UNH - Earnings call transcript Q4 2020 | UnitedHealth Group Incorporated

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to the UnitedHealth Group Fourth Quarter and Full Year 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 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 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 January 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 David UnitedHealth will Group, to I conference the Officer now Wichmann. turn over Executive the Chief

David Wichmann

employee us our and system the across Health of or unprecedented sharing a others are of displays remain because for and a we in connections and day morning are I of healthcare through of challenges, seen, a clinicians well at of information alignment They technology remain To a to the daily grateful men patients, supported more care. built transpired that’s navigating above human these and unprecedented response including this the than and things and of enabled upper the support optimistic performing each health the the environment under grateful employers pandemic. more conditions, come serve of to also With to strongly. couldn’t and delivery human health results difficult be physicians have uncertain address living communities. collaboration, you and thank optimism. we our but ways to for of meaningful responsibly resolved our and another third strong delivered We are to for resulting and clinicians, system comprising The in and previously not make better. while all and We end more be challenges own. one expectations, Good individuals, knowledge personal year the and than from high led finished women frontline imbalances has in innovation. time spirit well continued together by total. XXXX, reason financial powerful COVID-XX commitment physician prouder advance all on the today. profound We a value-based engagement to system for been NPS financial we enterprise. stressed. systems They XXX,XXX our in Amidst of world particularly achieving joining broadly, the time work advances multidimensional

the are in move continue to into to XXXX, strongly serve more this we more and enterprise more build we and people we grow effectively, As while well-positioned even to continuing believe to come. deeply decades

we privileged investor full ago, weeks a you were to spend conference. X day with Just at our

more encouraged of we we we healthcare informed, and human the tried deeply performance day, finished the how and to next healthcare shared across of course the by apply lead in Optum distinctive Over that connected, of more development We seek the We capabilities personal. the make the generation to system. more UnitedHealthcare. businesses to XXXX more convey

because choose dual our will X needs offerings, years. to group lower plans. of seniors Seniors Medicare they have X.X special approach experiences years an few off a and receive, individual better grown at value XXXX Advantage of are across broad strongest served outcomes the and more more of The excellent million UnitedHealthcare health one offerings highlights. our now XXX,XXX just Advantage be serve and over UnitedHealthcare growth, provide we costs. Medicare to will to people Let start. expected

care services to effective more XXXX. well, resources offerings strongly setting navigation focusing care. We about of meet how including the live lives as and home home, want our UnitedHealthcare’s people the continue and their on Medicaid in expectations and better new to in concierge to grow physical states offerings expanding been safest have also more enhancing one-on-one the entry our digital as enabling into X

people of are coordinated and digital by personal adoption better with with highly modern, opportunities These new to offerings. generating to momentum they have substantial, you the discussing save needs economic designed towards XXXX, And we upwards to are business in meet impacted next. the X.X year are accelerating products XX% by aligned compared New care and because needs to this the activity its these individual and significant employer financial sponsored grow are while experiences deeply people. growth up unique demand we states XXXX provide All-in, care and encouraged recent in sponsored physician innovative will in been Among of led to traditional expect responses, and managed more offerings people UnitedHealthcare products the positive of COVID-XX community, are we effects and and employer response first, more senior million consumer-centered on months. serve RFP offerings. each market across UnitedHealthcare’s

We continue the to system. next important health lay make for to the generation investments advancements foundation and strategic

foundations over including the practices. aim OptumCare ambition our healthcare delivery, primary The strategic five the physicians Over is are heard for first many multi-specialty last our us of X,XXX our years, those XX,XXX in have and with clinics. to to build performing you care, which high an efforts platforms. entered XXXX and systems growth discuss of reinvent care

of and with Change to to ago, Pacific to the announced led Over and affiliated expect Northeast, care the local grow year, California we work in least the progress and Southern Healthcare in combination we by XXXX. course our employed physicians at of be physician This accelerating mission Northwest OptumInsight. of is weeks XX,XXX. continues building this Two systems notable of central and our

quickly most healthcare our patient the platforms use and to It greatly expect the will growth next clinically modern clinical and Change individual and technologies, can record integrating foundational effective make decision needed informed into clinician’s will enabled evidence-based platform. and clinical offered care. establishing advanced point for elements serve. collaboration decisions we strategy. criteria help easily. directly health more and in We advanced and for and technology achievement the the the connecting more accelerate system, critical care This This appropriate for of generation pathways value and widely of connectivity the key our support most the outcomes workflow, platform the at base technology leading help new of the and clinical to all needed evidence experiences are advanced this care, combination adopted the advanced will possible patients clinical ensure sites expertise the appropriate of brings health X best a Healthcare can of information business to deliver another clinicians while Optum’s analytics strengthen digital of development consistent

