UNH - Earnings call transcript Q4 2024 | UnitedHealth Group Incorporated

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Operator

Good morning, and welcome to UnitedHealth Group Fourth Quarter and Full Year 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 amounts

presented release on page Relations January 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

very of and to our murder support from my of everyone. I'd you expressing sincere for thank me condolence Thompson. friend, expressions from Brian morning, much, the thank like a good overwhelming and colleagues you by start the Jennifer, following and

Many of personally. knew you Brian

all He passion make find whether the much agency. he to to time You knew work public his devoted in dive an to meant for helping to consumer, how and health of health privileged serve. we're for or he individual all a us people better and system of experiences, caring employer would with the how solutions to improve an

technologists and costs is and families, employers, advance and others task there nurses, commitment us, that customer to many providers, Right for specialists, individuals and doctors, so lowering policymakers XXX,XXX their The drug are and pharmacists, us, this everyone. health of workers, of for work. all now, to share organization case payers, front in care determined outcomes are in continue improving that who service quality while companies health

the has address world-leading areas else. to better. the at build pace care anywhere U.S. those unique in and approaches can strengths, Among the advanced care innovation, the clinical make most we need patient-centric America health developed strengths a on foundational seen of and work not We

with come and here to people if federal the all a variety processes. system decades Through sector conditions. innovation, of policymaking why, the private option, better. Yet, over and provided health from programs, function It's state the needs seek for of complex structures to we most care have the world and

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that the it The with America resources rest care and limited, wrestles health pay is while for demand unlimited. the care care in Every world. dynamic the society faces of various ways. health as are health to available same for approaches fundamental issue

have mentioned. We the opportunities building a improve while incredible just both I to upon and care cost foundational here strengths system the from performance, perspective,

into the many first chronic in high-quality, mission and we help fewer preventable them to and The people getting this healthier with cases, Americans and, system themselves place, disease. in people lives. improve for means value-based is healthy company, of exist, why a live so find the more That everybody care keeping

compared lower to and Medicare It in to care deliver cost taxpayers Advantage, proven seniors, means to consumers like to invest is health continuing to Medicare. better fee-for-service by coordinated programs which, at providing outcomes

value tools best We're what care decide which families. enhancing It choose easier digital majority and value, is the why for to navigate. making data option themselves Advantage. of means can that and using recognize find and harnessing so is consumers, health Seniors AI, for care them they the Medicare best their

year, there, past closed. an large their we of and interaction a know gap every as streaming. We still be of lives, it is channels. health seamless as aspect This it in other the extraordinary there and saw should banking, is we to modern these intend increase use intuitive until at People's shopping, keep

easier cost and understand. coverage making to means It

one overall and standardization where eager already policy up MA with to plans, services. example materially approval Advantage to for reduce prior advanced for of times to we of authorizations are technology leaders to and certain have work for turnaround we Just and Medicare speed used use services procedures patients the number

But it. by solving for work, and also root addressing Some cause policymaker health means industry on interest system. particular of and Ultimately, we're our we improving this friction care this own, can we're care do health the the of whole doing in encouraged across costs.

in more of than or U.S. fact the countries. here that other price, than prescription costs more it system in is is single care health visit higher drive costs core because utilization, a price Fundamentally, higher. The the procedure, is

these organizations policymakers Tackling and system that all of high quality sites cost more problem Lower who will come example, for be consumers but that system in the can of care. require revenue service, to depend and on from charging threaten good there the are parts prices. for benefit Yet streams for equivalent participants together. patients, for

other high Another U.S. drugs to countries. in the example persistently agencies public cost leaving disproportionately than pay employers and more of people is American the consumers, in

at costs $XXX in GLP-X One X/XX U.S. costs in that the Europe. about look prices. Just of which drug,

those billions past role benefit savings their set a tens the annually and of including of why prices pricing Pharmacy in manufacturers, attacking in versus delivers many holding years companies alone managers several the OptumRx is which the them. drug spent down, by vital dollars GLP-Xs. have allies play the on

world But countries. the gap of in drugs. same are the multiples the the reduces the pays sharply prices That rest what other for U.S. still of even then, versus

rebate our we our Last than of with companies discounts more through PBM passed XX% the year, to negotiated drug clients.

historically options, latest. rebates customers arrangements, We're While that elected XXX% customers so small have to to by other at the XXXX those will we offer out phasing XXX% models. committed number pass-through fully a remaining of go

pass as who we all our this sale, help of more for the to do serve for make in really the continue patients country, drug in the we responsible insured employer companies is people themselves. all will offerings. already encourage fully these fully This transparent at will directly of We pricing point clients drug our to to of savings

