UNH - Earnings call transcript Q2 2024 | UnitedHealth Group Incorporated

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Operator

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

Here is some important 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 and the page of will also Relations the reconciliation reference www.unitedhealthgroup.com. at GAAP of non-GAAP reports financial amounts. earnings amount

presented release on page Relations July accessed and Form this the Information be call is Investor dated we in of in contained the X-K XX, earnings may the morning XXXX, company's which issued website. this from our

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

Andrew Witty

Good and for joining Jennifer. you, you morning, us. thank Thank

half today we're quarter commitment revenues $XX a to billion Optum. ensuring contributions momentum. growth second by the enterprise, broad-based strong we The to results grew year continuing privileged by diversified serve. In the the second every and and durable is double-digit in entered Group with UnitedHealth and reflect first growth nearly high-quality of available of person year, from care to reported led the growth across half with the

our focus to the are related we key of and customers the the $X.XX even XXX,XXX as cyberattack. patients, to adding consumers year results affirming we of result, value a impacts Group adjusted on These As from fundamental absorbed business priorities. people in $X.XX full our earnings through sustained the disruption for outlook of per UnitedHealth come execution share

that date, for company in recognition in Group growth of when thoughtful like state, the such growth managed need value. large the health the Medicare all or employers, choose positioned services to a UnitedHealth care, benefits well also XXXX. sophisticated The services a to for Advantage buyers continue of selling the -- reflects for looking customers' pharmacy seniors, as provides they're union, U.S., plan best of offerings and most This We're the ours. season

to and marketplace. the in and fragmentation know, you trillion of care health erode UnitedHealth that Group strives up As coordination help costs U.S. care outcomes the drives reduce $X lack

and payers enabling We focus throughout ultimately among leads their better health, and consumers, and experience the incentives journey. more this sustainable for and waste and align health pharmacy, whole reduces caregivers, on us system. increases customers a coordinate aim health to We people's believe improve to redundancies value patient to and

recent the seniors provide -- dental, same of such services and Milliman proven For to Advantage. majority additional example, like taxpayers would out-of-pocket At A X% year through important services. and which in That economic lower of cost for and Medicare value lack people none by service well serves and Advantage of traditional $X,XXX otherwise limited value fee resources, is over Medicare fee-for-service consumers who a Medicare. less Medicare the the study Advantage ] the have lot covers. [ time, Medicare access per hearing, to vision than the health to of and found economic cost to Medicare Advantage means

visits million we X.X home home than visits. Last The made professionals value of more illustrate year, our further MA. medical offer seniors the

clinical follow-up a care of identified patients that in helped setting. made and resources more needs emerging health and home with such more real As million Within may gone financial than our of to security, days seniors connected food close -- XX% of a them X identified transportation direct support. as XXX,XXX a have seniors unaddressed gaps undiagnosed. help XXX,XXX in result, affordability, They with They our also XX people's in otherwise medication lives. received needs and essential that to difference one than visits,

The bottom end and is visits like patients emergency managed visit with outcomes in time Advantage Medicare patients that hospital home patients better Medicare home as fee-for-service lives other evidenced makes up receive these less spending and and conditions line, programs than by Additionally, with only room measurably possible. stable chronic our health more results and settings. Advantage this taxpayers' save programs help live money. It healthier who

sole Similarly, our people appreciate They well make for continue this comprehensive the set services XXXX. the year to momentum clients we we of and ensure the delivery drug prices. the in importance face the of lowest-cost recognize provide also that's to OptumRx driving efforts of to drugs to bodes pharmacy company's ability

and our We also new services continue people operating and improve emerging bring to practical by to and efficiency. innovation own through using products technologies new to

in example, For employees are more itself continues their offering and offering and substantially. the it why is why which marketplace, customers grow to Surest the continues to to differentiate more

Additionally, investments health in emerging legacy of are and of our technology new advancement modernization enabling technologies care. consumers

years. of up example, use of the several hundreds of For portfolio growing AI dollars make over practical made next cases of efficiencies would billions

and enable consumer care capabilities meet find enhance, improve experience, and execution. improve price needs back-office These to clinical investments provide us people's to

to next innovation expect to over X driver increasingly core technology We become X years. -- an the

turn to John and And over President it our now Rex. I'll Officer, Chief Financial

John Rex

continued opportunities, with to activity us with beyond. this you, some expanding The today providing overarching then and context you deliver work general on -- Thank positions start quarter, in the performance UnitedHealth morning of follow is continues perspectives I'll items in with leave by that on business broadly diversified I'll 'XX the Group for strong Andrew. that unique growth and I care hope updates.