to Another costs. data key healthcare and advanced analytics Healthcare’s opportunity network combining will Optum’s Change be to administrative simpler, informed processes with considerably services and intelligence enhance accurate more support by lower at processing

team and them. convenience Change working reliably work paid we outstanding quickly, capacities Change looking consumers transparent help highly combining providers, Healthcare has are will and networks and options among get their been Healthcare’s with and and and Finally, payment a alongside will interactions movement modern, system. care simplify provide finances. Optum’s managing automated real-time healthcare payers payment more doing to payment and forward accurately financial more with more This consumers accelerate The physicians to the and

offering traditional the care patterns, execute alternative to One core and continue the December. pandemic increased out patients in-home disrupted receive effective we efficient you example We venues. outside enhance care all of of saw settings initiatives safe, in laid and to the on care as for we need to

However, conditions traditional settings. people alternative the consumer care healthcare skilled XX% foundational established cost. a ability outside to and need impacts have a Optum’s opportunity continue settings. consistent significant will higher is and for their know the homes HouseCalls quality trusted to and centric, more geographically already and resources in-home person’s what health capacities a effective care care through We home, people in to complex more There the than is developing of well with isolated is through for offering bring for We to system that cost individuals into current essential grow lower program. well including health care in-home beyond seniors, environment. happens that medical a of Offering

We ways. expect conduct million X are visits we And many over home clinicians year. our this in building will practice upon in-home capacity advanced this established

with settings. and Services a patient they outside XX,XXX per capacities outside remote Vivify the preventative positively including telephonic services patients by the high with patients Optum aspects. quality provides to introduced entering connectivity XX. mid-XXs, by safer, and encouraged X-star behavioral higher points for traditional of of team, to OptumRx an and an can physical, by as our addresses settings. it month and with more retention touch about receive physicians. The Optum’s makes achieves medications Pharmacy Similarly, need the net need capabilities is means pharmacy deliver well interdisciplinary needs At-Home they have OptumRx enables medical obtain to acute Care members of over more XX% with NPS over care, sharing social information plan. of and across rate XX% program services XXXX. in-person double-digits, patients That been has and in monitoring demonstrates affordable provided infusion expense a the the promoter score We and increases lowers now improve which people. growing care or patients received This in the exceptional traditional remain simpler over customer We care with

capacities were X.X an We Michigan. Blue capable, emerge million we are good from Shield of more competent to growing more In to XXXX serve challenging Blue our and XXXX the the members these enterprise. season awarded for start momentum, and times off to with navigate as honor we to of as begin than selling enter through Cross diverse sum, even in a recently

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

John Rex

in to like as unprecedented quarter continue highest benefits of we served what existed with sector to by The our Thank is are interest most patterns. to and people seeing of XXXX share Starting outlook impacted such continuing at year Medicare commercial you, as we to exhibit less at were the full and higher the know you, the December care it the to favorable current I’d of serve, fourth investor environment be deferrals public and levels results within has with great overall year. we programs which member those provided activity broad while conference, in Medicaid. the begin, X care categories we To Dave. level

getting Our they need. remains top priority people the care

includes measure of return During This began just not to care, perhaps activity quarter, quarter, direct pacing in too over the the seasonal compared we comprised increased baseline in XX% to about as care the over below just half. quarter. activities cited of during about moved third baselines baseline surprisingly, for we we compared the exceeding to overall fourth all The the total average to course quarter quarter. saw fourth third XX% the in the COVID-XX modestly care related latter X% which the from

at modestly COVID-XX the moderated activity the Total half. a people COVID-XX were Looking quarter gratified as the deeper care of of as began activity and total able increased course within percentage over the of deferred. part care to specific related categories, as were however, previously elevated. latter outpatient direct the the baseline components By care incidence rose the in some in-patient the outpatient latter needed we quarter quarter obtain activity

XX% COVID-XX quarter, example, the during about in and admissions For in-patient about related of December. the occurred XX% XX,XXX October

measure fourth acuity our continued we the OptumHealth’s year year-over-year can grew deliver served ago Moving these quarter. value centers depth care the our based earnings the and of of at the with into Revenue this the activity ambulatory for of businesses, the and surgery care businesses people consumers to specific practices care increased operating over of baseline. recover to in increasing near XX% reflects continue types our quarter development arrangements, The fee-for-service as XX% growth we serve. offerings now

to-date which under many this the to expect patients potential, to a in highlights million to continue of One come. for pace XX% double-digit arrangements. example are OptumCare You years value-based currently should XX this strong measure serves grow at

care offered patients overall and activity revenues volumes the We beginning lower value-based depth served overall performance at many accelerate. of the by both of businesses the continue impacted and to subdued of with of OptumInsight’s and earnings we levels XXXX environment. care arrangements ahead December, for number to were of of upon generally dependent these outlook the expect with number business the

combination outlook growth outlook. XXXX with close from half expect Change of ahead returns advance continue excludes with year. We care activity this and were as of relationships expect earnings also impact OptumInsight’s any OptumRx we normalized the customers. and the we to This XX% to to in existing will continue levels Healthcare, broaden XX% services strategic second in to which

