UNH - Earnings call 4 2023 | UnitedHealth Group Incorporated

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Operator

Good morning, and welcome to the UnitedHealth Group Fourth Quarter and Full Year 2023 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.

company's earnings the is be accessed is Earnings will be reconciliation January contained at release in presented this of X-K XXXX, GAAP of amounts issued XX, -- A from morning the reports page the reference our & dated non-GAAP website. Financial amounts. available Investor Form will non-GAAP the issued also the www.unitedhealthgroup.com. Investor may This on call we on Relations Relations which this company's section in to of page Information call

to turn UnitedHealth now conference Group, the Witty. will Andrew of I Chief over Executive Officer the

Andrew Witty

today. and all you good morning, thank Thank you, and joining for us

embark serve year, XXXX talented we a to are comprehensively. our year who more efforts that than the due their over I'd my more to express we tireless UnitedHealth on gratitude really to As opportunities like colleagues It's XXX,XXX to more past directly people our conclude and Group. expanded new

And to As how effectively. the XXXX. all on seniors the in XXXX for influence reduced was outlook through I reflect Advantage a us performance, prepared among significant manage on Medicare shift care XXXX an for way activity our certainly, the to important was we element and funding

a MA XXXX growth considering years. our for and sustainable able next the in we've commensurate funding to deliver balanced, year Despite cycle growth marked pressure Even on reduced care for over the of felt been the invest Group. factors, and and UnitedHealth prepare commitments these a 'XX, shift both patterns X during

also to in we and from continue which will grow the we beyond. strengthened foundations Importantly, XXXX

over UnitedHealthcare under handled X.X in billion its transactions. more provider XXX XX prescriptions Health Optum Optum To Medicare payer growth facilitated of million than million Optum offerings. and OptumInsight care. additional and more billion illustrate briefly, consumers approached value-based more people. an and in XXX,XXX commercial payments, added for electronic patients during XXXX, $XXX consumer managed care new than Rx Financial

The can consumers, in of growth XX% customers $XX revenue engage we XXXX. increasingly share impactful providers per billion in ways and patients, of adjusted care with growth earnings resulted and over over

and to to Looking growth 'XX to beyond, we accessibility help 'XX, XX% drive XX% we health system-wide. continue remain improve our earnings affordability long-term quality, adjusted per will committed and and in to care And share simplicity, to confident rate.

Having held to few year, starting what this just conference investor morning a with in I'll recap X ago, value-based only from expect us minutes should our work you care. this weeks our take

overcoming shortcomings us experience quality. that and many of over proven for a as health care such system, way of incentives the can volume a recognized widely is fee-for-service-based Value-based of fragmented consumer emphasize

X another arrangements, of end Optum to more the just people end under of patients X and providers the Health Our offerings more By arrangements, accountable year, incentives of better and Health empower XXXX, connected, more than a in many care XXX,XXX value-based this of align at provide in ago. will Optum plans, among health years consumers, twice total with we health physicians improve costs. partnership of than outcomes deliver serve number comprehensive coordinated fully served dozens grow such least and plans. million value-based care, health for to At served patients the

U.S. the a million fraction patients strong served, small made, represents the only Yet health ultimately investments expansive. And of and many care is presence market total base, significant $X even and trillion a our care. the from Optum which of opportunity of with more Health growth will revenue still modest spend. just benefit people system we've quite X models today whose the health these X%

positive people's the have go achieve to impact system-wide to for distance health, a can we considerable We broad, help believe drive. we

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will health employers, large relationships The sophisticated benefits. majority of come with of this buyers the most growth our among from

most: experiences value customers are and on benefits. Our their we tell simpler adaptable what us focused lower employees cost,

for these points higher some is than health NPS new XX-plus Consumer innovative traditional products plans.

we have do. more So to

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Medicare offerings is on long our One are to offerings. consumer our proud We're of larger of growth the briefly. record which touch and for track Advantage, I'd like our people choose delivering who of

During full year annual remain XXX,XXX XXX,XXX XXX,XXX. completed the recently to and committed our enrollment of goal added we more we period, to about consumers,

assumptions supplemental care our and approach benefit of believe for feel about period. planning we management ongoing positive positioning the our entering for growth to for appropriate entirely X-year and We are are activity environment this

value and close One our to year. serve best shareholders. capital more To to achieve we effectively item ensure consistently out our enterprise-wide, of resources, use we must for and our the both people enable additional long-term deliver as goals, time us

and where to carefully opportunities agreed care we've a course, relationships many we recently compelling you. than evaluating consistently discuss we sale the growth our our we focus us, Brazil. to over was developed determined dedicated our We likely After value on a people energies compassion. of our that As the and operations, for the with decade in step Brazil ultimately we more serve best saw, colleagues highly you with best right the serve people sale the for

it And and with Chief that, Dirk to I'll President Officer. McMahon, Group's turn Operating UnitedHealth Dirk? over

