in NPS the the quarter new backlog benefit due we businesses period $XX XX. centers having Patients performed strongly, will added the performed revenue even elective nearly the doubled lines in long-term last complexity while XX% continue

year physician impacted XX% activity quarter’s to from in improved prior which the While as have X% services activity, to and a by earnings scripts, business lower Revenues still were lower grown pacing. was script Personal not not pharmacy levels. factors. are fully down quarter about businesses second nearly expanding fully declined the XX%, second OptumRx increased correlated third the quarter, from year-to-date. greatly in our care while which year-over-year has yet development much back activity normalized, business economic volumes

primarily costs the was of quarter, Turning reflect the to by experienced results care still quarter while moderation third offset not UnitedHealthcare, our impact in care it’s considerable operating declined primarily more and XX% about to baseline this, measures, transportation The economic than COVID-XX at commercial a assistance in the levels. due employers, deferral fee-based served came us, direct and very second This of energy factors. large decline in the number sectors. for from products employer people hospitality, actions. Within of

continued quarter, Medicaid third state growth benefiting membership accelerated, the in easing requirements. During from of re-determination the

not Medicaid months. healthcare with losses lag material have We coverage job historically, due enrollment seen to loss about yet activity transitions X these and by

due pandemic. business Within of has patterns for some Advantage typical seen for to to strong in normalized second have people plan move Medicaid organic people. Our than of growth to has XXX,XXX Medicare the the activity seeing MA tracking fee-for-service well. we less over continued considerably Medicare Medicare this, selection Advantage new seen enrollees, is existing quarter after while slowing over switching year-to-date towards more in Sales

and to need, monitor pandemic. Seniors generated data in distribution kits collect increasing growing visits We gaps value deepen last year. in engagement the our by remote third continue sensor with continue highly to and the call in seniors most house programs health digital over nearly number with of the address care home XX% to of vital by the our those quarter

Our remains financial liquidity and strong. position

billion net capital of reflects are or the our Xx tax income cash flows typically Third or the deferral flow of billion quarter compares payment due X.Xx ratio up to operations ago payments in net to from federal the is extra in and the Year-to-date, total in XX.X% earnings quarter XX.X% cash paid year quarter. debt to second $XX.X $X.X quarter. the

result $XX.XX and our to to range assistance treatments. per will performance, normalization deferred updated quarter earnings while anticipating reflects care outlook year a patterns have as adjusted and rising This share. of reflect a measures, we quarter earlier, of $XX.XX the fourth third continued noted As customer missed in full acuity

they will We work the proactively continue help to to obtain need. people care

I back turn to will it Dave. Now,

David Wichmann

John. you, Thank

growth report, we early quarter at With outlook. the provided earnings our times soundings some third have on

with routine, current our We approach to on perspectives. XX% anything, the long-term objective. XX% is the still continued to try environment as Even will future but useful some I offer growth earnings conviction

expanding and now care factors services. Some decade extension leading modern giving rapidly our into benefiting care of and the delivery local in post-acute building investing include intervention of behavioral value-based a systems home market us confidence from and over services health

Our people ability across The commercial, individual with way support across state-based consumer needs including response increasingly with innovative market highly The of now and products being seniors the complex conditions meet to channels is innovative programs. personalized markets growing high-value comprehensive was channels. and of we care, and offered people multiple offerings. through the and federal employer

and to our of the are Our more system information interoperable capital serve we data will as of capabilities and just unmatched line ahead. These integrating and next we intelligent socially a development drive companies ability to in generation to in a provide improve to next support to innovative a years restless other more system actions deeply over health essential enterprise which analytics look of allocate care to conscious enable insights investments as in as significant years evidence-based way. performance, accelerating much the with best to lead more the health the result our clinical few a many people

represents difficult early thoughts to course this expect pandemic on and As be XXXX, economic performance underlying headwind. to well at the and of business highlighted likely of tailwinds including remain have our The a throughout distance we potential impacts to long-term and we our related growth this morning. supportive objectives, strong predict significant

more care to of we pacing unknown in developing services all-in normal levels a out with the and condition and As particular XXXX accommodate COVID-related initially impacts the starting envision of the more of point to these return a result, economy. stepping a conservative still

for will X our perspective all our questions? thinking evolve, also Tuesday, we can further line providing in to virtually of continues look business and you our at be the custom, is environment December investor held your evolve will on it to continue today. for our forward conference Thank you the open this on year. aspects to we As you perspectives please time which Operator,

Operator

first We Credit Rice will our question instructions] from ahead. go [Operator with take Please A.J. Suisse.

