UNH - Earnings call transcript Q1 2024 | UnitedHealth Group Incorporated

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Operator

Good morning, and welcome to the UnitedHealth Group First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded.

Here are some introductory information. This call contains forward-looking statements under U.S. federal securities laws. to differ uncertainties or materially subject actual could present are to results from statements risks that and cause expectations. These historical experience can our reports of found Commission, the including description some statements the periodic Exchange and A included filings. cautionary in of Securities and in and we that uncertainties the the file current with risks be

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

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

Andrew Witty

joining you Good for and us morning, today. thank

a have We to lot cover.

Change to have which First, of at impact we'll Then the to we important that grow our the businesses, cyberattack. significant the of underscore outset turn even status discuss continue perform well. It's performance as Healthcare devoted we'll and to as serve. and addressing intensely for in attack, the Change remained majority on this vast the focused our people That quarter. we dedication to performance of is enterprise all overall have the those XXX,XXX delivering this attention of Healthcare usual, reflected the

adjusted our to business year Change the of $X.XX our performance share full in work outlook diversified we broad a able related as disruption and their we're to of to per Directly reconfirm hard result even Healthcare. $X.XX businesses, impacts absorb earnings as

promptly work. a our health malicious gap. care their providers This moved services was Healthcare. U.S. unprecedented to fill of claims two be disconnected attack file ability actor We We areas: the focus main and to the and the on turned this Restoration support. affected disrupted to by to attack for and system. paid turning Change The quickly Now an

the of would Change bring to UnitedHealth substantial to access impact. stand-alone recovery had to Group to that of to are fund to of have and emergency These bear the COVID able providers relief the resources XXXX XXXX. healthcare.gov on CMS Healthcare and in begin our its not the and drive our own. care are mitigate were underpinned distribution the back remediation we resources Fortunately, in which Resources, philosophy

providers all assisted to at funding, need, them. we Here, $X in care in billion no over cost financial providing

payment needs to We rapidly to deployed alternative not services. disruptions made help to And management of solutions resources progress, we period a ensure rest substantial some are providers move and met. we restore care mitigate of for help connectivity care, activities. and suspended providers care develop uninterrupted promptly will workflow and time, care claims We've until delivery the and

free protect immensely to and services, and who work broader I'm continue day restore tirelessly funds our health providers night system. the for grateful to for colleagues up

Let on you. interest of know me touch two to are more we items

First we is point is XXXX you overall the shared into care anticipated with year with in consistent within and heading are we that what care patterns activity. outlook last November. central The

Advantage Medicare to item seniors. the of is second value The essential

Medicare. valuable and It what all people, some benefit health a are than Medicare regarding are and provides cost Here at outcomes; with the seniors see lower higher to comprehensive for significantly Advantage: more drives we of facts more core and value, of a beneficiaries is popular traditional better taxpayers

versus believe ago come. years That's Medicare strongly will of of and for for most XX% years the and and less costs Medicare. out-of-pocket country's Medicare traditional those consumers times in challenged populations. more to reasons and savings spend choose the we why in why grow continue today one many seniors offerings nearly translates into on on average, underserved annually, several than premiums than half these Advantage more to medically XX% Advantage That $X,XXX XX

year XXXX year. last phased the is X-year the reductions of Medicare introduced to second CMS by funding significant Advantage

beginning early in last year we X-year responsible changes. thoughtful, to developed XXXX, adapt plan the of our we're at Here, to those

Our as of us we're the in putting strategy is outcomes funding began for privileged on improving experiences a We from position deliberate the into environment, us. and and strength. our consumers long-term as the last approach sustainable continues believe possible you and providing reduced much us to focus delivering well, -- the to serve expect perspective we competitive year performance multiyear serving

to to developments share, Michigan. major Texas a of in handful Among honored wins Medicaid secure UnitedHealthcare notable and business was Virginia,

better disappointed confident there. RFPs, were that states we process substantial considerations offerings well. other understand resonate a as outcome pipeline is While the and in of will we'll our to There the seeking Medicaid we're be Florida, in in and

of for momentum people have X established their consumer-centric our from sustained continued growth benefits through further individuals a commercial the million year, in last serve is evidence years. UHC's growing increase products quarter, in and of employers. This across growth. largest to the This largest UnitedHealthcare's innovative footing up first commercial segments for was customer the more

also We the patients year with coming its a many partnership Veteran for at last the of support well Affairs. We're opportunity win to achieve them. Hawaii value-based payers. season And another grateful tracking objective this in our of record selling in is to the XXX,XXX recent momentum growing renewal OptumHealth serve with in to off Department arrangements continued and of see OptumRx year's contract with

Financial company on it XX like thank and indelible retired him example I'd turn he our of Dirk over to recently McMahon, I acknowledge he service. his the I John to mentored, Rex, years John? for our more many left after leadership the partnership. set leaders Dirk to this through President has an Before Officer, mark want of than and and has Chief

John Rex

on the of many followed to opportunities 'XX. and business to Thank the grow morning, I'll activity businesses performed This momentum during and by unique and first, the items cyberattack, quarter first let Group we're quarter, finally, color the on seeing But trends, continued by most the me serve enterprise. provide are fundamental start UnitedHealth level. and encouraged to in updates across at some the Andrew. care the the you, well The we the remainder related thoughts Change Healthcare directly of

Change Healthcare the On cyberattack.