Dirk McMahon

Andrew. Thanks,

AI then to performance be engagement Net we're be is do in better. our increasing desire using mark. to Promoter ways to efficient, investing that, rooted hitting and Scores and We're and innovation sure our Our growth accomplish through intense in always the heavily more to digital measuring

impact efforts was evident The digital our of performance our X/X metrics. engagement in

cohorts one our As Andrew new noted, served commercial important we played in of people biggest technology offerings, making role well. brought via our our work an and of process the on

Since and Apple year, month, was Store mobile UHC ranked volume Google historical app our or installs average. Play. Through the up mobile on than the more category app our medical consistently first App of And in #X twice the over year-over-year. #X last more the cat were than XXX% week

enabled at million X% an than lower scores and than new costs. on lower cost new of onboarded record clients Optum consumers, to with brought higher digital year. At overall Rx, consumers last investments served, more X with a us service and bring them customer More number who satisfaction improved

improving AI in customer play and the investments an enterprise. role service important technology advanced Our in productivity throughout and other

and example, inquiries, repetitive responses For directories updating more as focus removing the staff provider customers such This to clinicians our for complicated interactions are service and from workflows tasks tasks serve. and people by we tasks, our solving patients. frees on consumer with with AI using help summarizing to to up we

where an XX. improved engage and members XXX%, driven data over recently, discharge timely And response, we launched of This member capability, after [indiscernible]. an has has we data a to use clinical, by real-time rapid immediately NPS high-risk rates MA and engagement emissions by new

and to NPS are efforts initiatives measure leading and how A remains to customers impacting many way our retention. a other information, measures consumers couple significant for and digital of digital consumers how and improved our vital those optimization, we're performing of to Through NPS benefits translating on-demand capabilities. and in we're providing highly care, businesses. pharmacy with integrated improvements access into examples. support personalized is real-time This our

through and system to access Throughout even friction we authorizations. experience technology to removed digital UnitedHealthcare. to to as eliminate greater opportunities administrative XX% capabilities UnitedHealthcare's we've continue our the the reduce improve visits leverage see from both 'XX, enhance XX/X and of identify virtual productivity at investment expanded expect should And you consumer and an to nearly in costs, prior further to: efforts Optum

And I'll Officer. UnitedHealth Rex, over John it John? now turn Chief Group's to Financial

John Rex

you, Dirk. Thank

growth quarter XXXX year by and full over Revenue XX% growth consistent of of and and underpin share the is $XX.XX, grew to ongoing grew growth both adjusted paving billion UnitedHealthcare. per 'XX with Our per beyond. double-digit Optum foundations, Fourth further the in strengthening and on focus expanding for which in colleagues' growth way our earnings $XXX brought XX%. earnings $X.XX adjusted of XX%, share at pillars,

noncash the billion, years. from several which we translation be closing, earnings excluded majority to will currency charge this The foreign of Andrew the December, end sell As agreement operations and entered of to an a this the into $X impact Brazil is our year. record earlier, per and close largely to of adjusted first onetime half measure. in losses noted charge we expect of our 'XX to over accumulated approximately at share due expect of Upon

for For billion Brazil outlook your incorporated full of purposes, the about revenue or X.X% 'XX about revenue. consolidated $X modeling year of

some Before categories of prominent. Activity brief orthopedic the on Care in first shared for care cardiac reviewing with the levels remain patterns half we you our consistent among to outpatient seniors, with care comments continue with offer led 'XX. those business results, by be and I'll procedure activity. more

reconfirmed patterns our As observed benefit 'XX levels that activity exiting persist decision. throughout we've and the 'XX, noted, approach we care design assumed these

that care were activity, additional to cases, On seen not had In from especially some late response we a being strong people's in receive to visits for saw vaccinations. the for such margin, RSV schedule these health. year positive as seasonal time, people physician some welcome obtained, outcome by modest seniors and physician necessary some a accompanied

views sum, enter results, supportive response was we we XX our care broadly the outlook and with benefit actions with full on points. design And pricing as undertook, we've we ratio continuing we're XX%, in or confident be care activity of care basis minus reflect to patterns line earlier. in shared In the overall plus as of though, of 'XX, 'XX year

performance we than arrangements the Turning $XX served and 'XX. in by in patients over of our types under care billion home to value-based Health's levels about and and grew $XXX,XXX the X.X as more of of million, to deepened to the offer. care number XX% by the revenues Optum services businesses broadened expanded we increased

with the concluded portfolio, $XX.X billion, year OptumInsight's revenues payment health of stakeholders phase next increase editing decision of This connects last an billion. key which grew it's was payers, launching growth. the growth process solutions by year. our many $X.X diverse are for expanding to or backlog continued for support of across XX% $XX.X simplifying and over revenue the product providers, our a billion driven the Whether fostering for We all, claims OptumInsight of investments software new care.

to customer has XXXX, best the among Optum retention growth services Rx revenues and expansion In driven businesses. pharmacy of Optum the existing XX% relationships our grew Rx' over clients, new continued were both within wins by addition of billion, and new $XXX organic delivered.