During total and continue pharmacy businesses nearly our XXXX, grow comprise OptumRx specialty and revenues double-digits now revenue. care in to at services half of

care UnitedHealthcare, people obtain the and costs by related reserves were were higher fourth further December result such into levels impacted our positions results and rebates the throughout impacts to and operating end reflect quarter help deferrals the were measures in they care lower quarter versus review. continued plans arrangements XXXX of Turning year deferral need of Results quarter. activity additional as as moved care to and or concluded. the cumulative with COVID-XX comparatively provider customer above these third calendar a fourth They assessments and assistance care

Advantage enrollment in the activity period robust. was sales Dave As Medicare noted, open

people expect will XXX,XXX in we Medicaid full in this XXX,XXX January our and and Medicare the economic in re-determination of serve additional investor at membership plans, needs individual We XXX,XXX Strong year. quarter. special the are We reinitiated membership state activities with we to dual considering continued to outlook provided for XXXX, in ahead full are XXXX commercial membership to concluded XXXX people, tables. the in group supportive results growth state during even the members Early conference. the included an of community well new positive our about XXX,XXX commercial the year challenging call in environment. outlook fourth be assumed XXXX, about serve growth which are the remainder XXX,XXX and year Advantage Within Medicaid

outlook year Our positions strong. or Full provided billion in due capital flows the remained we were with liquidity, $XX.X income to net cash capacities the fourth from XXXX and results customer operations part receipts. X.Xx quarter early exceeding

Our year. compares of debt ratio last to to total XX.X% XX.X% capital

with including ample capital to Change toward strategic combination policies, an our we ongoing longstanding on dividend with shareholders care our intend and maintain and to expanding continue our advancing to we our approach As upon building look via repurchase the enthusiastically capital returning to Healthcare, capabilities. share platforms growth local capacity delivery priority

XXXX commentary, in of year per adjusted December and inclusive of $XXX with consistent remains effects with to related range revenue full Our approaching negative earnings the we early the billion outlook share total $XX.XX described. the COVID-XX $XX.XX,

more much range Given the expectations like to still broader of we likely than about circumstances, will as else, dynamic highly everyone typical hold continue this we learn the environment.

turn will it Now, to I Dave. back

David Wichmann

John. you, Thank

focus diversified As tell, on add mission and capabilities and returns affordable, as let’s Operator, our growing well-positioned new value, the remains generating you remain can balanced for intense of outcomes at and while We enterprise for strong market this of increasing you, and to businesses questions. growth per sustained, experiences, to One more levels committed person we for strong please. it at a serving an positions. continue improved shareholders. our open time caller, up one better and

Operator

[Operator Citi. first from you. from Thank Giacobbe And Instructions] Ralph question our comes

Your line open. is

Ralph Giacobbe

go to commentary. to just morning. some Good I wanted Great. back the Thanks. of

trends baseline. said near are You

spending want guess of just clear. quarter. COVID fourth And talking or be Are in activity commentary then utilization there? was XX% I to the that the Just about you

Just want to clarify that.

David Wichmann

John? Great. Thanks, Ralph.

John Rex

yes. Ralph,

talk spending we’re of again about the costs. anticipated COVID-XX inclusive about So talking care when near-baseline we levels and

last make that’s So it. what I question, Ralph, in And lost sure of overall. want those, heard just to you your the was trying some part kind that. I give comprise component just why I what there, second sense those of to of I

David Wichmann

may out. I’m have afraid he cut

John Rex

think were very of that Think hear when zone, maybe the I that looking what talking XX% kind how end we’re probably Yes. XX% for of it. didn’t quite in medical But zone of terms you relates. about costs. of is the I

fee-for-service on quarters thinking maybe medical our costs that, we exclude three our that really at What of about a level looking use we’re that statement, income that. components, as I you’re on costs kind about would measure. If from because medical incur of

pharmacy exclude include would capitated such. it it also UnitedHealthcare’s It would and would things So – to like sorry. payments exclude, providers costs

about use three Thank think where I going you’re that’s with probably question. that, of I and So that quarters you.