A.J. Rice

of made bit further you Dave that of pent-up got back, thinking that cost of a parts trend could therapies Hi, that everybody. could about environment is lot trend and predict guess to potential just predicting a there, medical thinking just have just about next year? little about result comments next the the year, moving how next cost things I there, that potential further as demand a uncertain trend pursue a to vaccines number of Maybe ability for year, How deferrals, about come a be you and a see flush the changing how the competitive old that medical are cost that? cost for you maybe do that, approaching is comment

David Wichmann

a efforts imbalances that this that care there extending are during you And that thing strong consequences. also members which know towards any to economic very you are but Thank predict smaller commitment also Hopefully, XXXX. a our growth away the should performance moving get we AJ, optimistic are that’s about remain and need some remarks well, are ensure would to very underscore, and time is we of number universal relative Optum the you didn’t prospects we question. and you, and much our are from A.J., pretty the particular of a the We very of position the we took as into of that about that have the chronic occur. parts, competitive business our and difficult what one environment and thoughtful could indicated, we and related they our prepared optimistic unprecedented across correcting respectful the deeply patients But size getting pandemic for are both still and I businesses, also UnitedHealthcare. had

long-term strongly which part our are business pandemic-related offset – per XX% underlying instance, business effects. year growth our XX% aligned by these performing to this objectives, at to So, and do see we in

So a expectation possible just you conservative see represent described. normal as and will all-in in wider the all from the starting point, more the December, would that a than you elements given we likely normally indicated outcomes us range given that

point business. that taking but growth being the headwind develop might speaking our it area of are MLR variability Thank as very view we generally is what are an – for the So, you. bullish We strong whole into see of be. where how impacts organization, we pandemic of the that that underlying on – we consideration don’t it, our about land, misread a related our performance might

please. question, Next

A.J. Rice

fine. Okay,

Operator

is Please And Raskin question with next Josh from ahead. Nephron Research. go

Josh Raskin

Good thanks. Hi, morning.

Just on the a want in XQ and versus that’s on relative the I per that guess performance year-over-year over OptumCare, are big physician PMPMs growth you increase sort what’s X member? if kind served question going then to and the better of there you recruiting talk and I XQ seeing sort revenue driving of of also consumers understand And how months? the about in last could just

David Wichmann

would those it want Sure, why on you growth talk Josh. into more are I enterprise markets of more percentage to I and the showing and we for them risk-bearing penetrated next hitting higher a one reasons Wyatt, deeply year. Great strengths be But arrangement. are market, questions think of the you said simply one more and a the do of of fully? having

Wyatt Decker

sure. Yes, Josh thank Dave. Thanks, and you,

part arrangement lighter businesses member some to of that it the being million, OptumHealth. of more that members might Dave, the you number have we services only by other the touch think, revenue the the close see risk-based increased well. driven seeing through through but captured and within increased by is as we a XX What have you grow, OptumCare somebody we we versus would in reached we are offer per in extensive that’s not I XX%,

our and are excited trend that frankly that and expect life in growth to very about fully We related MA double-digit lives we serve. complicated risk continue

and large around are to leadership you. in acquisitions piece question tuck-in both as I we recruitment approach attracted groups have about the embraced we physician stability, the Thank is in Another your medium would small continued OptumCare. physician say, who robust as interest that evidence physician and Josh, well based have seen both

David Wichmann

Thank Josh. question, you. Good

Next question, please.

Operator

Research. Please go are to Justin next We with ahead. going Lake Wolfe

Justin Lake

Good I the to back Thanks. comments wanted circle morning. XXXX. to on

and that breadth year-over-year fall at First, understood think XX% in any from this to the if [indiscernible] for a consensus, you within the of growth range be your in will employments around range business? point wondering making that

David Wichmann

has It nothing.