As our has be been and or will bring The care sure funding is share. full we per fully. secured impacts per distance, Andrew patient year the guiding quarter to $X.XX work throughout back noted, is care services in as to about to share. million cyber $X.XX to access providers we this estimate $X.XX the delivered focus At $XXX impact totaled make

directly key that of $XXX including some efforts, about care Let suspension down to the temporary me and restoration into direct the platform expenses activity. million break response management clearinghouse were Of million, components. to $XXX costs other due the its relating medical

For note to the or included share. costs $X.XX direct $X.XX we to at earnings, important to estimate full net direct in year, but per per are excluded costs It's these these are share. from $X earnings $X.XX billion adjusted billion

business. our relates costs by associated Change of the disruption ready earnings. all support adjusted while capabilities is affected Healthcare This affecting results service. loss components the the to to to of keep revenues these from excluded and effects are incurring ongoing not these fully to other The driven with the services, Notably, return

or depend to business the on restoration. about and At of this disruption quarter, $XXX first timing share. million $X.XX year. per million we the ultimate This, service $X.XX $X.XX for to per $XXX the estimate share distance, transaction at currently was course, this $XXX will volume the million or In impact of

for press the you tables broken release are morning. These elements in this provided out supplemental with our

outlook we updates our course, course year. and on regular Of of provide will progress throughout the the

Healthcare more. in more to and restored, restore for moment. levels year. much a we While in just And the be to detail working to are have next of services stronger these hard back returned Change to of Change share expected is I'll even all come fully Healthcare's been some objective we functionality elements performance an

Turning we is that expectations. to continue headline we Outpatient seniors of the care seeing 'XX began for first elevated the half underlying consistent care among within in patterns. these and levels planned. our which remains with activity The

when Medicare filed So our we established to benefit continue we the Advantage with comfortable June we last XXXX offerings. be outlook

respiratory our related physician incidents vaccine activity with inpatient in office care illness seasonal winter within expectations. activity Overall has related particularly and visits discussed remains The January, strong uptake, subsided. we to also higher you

about XX the in management or These the land to reinstated. quarter remaining outlook of $XXX care quarter. activities. The included medical million second first reserve suspension at of quarter. related some full our year medical not we will expense The included reflect development the the majority points impact ratio did recently earnings temporary Notably, been in impacting in favorable roughly any medical XX.X% have care million $XXX of basis

the Out of with we We'll we timing, reflected progress affect potential a cyberattack reserves. next additional of the to quarters. prudence, due million continue as claims over for claims an receipt several $XXX view the judicious to

the us November, while is takeaway important level to performance and adjusted the share attack. The at allows we growing impacts Healthcare most Change even objectives on of maintain performing disruption earnings which last established a businesses. our of business per the the are Turning they taking to

$XX.X At consumers first UnitedHealthcare, new commercial revenues to X.X in billion. our quarter. Within serving we're strong start, $X disciplined powered nearly by grew a membership, billion domestic off million of growth, the

forward encouraged are further momentum to We and upon to response heading 'XX. customer that the by our into building momentum differentiated offerings and look positive

we For our as activities. deeply anticipate, Medicare are you planning into Advantage, would 'XX

a and going We this weeks, reflect over build finalize approached will well us environment. on X-year plan, into deliberate we appropriately with positions competitive last again, benefit designs offerings As 'XX. 'XX the we which track several once next firmly funding continues year our that the cost and

Medicaid members. with quarter ended the first Our business million X.X

of Virginia, UHC the have Virginia with and highest as number solidifying customers to the in members expanding the Texas, value determinants As achieved Texas, key In strength and proposition. possible Andrew opportunity areas awarded was wins quality scoring state will consumer-centric offerings. delivery, the such noted, UHC further And In critical value the areas, benefits was and care, and we Michigan, health and of in our health demonstrate perfect equity, UHC maximum scores in in plan people serve. payments. value-based service see our particular of in Michigan service social number

$XX.X as are on in number million track served grew X patients XX% to by revenues to patients OptumHealth care increased the billion by value-based we and approach year-end. of

ability For complex number to have and connectivity health patients and OptumHealth this engaged we the last a This engaged earlier in reflects significant the improve patients outcomes quarter of patients increase the rapidly. with experiences more that their serves, through most year, the XX% year. progressively over first

XX% $XX.X existing grew expansion services. revenues within planned starts, billion, growth partnerships pharmacy to and new driven continued within by OptumRx

the quarter, Change you where OptumInsight. as of total within is million the million resides. impact is In the OptumInsight, Healthcare know, business $XXX $XXX about

adjusted under disruption business the adjusted Just effects, response which excluded earnings. clearinghouse this from think from activities, earnings. are half have which And costs, we excluded are half over direct restoration of are slightly not

revenues. For many of drives Healthcare services, impacted the Change volume transaction

the in working, readiness find revenue keeping all care team possible attack the burning the any to essentially services, brightly of resume lights alternative period is at off and the system effect promptly solutions. full clients and the be OptumInsight was one suspended. the including To helping So to keep method critical shutting right of thing, the while did finding clear, services production

Coming valuable than ever. working ready out team is recover of transaction demonstrate this Healthcare to and incident, volumes to be Change customers with more tirelessly the serve that will and is

backlog business Beyond Healthcare, to technology process revenue system OptumInsight of services. ago provide driven billion, a increased to growth Change from billion information nearly by over $XX health year $X and the partnerships