within recent comments, we majority Medicare $XXX year growth experienced we over UnitedHealthcare, full At XX%. expect be period, with with our Adding the billion to a Advantage, earlier to patterns years. have year consistent over the enrollment revenues more outlook realized full nearly of those outside grew annual Andrew's growth of

Our XXXX Medicaid X enrollment outlook elements. for key balances

First North Carolina is as be state And activities existing within impacts. and second, offset will other that growth will such partially that these completed redetermination by opportunities, states, largely midyear. new

domestic people commercial million in our encouraged positive result. 'XX, serve strong we we response by additional X.X offerings, Within expect experiencing look are ahead. customer to as about we the we are continued And

capital $XX to from X.Xx Our future. through billion 'XX billion and $XX income. Cash share net objectives. build repurchase was growth dividends, or billion nearly ample capacities over shareholders underpin in continue returned our in operations growth capital for We the to and long-term $XX to deployed flow

year reinforces with growth you at To both our solidifies the and summarize, objectives confidence 'XX performance the new to further 'XX end in long-term we the start and our November. shared of and

Andrew. it turn to back Now I'll

Andrew Witty

Dirk. Thanks, John, you, and thank

XXXX, I you confidence. Heading sense hope into all our

to to We continue people positioned commitments are consumer-friendly help simpler, deliver the well we our who a the have people system And health serve. well-established on for to build we've talented made. we're committed more effort to

let's it open Operator, for up questions.

Operator

Lake go Research. Instructions] first Justin Wolfe [Operator to We'll with

Justin Lake

I touch wanted on to the commentary. cost trend

saw. there saw the month? MLR know year, little you of in guys tell color. was that higher. what Maybe looks did like the Investor the it the I a Day bit job John, between end and over us the some last give a of whether figure trying second us great a utilization you is Specifically, you quarter Can those of further some given of getting and cetera. out pickup to or scheduling, of et QX facility have insights that We're ahead the you you cost kind just this QX to utilizing seasonality in on that trend

tell you into just us versus you seeing you what QX where year? So maybe comes the January? the tell full could And us in think

Andrew Witty

for thanks Justin, the question. much so

to give of area about. ask couple John then a detail a little make Rex the just you more comments, just on me I'll Let and you talked bit

the very much zone expected, 'XX, driven by think, towards signaled the overall, as in the we that in we for -- end behavior And the is within of but about the the in that of very the shift seniors at year. look sort in middle top year, it we're we came expecting in talked what story the June. around bulk of that and much I overall So back we full zone, zone of back of outpatient

which of brought You're difference right, it, utilization been conference, the quarter. right? of of of The in are good who've in each be there. to got some has of with that investor small, together all is saw have things a some not dragged but physicians whom certainly other it, care, back come Around time. you run though, They've a post activity, clear, if have was kind a while vaccinated. seniors a pretty bit to things we up many these their will, are like of office come news services vaccination, up in for they've for just the what with out individually health picked added of now long that and from last made been Listen, seasonal which extra for in seniors, vaccine. RSV So click the

outlook which little So we 'XX. combined durably activity with None is little COVID that a of we of going out impacting really as our on, for heightened the year. bit think a of rolled just bit

So feel around XX, our bps. minus solid 'XX point guidance XX plus of very we or

John ask that. more down of bit click I'll give a just to you of into insight ahead, little Maybe all kind John. Go

John Rex

right. absolutely you're Justin,

among year here, full we the what outpatient factor prime and the when about the of we care we in earlier view in much the terms populations. being year senior about activity think talked ended where So up

staked what continuing and of with, that very 'XX supportive that of And the Advantage into terms with we consistent product. year populations for back senior and design much particular earlier benefit what Medicare stepped saw we in the in out in we our

elements So view the undertook in of that all and activities very those we year. earlier much the supportive

Andrew really the where landed bit full to relates back let XX kind above just on hit what the of November it items, take And it me here. we As of so differential. kind we those kind at investor points deep conference year, indicated in little basis of of a

there. So typical definitely some involved in seasonality

elements incremental a I'd the out items. really were and respond And vaccinations of couple scheduled -- physician did point Seniors strongly to RSV visits.

noted, around were physician those we activity Sometimes what driving other that. visits, care

perhaps in So a little in that cases, physician some while. seniors a hadn't been to

PCPs they able so meantime, vaccine. were some their RSV the PCP, close additional then care visited got And there. as gaps over And their were an in they to

haven't because thing while. great of been these a a in seniors What's some for

the So fourth important occur activity to in there quarter.