Now Healthcare. to on update Change

buyers for the but normal for the claims on rely some. customers most centered Payment that care case on who care and has us providers know is health to not the we focus to back keep and Our running. are patients, slows system

be year to at Group loans those to has work totaled share, impact are not [ the in will there the than $X.XX and quarter per ] estimate no billion with provided them. payments impact $X.XX share. UnitedHealth to Cyber attack, mitigate all now impacts cost continue the per $X.XX yet. we we who full providers So help of advanced to in the more $X and

break So down couple let for further a you. of steps that me

These Of and temporary platform other activities. quarter, management care direct of restoring were response the medical in pause the some $X.XX the clearinghouse directly the per included from efforts. costs expenses total higher stemming in share incurred

For $X.XX share. year, -- that month. -- care direct support notifications costs now full increase to The later to and and estimate begin producing we $X.XX per the related per this $X.XX share mailing $X.XX primarily to the at these costs will this consumer is in financial for

direct but As excluded these net are in per adjusted included earnings a are reminder, from share. costs earnings,

of this keeping ready these to the with not the This from excluded Notably, to per combined these of capabilities business. Change The ongoing effects $X.XX disruption adjusted the other largely cost serve. was our component fully second results Healthcare impact of relates share. the affecting In loss quarter, encompasses are earnings. revenues

last year, to For to now estimated $X.XX this compared the we important are the to the continuing the is even share These Most process full and capable advance the more revenues service and business secure estimate disruption now varies. services rebuilding we per and of functionality rapidly. now $X.XX pacing at of $X.XX impacts to quarter. as modern, $X.XX restored are

return to grow to ambition to and baseline from 'XX in strongly there. Our -- performance continues to

Turning international. to

have sale. South of relationships wish last dedicated held quarter remaining last continued success. natural the built highly American sale. Brazil we with the businesses the This colleagues we Following We the for much a value our them step over operations, as years the several classified our Brazil sale is larger following and

opportunities compelling enterprise strong focus growth keep to In on record diverse such capabilities many our ours, and with a evolutions the as portfolio before a growth such enable us us.

which The a plans. this second total $X.X regulatory a South due action from Chile, noncash translation majority all foreign years. largely losses million of quarter $XXX in of accumulated About affecting in billion impacts, includes to is the of over currency stems health the and American

You'll see component a this that supplemental we in the financial morning. as tables provided

as premium action to dating premium will reflected to to The future consumer in in but issued years. industry credits relates be be configured back increase XXXX,

the a care premium As million by in result, recorded quarter, as increasing the revenue basis second was reported $XXX XX our reduction a about medical points. ratio entire to

It activities impacted the a of second America. nonrepeating about including That also suspension points South was care million care the to XX about after to makes by basis for -- quarter Turning due total of impacts, some or basis points XX management the ratio. $XXX cyberattack. medical

effects, of quarter configurations suspension the members we modestly these the not ahead. and also Medicare was within carry of and plans, mix between care which special affected have member in the our updates, mismatch marketplace. the health timing status we and in being pass. by second provider reflected One spurred third, to -- benefit the Medicaid which expect being shaped in was A ratio Advantage addressing has mismatch direct needs in the impact unusual factors. been intensity, And timing by Beyond in months is the realign believe competitive state remaining activities year -- costs, we response three the the cyberattack This dual been lingering current other by this temporary upshift it. rate coding and a our the

in upper excluding to we within November, continue the year basis at expect end. we be medical Nonetheless, cyber offered effects South albeit points and range our full the XX ratio, care of American to

only member funding For we Medicare fully Part D X-year offerings remainder expect 'XX. next, our noted, of are how updated the Medicare rates mismatch the year we and Also throughout and attuned affect at incorporating today to the inflation we Advantage reflecting into current second mix we XXXX the are to in in Reduction phased patterns will Medicaid planning assume addition this care as subside Act levels as to timing And process, appropriately seeing status. health the have the cuts. of

performance grew while $X.X UnitedHealthcare, momentum of 'XX half -- ongoing and continued billion. responded to by of see. At year by as the domestic employers of the revenues selling UHC grew season our commercial in And we distinct million offerings. this $XX is Turning the membership to businesses. consumers first billion X.X the our