David Wichmann

get we that. Ralph, Okay, didn’t

your circle the happy the Just on and and team, answer back side. Brett to question be we’ll with

please? question, Next

Operator

Thank you.

comes Our from next Goldwasser question from Stanley. Morgan Ricky

Ricky Goldwasser

Yes. Hi. morning. Good

policies, You What this. as you And medical recently telehealth normalizes? your settle? of little think that to the continuing in-person a sort but deeper think seems you are you – when about? where care versus do when of bit think is updated dig imperative telehealth wanted you right balance into reimbursement, do activity do you will reimbursement between It the sort

David Wichmann

Actually, same out. ask we how maybe will the care and pluses cut just did, Ralph talk we’ll telehealth that question – should and at when Decker so minuses more minuses the and this policies maybe about out take do you your ask I’ll digital. not and Doctor normalize versus about be think Ricky, a administered time to around Dirk pluses to shot but answering inpatient

Dirk McMahon

Yes.

So thanks, that the is telehealth Dave. a great for people good What is care. vehicle I access would to say news is

how sort going spike real at are Those a are lowest So capabilities, the of in ultimately the to the I’m one, to using we out and exist start metered stay. We and out provides say best work it’s And on I patient policy healthcare what. We back a throughout saw standpoint, sort products it’s providers best ultimately to Optum, going ultimately going work to is from forward. that experience. at an who telehealth a with would part let’s not important as where the clearly number related the to with and of sure premise. to shake UnitedHealthcare, a be going with just be of cost, it’s the year. going different we telehealth, outcomes lot of it’s going here course access telehealth end, but It of of no beginning to high truisms which matter huge April.

David Wichmann

Doctor Decker?

Wyatt Decker

for Ricky, in Dave. for question. What’s own providers. fascinating not found the surprisingly a have personal all And really not being thanks provide to appreciate connected And is and and advice need much offerings care the good are virtual patient telehealth to clinical that their created data equal, Yes, that real-time very thanks, we patients setting. providers

as that’s services health so telehealth our being subsided, sustained delivered it ambulatory behavioral approximately those has empowers excellent been the behavioral a care Point pandemic solution, it of in get the seen healthcare setting. XX% and And care So one. virtually. like year lend have or that and certain to key returns, even point themselves two a as we telehealth is outpatient throughout populations to had

add differentiates very critical we’re at personal, a I’ll real-time just care, physical right Finally, virtual comprehensive you. home-based model care and really that setting. itself by providing it’s in to ability Thank that OptumHealth about care excited in the care, connect and the

David Wichmann

you, Dirk. your Thank Thank Great. Doctor Decker Ricky. question, for you and

Next question, please?

Operator

you. Thank

comes from Barclays. next Valiquette from Our question Steven

Your open. line is

Steven Valiquette

Great. Thanks. morning, Good everyone.

as trends increase So there remain would so I exiting would in to the membership and now in assess hit and risk any for the that? guess Thanks. as projections for small XXXX, commercial far this just around a the trends early fee-based just further the whereas on your essentially conviction XXXX, looking enrollment commercial target membership color you flat, year XXXX you then around need now color more is commercial

David Wichmann

commercial it’s who’s performance. growth people. greater in question. innovative terms worked a value do to And And and through very I Great. Steven I’d show to Bill, be respond to to around overall want to starting product a structures very to you Steven, throw comment, line directly? of our bring get in think good cost offerings, new team for hard to plug like our in

Bill Golden

played quarter our performance I’ll with question. the with how we’re pleased January for really start Thanks Yes. and out. enrollment XXXX fourth

across coverage attrition. at one-one created than really all anticipated better by our strong some then current in projected supported conference, lines persistency really the Our of and environment, Obviously than enrollment challenges. economic investor for less is it’s we

we’re we really strategy deliver Investor on well-positioned Day. that However, our commercial to our at growth highlighted

products from renew to that are also all our of we’ve us. customers a accessing portfolio broad think of their I with business benefited

feel – of for we prospects feel really you. growth about the Thank So really strong nice XXXX. our we rest

David Wichmann

to a have we just I’d say go. ways

maintaining We’re be it accelerate emphasis will that consistently for as turning and forward. kind question, we to corner and you the to Thank continuing Steven. of obviously move growth, our the

Next question, please?