overall, particularly case elevated So care What we cost that in fourth a saw, admits traditionally and saw. elements the December, than quarter noticing is of are running COVID was that for higher costs states in we've what saw per inpatient we we COVID. one the for been

makes That had actually going the There into to were are some November say inpatient we did cases will seen. December safe. average notice typically are that more the level in I kind above XX% of that XX% total intense October, of sense. COVID probably admits we that

of part kind the of of year So COVID the highest that terms inpatient admits. was in

in our some that points year together XX Justin. for I basis take If view, elements those accounts differential than full more the in

in of next view year kind I this saw out kind year. we patterns, patterns see call pertains terms that we this movement the we into look for year second with commensurate question, and that terms in with it just what would of your As the we XX% of view as to what the of full

appropriate -- I of Thank it like XQ, step broadly terms out just for zone an what there kind analyst one reflected of the picked back right and consensus looks particularly would Justin. in kind where the -- you, in is, As about you where of it's expect. thinking stakes the

Operator

next Nephron Research. to Josh We'll go Raskin with

Joshua Raskin

I'm about describe the X-year put plays one you've Medicare trying well? want to changes Can thinking I'm of model majority that to mouth, swoop. you out words for but of don't but as for and curious benefits 'XX in adjust just environment then it And you and adjusted And risk for 'XX the think not fell sounds you're like process. in how how positions XXXX as for a the your I Advantage? specifically part you in competitive 'XX,

Andrew Witty

Josh, thank you much. so

how shift I and how the I system Before detail about that's why we notice benefit the X-year looked frankly, design, on through and the the eliminating think various very continue the focus of OpEx we've Tim management way listen, management set but our we rate question, you waste just I give organization, ask plan, our through continued to thoughtful to at capabilities. adjustments, is we've in Noel of to how not a more been your we've on, medical accelerate care within unnecessary mean,

we of turns X-pronged taking a years. that really the those we're to it's through sharp next been And we've So are set in a through on tables be setting over left which so that about cycle sure we on not the be making which focused halfway this we're can very, sustainable turns way period. right X very or agendas, going thoughtful

you I'll this. he's kind and for maybe that Tim specifically deep a to bit With little planning environment on competitive perspective, dive how give more ask of overall the very

Timothy Noel

question. Yes. Thanks, for Josh, the

months once to agree start really a been with and the number things and last is rational long-term X over D couple goal for are XX Advantage multiple stability benefit in years Medicare I So that our always a for our with took again, overarching plan view the as of view to environment a Part changes there's of years. we also Andrew's comments And to with the very and over XXXX, members. we, phasing programs being to

step encountered we into by planning the thoughtful to benefit have those in don't and we respond periods be way catch-up program into very we Medicare we in As will changes to by like to all changes XXXX of material feel be beyond. Part forward, we've a feel to got the and we have like that thoughtful response And will any future into we got Advantage programs the and as a XXXX really do future years, very and D certainly, believe encountered look that that XXXX. pricing

the So our quite we competitive is about the strong think long growth solid think forward of over we outlook view as and term. quite

Operator

We'll go next to Rice A.J. UBS. with

Albert Rice

asked I being outlook, million, -- updated you on you of I getting of that's -- the it. when the of from as days, know couple $XXX of apologize, it's don't Just days questions for about X for down payable down And guessing, updated but MLR. well? last metrics, but some sequentially, we're that some on a period a if third quarter. comment accounts maybe any sort I'm prior what were then granular, lot variants year-to-year claims The guiding development your

Andrew Witty

Let John address to me ask you. that, A.J. Thank

John Rex

So days first X.X-day payable, on X decline days year-over-year. the so claims sequential

development. the what factor largest you the in prior period pointed primarily, to, exactly single So change be would

were where look XQ. impact, So and development you where about that we periods in has were a in in a the year even prior we significant if ago,

part, the on main other would -- be impact that factor. the significant the So that

fourth contributing some quarter other acceleration factors of claims see submission in modest we terms in saw, timing. did that provider the In we

terms quickly So service in in them terms data receipt. from submissions, up receiving those just how speed of of we're

particularly related the quarter, part the it saw noted to We higher in intensity that fourth claims some quarter, first October. also the of as

that was per factor the payable a impacts claims day metric, that MedEx days the piece and was So that in that's in a also. that denominator,

million the the to the As unfavorable to it talking we of items medical in response at that question. put that were in quarter, relates my development $XXX Justin's mostly about

unfavorable cost in factors that of kind really to development. COVID case respiratory-related main in we the admits, there higher So there, were the the the contributing for in we per that inpatient activity of those saw -- had modestly terms

Andrew Witty

that. rolling back a QX, half as saw the of it's good RSV delivered -- John is question, more even subsequently being and in we've services A.J. starting second the this of phenomena And that we vaccination as of which just this was out through sort really around were already No, what seen QX, said, we pickup explains

which and for So Thanks development QX this year kind many don't negative of we the the any through the same pressure of slight ways, that. question. end it feel terms direct appreciate of real thinking of is the the -- in why relevance -- is story of issue has at I in XXXX. kind then and

Operator

We'll JPMorgan. with go next to Lisa Gill

Lisa Gill

the that a Health can't We've I others just want about medical payers. maybe talk to and lag can trend think versus there. some claim John, about cost I pretty the the go we when there. there to claim big lag providers heard Optum understand from be the