'XX, of factoring patterns. Our again, the funding much recently for -- bid to in while care realities cuts took possible the as filed provide seniors and Medicare a balanced for Advantage approach current

performance balanced continue durable You can share to expect and us market to gains. transitory over prioritize

expect levels we expansions. well the renewals stabilize Medicaid, both the as second and In into our of half to head membership with and are teams we executing year

to by XX% the billion, expanded operating grew $XX and year. over last margin revenues OptumHealth

the by progressing track purposeful health our are care more in and end patients regions with on to X experiences. on rapidly and of patients We are improve to on -- our strongly and outcomes with newer deeper focus engagement year, earlier this million a approach

value, XX% offer. billion, grew differentiated experience driven clinical consumer revenues customer strong OptumRx and the response, to by over expertise $XX we

and process our billion $XX a ], in [ technology to for growth for Change see expectations. ago OptumInsight, nearly over driven by The year beyond revenue business billion line with performance we Healthcare, of the information from At strong backlog increased $X services systems. health services

few items note. additional of A

claim As affected cyberattack to in April, receipt $XXX established we -- to reflect additional we flowing more we to in first for claims highlighted levels, timing. the these have With an now quarter continue million medical the analyze trends. potential at prudently normalized reserve

submission due operations claims for some any from quarter, remaining primarily reflect The development. normal -- was American quarter. the lesser to to medical change to and Similar South not extent, quarter second the a compared in and favorable from do more the earnings providers impact to the XX.X% to to first reclassifying impacting payable last results claims return reserve held XX.X% sale. patterns Days

care Board income operations or XX%, consecutive to year double-digit the our providers. for X.Xx flows Directors billion fifth $X.X net shareholders. accelerated the from dividend in quarter funding June, In even increased were of the increases dividend by marking of with the Cash

aim cyberattack mentioned as share our health we for with activities During needs repurchase. last devoting the objective as providers right we over to in thing and care we year support shared quarter, efforts do, earlier, achieve wake prioritized Still, the devoting capital to repurchase ongoing support It the all system. strong to November. such you the was full with the of capacities resources stability with I provide the our abating, to

half. business the The year we established have confidence have $XX. pacing second the a Within our objective performance diversified to adjusted the this, of the of impacts. we in allows expect to in $X.XX we full is in year, to unanticipated absorbed $XX.XX range even that EPS it summary, businesses the us last in as $X.XX disruption balanced affirm we In

Now Andrew. I'll turn to back

Andrew Witty

thank John, you.

see diverse is we operate enterprise, As where capabilities in ]. you've the deal available is many opportunities a changes we change we happen, and [ just that it. Group investor in conference, at pursue our with meet What UnitedHealth and way the an to to is nimble when come our I well or the unforeseen, adaptable to with said custom and challenges suited us. environment come November that foreseen

first while through this a external navigated a complex disruption. significant we've before, done we business half, environment In as managing

to deliver on XX% our target. committed delivering growth our growth continue are We to objectives to and on XX% long-term

have. We'll you questions any Operator, now answer please? might

Operator

[Operator A.J. Rice UBS. Instructions] We'll go first with to

Albert Rice

about beyond the your those? Just timing you're the overall like of to items And impact much out. One on upcoding, give a how make we're us Latin well. in if this America, insurance And comments, your comment. I short year, second of you in then impacting think for it the the business, in but sure, rest it's is coding just Optum MLR expanding thinking? that's and maybe are versus -- half back beyond is sounds change, intensity thinking as thinking sense much calling Can assume on the sounds mainly those Medicaid on the quarter two you there's mismatch, term like which John's how

Andrew Witty

Yes, question. A.J., for the thanks

me get Let ask right to to it. John

John Rex

really and roughly of then items see looking And three we're that here throughout kind to about we're versus that those bring year, we of all terms thinking year when say in and they I here. of we're Yes, you at talking additional you'll mix some how the how together, it addition where member it. rest really, flow two their zone of -- elements. of also would terms in of to in were component the the items those that -- here, impact kind those equivalent

goes a period or over XX pricing months say, impacts, Medicaid on of, to of relates it kind As so.

the year. rest there's this pricing over that into of occurs So year next

elements, terms elements in of coding year. we'll underway terms addressing in up we a to well elements mismatch about continue have in those what but -- them the the course up the population and we're occurs So catching in of those throughout seeing the the Certainly, that we with we up address talked over in we're acuity shift, catching remaining addressing the period. of that are

our this member comments the at mix we year. and throughout really also our and member of really that that The the is point. kind impacted type impacts how we growth I mix the my that with design in And configuration. now left mentioned both lasts That full saw just prepared to that about benefit of the the were of have as some membership elements us we pertains with

that XXXX as but also incorporated for was bid our 'XX. approach So view element -- into we we for an our