Operator

you. Thank

from Bernstein. question next Lance from Our comes Wilkes

Your open. line is

Lance Wilkes

guys you long-term Could delivery? that? morning. pace little Good and scope OptumRx you and strategy for a talk just in-home about And Yes. the in for online status your and is in maybe pharmacy bit what

David Wichmann

Prince? Happy Great. to. John

John Prince

focused Thanks Lance. the we’ve question, Obviously last model building very on care services been our the for for pharmacy years. several

we have needs And population that to been we’ve is populations pharmacies. infusion of why and unique ways pharmacy creating getting needs of frame So and delivery not especially the online solution. to been and into we very in meet in programs a various because the but the trying we’re meet only differentiated home create

care online home pharmacy our So over-the-counter selling services within to and PBM. I services have and you launching penetration, grower of to share, growth think serve been all big We’ve consumers we’ve as products. it’s be so delivery, that us. expand we to We’ve expanded the of see grow for look significant been pharmacy they at a but member continued so more a our Optum a also don’t Store,

see card a will in like stores which of in also unique ones environment. discount all Optum Perks, together them is those bringing virtual our We

in long-term. the and we So big as a good see grower we see prospects,

David Wichmann

Great. Thank Lance. you,

Next question, please?

Operator

you. Thank

Willoughby comes Steve Cleveland from from Our next question Research.

Your line is open.

Steve Willoughby

Hi. morning. Good

the Just to calendar of morning activity one release year reserves additional related a in as assessments this press lines regarding related for rebates to question the concluded. were

to provide to color wondering quantify anyway favorable you on Just one another? reserve as the that reserves anything you Thank way could interesting on and if during or else larger, that? experienced movements you. And development the quarter, anymore compared

John Rex

out, those kind those how this actions specific would have what development as of greater one we course can one Sure, positions over kind reserve you. Steve. given the in utilization John the moved pieces as too certainly provide would but to, of kind favorable outlook an that course more business Not magnitude say, were because this would those as you plans tell, so year I color well we provide positions. Part of turn the around in and just the than full into able and Rex of those in as anticipate December could for this moved surprisingly, into that offset over I quarter here. year than volatility of is additional on putting of quarter, of thereby would kind move. more to of in environment level of of normally Thank have. things the

David Wichmann

Thank you, Steve.

question, Next please?

Operator

you. Thank

question next Our Stephens. Fidel from Scott comes from

line Your open. is

Scott Fidel

just and and Good Thanks. on a morning. impact just Hi. the expectations Had your latest question thinking that around there. corridors Medicaid risk expecting you’re

Just there interested that in expansion with of incremental the you changes terms you corridors Medicaid margins. completed programs how on expectations since there’s and impact of Day, provided the and then about fourth that Investor corridor think of in in been the any line if quarter at whether

One cited of impact to that. get recently your XQ, larger Thanks. expected so had competitors your than wanted in a on feedback

David Wichmann

Sure. Spilker. We’ll to Tim? send Tim that

Tim Spilker

many corridors the ahead risk Yes. Yes. MLR half proactively leverage noted structures, in has on to you rules implemented continued and requiring corridors uncertainty of while the most as anticipated at base versus are under our many terms back rate have respectful surrounding line expectations, were that we’re And looking our the that that these to be States We pressure are as for in point, with that states based and overall, some is predictability of financial customers. discussions the well question. and thing our this of of be then we’re improve CMS One so implemented really of the should what pandemic. one-one ‘XX. seeing those Thank implemented just retrospectively, of will renewals visibility. in with

advocate work customers that sustainable in and to regard. continue our with we’ll funding So for

the for thanks question. So

David Wichmann

Thank you, Great. Scott.

Next please? question,

Operator

Thank you.

comes from question next Research. from Wolfe Our Lake Justin

open. is line Your

Justin Lake

morning. Good Thanks.

couple that the it what estimated a bit. about for relative to the it a line? you’re like post Can Bill. quickies up Is year Medicare Stimulus it the quarter Just Day. full the saying for of went ahead expecting about then where you’re you you’re It up sounds $X.XX talk physician or trend on the expecting picked of Investor cost a a I’ve bit company. post rates XXXX? And in headwind through

estimate going there Just you Thanks. through are the any your on that curious offsets year? as And are you there. see

David Wichmann

Why part then don’t we Rex, to hand handle will the and second. the John Tim first

John Rex

outlook with Conference. COVID Justin, quarter there where I’d of is impact, total cited direct even we care our to what were And the expectation consistent as in year the terms that were in will we for Investor XXXX in terms though for trending XXXX. you’ve say costs what be at similar XXXX things full still COVID-XX of with experienced in

So that off would right take view anything now. that us there isn’t

costs XXXX. other COVID-XX we meaningfully then the cited lower think we being total element being I than care though, deferral care in likely higher, and headwind the that saw

David Wichmann

And, Tim, second part?