Andrew Witty

to ahead, ask let the So Go then start, me dynamic. and make a Heather John claim to on comments of John. couple maybe ask

John Rex

the Yes, kind quarter. some respiratory on going was the in Lisa, have of RSV that so of seniors definitely could activity vaccinations obtaining seeing and

So features. broadly similar

Health, one progression Optum we've of throughout also year taking membership. with the large here on the of comments the has new of block a For ago made do to that

started new took as year. we members XXX,XXX So about the we on

throughout clinicians made need to their the interacting members. a with physicians, outcomes, members year the Because do most And health these the having interacting engagement with clinical one we've -- these our improving is start comments terms them engaging of with having is thing the into -- in we them. have of important getting

we've throughout Optimum we've as it's a the And Health made progression. margin seen comment the year

can year on exit health. of engaged one started XXXX these think team the their progression. getting big kind roughly and how the with in, about that's block. as that -- so that of important have Super focus we as engagement been Health of a we Optum factor the And about great think -- impact level and new year things, about of Optum all XX% long XXX,XXX we about with at probably So a Health year having members, that We XX% member engagement of the we

given typically needs, that's away, -- population complex is this Far important. like, and especially what that's have they

we're important level XXXX, it of we a with, engagement new we're XX% that bringing that XX% new as market, so talked started 'XX I for start to with Health that membership membership. level in Optum really Another engagement patients XXXX, relates again, the with going to to about for

So we're that, in been making team. advances expect exactly we that's and should have really really, efforts Their what strong. the from

Andrew Witty

Thanks, to on what's then Great. John. Please comment claims. Heather, ask Heather. question like follow could that. and you Lisa's I'd on also go Maybe, to Alma around And ahead, perspective up on engagement your driving

Heather Cianfrocco

Sure.

So so is clinician's I add, clinicians appreciate patient early, the -- point, that importance only visibility top really you than engaging we the And then would on action. the thing our the your to about the of kind about think think way it's thing too, John's to I I think hands. point about when in of

we've is And then so our what's John having do -- the clinicians get early really I XXX,XXX way for is to our what we we clinicians engagement, us think the engagement as next. clinicians that visibility having important, said, early tools. think and about that been once is And essential

year. the they in home we've health the that got heavily they've home got procedures, engage practices the outpatient solutions behavioral and around and services and high-quality the need referral And in they've they've that is community first to they've -- and last been over for can community-based supports thing then investing specialists management technology, the when they got got with them, that that

the point and They've contract our is so place then protections that dynamics responsible a with the happening we've in way. payers. to on clinicians visibility they've I with in been can into our the patients, be would are thing then in supports last the the got that practice that the the that sure place got to structures are focused payers And with

Andrew Witty

Amar?

Amar Desai

than risk think year. Yes. rate we're Look, reiterate around Thanks engaging a point I where for highest that the same our at complex last Xx members, the time I'd question. higher

services, our And where evidence-based within majority programs, of including risk they A management including and that around the clinicians highest clinical their are groups these home-based evidence-based I'd the high-value, have get medicine with of into the specifically primary programs, support the the services, wraparound our care able from with need, programs, setting and are our referral home. program, provision connected engaged and focus care get the that to importantly, OptimalCare engagement patients so care

Andrew Witty

to Amar, tie thanks. just And John, up whole question. the maybe

John Rex

the into -- And just visibility No, here, part don't a activity claims care regarding last your that's question Yes. Lisa, on of we factor. not up like. tying

Just It's get given that's the mechanisms going one we where model frankly, -- activity it's of we sensing of groups of how Amar's in areas care the early business those terms probably run, one and the on. the early much the procedures. talk the -- the of we and sensing populations, from activity care in what were to mechanisms we were about within earlier orthopedic able in year their senior when seeing and other

So that's a factor. not

probably organization. it's the a In anything, of fact, if strength

Andrew Witty

XX a the question. over that hope the I gave of just we've of area. Lisa, made months strong about much a And John. we Thanks, there spent and progress for sense couple obviously talking minutes thanks this Yes. engagement, last in some of so you the

we I a were different than ago. today day year say night and we're in position a would

making building a that's physicians our really terms our these aspect XXXX. engaged to important to go, sure patients, our with of ready be ability complex In confidence of are what's for

And that will for that to really on engagement great behind be so positively gone and making patients these going more we've the I and through spending last the managed work levels real high these a some that's substance make you hear supported over minutes couple just that engagement, no ensure of got apology very of sure year, 'XX.