XX.X 'XX items increased provider the the the billion of reduction the measure component billion. were ago. the medical assessment, reduced The incurred, what This quarter payments our in balance in from claims prudent for the quarter were $X in accelerated is to in days. processed claims IBNR. by the care been billion sale $XX other quarter of about reflects couple change not $X.X but or 'XX receipt yet a ongoing by to acceleration. X payable reported The A increase claims payable compared fully offset by cost to cyberattack. due a providers a billion that the year The the year-end the payments have $X.X reported fourth and result component care XX.X XX.X Days and Brazil first affected note to would of

affected quarter sector operations billion, were about to in the of care the $X.X the and some due billion by providers customers to were by timing Cash extensions public impacted $X and to funding receipts. additionally flows acceleration from impacted collection

per continue us disruption range to our share year, better enterprise growth the and further remain adjusted mission the and continued a we serving the to allows this expect system even focus across business on underpins strong. impacts. of earnings health in to as strong patients as performance summarize, full drivers, which $X.XX per of move And our broadly year into to $X.XX the we $XX.XX incorporate $XX share To

it back Andrew. turn to I'll Now

Andrew Witty

you, John. Thank

care the see next need look responsiveness. a consumer out we, in others, of simplification like quality, many in we health improvements and several years, value, over As environment

trillion positioned to part While UnitedHealth on is a small system, helping comparatively very needs, we're focused strategy those of we're well meet Group's to U.S. the do $X so. and health

align Our to and value-based can focus on our incentives, working. opportunities care through offerings what partnership via ways of achieved of be notably understanding led demonstrates realignment

worthy improving all and drive to to it at care do consumers they XXXXs. to the with we commitment for of patients need stimulates our an want help where Our experience bring prices and

more care alongside We proven to and We insights our a remain the commitment to and the modern orientation to health with throughout available help system relentless at and committed partnering have widely health quickly others Optum. market making innovations make throughout responsive. our multipayer

and Our company enabling success partners outside to on succeed. our customers depends

of our our reinforces in high have challenge, to grow to and inevitable our The ability behaviors in confidence from to expect and confidence combination ability navigate strengths environmental underpins as come and you design, perform us. the this and strongly change our strategic it

questions. turn to that, operator, With we'll

Operator

first And JPMorgan. ] [Operator Lisa we'll go Gill to with Instructions] [

Unknown Analyst

Does think your I anything do on around pertains about change in that in it just I X-year how impact V-XX. your as as And side? both V-XX bid plan? the plan UnitedHealth comment well back go as XXXX want the to around of final OptumHealth quarter the to to the

Andrew Witty

as we've a the want want We at certainly times X-year this last see phased you're a to do see that reliable in make strategy puts the out, we environment. puts we sustainability. What year we really that to for example, from much that be in looked few of for growth and changes not morning, so very and long-term years. on Obviously, thanks going focused this to this finalized between anything at is Yes, repeated knee-jerk year and super thoughtfully -- response. sure a in, CMS year chases as Lisa, -- question. We kind reaction don't a said lot risk a over but growth, ensuring also us it's we're performer X margin. and

I the in-market actual As But of -- what for terms that pressure you a for 'XX of ourselves look really been little little the previously. rate, don't the it's year top at a don't positioned really gaining been we'd in this. the year. work the for already reflected think doing reality, we've it from most seen seen disappointing CMS recent last it's lined what Obviously, we final we've in over last well story. on extra get-go We're that all trend. changes just from of think year, Really, last in we've up terms medical February

our seeing in organization. QX key of members support cost really You're a So really right? reflected and that the on -- to outside the seeing in few you're features, patients strong

last medical strategy continue as focus waste. And make to costs of to and sure manage very delivered how ensuring care on as that a bid of You quality possible, avoiding take thoughtful we saw year. we effectively us course,

pleased All plays of respect. in through. quarter that that how first very played I'm has with very, this out

the and incurred the you of last I out year, pressure OptumHealth our next been laid at year quarter from the X. bodes business rate strong during the look for despite them that that's both If rest this performance well this strategy very the MA within for notice and the super on and performers UnitedHealthcare, we've think of

Operator

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

Joshua Raskin

medical you expense explain what management as that a I in the to just think that What accommodations costs talking puts you are guys providers, categorized certain about. bucket? UM Can medical care you support

what or And much received just at in your you how IBNR? or a of the inventories, see into claims claims quarter, actually actual when look then percentage you processed did normal expected of put sort did you versus quarter

Andrew Witty

quarter. we'd bit claims majority to you more terms because time absolute anticipate bit Josh, question. little would with close you kind thanks on in have receipt we may that's had have first what going of Thompson by because we into the expected. that a see of catching Listen, little you I it's submissions you of would overall, we quarter, your Brian organization gave. always as the so up Brian, I'm a of I you the UHC little feature be up of quarter, and And tricky normal estimated, in think some maybe, much. receipt the obviously by to time and you're a claims how the give overwhelming of color to obviously been of comparing corrections just could closed down terms second But you claims against a what know, the to the every received very, ask end got that very commentary actual characterize this say both to marketplace. But color part what the you on would of we was more relief give the about in in

Brian Thompson

Josh, question. it appreciate did, March I I management foregone utilization Sure. Yes, the X. we believe two are in categories. what really And we protocols call and I started those

understanding appropriateness where we we've first inpatient And got of unit of suspended adjustment. lion's those And that long share versus The assess a of for was our level care just adjustment. inpatient a the reviews is outpatient. our elements. cost history we It's of

estimate and pretty simple for. and So to adjust easy

inside for are about bit also These practices the we and lag for will this suspended. -- very practices we've to again, that you date. had inside actual as a notice and adjustment But quarter that easy time comfortable estimate. next made. place in long some between a us that were Those feel element pretty quarter. little more was in outpatient think element we second smaller those about Those The prior a authorizations out play

Andrew Witty

thanks much. into as Brian, again, processes to those just heard you days. we've few from play so in And John, confirm, last back the brought