Justin Lake

segments. specific For

David Wichmann

are hard having we you. Justin, a hearing time

headset, you can up If you pick handset? are on the a

Justin Lake

Sure. Is better? this

David Wichmann

No.

Justin Lake

No, okay, on. hold

David Wichmann

Okay.

Justin Lake

better? that Is

David Wichmann

Thank you. It is.

Justin Lake

Sorry about that.

curious I XX, potential So, concerns, I your Thanks. comments typical to than made guidance XX% circle to the estimate us it’s like your you might to consensus in maybe to below typical might around where year-over-year, still seeing, XX you was wondering think growth, that think the they point wider just that do call businesses wanted first the can it on within And to am are the earnings if what consensus XXXX, back targeting look I commercial you still then a include range? specific membership? of, beyond you recession impact a

David Wichmann

enough. Fair John?

John Rex

It’s Rex Good Justin. morning, John here.

and of where out consensus Dave As about expect that’s quite an that the XXXX point a of things kind would look be that could even like a normal terms kind with. range confident think in normal area as are we in could of stepping in would one think the zone would that I the kind I towards organization out, of underlying of think year, pointed growth we we

respectful very are end. a but of the normal as We year fact however anything,

like how we so and months We you every need much tell people we month perform, X for of we have how to serve. during our over in last period businesses learned terms the operate, the respond this I’d how

think be mode be of continued respectful performance. could – And better so there certain realizing about terms we in impacts the we businesses and as learning to situation understanding think we as more in significant have about in a

world impacts, assistance a whether direct those kind but zone expect really pacing perspective a this we of COVID-related at to the kind of kind fits, in are excluding So, it are headwinds and COVID there world that the we are should think headwinds, factors within from where operate of treatment we you costs. need whether with of care it customer that and terms good there, do today in of look of what those we economic really potential in

So, way environment don’t mode in are just evolve and seeing of I perhaps trying picked think up question, a really getting thinking evolves. environment you are hard to hear? was as of the our I your could that responsive repeat one, to what And we in heard to asked the second longwinded be if it Justin, still we that

Justin Lake

Yes, that you Is is that third and environment? market lot of last was are bit the this adding what asking all, of and felt something impacted companies you is being like that’s do around something like could the in I just specifically for be a little know are that but COVID trend. to I a that’s to still to most Thanks. segments the price a potential in trying uncertainty, as for you that tough you did feel conservative, year

Dirk McMahon

that’s of Justin, to to mean, doing? are about our course to say What forward price going going is, would I I include are best COVID, we this you economic you estimates How trends asked the impact. No, is McMahon. Dirk of but

of employers membership at third actually, like to some well So protection that as and we back a little was than we going things as did. program be, quarter, payroll we thought impacted large looked sat our the it the less was furloughs as because

be will problem, bit a we there So yes, than what expected. but of less a running little

priced. we So, actually we optimistic from how a membership about standpoint, are fairly

at than monitor we XX at we more look for priced we our and and competitive how are is that, that as everyday. block look to continue We

David Wichmann

Thank you, questions. Justin. Great

Next question, please.

Operator

to RBC Markets. next Morgan Frank We Capital are with

Frank Morgan

expectation on expect that year Good be you a you morning. you the market, in any make for to decline John, in color Thanks. plan the just this case? switching mentioned why curious MA did

John Rex

the think, plan we I are follow-up, to to on adoption is seeing of seeing of we was strong commented actually. things – less I into are normal actually Medicare what people one Advantage. coming new And to Medicare Just we what switching

David Wichmann

know? anything to Tim,

Tim Noel

people are Tim Yes, marketplace Good Yes, decline the is to that carrier John is we Frank. in a what switching to have from Thanks. in one that the alluded seen what next. Noel. morning. MA

are However, to or a chooser newly compared folks what choosing are are Medicare eligible course plan Medicare other year. we a types of the lot call coverage which strength that in market, of the people for Advantage throughout the that

So, categories, have of activity throughout good, the back a seen activity switching it’s we in year some and seen and better course March but plan April, recently. strong demand we really particular, in little lighter bit the those was actually, and the have in come

dynamic marketplace in where in an environment are one head back more trending the selling to to enrollment the we So, the any as season into compared past. we normal is period that’s

Frank Morgan

thank Okay, you.