Health simple. you every and is country not positive scale, on to should this care it, in But is to developing the people. solutions, expect those continue company to are solutions impact millions needed, what lives solutions complex, of the making a at finding work of bringing

the serve, to commitments our like even highly on investors, deliver challenging XXXX. we including our in people periods We

always if results Our bear that not it's how may have initially out a way, the even path. we find we envisioned

navigated Change the of of the were year Medicare effects some challenges X-year member rate CMS state-driven course the the year the the cyberattack. first redeterminations of over of Healthcare the we Among and Medicaid the formidable cuts,

people Our range patient outcomes and the on consumer focusing a better quality experiences, for system improving to to health offered solidly way we first in back expanding deliver while health potential all everyone. work upon the found and November make our and XXXX, within of help

by it ahead. better, or There That can know many our the responsibility and our passion. path make work invigorated health it's that we as are reengineered areas be needs so We're to. the system is to both even enhanced, scrapped reworked,

commitments excel the pillars. for outlook our in strong year of we serve on our key those as to for a with XXXX all begin and we deliver continue We growth

performance more detail. through you walk a will John little in this Now

John Rex

be my of I'll he for over build deep enormous company years And add felt Thank weeks. past the Brian deep the for will support and trusted impact gratitude this XX on years, few people you, for had forged and relationships come. outpouring the helped to Andrew. over positive

some including you This results for morning, planned what in and discuss had I'll both discuss performance 'XX, to of XXXX expectations we December. our with

this XXXX the year ranges circumstances. our set out revenues you, unforeseen the commitments ago. played amid share than To over be it a is per we earnings out over an things deliver trait anticipated, $XX.XX, adjusted well enduring of enterprise that differently serve initially to and $XXX within but we we people billion even sure, and on to outlook of of

continue for new initiatives market health opportunities, experience drive innovations strengthen made business future, portfolio better that to moving compelling historically, offerings course to initiatives most help may for mission quickly, Over our to investments we but meant system make to or work new to more and longer and an to which 'XX, all of undertook and enhance potential, consumer further no growth reconfiguring to bring the ways whether moving our core, and into improve us unlocking be the everyone future the and value. with refine the contribute to out optimize of areas, eye

We know discuss last to we that you questions of were not a month. able number have

top today, indicated through of start couple a So by mind. I'll have you are stepping

points The outlook. care first ratio medical above was one basis is original our why XXX our 'XX

of a to that some billion offer business created overcome. to to nearly to billion ago, our the we important frame disruption commitment And $X the gap get before to range of response Compared year stepped due the alone nearly 'XX we up midpoint and impact we the a in care people. over $X cyberattack. with to that's out needed of challenges the ratio on It's perspectives the

$X unanticipated impact the stability multibillion to two managing to as seniors as we examples, known benefit addition we for already So start through in possible. just billion with of as sought Medicare dollar in the about preserve impacts cuts, rate these much from

about prior so the no here. Regarding our on the we've impacting calls, surprises ratio, elements spoken 'XX care key earnings factors

impact total are comparable The magnitude first of about the each in and other. comprise XX% to

of in than of unusual First, This a as expected. marketplace is people designs the because to didn't the anticipated served. factor, in We grow of due up with Advantage 'XX. different benefit the consumer mix Medicare we ended profile one

and between being Next, mismatch Medicaid of our related cyberattack served the Then lagging the remaining rate and to there costs South status the timing were America state updates. by people the impacts. the business health

we elements took are about These in rapid more acceleration of the drug in back of The 'XX Act advantage expected line. evenly prescribing comprise certain into get include the coding as medications, as the inflation early remaining upshift elements. hospital than our Reduction high-cost split. XX% impact incorporated companies and the a two of an This outlook, Those even it aggressive to ratio intensity. are and in care work is

question. Next

Given activity in what our shared exited we a for we all the activity To in for 'XX? December we care 'XX, pricing 'XX, that, incorporates outlook saw of here's is, care the the why. we year. are the as we start experienced of adequacy in answer with commensurate even view confident yes, and The

and perspectives. Medicaid, between we break business status down the over people's health gap see the that some the I'll In year. with state of rates narrowing line course

process. outlook Our to measured including cycle, pacing important January of support X this date, a renewal Actions view. that assumes the

capturing towards by growth is evidenced is seeing. appropriately commercial, care weighted for In pricing heavily we offerings. This the are 'XX activity self-funded

continue our approach. will disciplined We

served had our we had strong retention. of and we direct previously which included Medicare, winning people offering result In seniors. results, long a for benefits of are near AEP history record back These sustainable

informed With retention we and year highly care people the the strong the of consumers, many insights needs the into we start will returning be serving. with

this for consumers, notable value a offerings, addition, uptake style, which have performance. effective more care doctors think more HMO year, and strong predictable In managed we for of provides seen our tools

a minus 'XX plus XX expect the XXX basis ratio points, year 'XX or XX.X%, full We medical above care of result. points basis

In offerings care addition by public view and the shift the to of driven sector of the earlier, discussed cuts, second a increase funding respectful impacts, continued Medicare IRA mix year factors a activity. is toward

portfolio by 'XX contributions prior year. half of XXX the over mentioned from about ratio improved cost business driven change basis the Our Roughly earlier. the points was initiatives operating