Tim Spilker

Justin, Yes. for question. the Thanks,

was included And by was talked the So fee increase about the of that schedule there you of part XX. the fee that for first XXXX. offset partially course that schedule was increase December the of removing relief quarter deal was sequester physician on passed

does the offset the one quarter a as worked small and also only relief look relief extended PHE this again As and quite was that we pandemic, being PHE The package at that this. still obviously has a result headwind another has would sequester it extended time, sequester been been on. throughout if quarter, match fluid. not this extended as the obviously of we’re has At and environment, it’s seeing all that’s the of more

So where still watching, stands. it it’s we’re something but that’s

David Wichmann

we a and $X have billion on COVID our way and happen why range, we through well. impacts navigate estimate have puts That’s going that’s as wider we the Good to XXXX. a net as observation question. on probably takes Thanks for

please? question, Next

Operator

you. Thank

Sachs. Jones Robert question next Goldman from Our from comes

open. is line Your

Robert Jones

announced group I I a the if around just larger for year. acquisitions greater on kind latest this of of consider a for to groups. you Are OptumHealth, to and to I Great. you Maybe your question. willingness for you Thanks finding heard this acquisition noticed you physicians acquisition over post-COVID I environment affiliated the thoughts for doc some employed And you groups? believe wanted sizable world in increase XX,XXX said get just to these Massachusetts. COVID, to a shift willingness in expect physician fairly correctly,

David Wichmann

Yes.

Just have any started, acquisition, described. before we announced we as not get you

rumor market a that’s So and speculation.

As team job to fourth have M&A corridor is it broadly in Doctor a continuing strong this expectation. a space, transaction addition our to Decker done terrific Tri-State was build quarter and completed, [indiscernible] that relates to the the I-XX the in Northeast. the I’d and say in

Southwest Pacific part year say, the the towards the to work where also finished there’s well done in continue as of quadruple California, value region, the patients Empire very overall seems model the that OptumCare-type an costs a area. where generally We I’d seems also get Northwest acquisition and every overall but well a we’ve day of as United very by past in stability an States. strong physicians being that’s experiences, of they to with with also the aim in better brought sense in this our resonate particular, gravitate which some with in some center Inland speaking, outcomes, Southern and great as the and growth in model, market that and to up the lower well as demonstrated

to question. I half system that and area Thank as be will occur as across I of think described. we effective out the that more your So so full us, over this you continue aims next for to continue an turn decade think health this you’ll just continued four for the or to we I see much into focus XXXX broad that’s build

please? question, Next

Operator

you. Thank

Our comes UBS. from Whit next question from Mayo

open. line Your is

Whit Mayo

Thanks. Hey.

more You consumer-centric the the innovative the sort of solutions curious new the surprises your you’ve Can you kind you’ve just guys about and brought there’s some receptivity base. commercial, in sponsors? any as been among customer Just etcetera. on-demand focus, in emphasized referencing partnership if been to the of that the solutions market that have talk capability maybe with buying of really planned

David Wichmann

Bill, to you do that want one? take

Bill Golden

I’ll type benefit portfolio sure. business, great seen a for of of on our products Yes, start all with we across different and interest in depending and plan of types designs we’ve from buyer products us. broad the

to to better uptick wellness so seen discussion seen our people product. trackers. been Savers a to regarding All have We’ve receptivity because employers of activity for digital a of a looking and pandemic, emphasis and product, There’s So for we receptivity lot obviously lot the access seen looking huge our we’ve of of with that. in a solutions, big amount motion

As Bind, Yes. far as

buyer of a really solution. type interesting, been particular a very For it’s innovative

excited business deliver We we’re the as you. our we’ll well as continue opportunities in that bring market in our market, Thank ASO and to that fully-insured to Bind. about for

David Wichmann

the And board if I also have Schumacher he’s there. with to I’m the Bind on can, just seeing on overall going progression comment what Dan

Dan Schumacher

you. the appreciate Thank Whit, Sure. interest.

XXXX, more on. were broad look over inclined seen to so at in switching market less course say have you that I’d as what was people of We interest going there stay, happened the Bind.

saw in terms broader You the that UnitedHealthcare retention. in of performance

continued So on existing incumbency, just have we footprint an probably would we choose the the towards had new given hoped where tendency we inside saw lower to offerings. employees sales than see interest those side, but we Bind

So are the on build expect especially and buying the return in more we it we as excited about to future. patterns to normal prospects forward

David Wichmann

time the over for me, as the to impact, they personally, continue been evolve also and greatest will the I say probably consumers, that I like price like would broadly that points get consumers surprise adapt do. is receptivity model it as initial and which by has well the progressive The

have reason for part strong why in market overall. the you So, that’s question. I the of receptivity the think Thanks seen

Next question, please?

Operator

Thank you.