David Wichmann

Frank. you, Thank

Next question, please.

Operator

Morgan We to Please with Goldwasser Stanley. are Ricky next go ahead.

Ricky Goldwasser

to on of the care visibility has higher to what Question side When higher morning. expect. good of to Medicaid side, exchanges? how states managed fee-for-service point in next you Hi, enrollment Yes. to about think the you acuity type the the have than this for do of you transitioning peak? do Medicaid about lower the do time? populations on expect is balance Medicaid impact coming think at for year from unemployment change How the And you then pandemic impact rates and going of versus Medicaid

David Wichmann

Ricky, landscape, entire the well covered much Pretty done.

will Tim responsive all for Executive as possible on to is & Community as State. Spilker be of that. try Chief We our

Tim Spilker

Yes. Hey, on question. the thanks lot hitting definitely you the have for tracking. we And been are a factors of that

re-determination market. his the step have gains terms in the Dirk really and result the of first of pull the that’s John in think lot of is the comments by a commercial through not just seen terms really of this And suspension been seen opening mentioned CARES some that And as studies so as of unemployment have are in of that’s enrollment what supported far result Act. just is enrollment The seeing we I We reflective yet in through. well. of I think we the dynamics external

would through increases. to the as unemployment continue think watch of coverage pull at we I that would So, some between lots especially point, timeframe expect this, we

including As for value, savings, there in your people as believe complex value know care is and care. significant populations, long-term individuals yes, very terms states helping can especially their helping our transitions second HCBS services cost deliver actively populations, a question, just monitoring of We services. explore those strong social care of managed they that homes, on in in receive just that proposition, to managed around We experience not complex also terms we are access for based but support. and remain services

so with And states monitoring transition. as they been have we states activity and working

a is appropriate corridors really additional risk that leveraging really the very They this rates, question are sustainable then state populations is complex have a are States care play. the and I in include pipeline, include dynamics on And taking also risk as all yes, in depending are we into us. hopeful of that management course, think reminder, They of was XXXX, so in approach last CARES ensure sound, finally, we to our are just funding then of And many and rational seeing Act. been to states of something that just considering and experience is mentioned Medicaid RFP and and some I the one, certainly really those. mechanisms, actuarially now continue structures. from funding federal funding long-term with funding benefiting as Dave on working to we their is funding. are MLR that states your guiding robust closely principle. focus for our which a a area This the be an use through on think on customers both especially that must also services do

well We of relationships maybe say we customers customers that us health thus those is good to for the outcomes as people have about this really And thing the would do far. just work conversations last is for as I programs And invest social our all sustainable funding. serve. strong we then and our as feel with really critical enables that it substantial drive in and

David Wichmann

So, at responsive was I thorough hope enough. Ricky, for that responsive, least question. Thank you the

Next question, please.

Operator

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

Gary Taylor

the trend of how good first quantify just quarter? out and question wondering I part you Hey, this assistance question The Two if was case into just one. part is I consumer on about second that impacted heading the morning. the thinking MLR strike cost could in the XXXX. customer

this core you down is least. on end points couple on trend time group, commercial a XXX and of all year the by I at might said up think being basis cost your your done,

could it you guidance you thinking when XXXX? your So, trend top that? in what a comp easier would points are about higher interested going than more was XXX how of could on normal, it be trend you all-in for be basis you expected deferrals are thinking process thought normal thinking than for or cost accelerate to your on Are ‘XX, just are

David Wichmann

and quantify primary obviously it the we on tell quarter. one, consumer both reason on where the because don’t the in extending primary customer for quarter. concerned managing I waivers the chronic access I And nice Medicare will is business you Medicare response assistance thing one that physicians and visits. specialist was that This and disease going we a that first extensive much remain think just quickly program care into is quarters consumers co-pay because that of that, we are elements Well, the concerned their deeply possible, one the you so to the would offering saw The in are to is of give so strike we were full fourth I as it’s are they as very Gary, deeply and particular.