Lisa, for That's of value-based thank Optum what Health. then question. you underpins and for the whole care opportunity your unlocks

Operator

Wells Baxter We'll with to Fargo. go next Stephen

Stephen Baxter

talk could in seen all in attribute the or else XXXX you're you've you appropriate -- group Or I should businesses. or to you Medicaid hoping pressure it was the what is line there? really seeing back bit we performance anything for a to Do little seniors? commercial, cost step be exchange, out for

Andrew Witty

Brian? summary its Stephen, UHC Maybe of I'll to of kind give overarching just business. ask Brian, a what in different of much. you thanks so books

Brian Thompson

across appreciate UnitedHealthcare finished Thanks, end into think we key ranges, feel not but with, very plan at about Stephen, the that. top I as of really the optimistic. I'll the and the And performance, the how our our board, just I run-in assumptions also year about underpin very the good, in that Yes, positions feel I lead only step for growth good question. businesses we for XXXX, XXXX

areas. of couple a mentioned you And

some good You're both the other the think confident right, in aligned to competitively at our here underlying feel when of those I utilization and look they and stability trend, of as very with up message showing businesses, see expectations, and we've and centered cost respect in our our community. discussed our we're these growth really how elements in you around with trend cost senior outlook outlook. nothing obviously are some elements, And unit durability to

optimistic about here to in suggesting, you're very year. lines and other UnitedHealthcare in So those forward the that lot look durability a to

Operator

We'll go Lance with to next Bernstein. Wilkes

Lance Wilkes

Optum that a per Can the you And drivers little And comment of the some to little talk revenue about out if the you've you that bit of in might or that on quarter Rx, strong in then fourth the been of either topics programs contributors performance? some in are on demand you in a top any do growth that Rx? particular like line? the quarter, increased GLP-Xs have rolling capturing can 'XX be

Andrew Witty

Lance, thanks question. for so the much

and, really for just states, probably wide well and strong first plans, a Patrick a off, us commercial. obviously cost. offering, ask response start Optum built of pleased year categories, transparency, I as to as with on service, selling note public on range I of product really the differentiated And in to really, extraordinary course, choice across Optum our the want Before super best-ever, Rx, Rx,

feel little maybe go share strong on may 'XX. rolling we've deeper, built to raised want Patrick, we GLP. Lance 'XX so a And into in momentum weight around engage, a question little specifically you around a that detail the

Unknown Executive

Yes. Thanks, question. Lance, for the

Andrew really business new said, growth, retention a rates. high as both So diverse and

years So one ever. of best-selling our

across call diverse services. expansion, and cost as also pharmacy out the the growth services, And management. you the products I'd set new organic mentioned, services pharmacy last, there then of

call Just weight one, to engage.

provider So management, lifestyle support, comprehensive digital. medication, client support, modification,

and Health the care. Rx, solutions just members, OptumInsight. demonstrate Optum, comprehensive with total of Already lower employers live that across at Optum better solution comprehensive robust because Optum a patients, clients outcomes with So and not interest marketplace partnering health want cost in

Operator

America. We'll go Bank Fischbeck Kevin to of next with

Kevin Fischbeck

guess unlikely levels is replicate the speaks that baseline but will I also also coming year. the struggling at higher. costs implies -- to still next has earlier worse, with just concept these the year Because core development worse, baseline in which in the this negative XXXX to coming the I'm of in

comfortable this base guidance you And me why next MLR, range year? I you're raising where may that, feel help the can you guess, still just So within reconcile but orienting? with for for isn't the

Andrew Witty

the closeout actual elevation, throughout which for the seen year some into than this Higher that which we've of in year. of kind case, takes any consideration

been for it going outpatient to I'm call elevation we've senior several behaviors So the core that talking with the about associated now quarters.

John, But deeper we've the of small And a on already, this a don't we little or year. of the think to really rest of bit then as type go talked variation, seasonality relevant little maybe durable is end that. a QX

John Rex

Sure.

the as to get came cost vaccines, yes, we're -- seniors the COVID and that on that the respiratory the higher seeing. that admits so And delivered case activity that contributed So inpatient development for in another per care being to was being was unfavorable around going elements such.

are of largely that that of here So the be unfavorability. those the contributors in would elements we seeing terms

you're plus/minus be at as run-in your squarely XXXX, we'd our keeps That in think our impact as correct thought XX% and -- right which for we taking absolutely doesn't points. assumption. conference, is XX our so we where outlook the basis were us assumption about in investor So out we

how look businesses XXXX, incorporated we and to in being saw activity XQ, The staked we midyear scope expect which referring among XXXX, with in back very of we factors our to much factors the our we our and populations, scope reflect outpatient all that performed how appropriately in Really we perform how again, 'XX. think out are good of what on the about of this in you're not the it we elements as impacting care -- of at in across we 'XX Really view senior is question. bids. running into terms

Andrew Witty

been fully monthly daily, been indicators weekly, see have significantly capability activity, investing And reviewing it just put to I Kevin, mean, I if strengthen that care our in also to leading of can numbers expect, as Yes. also increasing all the way, warning we've frankly, signals, and I'd early And would year. we're you this. add, of radar

outpatient end not deviation you, can any we're telling the activities seasonal the you, supportive tell been times I activity at seeing you how of of we've all been for really 'XX. And we've little core year, bumps different there, stepped But the utilization, The from all lines in discussing terms what system. we've of at those patterns terms year the of in of the of across obviously, that different. out with a very