Raskin comes Research. Our from next question Nephron from Josh

line Your is open.

Josh Raskin

as XX per $XX. you and and OptumHealth morning, with well. Eric consumers million the to Hi, question here My show the average relates at XXXX thanks. in revenue consumer served Good

a that’s XX%, but John, to a the that you we capitation opportunity think, of rate. mentioned risk-bearing about think I how up fraction close traditional of was still

the percentage sort the number spectrum to other end are we what’s really global sort of of how in think revenues really over is trying to on what’s of – pure can fee-for-service? do middle, about the time? the capitation where What So and question the get of see that about percentage OptumHealth just what the

David Wichmann

want Rex risk. Dr. answer the to and talk little from a will John maybe evolution Decker about bit then fee-for-service I to

John Rex

Josh Rex Eric. morning, and Good John here.

are membership, in that risk-based. at so of where you at looking terms is it right looking So, that,

overall OptumCare Let we sized two-thirds it that that level two-thirds as risk-bearing OptumHealth a think revenue of about is frame revenue also relationships. and of risk-bearing from very on me of first, have you top before

XX risk-bearing some levels below within kind true of that that of global down XX want there put XX in in are to to a well capped the a by in million percentage million half X.X within million relationship a that And then are then of and kind If OptumCare I’d you smaller in million relationship, million, X.X are OptumCare, that cap global of are get that served members you that to. referring relationship.

OptumHealth I total relationship. to is in potential of of prepared cap a and opportunity. are currently of in really global small that the reasons my There comparatively we is because and you primarily risk membership speaking or growth several care then was driving is a with to the when to years. largely the accountability, that story, comments, what’s groups, were, growth those amount those come an because its that So fee-for-service of we right That’s comes typically many of we OptumCare. affiliate them and more It with in, more arrangements come revenue value-based over down in to physician convert arrangements seek organic one

you when so revenue was what revenue company, at that is really of And that’s it look growth organic story I just of predominantly And overall that. of talking story there the growth kind for stands. to stage about we revenue I’d that growth do the years double-digit of why It’s say, early there kind because think of kind very, is of come. of where still potential because

David Wichmann

Decker? Dr.

Wyatt Decker

Josh. Thanks, you. Thank

So, it nicely. I covered think Rex

is we growth a as care couple as would major models. fee-for-service go I we points. forward, value-based to of Optum So is this convert a underscore for One engine just practices

allow captive, in the expect as we Northwest you to allows over are to is burden attractive. to for XX we Those expertise delivery. want and this to practice what the quite our us is significant are and very on Pacific you. fully and practices It’s that areas deep practicing to physician capacities the which and risk-bearing a this Northeast. expertise new they on Thank growth been the able decrease in actually Second for It to have that years risk administrative Dave, country. is touched fully throughout because bring do. can third see care delegated our touched models where the our our we earlier, is we have medicine, And compelling colleagues. doctors space, you

David Wichmann

Yes.

This continue is UnitedHealth important will obviously this for well part anchor this towards of both question. for strategy a as by on and Optum you critical more with very aim through have for a all doing to for but nice experiences serving enterprise so people Group. as lower how job Andrew process in strategic a by an the better comes growth we Witty So their and of done outsized deploying going Thank not advance they the was Group. really Optum capability It’s behalf forward designed with led this behalf on team of cost. UnitedHealth Optum, course of only the

question, please? Next

Operator

Thank you.

next Rice from question Credit Suisse. A.J. comes from Our

Your line is open.

A.J. Rice

Hi, everybody.

Just obviously assuming notice And rate can expected a got you have the do what the in rate given just and view about you get normal they your have more, conservative wanted reimbursed the quick that get Any normal you Have are back you little patient and or to M&A on XXXX you more backdrop final assessments just COVID ability ask a that? nice released view appropriately the think to for relative step notice, about do how taken growth this to there? you comment population? year. up thoughts to risk any

David Wichmann

Tim Noel, Head M&R? of Sure.