Andrew Witty

Super Well then just said, had this John. one but reiterate obviously And bid. to and a maybe add 'XX that to point, deal hear maybe in into our thing and A.J. we John mix, it incorporate we obviously, said year, what planning with further to member opportunity of during just important you the said terms

feel So that. about good very

funding was biggest the as just this maybe just beginning incoming the of back secondly, reflect, there bit we little I you the well. the dynamic then see And that, think, the significant of pressure couple extremely MLR of are MLR. MA, year Really, the at reduction areas in of And to step can on And are a on think we fundamentally at that V-XX yes, navigating reduction margin. funding. a in

activity, I John, we're able to around that, you work going terms are pricing addressing they're off boxed just on think or as confident concerns very from Medicaid case way with coding of the we'll heard of through in we cycle that. their they're primarily be focused the in -- to

feel those So things transitory.

X-year to on like navigate sure the got feel that through business. is out I'm way about as in we we and feel and -- we've to much was is of to way thing the response we it we're first critical repeatedly our this the we really the playing And started the year feeling cycle, the funding for how us to Most good right, bigger make well year, that the importantly, we talked our you overall that. run, V-XX and long about about over good sure cut make that

Operator

Gill JPMorgan. next to Lisa go We'll with

Lisa Gill

key focus on you you're SG&A, I cost where about of Can which the durability? components better the maybe in savings, minute much expected. talk for want to came seeing a than

there. bit see that when And about AI much touched efficiencies opportunity perspective Andrew, how starting quarter? we AI? a think you And Are you little about this from an to in SG&A

Andrew Witty

Lisa, I'm bit. the little thanks a to comment so to John question. much going for ask

Let make me a couple of of comments couple upfront maybe this. of you kind specifically bit on and examples a more then little help a to

case much things much than hundreds do AI reliably, point, first say last us now your humans running the use much them. do to get I'd to wave essentially efficiently more more of those So we of more are quickly, deployments. can allowing are

to find we important, complex within of datasets. give go I'll answers to us an on. as help how So of examples that And couple navigate to and a ability begins complexity super you

think through will year business this those and also to are kind I the reimagination in of to see you we of roll process. begin next fundamental be now, same start deployed tools as of year, we end

essentially is efficiently. an to run process existing allowing one So more

change in I exciting going the that's coming, to there it's can The to lot call the process change been to and second things. OptumInsight, for integrity out payment take so, many very you'll really a of that or -- year 'XX we've of 'XX, be, think, be see and out start to actually regard. 'XX, is in going particular phase. technology And terms start the that Lisa. movement And we a over as next of processes to I'd a decades is of used to a steps of front-runner

certainly I examples. They are they're in look examples. generative say are wouldn't a plays technology-enabled certainly but I'll examples, examples. this certainly And couple technology. of around If little AI short give you all bit digitization the you a run, these

clients. this record number year brought a of we example, on OptumRx for So

growth. You've seen the

of the into We actually prior X% in platforms. who've imagine of year year, X% -- record less than the organization. did volume we spent signed been digitization, to can technology number You the deployed our the up through onboarding this efficiency due folks Rx that entirely

the of that's lives our -- OptumHealth last of part number in by million in OptumHealth. you period delegated almost risk-based way, that over zero increase with risk Let the X more increased X me We've excess headcount personnel about -- the That's X.X more take over fully organization, another in within or less XX% years. by the of -- risk businesses. lives million

increase close its to has a in by XX%. zero increased served in business So members which headcount

those a just are examples. So couple of

seeing why those That's obviously examples, that You're that you love a sustain John, Optum the and up deeper. over business in And Optum. show see go flow two leverage to to expect starting you're to something line quarters to is many, many through little continue I'd years. we

John Rex

-- it step you by But management. cost in in we very that terms what guess can -- for I'd yes, As was do. I start me of and let back potential here. quarter terms moment in strong a can early And a opportunity journey of just

customer imagine, built throughout experiences and same ability given duplicative can time, the system, begin across were of -- businesses best the accelerates some the we're consumer practice those of base. how functions As that expand efficiency and to these our our to businesses fragmentation at while, you scale, the are and broader there we And produce can experiences improve as addressing.

viewed your phases begin businesses Very It's to move what was the natural question. a seeing. quarter. what we adolescent this earliest answer as in that his That's outgrowth a comments more to strong phase. really we're to The just these offering have Andrew beyond

remain though. look quarter. quarters, expect expect term, I the strong was we consistently we this few super longer over can a to It as the wouldn't Over ahead at it level advancement. next

in We these to that more articulated, are these to getting modern as of experiences Andrew streamlined items many further. businesses evolve to going a invest look just

expect wouldn't those right investments. I make it we and So and as to level persist ambitious investments, we're to at this make anxious those