Operator

with Fidel Scott to Stephens. next go We'll

Scott Fidel

we And at for the back pacing And with the just OH XXXX? course relates, I from of those for are you to appropriate walk how that for and about margins was year? just quarter, expected OH if of through X.X% XQ, the hop to to thinking exit the fourth margins, rate targets us see could then of to the it just Investor over as second. the given over step-up want still then hoping if targets Health the exercise X%, for you're pacing one, those maybe in Optum the sort a margin sort gave to the Day

Andrew Witty

staked ton XXXX where strengthen during for Dr. going couple we've so much and I'm next to about year. for thanks Health Optum comments, Scott, I'm A of to question. going work of talk business. to ask the make to a Desai the then done out

the You through saw second we half. roll beginning that as through to show

to we of as into that XXXX. very to continue go improvement strong be expect a driver We

element a A about with can progression. in today close business. on profile lot talked you to work of key deeper, the that out engagement little a maybe being already Amar, and of discussing of And around build able confidence John our is that our then go we could

Amar Desai

We've We're confident in for detail. in the X.X% to engagement for X.X% discussed our target XXXX. Scott. Thanks question,

medical programs, which piece management second effectively. scaled we've our is important The

network. I talked a work little Again, of the right network our we're bit about integrity. OptumCare and services evidence-based the guidelines. support What payment with provide able I the idea would our being to across reiterate across doing with is

organization. on The our efficiencies focus And which and on well hit more are have progressing been I initiatives our the also of G&A OpEx, is track, driving unification on in and platform. piece and consistency systems would it with last really operating discipline around across operating our

'XX. So about to into we feel X.X% the we X.X% good as very go

Andrew Witty

Great. much, Thanks Amar. so John?

John Rex

Scott. Yes,

very to So again, patient is, The XXXX. sure and improve into we're we're outcomes, our new them to gaps. important care as here about able clinically established close these progress objectives cohorts make Amar come engage our they margin how as able for element said, we where and feel health super good business, with their

the those And XXXX lot and we're the health patients accomplished getting here, of in and and in of the serve able course over then teams people assist of from will that serving cohort during year. levels that business of new terms engagement XXX,XXX progress a we're to Amar that to the particularly, terms XXXX that this performs the how

So that's a big step into it.

at to were this help we patients significantly XXX,XXX the cohort is new were into year, where that level came last on of the engagement is big to. we The fact Another new also. than that it higher will group Yet step able business.

stepping of the of So in course confidence it out lot us of the gives these year. throughout in terms we're where coming people a serving

of your expect performed. quarters in them the comment, how seasonality typical weigh In you'd than terms factors to

so about probably as that they're impact factors, much think So more here. seasonality having

terms that in base well targets. that we reach starting typical a to this experienced with would factors sets us seasonal stronger of have our up So year,

Operator

to go Wright with Morgan We'll next Erin Stanley.

Erin Wilson Wright

a So Rx. question Optum on

such some type cost flow regulatory PBMs past year, for evolving as reimbursement plus unbundling. were there's -- as changes flow pharmacy news approach. of well as There the some been the dynamics around Over around news there changes, model

of about a profit for any you implications those are remaining Optum thinking at how material impact these you potential PBM? forward intact Or if dynamics dynamics, guess of of going Rx? on some these do I thinking drivers the kind And have all? how about are

Andrew Witty

much so Erin, thanks for the question.

give ask to some Heather me comments Let you there.

very her on Heather's know, the you processes, to that. with various been it'd perspective As and involved get legislative good very,

Heather Cianfrocco

Thanks. Sure.

at to completely a engage that I'd is So respectful drugs everybody's mind, our say, that maybe do. evolving that including headline because dynamic dynamic. continue juncture, that's incredibly be of business say, this the just remiss drugs consumers the quickly, what affordable affordable and to built to we I incredibly the it's -- space prescription on and if make ours, just is is to where I'll in don't important note again, PBM

sure important know price policymakers drugs. ensure it's really preserve that sure we we that to We deliver because value that understand that choice are value-based to that pressing for is It's important preserve base lower-cost clients. make -- we to way make to lower structures the

where drive no break it work We discounts important high of prices PBMs that list work incredibly to And can't that that with drug there's costs. PBMs cost. alignment against incentives rebates counterweight remain payers is as The a indication reduce that because up.

market. a you've across We clients. our services, in multitude clients. said, Rx, of our Optum businesses. the diverse It clients, it's listen That and in businesses. to model transparency, innovation held in across translates. highly we pharmacy our competitive And on translates the our PBM, to it the across seen And exist our being we of And compete it really partnership a win in model translates in we behalf because and translates

So really that incredibly the towards we'll will feel you of the act client that follow work quickly, good And act be we see responsibly, the we legislation, value. respectful we results. but I in and

in the see you client You in see most growth. the that importantly, that model. validation But the of

but confident in in positioned. good as where feel feel about I the a to that, experience guide I really XXXX in So the growth about we're good 'XX.