customer So, continue. assistance will that’s where our

addition of adjustments billion programs of this additional the that, part In $X.X to initial some year saw we extended premium that our of balance $X have through went well. estimate next to made billion modestly into and was because probably that extend other you that in waivers we and will and as that

a color So the in respect to with XXXX, you cost Dirk take? during things that And the the going of you kind that quantity want that on to for trends volume, were timeframe. of gives

Dirk McMahon

estimate Yes, what with would all well to of Gary, we this say, associated to goes said factors do We described. to treatment, expect you consider respect what that. COVID do to we respect back as of Dave that I originally, with consider make an we those things abatement are with testing, all

tying would of are to the a make We vaccines available. come forecast when

with with for earlier, our as cost. on am we buckets those monitor we as of competitive. and get best mentioned the earnings a three management all where make land going trends membership number next as are what those ongoing well in all and experienced have we as those see the teams that of associated we standpoint But for competitive what’s market, estimate to not each going we do basis And of have as that. I should one well to we underlying that’s all year. price as things growth be standpoint. pretty our to actuaries do So, are That’s we we points considered business the with into what of I exact in

David Wichmann

please. So, thank next the for Gary, you question question.

Operator

to We ahead. Scott Please go with next Stephens. are going Fidel

Scott Fidel

thanks. Hi, morning. Good

expectations just enrollment for just Just XXXX we really projecting follow-up question growth on for a one, made to comments and individual guess XXXX. David do MA the at this Medicare growth wanted the so CMS XX% around to have industry that leading Advantage two-part least for and

enrollment sounded comments around of you for leading have terms in context so you for growth XXXX? you it take into in XXXX? Thanks. support it the commentary and quantify secondly, MA for that interested the would And just the lives in just maybe group MA, terms bullish So, growth whether interested far that expected like if your industry double-digit of can that MA then group just you how think sales, added in pretty sounded us – individual

David Wichmann

meaning particular but XXXX for really group component XXXX to the What Medicare year, pretty be UnitedHealthcare I and in is policy Just people to continuation kind relative individual the off outperformed disappointing in what what least my be and in eligible setup newly as also has will market And our of has not this would overall. about of coming MA from Retirement standpoint, only being year is metric year clarify, what, MA and Scott, members over consistent growth. performance their the that of at number the in look what actual really a I served our at particular. like time, with on the

you backdrop do So, made. of I comment Tim, the that’s that the of the essence want add anything further?

Tim Noel

thanks, Yes, Scott.

tomorrow individual for starts obviously selling Medicare Advantage. So,

know, October, providing that feedback for providing are for the they experience is XX% And our then that we we We about community once been go to the will seniors. some additional members of members our support market, to benefit fact in improving we about to top our also members since of And happy positive investments and benefits to succeeded XXXX. our positioned. beginning capabilities have you we priority and in in compared as made the are XXXX receiving marketing serve. and stability as broker from have how again, And products really

market. So to we really in that good positioning share to as as well do given MA backdrop, feel needs the individual our plans about gain special group MA, dual

specifically on We the today’s MA are might about any whatever we industry group growth, comment like And be. are going of inside not comments, our really our from for really growth but estimate point we for excited to growth XXXX. that positioning

David Wichmann

you, thank Great, Scott.

please. question, Next

Operator

we next, ahead. go And Robert with have Goldman Please Jones Sachs.

Robert Jones

side? contribute guess Great, then around growth contracting thanks direct contracting on thinking maybe the was latest in wise obviously OptumCare. global to be participating question. I your would through at obviously, this just projections your cap all about just next opportunity or incremental? for would maybe the around MA get how to wondering that relative year, the wanted on to I UHC Thanks. you thinking relatedly, direct if are And

David Wichmann

UHC. start Let’s with

Brian Thompson

Thompson Sure. here. Brian

a the of things as see going system like encouraged modernizing why as we us like to overall fee-for-service, certainly but to long to known it in in I a Advantage, for try and direct contracting at time, we this. by And is modernize OptumCare. to payment have bundled We looking participate it the perspective programs, As Medicare to relates total fee-for-service activities from obviously you any enterprise have positive had contracting direct etcetera. are

John Rex

for thanks Yes, question. the thanks, BT and Robert,

effort contracting. encouraged move fee-for-service from to every value to based very by are We

So The primarily that And fee-for-service. are this direct we smaller years. geared a risk positive for trend. as in based towards contracting in have arrangements been groups proposals XX use are over

while that expect this, MA double don’t in have contracting be and would care that embrace And for with we it’s I we continued embrace lives say kind Thank over major don’t will risk again, anticipate all it’s that we way, program, digit growth of we but of mean to the XX we grow. relationships to dual so will see good I – you. for. our a any and factor payers, direct negative where And will it’s vehicles appropriate, us. to a But a

David Wichmann

Thanks for the question, Robert.