Tim Noel

Yes. Thanks, the questions. A.J., for

talk capture are about is, bit but there our possible So, things doing that accessing a the workers. early is offer that first focused capture become M&R of and XXXX. members on and will And getting one, impacts I about frontline will XXXX we revenue impact that obviously that for vaccinated as will in XXXX, in have the revenue really you little diagnosis as are getting both there enterprise, happen, soon at the across a couple of as to healthcare focus depth, diagnosis seniors with care XXXX for for I think an comfortable on things same also on these increasingly more at

We know, bit advance the and the remaining all-in are to have of on CMS inform exactly play and the being how a to in January notice. submitted. bit that published was by than rates we to as timing an earlier just that increase that XXXX time XX, out you number included as the of time notice X% when north bid over obviously normally of what think does we respect about out one, published. that’s plays the With the at be seen of final notice a was were final little of And that bid that’s

means moving respect with final benefits, surprising bid the filing. contained is parts too or really to as nothing this remain comment notice we for in on early are watching COVID that the those of that of to we rates about that. that, Beyond that and year. what XXXX to respect lot as changes one things Really rules think with well Certainly, policy

David Wichmann

Thanks for the question.

is, pass it’s in more our into circumstances. little can a than key they have seen health in our if that for including so reason the to Just on us with volatile the part, nurse calls workforce I what first, work home us can safely vaccinated we for for add maybe one the substantial house important more broadly why vaccine things of Tim bit, get because started us and

in did consideration thing we that for was into adjustment XXXX impacts for just providing to on Thanks in our back extent other the The estimates take with there December. recognize risk those the is question. you

Next question, please?

Operator

you. Thank

of Our next question Bank comes from Kevin Fischbeck America. from

open. line Your is

Kevin Fischbeck

Thanks. great. Alright,

into a different Just COVID wanted flows give Optum you ago anything how And more than Is provided back what that? is you of thought. commercial than $X.XX to a maybe just across dimensioning size three months and the that kind plan maybe at health first anyway of least kind to headwind, better couple of there around Anything for you relative three dig us from thought sounds when the worse? coming businesses? you there is perspective like in it anything is businesses better, that the

David Wichmann

John Rex?

John Rex

Rex. John Kevin. morning, Good Yes.

is general billion from XXXX So, about think the kind of that businesses about when That’s negative view the that to view. about in of UnitedHealthcare $X we over impact in the COVID-XX on two-thirds just impact, broad Optum relates and a third businesses. to of relates the

it to offers. impacts some think of commentary those, the breakdown As and on businesses we about different

within broadly expect would of the volumes business OptumHealth general The kind impacted that. UnitedHealthcare kind just of are to sensitive Those factors claims business to most that been a of is it and have are the activity, in as also terms activity. similarly there. of businesses OptumInsight, risk-bearing you within businesses component activity So,

kind done. tell Within would the for just look to just cited so anticipated seniors get I how care and adjustment relates about of UnitedHealthcare general, facility different in across risk you Dave categories we that, it proper as across to at access as thoughts we and OptumHealth, incorporated that

membership impact component would mostly extent, some in of that expect of to Retirement and an Within felt some you and & extent, So, that’s in a also with that’s a the Needs lesser volume-driven plans have visit Community written do as often also. & the the where physician State you to OptumRx, of it, Dual as would within Special activity system. also of largely scripts being through Medicare flow Has mostly component. terms in that just is to those terms

I Dirk, impacts other would are broad kind those comments? any So, of And the overall offer.

Dirk McMahon

Yes.

of think the on I you things one mentioned was commercial.

you it’s which product, get worse expected, than group well give it’s refund back, level-funded then us than was sort lot than refund, expected if is I has what which is you government from get standpoint was better a think better. done the in what’s than expected have say that groups – out to of would decided say I would they membership if a for a they expected, stimulus they if persistency also is packages a of performs ultimately product the And the expected. if kind we little helped. various get of There I stick. – our one stronger extremely All than better outlook better also then resulted Savers they stood

kicks If good a to say big think I policy in. worse, plus some thing. But I loss good we short, would benefit talked persistency story good was commercial. stop the it’s a that’s as products, long So, then about

David Wichmann

we Thank you, today. Kevin. That’s all time have for

apologies whose cut So, and Ricky both Ralph got questions to somehow. off

like that So, the team a to understand please, glad joining we but will you other ambitions please thank again useful to we call were with to clarity you and and fix happy morning’s context all any answer for ahead. I to give us this would and questions helped our year am provided that, call you I have. our be better hope today. I for importantly able

and considerable by Despite for us. starting shareholders. a built new manage of you human again see past and As XXXX are the intensity person our alignment greater deliver with an continue challenges joining and and with remarks, even supported extraordinary insights on my while team time, soon. pursue we At personal physician-led we developed unprecedented resiliency strong high-performing system year information building distinguished same of view. circumstances, this said at millions returns our to Thanks connections, sense urgency care to serving for ingenuity. delivering to healthcare capabilities with We’ll value-based hand of people delivery strategy technology of time the opening optimistic enabled an through these upon at continues one long-term a I and in our the growth agility,

Operator

Ladies concludes conference your Thank and you participation disconnect. and call. gentlemen, you for now this may today’s

UnitedHealth (UNH) 20 Jan 212020 Q4 Earnings call transcript