Andrew Witty

Great.

for So raising Lisa, thanks it.

management laid big organization. respond extraordinarily in you're seeing to on and of X AI, innovation, own within it's productivity, out toward announced, it's would we when moment focus cost would first digitization, V-XX tell that with And in absolutely was focus all we our that's that double that us. whether this for can march We the consumer that. an our the exciting You ways technological around X is a if -- coincides a generative greater down

think very that of All the is much going core of things forward. about aims really together we focus how

Operator

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

Joshua Raskin

Your for in if submitted to curious XXXX, if Or for were tell bids in the G&A savings? you're light MA within margins still that if be you target you you us I'd range bidding could MA that of improve XXXX?

early on what then share you well both sort as maybe any have of market those some importantly, market for more bids, growth potential And assumptions as the assumption included thoughts just your in gains?

Andrew Witty

ask to first going the Tim Noel question. of I'm address to part your

to not part, second going making everybody from a going about in next to to you're We'd out else be the where year. this any surprised, predictions early. cycle. I'm On see little defer but like Still, plays

the bids, we depends XXXX one could plays view how ] And everybody only also out. kind bid. how to play of to in takes how expectation distort the you on ultimately, think cycle, way on [ the be out out things of just completely in I not your saw of it bid growth marketplace

point, a that a Tim, I'd But to make on the love bit So just little few defer first going on you one. to comments.

Timothy Noel

Yes. for question. Thanks, Josh, the

in about to approach our as maintain margins relates range the past -- have And that. continue comfortably bid, I talked we as we're margin within MA it planning margins. consistent how the that and XXXX. it's we're in in maintain to -- the to think we've and about operating So And business plan as we we

products to specifics of about priced we've whatever we're is But comfortable think those on in outcome XXXX. I those CMS pricing to marketplace be on now. when with then early products growth bids into approach too mentioned, right a in bring the as a our the get we'll we XXXX, reviewing as posture is as for that And lot Andrew how

Operator

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

Stephen Baxter

your greater to maybe half sound draft Can starts the you second guess, bit the year? versus reliance specifically, visibility have a better. subside little a pressure rates finalized expectation or can Just to that you you in trying period out you a in actuarially rates general of playing detail over speak either about Medicaid today, what bit on of that know perhaps little I time? actually to to of the about speak a speaking understand a

Andrew Witty

Stephen, thanks. to I'm going who Medicaid to business Nelson to [ ask Chris ], leads that. Chris? respond our

Unknown Executive

Thanks Yes. much for so the question.

So a of visibility, final And 'XX. quarter, like X/X 'XX. relates into -- to as rates to And and this become committed future. remainder we change might rates rates our really the pace the are slight influence and the got rest majority current really and it we've to of there's shaping state future the a really before while to in our accurately dislocation and for bit to second early partners the continue as gap year, in work we adjustments up acuity the in in key those out with 'XX how assumptions reflecting see states the while even of through we redeterminations little from of have to expect

Andrew Witty

so thanks much. Chris,

really you I Stephen, things, grand why there time I mean, the that it at in don't would issue. small exactly but heard seen you've QX, a deviation sustained in see structural really you confident issue, the of part I margin. So and a we characterize heard It's why fence in there. kind just as this scheme of this And we're this think a is

So thanks, Krista.

Operator

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

Justin Lake

clarification and second MLR. question a Just half about then quick a

clarification. a first, So

XX.X%. MLR That this correct? it of end expectation the of Is that quarter half. the points one-timers you've the like, the the full John, any Or to guiding a sounded year? would the in would then should at in add or the one-timers MLR, high the the for and -- you're at of MLR GAAP And range core be there first of basis kind is half for the second third of year fourth XX XX.X%. And clean? seen clear, be leave further to On I

in around expectations half. in set our my core could like be much sure just then focus was is MLR versus ex XQ are the make Maybe just XX.X%. quarter, And XQ think here. how us first second there you it XX.X% It is one-timers question help about will the given correctly to sounds the

John Rex

our your I'd consistent you -- the are core year say, first, assumptions with our described way MLR around yes, expectations. full

quite how consistent. is So you describe that

towards such ], As neighborhood that likely zone. [ of a it a looking than of points it just and of so above relates in that I'd be few that, bit to the XX%, in to that kind at expect XQ though, the very tens little basis higher

it Those effects elements shouldn't they here, no, relates other to out that we've pulled continue As to material. cyber be should abate.