Operator

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

Albert Rice

working comment any little you from guess from versus this. -- sounds times and in the line. of claims Maybe describing is you've year reserve out, on used take And insight you're maybe which the parts moving prior either so word that. Congratulations more, like understand get there? to of yes, ability follow holding of that or prudent on last through all out did the far how just on to happen? that I it that what at much on How things sure to own from make you think development bottom just that how the didn't prior $XXX you look a I that up you've period just is million you the of much question, is add seen really is because sort your what much going OptumHealth several to

Is And saying out? to relative variance care outpatient, call any that then anything there suggests it for like similar. MLR dynamics sounds your you basically you're are the out, inpatient, you started when year the that assumptions

Andrew Witty

to specifically. at comment as terms care we mean we think last to and So the said vaccination times, of just a kind time. we into expected. kind very what we of winter of the really mentioned dynamics, that talked year mean syndrome of I couple about I some I'm million end around I saw not the of the pattern ask rolling on a lot $XXX stand John seeing QX of from as beginning anything earlier, going in more we differentiation A.J., out really pressure

As expected, that did subside.

was would I what which -- were we anticipating. that, Beyond

that. deeper John, a really say to $XXX all within little that, of the could wouldn't out there's I go on Beyond maybe you call anything million?

John Rex

Yes. Yes.

Andrew had So comment made picking on earlier. up

what So you there see. you're didn't doing really estimating what is

the accommodation that there said, the and may So claims for in claims a in had received be in not an you to make as that quarter you for just trying that, prudent combination that patterns. receipts to to have clearly some disruption quarter acknowledge

that to some trying And anticipate that. zone in to so you're make estimation

land. somewhere in not somewhere where it's about those think zone, you the it you put and million. in you not It's it's might probably X So and as elements between, $XXX

into continue as look and with several this full so we make claims judicious got quarters, we'll should We out, actually are the that expect over to flowing. we've you probably want the visibility a of view And this, also. that sure next that

out here see left on And certain been on But flows as to want we fairly does maybe at we know there see that we a there claims have at payments XX, really it -- UHC, a careful April be bit. are out point. on going receipts because this that sit providers normal we we and care

judicious so in quarter that. of continue terms And also next very we'll be to assessing

Operator

Justin next Wolfe go Lake to with We'll Research.

Justin Lake

are an to saying Can million. benefited meaning that QX? million XX would I you First, basis up you reserves took on you that and conservative you yet $XXX expected have Because specific extra line. question follow Or of to up kind the related to you that's you're have MLR of it impacted at just be quickly around just here is around quarter? $XXX we're wanted A.J.'s where just would saying trend the that development had that is looking above in XXXX, points

we're just XX did saying was there point So basis the really, here? -- to Or are figure trying conservatism out miss? that's you that a

was -- trend, somewhat any visibility was relative then opaque. it around right? really Last on year, my question cost the And

in How until there uncertainty You was declare is through you do to rest visibility updated kind certainty some to then to you're feel hey, trend kind of we're think get seeing? the again what that hey, that, you the is kind Or second able year? do that around, we probably of not XQ in us quarter. and and have Do be this industry higher of seeing we to of the this uncertainty about told to your that turned wait QX. have

commentary if in certainly QX range would for think you helpful you year where provide. be And MLR any could MLR you up end full on lastly, the

Andrew Witty

Okay, Justin, questions. thanks for those

deeper just John asked. comments give the and well me as terms a -- and in trend, make me of go ask you back more second $XXX to and John. then just as you around a couple a bit I'm let just little going Let Brian maybe and in back million, ask a again, . And come definition cost to little to to of go

As at year trend year, some big the I look cost last versus this differences.

year, story QX led put it sort the I was of of if hindsight on think kind really shift, to way, end story us to a of and, last was of that really, that as demand. or post-COVID last of the early most year, of capacity anything I really that coming in can issue of think much COVID as in stream, So what step around that of terms was core tells actually, I that out a stream I think importantly, coming playing some on driver degree, a pent-up capacity else. an the as a

I We've more that. to one-off. stabilization. like much some see seen don't think degree, a We So anything

We be super down haven't We'd about step trend. that. a clear seen that from

We go haven't acceleration. of kind back kind sustained it but without of seen down activity we've seen again, aggressive that certainly

last this in you signals mechanisms I thing as say Optum early plays you given figure look UHC across intervening in organization, would changes, of that put a year, quite trying granularity year and we the in would to saw pattern sensing out for both terms lot low to expect, our to warning out. of in then the a of how other shift is And we've

of we've to that's with a tried and that more again, sensing actuaries in capability. our Now place paid knowledge put but tell you kind nonetheless, will standard a consistent of with on the as trend prospective And gold you. actual all claim what sharing we're lot is any

the from want pretty really give So a I perspective. as we're expected. there. you future. a sit future is Brian, the may much UHC change as not But anticipating to everything mean, we more looks bit big a obviously, today,

Brian Thompson

I et And are in John, Andrew. inpatient, it we you think Thanks, line these underlying with we're types, summarized planned you from in what heard for. cetera, reiterate what service I'll had is outpatient, Yes. what well. which seeing

reiterate I'll So that.

we Last just And the add we're level also driver, being year, certainly the that beginning This year, year last, of but that. this biggest the improved of nearing redeterminations. visibility were over of at to end COVID to that.

which got unknowns visibility, year key really view a of think better a both that we've to less little year. contributed a perhaps this two I So think ago, I to

we've last the in point our of that, out good about I'll our in in also of seeing thing those what that mix. our we seen as I feel the is, business those changed a growth profiles through all well, pace to the growth but stages how And our good the X/X, from in business Again, you're elements. feel business commercial about has Medicare as growth just and early really valuation

what year out optimistic planned about yes, the and of the how rest playing So it's had against we for.

Andrew Witty

Great. Brian. Thanks, John?