Next question, please.

Operator

with to Piper. next go Sarah going James ahead. Please are We

line Your is open.

Sarah James

tax and other a around versus should wondering billion on about that you side context around you pricing was if $X back benefit line and between I the looking was a could corporate to items? how benefited product you. Thank or lines reform hoping there if us give some for now XXXX, sits sized margin is think which through we changes difference where passed

John Rex

here. Sarah, good is This Rex morning. John

result, discussing I I in during there and back we of corporate of that the are number period. former think go reform So if longer businesses to were think period, terms period tax on to things in as future commented making, we if that that impacts were we you And that in for are a we are how we build investing you we commented the during term. and about to that a recall, how investments growth also build for

now is years clearly, company So a period, that larger. much, that since there number much was an the element ago of

of policy time. an tax the just in kind impacts, kind really in of businesses there. don’t just kind that were that that to is rate than because to and tax expect get among other in those it would had think reform is has out from of effective terms much impacts, really might we the incorporate that might to would even specific out impact that we that any been, there ahead down ahead tough, don’t be back want get have of elements of you So anything talking smaller I be impact not and potential how impact in you on

that. it leave probably would at Thank you. just So

David Wichmann

Sarah. you, Thank

please. Next question,

Operator

Next Jefferies. is Please with David Windley ahead. go

David Windley

been expect to and of of a DCP over year the where get that offered Hi, of quarters quarter, down, year through you. is interested how Are tag baseline that the am question. couple that based progressed comments, prepared to a the quarter am capacity? at wondering And third quarter utilization is utilization that in end am I at that perhaps view expecting system going. and assessments the and but of pretty of several then the appreciate Thanks were some my last taking of kind up of the to percentage has or consistent curious long the first you to might under above on above remarks. how kind for the I you pent days in three good utilization into of two XXX%? baseline had the in just I the folds for How quarter, numbers year, days. I of on couple your Thank fourth morning. for example, those by

John Rex

get Rex, David, me John Alright, let answer that those. I

point such look here, would I we as kind kind point the physician be color those within outpatient color above services quarter of of saw might So first and a that baseline look to kind how spoke that the terms all, that across look the in our we post we different I various out would and what baseline me down color patient a commentary of give let kind utilization the a course at quarter categories in I of below in at to that what and at of that that of in in baseline maybe of of terms it to fits I trends. businesses are how surgery, XX% more you if and as of little put kind little that how writer baseline, trend. seeing so exceeding zone, over context and this kind last zone, populations and we that of utilization little maybe

that say, we for programs had here care to are I among making the from we business would the happen were fourth in been So deferred and utilization seeing kind lower. of commercial, way commentary the being that so where where that element and it’s investments state are government within terms community lower And you of programs, of want kind are then are services say the we expectations we important to and that we seeing the facilitate within curves see for what help and able element where of you One we the let’s has against carrying higher and here. referred of that, and that’s those baseline, saw that both what certainly our government quarter to kind trending.

we that have other rising we population. element of acuity anticipating deferred we the look the we’d because and anticipate end as of been acuity The the higher towards year then is see mistreatment, rising see a haven’t in come we really you yet. COVID-XX on higher we at because of acuity seen tell that cases I it’s Where the book that acuity the overall level. is

if full take scope acuity really that book And so component. higher out, it point. this of our don’t a you see that component at across But you the we on see business the of

course perspective, parts we country course course over was you different over interesting that the over in what of essentially the – in quarter of – your terms comment your of quarter. incidence rates different it an because the the to the in saw, As saw

infection we begin mix. that closely as would saw you come you particular deferral would into a country, really and see So, part see the you monitored of to rates that rise, quite

have see a we come country, entire and viewpoint into that, the see you you across platform but then our deferral Given it in. back