Andrew Witty

question. very to And thanks High drug of the much I'm much. continue a sure so be course, area. thanks Heather, issue is for this everybody. debate around there'll Erin, for cost, big

make around big I down. list a the most at say First you come difference thing that would the we all to That's here. prices need see can look and foremost, that important which as don't different area, customers. some to time isn't anything in and there from our clients offer that we to ideas, our up time this reform form really fashion float or in

designs, right account what And here. their different offering super think Because position. wants, which wants to views think be differs. portfolio a it's tools, we is that's what's that what union corporation the state are product for allows a wants, of different right taken people choose them. we reality the a into important should are We what And

the it our we growth record of and what's do underpins underpinning for that, Appreciate that We well 'XX. Erin. diversity believe in confidence and offering, product our our that's

Operator

We'll Goldman with go to Rich Nathan next Sachs.

Nathan Rich

added. Great. to I guess I AEP wanted about, terms any you Medicare what lives differences there or this responded to on talked the enrollment consumers the of you the year that in in that ask were differences XXX,XXX that of full you're retention you the you as think year And year? the help drivers the for expecting? can what over us get to guidance gave the needed to growth you rate relative just membership about to

Andrew Witty

the much so thanks Nathan, for Yes, question.

Let me Noel ask Tim you to give that.

Timothy Noel

Thanks for Nathan. the question, Yes.

Medicare more selling is ever environment the saw one that aggressive once years So highly And probably of pricing we've the the again, of session. competitive. environment, seen we XXXX in

have we that is in what years, investor a growth of little We in to utilization to into and past model changes, saw outpatient more XXXX XXX,XXX patterns early new 'XX reflecting to response but we conference the bit which in at lives, pricing. it's modest XXX,XXX guided reflective risk of than our grown

is And our benefits, we were a of against drove were close little would higher than bit that a AEP, some we some a of of more that of rates very actually initially little I bit switching, AEP out in light aggressive business, term what the the say we thinking. November. were thinking bit of kind we group as end in Most

to from just a really But the about to we years the growth or fact, And year, growth annual growth in going the period really. to drove total of February of is our X XXX,XXX we in out over trend play XX% lives still from seen have heavier enrollment like last weighting And we're our a feel this a of much continuation of that outside have December. February of December. period we last

positioned. in the that to be of This and is large that the on really headline aggressively we the some our tends some focused selling AEP footprint really those a of do benefits well have selling also portion been season of and fact that given dual

service the of of And benefits, throughout some think folks switching things as deeply more year, remainder delivery the the to like back network, and fulfillment supplemental product. of be there tends overall about

and it marketplace far 'XX done we So to pleased very how positioned year. I once on a of growth about 'XX is great so really again, February and aggressive have in selling priced, headline December this well feel to really We guess we've for 'XX. our we're and from a with is the what excited like very opportunity, period the

Operator

Taylor Gary Cowen. with We'll next to go

Gary Taylor

historically, of partners? health with I'm just a Or happening types dropping Most of this health my about We've most articles more here too. seeing I something your questions this so measurable system media their MA more has -- just of know these sites, articles been [indiscernible] asked. United that term, you there's just out, contracts, I'll throw wondering, one some system been contracts of is those threat? do think

Andrew Witty

much. so thanks Gary,

me respond Let to Brian to ask that.

Brian Thompson

that for thanks on are, I the the than would coverage say, average, our a or disruption XXXX. year expectation though any consumers we would leaving market in They on see come Gary, historical at comparisons this disruptions question. even plan. the lower an too say, provider relationship. I their have health is for I in-network say from much. to will that rely They overall,

that So we obviously of to disruption. want avoid network type

that balance we, to do affordability. however, ambition with need And

our came wire. Tim's I to that confidence not down compared on And average, forward, we again, on where we Now we some think much periods as going space, disruption. growth deals historical have think overall do And really impact on commentary Medicare change have did But again, speak to our Advantage specifically had in the those around response well. that as you'll that deals see AEP. to I February the some to intact,

Andrew Witty

the of is Yes. seen patients, that, getting And for you sure best what Brian. we obviously, I care very that important Gary, make No, the that delivered. it's think, negotiation government to associated said, it's And of behalf cost well robust. -- on behalf on we're

don't the see overwhelming good We But resolved. does. that news occasionally, Unfortunately, get area. it progress we're the majority to this disruption And good happen. is making like really in rest assured,

in to Brian outcome previous of As no difference in seen real we've years. said, kind what

look to forward with Thank and in thank our the let me your between disciplined Thank to you With forward delivering focused Very our growth for And very and this look approach and our and that, much. our you've your shareholders. appreciate all you confident our Very in matters to morning. mission, And much of as you delivering we're market. that all on XXXX heard, calls. you, talking patients pillars, operations appreciated. innovation in to we in much of our commitments say questions. on customers, attention

Operator

We That your will participation. conclude today's call. appreciate

UnitedHealth (UNH) 12 Jan 242023 Q4 Earnings call transcript