bit. mentioned, we any and As provider there little through coding we're we thinking pulls the But impacts talked that for of about shouldn't about. not a elements the so adjusting intensity, other kind be we're material that

Operator

Scott to Fidel next Stephens. go We'll with

Scott Fidel

XQ how the about exercise hoping full then OH And that you're expectations. MLR you as with first, maybe thinking a target you about XQ OH your talk about can that in then to for are -- getting range OptumHealth had provided. at Justin how could came just you margins. comfortable do margins similar asked and in maybe was we I relative And XQ? progressing the if into And Actually, with year margins how

And John, for the OptumHealth how would we particular, back pacing helpful I you're -- rate helpful? exit margins year, thought think it in we're sort the XXXX of of exiting might be about thinking half to be the as an about as in

Andrew Witty

particular, they feel leads I'm look, good which few me in I OptumHealth give the to we has adjusted mean, good very Desai, about your look Dr. and to needs who improve ask a the just as at -- Amar you and of of last going I'm themselves environment external much a the of you -- thanks Scott, by let question. progression for to there. comments saying, OptumHealth continued way so is in preface the the that the by Optum with to see, with And year. new OptumHealth very business deal it solution. environment. degree also part very, engagement deal platform encouraged as over with our funding think the performance I that

see decent And of of out. to Amar how bit continue ask the little he year You a playing sense you the let a me to second half of give progression. sees

Amar Desai

the for Thanks question.

said, price Medical that to about middle manage In being impact of next early effectively the we're center member management. engagement and care the better in to X more with of the driving and rate success, that as Andrew systems, and mitigating in management, So prevention John in X-year including over Proactive management productivity, is we cost workflows efficient reduction the Andrew consistency initiatives, that, cost developed affordability we're operating plan of cut. and clinical V-XX. changing as disease initiatives pleased a through it. the think the core rate which a environment. first our at to. ways experience was disciplined a total improvements impacts And alluded year we 'XX, then and chronic of years, And large cost of obviously the work, to

well We're across areas. very executing of progress seeing on these this each plan solid

all at risk we XX% and that our membership. patients increased hospitalized fact, for of we've members. also readmission above that transition engaged X/X in engaged in We're at for markets. this XX% particularly had rates who focused an coordination on reduced As of of care, Year-to-date, last has, members example, year, all been mature care, where in post-discharge highest points time by we've visits most our have

the build expect this on continue cost pace year, momentum confident are X% across X.X% and year. we operating management the in engagement, the and affordability to of for target to to through as the balance So we

Operator

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

Kevin Fischbeck

the that of me to favorable It is reserve somehow is development. clarify, that $XXX what previously you I and through that million mean to the ask wasn't in of Does at the mentioned about numbers? you guess, question. Just wanted Or end the something saying were clear still no worked kind QX?

I $X.XX Medicare understand it then And and guys your in the the guidance better change $X.XX you like like just sound answer, is trying guess obviously, the where is assumed have the of doesn't Medicaid reaffirm costs but doesn't the is because change answer. numbers to isn't outperformance answer, to sound

to allowed guidance? that So the where maintain coming has outperformance you

John Rex

This is John.

there quarter, in quarter nothing impact impacting No just terms was last in very similar going there in being material of said there. we So yes, what no development. there favorable exactly P&L was to the development on

We're terms benefits comment businesses growth, terms outperformance, OptumHealth. of some maybe number we're our seeing across the seeing. just questions seeing margin strong We're -- in of regarding very where in seeing in or progression a in growth. certainly commercial we're well, health strong of And a business,

seeing advancement. we're So

how that The the approach the from products at with stepped out tell took a some they at very overcoming to and with all and took -- talked marketplace looked 'XX they good at the V-XX about M&R the really, the there, to took. us. they were of the that impact how approach we certainly, creating those they elements disciplined the team strong overcoming but headwinds Even that into that

very on early across the company, driving that and we efficiencies said, continue that the they still and to investments, look, a Clearly, just company And will is really stage. progress the strong but significant make operating sustained. strong

look these maturity the the as we impact, we businesses X really we're of potential and commented So terms can a Andrew level just have years of as we getting some in to think we where and this that. next harness over

Andrew Witty

well, primarily John. the the whom business just mean Kevin, of change business the And which that runs Tim V-XX on and reduction, clear. Advantage obviously Medicare that of let's OptumHealth our both Thanks, focuses but Amar are also big responding runs, this that be price super funding part obviously, year what I reiterate seeing let cut is Yes. you're here, was point. me