XX%, I of is we that last the and would talking I I exceeding of the the of baseline so I X inclusive driven in of that so or in and in think – that’s about. COVID-XX we within thing within or out points that just baseline mix kind kind are terms place point probably talking zone about said are put

David Windley

then DCP? And

John Rex

that you for the we took acceleration really DCP declining is be in is provider could so year. on earlier due reminding, to thank so DCP, payments the in And that year-over-year,

the significantly So, medical the cycles quarter injected payment in into is have accelerated trying and The system, as deferral significant the to second wouldn’t we in our get healthcare you of because reason the quarter. really of very were we care very second continues. seen that liquidity very, that

offset We denominator in so the getting into quarter, it, was the payments. of that day those of cost medical impact math second per very So, than the more of here, a that’s where kind get significantly right. declining very,

restored of normal so was now accelerated in comes show and quarter, that this seeing much the but to that As up are saw being care DCP, you up closer levels our impact impacting. we cycle that then payment

David Windley

thank Okay, you.

David Wichmann

give you, sense you, as indicated just prepared to that, And remarks the acceleration billion you advance of $X David. in as as in remind payment. well market we to a or Thank to the the around

Next please. question,

Operator

go with ahead. Please Cowen. And next is Charles Rhyee

Charles Rhyee

that back are getting the that little and to of the given sort of really and Yes, want I you more would to going think sounds for us fourth assumptions you we understand year. we next backup if of gives kind year, sense? hey, pace strike above what ‘XX help maybe underlying little that are part when back normal you go utilization to uptick seems see your we in-patient Q&A year, it pace But utilization, and to conservative like Maybe what the per a for me, around it about because that now going on this on understand in have are year to is items thinking let’s outlook about are John think comments this positive the and the of kind thanks we are we overall, like we thinking about ‘XX. of about that big I bit – one-time it bit what help bit your that could below back because utilization, If doesn’t in say maybe your are us are then in earlier getting end think tie the Dave is to baseline at it part it here sounds going to quarter at, a we normal, makes when a question. as kind the utilization comments, next areas next utilization, the then that a are volume year others follow-up that a of of maybe starting that me was of really is that your and that we a we you are point for over se the understand into little some were for it outlook seeing you are really

David Wichmann

Yes.

the climate. as the that’s being – your stepping my as out do of would probably to and what expectation, the are we And So, further on the forward the as respect would comments widen you that that’s John, anything pandemic at future uncertainty you posture. impact and as conservative grounded kind look essentially we and deep were a are more range really And to why you the economic you add? think you normally And this take about trying communicate. for its have distance unprecedented in recognizing

John Rex

I of say right zone. where of said they No. exceeding XX% I sort on we that that above in seen are. think in-patient kind of below Like, one baseline, I you I was orienting that normal, comment categories thing and kind your said rides have the of little wouldn’t that’s and outpatient a kind is in in-patient position around above that XX%, surgery around orient those how exceeding but we that

broader in I I providing for baseline of that’s think we in-patient And categories the certainly So, running it goes what that. commentary commentary more above that are was there your But to not that terms to expect is into utilization. progressing yet.

So, to are need. get people That’s why ultimately. they we want care make here we the sure

power we on of our and do the in in our the direct that is you we not that they outreach that for they going are being in In sure that. the even And year are UnitedHealthcare And of businesses. to that’s is that there able commentary care in business, that, in going obviously good populations significantly, very terms offered areas categories good that making cancer of sure make in so that of care OptumCare that were occurs. earlier to areas was of are its getting to people the we everything But getting that what terms to be different need. treatment in off sure both care we system, to we going heard that making are access kind the proactive are sure vulnerable some have diagnoses, to he delivered. people, proactive different access want make very for that’s not are

happening as respectful to some learning past evolve that’s stuff that also. So, way a much and earlier ambition as that sure been is back months over to better is to our care XXXX of, we have all of and and would perspectives, over lot out I delivered like is come the we deeply – there also. we But, to don’t not of things in the care make commentary, today’s continue is there look and necessary know we terms continue how several this months the that feel really get many along moves we thinking the why next of

what us one think So, to before. has you would in that you. expect frankly And we I you out terms in that’s how us we we want why way we think I Thank to and think, terms think, environment to stepping why just it. expect approach of you of respectful commentary no would navigated of what think hear be that about that’s our how the

David Wichmann

more or more facts, in best take accumulate you the this better will to we then want lay the XX, understand to together on X. December even days And and I our all next for to get so of XX detail ability. out

I And close. will time have answer. quick with then for We more question question one and

Next question.