John Rex

Yes, Justin.

in is didn't that it, assessments may would took ratio quarter. We and So the how and can I into -- and view overall, we factors likelihood some so care development impacted. the And net have claims was of or being at at normative a the that we earnings impacting there a you didn't think development for claims the you receive completion there were any -- such the come in flow out course of look terms it, look medical way favorable so we so so let position indicated would that through quarter. have potential the you also so when

terms And so received. in And normalize taking any where that from course to claims all the you of you're those elements. might a be of in of really netting try prudent impact to of that off any view quarter -- those not having you the pretty out, from the just

response effects At the we as put noted be I cyber we'll question received. QX a of to that had look MCR. similar XQ, we be distance, to judicious claims at your it also similar patterns also. those in In impact continue I'd terms on in on from this ZIP A.J.'s very And question, as including -- code to

judicious impacts the receipt here. view of sure those we as we're incurred timing fully about how out with next is step make we continue our and here of in development claims a So getting we'll think couple quarters and

Operator

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

Stephen Baxter

are, I on quarter front? how reducing you costs dependence to most seeing you guess throughout think, during are stakeholders what to of had that balance -- the versus different line get revenue the commentary to despite the have expected that you Change on XXXX the I drive much have recovery year sight business of first The you guess that a I Healthcare their heard we've from smaller Do disruption quarter. maybe that the that customers than you projected no have into to seem fact do the you line? to expect? of that beyond on

Andrew Witty

much. so thanks Stephen, Yes,

to OptumInsight ask Roger to a detail who give Connor, on I'm you So going runs this. little

moment First the damage, in attack, create America to health -- off, want brought the It's pay just overwhelming particular of in take frankly, example out designed support been to many environment coming the the extraordinary want after of a this credit system I teams functionality which of speed Change for the attack. attack U.S. and the resources across UHG maximum they think. really Healthcare and I companies an which to recover the from of in the to majority, to I tech straight the the on to of help so back biggest an was

you'll the We've of that what next a could got of very -- terms maybe months. little through and customer share functionality. Roger, the And the in in few dynamics of you terms remediation bit over build well back see in

Roger Connor

the very thanks for we'll Yes, do. much question. Stephen,

key about cyberattack So areas of focus. thinking the that response two whole is we're way the

progress First system mentioned, all, restoration. good of Andrew as on

by payment, customers the the areas up to of number where and continuing we have largest at biggest to pharmacy, at look functionality, and day. that's XX% claim day improve we're you If

in to do. weeks, got products online Now the that the we've got coming We've pleased number progress. work in but another of with coming set still

is your is things this And actually their think is ICE next [ which also the can. then have bringing can question our products bringing business. We're really who, I go we to. back, focus, like back recovering of about But bringing elsewhere where get clearance outage, them to about support. the because where functionality, customers back those ] stronger adding we to

good. want But the also, and want you customers have, our what the we in do they've change, with they they time confident that. imagine, all all, They Well, first we're got, to we're -- get the functionality to Now Why? as their differentiation that back. and those to back. is ability like talking of can and their which portfolio

can So we do we're that. with ensure that to them working actually

support to this committed and of they to we They appreciate both appreciate well. a that also financial to number a It's to that. are marketplace have then but as clients they we our signal said Also, provided us them, that it.

lift, and in going Stephen, you So to up, a work, continue This that's we're XXXX. to getting why we're in We've got has those that add back more where that's work we're heavy confident. but confident baseline when that elements do. been to performance

Andrew Witty

customers in whatever response think, UnitedHealth Roger, you that. in Group, is the the through heard it there we resilience customers and an couple that, really support, thanks a who, so when what features do American fixes do this it's our who of clients. will And get at financial and we stand much. clients by whether risk, super character always America takes are providers happens, stand or high attack we of going we Roger's are which Stephen, And will will the patients. like they to puts technical important case, of by systems I And across and to this our and make our after clients look sure

backbone a that and of a to an think means lot I Healthcare. have people, lot American And to of capability running through important it's the

Operator

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

Kevin Fischbeck

visibility a into bit visibility like But a -- claims the into feel little time I that go versus of that are back. It Just from last year? like the you that percent sounds you largely would today more today. into where same guess have you think you're you want say more guys claims to you

And I price XXXX correctly. of forecasted a know improvement, that there's but there's ability to focus on the lot

what a you'll So submitting much claims time back point? interaction by to from spec think that MA you're would your how bids, you the the normal be for

due growth, XX% to long-term used didn't the hearing that was that or remarks. I reiterate EPS in I'm finally, say I but anything whether you there there. And guys to just trying hear XX% sure wasn't to to you were time was prepared that

Andrew Witty

right. All

and for stay comments going line John part question. the of just to to of I'm to paragraph question, my ask closing to substantive the comment your ask So John? for going on you I'm on second last Kevin, your

John Rex

UHC back today seeing We flowing pretty levels now. view is much we're be they activity. normal as moving here April claims That terms say XX, normalized on -- along. to to we in submission as of like and So flowing it claims expect we'd them

here lot our we plus of in we such. and So were move look just is. with all over finalize think piece forward, month that quite submissions you assists as And the next progressing that's to terms where the bid describing a that which well,

our So that in insights. feel terms good of about and visibility

Andrew Witty

Thanks and so much, so much, thanks Kevin. John,

Operator

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

Nathan Rich

the be we the what of steps for I and the look do of about you ask this company DOJ of have what on might DOJ possible kind wanted had be? the reported a be -- as for sense outcome with I'd line dialogue investigation. curious, as to what next could the time process