While is cuts play the to offset itself all how reduces part designed been is corporation responding, board cost consumer our two it team those important on how UHG The manages company, our in businesses, accelerates on the across agend, across the businesses. engaged two better, we that's entire leverages technology, pricing are right? inflicted those in focused pressure

business make prospers for patients value laid and right aspect that. we're confident to the on can of confident the think we're in we our we focus to we're in said this? Why to out one seeing believe model I the that that business, the continue today. every performance and the to earlier going I why care is is said We're X you're for I the continue of going navigate super and sure best what we've that

Operator

to We'll Andrew Barclays. with go next Mok

Andrew Mok

having give the you of cyberattack? Can you color following the year? providers you're in declines with this us OptumInsight The of conversations million about sequentially. and $XXX the down drivers backlog expect was Do the on nature further that backlog

Andrew Witty

Andrew, for that. thanks much so

he's -- ask me Let to maybe flavor me bit and ask seeing. address pretty that. give little a more let straightforward. answer But It's on Rodger to you what that

Rodger Lawson

question. for very thanks Andrew, Yes, much the

performance from whole important in year in What in impact of within an on innovation measure what system change the next fundamentally, cyber the new with terms doing an what event clients that. is Just our going into of the in is doesn't there been not terms certainly backlog, confident are events and some and we're impact health minimal. But overall doing space. terms bringing in we're of from very the absolutely include, we obviously, has it obviously,

that's and bring and innovation, momentum. and When again, system. has in, looking to brought back trying business acceleration. marketplace. volume it's They're the exciting focus, that and access the you recovery. in to brought about for on seeing that overall system, also really we're secure to customers. transformed or a back. really back up our that's back actually is all that into clients And that volume momentum our security event new access seeing system that this We've not we've only because bring going to resonating not very seeing look at not We're the And We're ramping current maybe bringing

confident that to year performance why our of XXXX. we're getting performance of this add OptumInsight XX% is to of in underlying planned. was business You Again, overall That's our the change in strength the back business. only terms

Operator

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

Nathan Rich

provider you that back go saw to called year? for And activity to for and taking change? that this out to asked accounted and wanted what next this you're quarter you address maybe pressure is bids change I the actions something what in the in coding of kind

impact just change And on the ask clarification very could quick a I then if on EPS.

You Does that is mean would the talked about to year? in the return this to baseline recover you expect $X.XX performance of XXXX. to earnings it $X.XX in

Andrew Witty

first? the go Brian, much Thanks if Okay. to so for like you'd Nathan. question,

Brian Thompson

waivers a that utilization back cyber reason thereafter. The of we induced we level and We believe patterns. our believe the saw observation mix disruption. the April protocols of we higher we that distinct went level actually coding management on turning is XX care saw care to answer on pretty that really versus to our provider that after inpatient during on I'll was we that upshift did by first Sure. part largely level in of

why we see So that. that's

of bid. activity plan aware for our as Certainly that we in XXXX

our through we So impacts an what year. to tied really no that. during these that our reinforced anomaly waiver. the of concerns as And respect with to remainder pace and utilization it's will Feel management protocols dampen have believe we like we the saw

John Rex

mentioned get regarding as performance And and Yes. yes, change, Rodger in -- to our comments in business is you as mentioned, our that we baseline to XXXX. for back expectations ambition

the these what expected disruption here. we expectations business this being happening. quarter, clearly, impact And of baseline have of prior So increased we any would to this the

actually of bring we but a back, those those little that ahead. look revenues bring more to our in, as pacing time there's ambition is the back, we taking sometimes as So coming bit

Andrew Witty

just interruption it of in Brian. at the Thanks, on through were mean, their a was little would people think back optimistic come which piece. the business we flow I system at this mean, honesty, I putting again, thought we pace once all in John, hindsight reconnected. I terms in

last new looked at I as and as particular, that clients, come well we pace at momentum as think as clients are good weeks, look now. the about feel returning where in we several we've in

months think probably So optimistic I X little a over ago.

this path feel rest platform plays And out. that this we're I now, And is the going we've the we've I a like rebuilt to good year, clear in of think people how now, well. have and I extremely position. we think the serve got a

Operator

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

Erin Wilson Wright

are earlier on recent So of specialty how in offsets, of I PBM of near-term of the level OptumRx well drivers to how should the across we kind on should OptumRx? expectations, or think that as relative out ask drivers it's think pharmacy, terms on your therapeutic whether about to those topic as kind how we business GLP-X playing the about biosimilars with category, those of wanted industry potential and attention