Operator

go with take the Wilkes will Please from we Lance And question ahead. Bernstein.

Lance Wilkes

is some any Yes, XQ clarification kind sharp would OptumRx what’s too? for employer helpful, margin, script be real and Thanks. just beyond? in in if how to compression and other that enrollment, October wanted ask of you them progressing on your increase outlook and the per in can in that And for revenue give

David Wichmann

specifically, the sense Hey, forward. you you but making progresses of the what October across quantifying Dirk? are I the Lance. board you give we be I can into to able what’s give we will into think in give don’t in quarter without market commercial that we some will going is insights insights it. the

Dirk McMahon

lot meeting sense year, fourth would quarter, with our as be persistency are where of a products of a script, have All base buy we think and as out courage think really look about at and basically say I having with Yes. kind what in coming terms certain you product, of end at good a are stickiness you respect bunch groups. very should further, good line categories, we think about have will the of of low those. out associated a then is is we products enthused about. are And for high-quality we level in have, in a next of say the we off seeing networks efficient, that, level of that the would with where assembly I we consumer the the I looking amount cares a year of pockets good you product, this is there I find we that talked are funded provider-centric scenario to which savers

portfolio for fourth I quarter at the would quarter you So, what say is next – third year optimistic look product we are the specifically. our as about

persistency. stickiness terms in had good of have our We

David Wichmann

their market more touch future the again variability appropriately doing start years cost marketplace. choices and nice dissatisfied on very a do they business I the but reflect overall, cost we reflects wider being and also with year, of the competitive positions structures think think of the margin, want I as product progressed Yes, you in offerings, are plus that but is which with array a to have line commercial stronger the of in John, view this the the on? in Obviously, able of index come getting job. price to forward

John Prince

a revenue you we on year really been driver of look which I that client Sure, and as its at growth declined, those had the factors, of the as why big going in our so pharmacies strong business as specialty as if XX% are on Lance, general That well terms has we it wins earnings is one, our impact external well services strong side community year beginning had infusion, COVID-XX. margin of a John one. services the we have on really over businesses really our our as Prince. about growth, the Talking is mentioned our two growth in such of year, that in as inside the

less as per that and well QX as unemployment. know we less some we the with continued had in member in loss pandemic, as [indiscernible] well, in have QX, As QX, seen as we have utilization

you to of margin grew impact payment, the is as the in denominator And QX margin pleased that actually are we in sequentially, as impacted see, denominator revenue earnings. well side, as added which our performance, quite QX. earnings between with commitment and XX%, in So QX group on of margins. by Overall, co the XXXX, our was the the retail was to to added which

So well. seeing very overall, are we exiting we are

David Wichmann

today. Thank for thoughtful, offered Perfect. insightful And to the you, you questions you thanks interest all Lance. in John. very your you, Thank of that

in time As company’s this is an history. unprecedented our

Thank we As Despite a will in our we fortitude, system have XXX the serving generation people deeply and to universal, and And and investor forward UnitedHealth on look serve for respond be several the annual will our work that next you deeper Group needs in much. with of as its people of to system the come advance at continue lead our strength future. one people view to Tuesday, engaging you the with are expect, simple X format the to million an and world. unique even affordable, you restlessness our challenging upcoming committed full compassion conference and every health virtual opportunity effective. energized you we provide in strategic are health an about weeks company the socially times the XXX,XXX a to the we plans, see of is very it around way conscious December

Operator

program. And Thanks this for your participation. will today’s conclude

great now day. You may have and a disconnect

UnitedHealth (UNH) 14 Oct 202020 Q3 Earnings call transcript