Andrew Witty

we the think be expect these don't so certainly past. thanks you'd to the so have will matters, and I it for Nathan, do probably in think I we much done never appropriate and Listen, today sorts comment on question. of

not it's appreciate but So we're get call, into the to going interest. in the something

Operator

Andrew [ to Mok with ] next Barclays. move We'll

Unknown Analyst

and drove Commercial end in membership risk both segment? high ASO Can what you your better each guidance. the -- understand for results us membership membership of came help above initial the

Andrew Witty

our who ask Dan? for much so E&I to the from that. Kueter, Dan to runs respond question. I'll business UHC Thanks

Daniel Kueter

our market -- question. national share growth the with for our thanks segment, growth, Certainly gained segment I encouraged and our would And accounts business. say, broad-based the individual local in

key -- the fee-based Some our our states risk X/X be and a ASO attached and business, fully products underlying to drivers growth basis innovative those to expansion of on specifically about group inside of fully business. that gains the now insured of most nationally into XX the on available were also an

growth. from significant membership. family the Our driver exchange-based were some individual a plans latency and We've seen of

now growth quarter. in That's risk-based been XXXX that We portions from final the into of first XXXX. in come expected the redeterminations significant have that would begin contributor to to emerge a into

As pleased with are a that groups we consumer the pricing question. delivering and consumers like the I'm look teams for attracting. the the that at that very like we're as finally, growth. our the serve really to -- I experience of I our those both profile . punchline, And much

Andrew Witty

that so growth I quarter, saw, that down much. delivery organization and highest service delivered the what growth of an And whole offer I'm years. comes Dan's as we've you the businesses Thanks service proud first of rates the to of And And seen one relentless many for offer. extraordinary think X member very they've modernization then many, in done. on million in really commercial for of focus UHC team the domestically

Operator

We'll go Bernstein. Wilkes Lance next with to

Lance Wilkes

OptumHealth. on question A

As growth growth you've really have at on actions systems. guys Obviously, we've Do in we're taking been looking any outlook the some you your insights there. been capacity focused OptumHealth? there, cost in for capacity

in interested hiring So trends.

'XX? and And outlook I been some impact then know of likely was and for that that you in that there have for renegotiating 'XX risk second, for the of the What's the deals? that outlook of 'XX. that

Andrew Witty

is great to Lance's great which its runs Dr. asked OptumHealth that Lance, to delivery could Amar, business of to think, about value-based the Amar to business, been question. OptumHealth, continuing of so us, one maturation for a mature I'm come to organization. I of respond to care doing me, you our sophisticated thanks respond It's for Yes, glad as OptumHealth. Desai a headlines much. maybe ask decide going job And you've I'm that.

Amar Desai

terms Thanks in the for hiring the trends. one first I'll take question, of Lance.

providers to continue arrangements. to deeper grow way, continuing work a in of with across We a more range

through the see inorganic contracted don't as employee As capacity you some constraint . We as growth physicians our organically arrangements, we us well have across both of M&A activity. a partnership there. and and and continue know, arrangements work affiliate country with to strong and also

In incredible see there, and for partner dynamics of the It's of with. question, able are to second part fact, payers. to continued a that growth driven funding to looking increase growth folks risk to being continues the partners with stable some partner be grow are your to real our payer we've multiple the benefit out across by

that taking worked on and care our looking contracts, continuously level ensuring is We of in be the for across our high-quality provide very to to we're with funding have changes membership. that at them funding terms and benefit able and the the appropriate both risk

had, very growth we're to proud of So and we'll the do continue so. we've

Operator

with Cantor Fitzgerald. to next Sarah go We'll James

Sarah James

IBNR. billion wanted understand $X a We little to bit in the better

through that factor post setback related claims the the change math change, of event, X/X claims in of claims completion GAAP $X.XX ballpark of like assumptions of if envelope for be what to change conservative like Is And that the So suggest the year, that the XX% of of would run XX% impact seasonality imply where are. the keeping UHC were? $X.XX throughout change? to assumption from remaining that the assuming from your does

Andrew Witty

much. so John? Sarah James, thanks

John Rex

Yes.

So some those I offer of right there's But that you pulled insights that terms of if some in of on with that. kind fell. where go don't know I'd can those out stats

as a of claims medical you of component, received this cost you know, is combination elements on one So so sheet wanted to payable. payable, the IBNR on IBNR the and morning, out what break medical balance we we the report

looked to transparency hoping quarter for more we're and so such. describe the you And some at you as

get as one provider we were were it was in community that IBNR we to item increase sure offsetting $X really And components in the made was providers. And that the we helping that on to out to just the in-house where the been as made claim funding soon would -- with. addition component the the the is but line of then that advances, That process, have we on the interest-free -- the speeding door -- billion the it significant. loans

kind say, talked of is -- normalized essentially as in UnitedHealthcare we you of receipts. let discussed levels today, were, As terms we that feel where you claims a

out at are prudent submitting and providers could we're look As that trouble we to troubles having there still we with know are that sit super flows claims and be there payment having we going such. how be here, -- because still

the really IBNR those constrained between appropriately we're line of mechanics couple use think And playing going to the dynamic payable. so full component, of in we spotlighted be here on how what's going -- next of the medical that and about the are kind the out very over cost of quarters. that But

Operator

We'll Gary Cowen. to next go Taylor with

Gary Taylor

inventories. that on Ks and Qs you in up John. on follow point, claims the IBNR to understanding that is wanted unprocessed Just My report includes your

billion, the going point? billion is number out? saying that Are tie this $X really at to to the $X you true when the unreported just see Q the claims comes is So we

Andrew Witty

so Thanks much, Gary. John?