Andrew Witty

so thanks the Erin, question. much for

Let mind, a Heather who me us ask to Heather? Optum of that, on if couple make you for comments runs don't

Heather Cianfrocco

the Sure. also side, PBM making we've the quarter highlight investments would performance. on I in Basically, been the Maybe I that. just on We've for about but few strong just can a talked you side. for in a pharmacy the couple both think see things of OptumRx years

them. with that client and of PBM in in respect retention well. our sign the side, of sort you've strong as to with continuing within clients -- same and take of a growth as volume seen volume there perform clients existing to We just existing

before, I privilege business. think on We our PBM the clients. I've the the highlight side the modular the this thing PBM of I'd effect at is, said serve of

year best last interest of their X serve. services and the in of we drive in differentiating and this and take market or them year, for health new and we of to is the the are medications health products differentiating that with really So offer leading, of that lot our X what brought products not that products services And programs, our their services. just we advantage plans need, benefit, that market are seeing but growth a the in drive are And we and that affordability this marketplace we're the administer we've seeing they plans, members. growth in employers

you're seeing I So up. that think show

The of seeing timing example, chain the and brought you're Andrew the efficiency. show supply you're in up business, an -- some seeing of of other cost thing is efficiency one the the up

of affordability out specialty, business, those holistic and it's continues conditions. diversification to behavioral the Remember, at the It's call behavioral directed health we've a On a that side business, health general. co-located. specifically very and I'd ensure it's integrated pharmacies the mentioned and to grow to mental expand. access the differentiated members got the with And care services which health business in you of and individuals

non-PBM services infusion our drive from but home, and that frontier in our really PBM specialty seeing that then for need And clients, also we're those continued clients. medications our

growth. where seeing diversified so And that really that's we're

in performance that continued in seeing consistent So that show through just the business up you're quarter.

Operator

with Lance to Bernstein. next go We'll Wilkes

Lance Wilkes

could it rates. given likewise, as bit improved And have little global you seen also, Day, what you has the pricing like a continued of OptumHealth, should retrenchment seemed 'XX, or whether if far you starting you we in was to to may like for needs some expecting I be rates business. as given? global global to cap And higher as exclude talk XXXX? been For look or cap be about kind things are cap from pricing MA make there? Investor what a improvement of And that at there up in of was wondering that retracing out

Andrew Witty

the sense cheeky on the We're but give please going general how call a And love last the to that. thanks little you 'XX. some at that to the give together going kind ditch predict seeing ask Amar. numbers to you -- effort. for a more of of Amar done from to attempt we're end question. for And well Lance, bit defer of go I'm ahead,

Amar Desai

XXXX. increased Look, seen capitated funding, go for our adept Lance. We're path strong the within operating XXX partners very dynamic into arrangements. well as been around across environment, have partner for an from adding the enduring position level productive the value-based confident In have partners. in particular, market question, to in payers that's we design, looking plan very discussions as adding fact, planning, benefit XXXX. Thanks we over and for at pretty we've benefit we're relationships geographies outreach fully the continue in a down And in as plan

that core star drive diagnosis. to measures and clinical course, to think as quality providers are strong the ability we those achievement quality, that care of our of within our and Foundational of strong documentation arrangements the and outcomes, improvements in is and, relationships community, in about

which that's previously. engagement, our We for are network focus focus is mentioned area aligned geographies of in course, important strength and, also on that partners clinical I of an seeing the plan continued

that for momentum take X we great the of and the pace you plan next together, as us gives model changes when drive value across grow. those years So and confidence we through our as risk areas, partners

Andrew Witty

health special probably that course has very thank team in Amar, couple of do And how the as the pleased colleagues of think of much. answers that behalf and a of it's way progresses. professionals of call. very very, care to with the able who patients what I those special experience terms Amar great running the of on very, very for given the leads that and work very work business. you provide can sense you business Amar from able I'm people continuation over a you it's in business

you thank end the the I'd for to morning. of all towards questions Coming like call, your this

and as As adapt you've changing to a and our who the as the on look discipline people heard, this of testament hard ability [ your time focus restless effectively. We work environments serve care spirit consumers work you. efficiently our of Group and Thank appreciate morning. providers, execution, ahead to our ] customers every UnitedHealth confidence and gives we fundamental us to day to patients, and great

Operator

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

UnitedHealth (UNH) 16 Jul 242024 Q2 Earnings call transcript