John Rex

$X to billion directly, the That is it, is is that your of IBNR point. Gary. IBNR component

Operator

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

Erin Wilson Wright

think about and On capital should ability opportunistic for share more to change your priorities but the how front? repurchases, your that otherwise deployment, on we M&A didn't you be it's expectations whether or broadly,

Andrew Witty

it. John Erin, thanks on ask to I'll comment so much.

John Rex

Yes, we of those didn't here. any components Erin. update Yes,

about balanced view continue opportunities. take our very how think we in a to of terms We

Also, saw quarter in You the -- other continue and certainly, activity of we are the marketplace in opportunities terms terms we in looking had capabilities that repurchase at. dividends. from we both robust in with share of

So that all continues strong.

elements to are that those So there you'll approach capacities out nicely and those of in balance see out to the opportunities really us continue terms strongly. all with

Andrew Witty

have I we across business to And pipeline in. areas terms continue the very see Yes. M&A interesting diverse that of interest opportunity in marketplace of

of across some out years, for next that changes new also may different companies the play the opportunities funding few us suspect assess create positions. I I As their as think see you

strategy this for I this how think through we dynamic. is we how a strong good situation look have at navigate we

You're said, a performance moments of we as I gives think quarter you opportunistic arrive. confidence out just of be if but sense of it performance, in UHC. super And we about those M&A play rightly opportunity. and think in how not us first our terms as somewhat seeing real well And that OptumHealth it'd might potentially look

Operator

We'll with to go Whit Partners. Leerink Mayo next

Benjamin Mayo

I but if like disappointing hearing I'm you're modestly correctly, XXXX is manageable. you're framing notice, it sounds Just rate perhaps this you back the on think

mean be helpful. this your strategies? growth if strategy for what meaningful think into any any elaborate I year? next potentially expectations more like Just seems color more for color captive know changes, on you you Just if investing change. on broker-agent don't could broker would could then a about the And

Andrew Witty

you 'XX rest or Tim your so mean, question. on in some going good of we're who obviously, Noel, kind to not of runs give get Thanks I it Tim? expectations certainly question. the M&R But give much numbers our the to for perspective yet. business, just

Timothy Noel

for Thanks question. the

final So distribution CMS opportunities dialogue in the have do of environment of we distribution to years some continue with for notice Medicare on improve believe that. elements that, and a that on to Advantage there's to been the in several the and how

elements are the that the published recently of line Some final were our notice of directly of recommendations. some in with

had we relatively of are them not them. as conceived consistent, some And totally but

the I rebalance would early elements also a say right to of now, this some channel mix the might out. how on how of some on as rolled that key bit it's little will still comment be of some questions

a bit go-to-market we we're little 'XX. So for on impacts more more still in waiting how detail before can it get specific

Operator

Securities. Hynes next go with Ann Mizuho We'll to

Ann Hynes

would referenced patterns you more than Can that tell And several I great. would growth you're inpatient what historical be the that, specifically and guidance, categories care that rates trend assuming year-over-year for about major you on positive feared. maybe came times can actually what trend outpatient, us your you're investors And like that's versus talk line with some MA, commentary expectations. within say definitely whether assuming So your in averages? is and what growth you

Andrew Witty

there? John, would you to like start

John Rex

outlooks. components terms about outliers here that in similar trend So the call talked the components that are I we've would a while for of

senior. What big been outpatient to primarily those back go we've kind seen cardiac, categories still of particular, the in orthopedic, factors. in So have care for

a important brought you I point think though. really up

the last year. So those much in growth percentage was bigger

side the had willingness in to for of couple been constrained a had coming the an both environment that seniors, where consumers and constrained been of particular, off You're access supply years. environment

So those percentage significant. quite factors were

talk us double-digit at levels significant very of as we heard looked about year on levels those last those. You

to you percentage start look the really, because The is those that way we though, terms at would expect change. of in normalizing

those talking bit consumed, in you've course, of So the and those those you what terms percentage fact patient consumed little start levels, served, seen. number and delivered at of of kind seeing a per with levels, you out units The look units levels at really of of they're the continue those would terms of we're normalizing so we're at continuing -- look levels. in at those number about, that but

factors. that outpatient historical our areas to of It's care seniors. call be continues trend for categories the So area. versus those real that outlier we'd levels It's

historical cut remain that The levels much always had factors trend closer we've other as views traditional to our company. of a

fill. areas, look quarter, get vastly In by just first all inpatients. at, of kind expanded way, other the things you the we to And those

there physician historically indication that lot. you've the and us Also stabilizing many quarter, activity terms us that kind also care, other visit the at. talk factors outpatient So the heard for about an in normalize in in first of of a company fills looked of has

Andrew Witty

also engage obviously, medical their trend manage able Thanks, you're from Heather, you're on to you we John. there's to perspective, that -- bit in a Then And an thing. Brian, folks to come a reflect work some them the work is more little one and from little a how of actually just second, give And second, Optum. maybe Optum with cost how perspective. doing you we're in UHC a maybe then at question a bit the in terms maybe maybe on leading help Heather well a of of to maybe

first. Brian, So

Brian Thompson

Sure.

than alluded elements, some those well, lose a year-over-year. up be multiyear to, and sight for it time to provider And that as the want is the But unit of contracts don't we inflation little year-over-year. that first said we've I perhaps we're what for John planned headline plan seeing to think And renew talked We've costs. later group seen. hospital what he some is I we elevated is them for. of

The as planned increases able But in hard the in biggest Specialty to with, our pricing certainly the are create in space. outpatient. we've been behavioral see We et we've pleased see really appropriately, worked Those to We're to cetera. John explained. is line access driver that in also, those. for And Rx. more

elements year. up, sound modestly they'll as at as all these we had up we So familiar And but investor to are to all of the spoke conference ended hopefully we those you planned for. of because our

Heather? would to commentary, So that's ahead I I John's what summarize think

Heather Cianfrocco

on side. Optum consistent incredibly say, would I So the

on medical focusing just first. maybe the So

out So we those sites in UnitedHealthcare. well When OptumHealth And was you to looking health, think wraparound look armor was came say with into what that were that as outpatient those behavioral this ensure year, patterns. last physicians explained of you've investments our looking heard consistent the care I important we using -- was mean, this. when services year, us focus those I capacity our very and for as our at that on

member work about this So engagement complex into we good -- with really is with XX% year. it's And that the we've engagement That our coming done. feel John to referenced, PCP already directly is incredibly care engagement incredibly to our numbers, with whether quickly. some that important most engaged. -- affordability chronic it it of connected managed, own wraparound care them and also opportunities gets needs identifies Because PCP disease our primary identifies be management quickly, or services. it particularly that

again, particularly side, and So we medical you that's year. -- our that good we'll funding focus our what into utilization why the is go and ability remind year, reduced about this for on the that's control to environment a we as feel

brings that value to our payers. value-based what -- that's So brings incredible of proposition us care all

focus, and innovative specialty products bear. side, it PBM our bring the to seen clinical continued On that for products bringing call I'd pharmacies the and why that we've clients, trend on we and same side and pharmacy our our model those in we're is and things growth that's the solutions, a

well. the as So side growth in diversified Rx strength the performance the you're seeing and pull-through in of

Andrew Witty

much, Thanks so Heather.

not those shared every opens year. a is just trapped of most most of opportunity, most Heather know that that have I'm there, helping means people, for particularly to year-over-year kind X with homes the of system many the the country are their to in in and had just -- months that, Just one that. had very to doing significant just or is who engagement direct you X great complex, engagement that And system door the members helping those really access first the complex number which the for first support us a us in with improvement disadvantaged a in pleased of of of the step bring That's care engagement the have X touch, of these folks that out XX% folks, the rate then OptumHealth. getting of

the We point that really a an only but is quality key make also a deliver sure best how cost from effective deserve. to believe not get delivery they that view, they very of we care

to year-over-year. So see really pleased that step up

one could we we question, think question. time for Jana. have I last If that please, take

Operator

with Piper So we'll from question Sandler. Tassan go our last to Jessica

Jessica Tassan

the more Few details maybe on loan...

Andrew Witty

we Sorry, yes. question, beginning your the missed of

Jessica Tassan

the Sorry about I launch around X.X. Change in mean that. more the just maybe details of

you what receptivity little retain If about payments and the a change kind has talk payer transparent on Whether network? something or any just And the then data could post a or of updated its reconnection like long-term support breach? thoughts thesis rights decision change been? on legacy real-time change

Andrew Witty

for Thanks very much the question.

to kick Let me one off. Roger ask that

Roger Connor

for Yes, the very question. Jessica, thanks much

of have. in of First level just functional the we're of confident ability mentioned first that your X.X. all, we Change our part Again, reconnect. on I terms restoration to

reconnect And year having appropriate . payer to are it. them the conversations of we're now provider this imagine working as a an we if the with in next with of see positive can and all that is way them way. You though and and work

that's there's time, work take mentioned to little through bit going still I do, continuing we're to and As that functionality. of work but us to a

people means of continuing this not their who impacted And on products overall important this. you the got And sets think this that performance of underlying look is thousands also -- it's has change strong. Change other by work our Healthcare about when where portfolio. I've quarter in change to year. revenue are of OptumInsight to at I XX% projected recognize outside for been

for business' change actually around If you earnings the adjust that by XX%. grew

excitement of that ahead. innovation we've from we transform changed the the doing, with we we're enablement, is as to what mentioned, haven't market is risk inside agenda. that still But view. the settlement what bring either, of all and point across it The an portfolio this going real-time slowed on innovation portfolio that's to can care plus our doing value-based work OptumHealth provider work been And you

and within business we're So very in the underlying agenda of terms OptumInsight, of our innovation positive. the performance

Andrew Witty

extremely without it Change it so come Change have We're to it have happened, left that much. still able yes, challenged likely own we acquisition to for And absolutely. in Healthcare, to bring UnitedHealth an bring it think back the a and would been attack important group. Healthcare going I Change Roger, because UnitedHealth part back. was And for Group. We've Healthcare, country Change I This of thanks think Healthcare. Group the own would much care all connectivity And back before. stronger Change was interested Healthcare still and bringing in than UnitedHealth like service customer fast important absolutely the which future, of of reasons holds potential in all support settlement, the to the real-time it of are closer capabilities, terms of secondarily, the be the ought future characteristics we environment. innovation modern Group that clinical of products things capabilities those to health decision were around although a

cyber right in that together. UHG thing we why -- more reasons a resolve meant another quickly has it stand-alone validation Change would been and ever better than were have attack why this I in true the unfortunately to think situation. believe the because much UHG position do all of was created are the a imaginable was and Health The to Those

everybody, this for breadth sure around, and but that's of capabilities. Thanks, morning. of the a time bit a quarter showed questions all your of our this depth company's It's been for more one complex also

your achieve five morning. all steadfastly Change objective the on. the you. as very appreciate growth focused more to a to our company ahead. are look on we're time we're attention this XX% of years a And result. much XX% We build Thank in and to We're long-term we growth stronger, confident attack ability capable quickly our the based We're to our Healthcare as that from continuing business relentlessly strategic recovering and

Operator

does conference. your today's This thank We conclude participation. you for

UnitedHealth (UNH) 16 Apr 242024 Q1 Earnings call transcript