The to consumer to experiences. efforts as other efficiencies, our improve even we was operating due realize half accelerating

service of scope AI-driven costs beginning quickly. consumers' further from And these needs in realize effectively respond still continuing to advances are of representatives given initiatives. are term a opportunities more help initiatives of operating result to the well impacts Some improving and with stage we beyond early both customer to rapidly see the these our expanding and for we 'XX and impact near very the

to over the billions year resourcefulness impacts. the These upon partially unanticipated people our multiple and ago out set objectives helped actions X of of balance the and helped deliver

some starting billion to 'XX offering with businesses, about approach With for billion Optum points run Health, 'XX. $XXX that, I'll $XXX in grew our are expected where revenues each, key through to and in

in presence and care expanding its new into areas, geographies Our delivery to while business continues deepen services. existing

expect growth XXX,XXX X.X 'XX, In about 'XX. care over we patients, value-based will serve Health of million Optum

from footing, a While solid hundreds of of our ultimately a it's the benefit who position current millions small of provides patients care. fraction can value-based

care It the mission. We expression see as fullest value-based of our foundational. perhaps is

As outdated people. help Andrew noted, fee-for-service work won't the system the activities-based better system health for

than just people keep aligning the incentives, place, first helping Value-based when them care processes, sick. seeing is actions outcomes healthy and based, rather in they're

Optum to value-based delivery transition system. Health care sustainable an multipayer care a to truly is helping the integrated company, lead

integration continue help we and into home, health. to 'XX, through care with enhance As we to the access their a move area people much-needed will

primary a all lower visits, X/X than XX fewer Advantage with in-home while of within result chronic visits stronger a home patient patients our receive Medicare a visit have who saving days. care system outcomes conditions More billions. rate experience, in stays, health a health inpatient better of ER the care and visit

Rx. Optum $XXX over to be billion in and Turning Revenues grew to in 'XX. $XXX 'XX will about billion

Our again, XXX drug pharmacy plans of benefits lower in new see proof had exceeding and the ability further welcoming labor negotiate prices management sophisticators, unions to record value consumers. for XX%, employers, Optum team, retention customer clients, a while health Rx's

These highest of specialty drug services, hardest growing patients. the areas in the Optum our strongly current with all services include small. Rx's large, community infusion need clinically care, pharmacy driven and care system pharmacy reach entire serving quite offerings to pharmacies, presence and the support delivery

and were in customer will revenues and take new begin sales in to continues Insight of $XX 'XX hold, business to clearinghouse the products approach billion 'XX as billion, rebuild. $XX a of Optum backlog billion with $XX

to experience much in our The enable action And technology will a flows, more to and scale Optum guidance pillar best workflow consumer growth at market. next be rapidly customers claims the doctor's delivered will health to Insight solutions innovations payment offered help and access science's and bring life there more improve follow. through and

an $XXX 'XX approach for will billion year across Full balanced of X.X to we as both and Shifting and approached sectors. public to grow $XXX upwards billion, in million 'XX commercial additional revenues the people serve UnitedHealthcare.

of people million and employers. continue Within expect our 'XX large domestic care, some self-funded grow strongly of our in X.X more serve serves buyers sophisticated especially to commercial offerings, most we which offerings, in grew to 'XX, in the health to

these more that through our bringing fact much-needed people consumer-centric markets The to so result choosing of UnitedHealthcare is offerings. innovation are many a direct mature more

As unusual Medicare market. earlier, in impacted the 'XX UnitedHealthcare's the noted growth Advantage by was designs benefit

has always providing value, the trust focus confidence and a over and has on long Our that built factor been sustainable term. consumer stability

Medicare value to result, provide in cost seniors offerings. to of individual offerings, growth which growth needs of people still an a and we expect 'XX, the strong, more. up the XXX,XXX group outlook in ahead And remains American with years As taxpayers for half special and outdated fee-for-service nearly less them

customers, Georgia. are more people in awarded In with to and concluded. 'XX and Medicaid, proposition opportunity honored were serve a in provider in number activities is we we expansion now Most have expect we value redetermination to a UnitedHealthcare's consumers resonating recently, participating of substantial with partners, new been state proposals.

financial support we for capabilities substantial Our billion and more future, our $XX 'XX, further supported growing strong comprehensively. In people sheet. help capacities businesses strengthening to balance capital more build and in by -- nearly deployed to serve growth a are the

share through $XX repurchase. over to returned dividends and shareholders also We billion

expect approach billion will X.Xx we or cash 'XX, In $XX flow net income. operations from

to remain capital to committed as December. and deploy shareholders, outlined returning will growth to in We continue

capital deployment as employed efforts of benefits over the enterprise across and X new growth X, even years, course greatest X beyond. are Our and their scaled or and capabilities deliver the

To summarize.

you have Our capital excellence broad expect the come start the is we operational underpinned and growth shared drivers, from strong deployment last to month the us. growth reinforces by strategic objectives and to year

to Andrew. Now I'll turn it back

Andrew Witty

people you. condition resilience helping more The vital people health care. and belief the to thank than is lies there the in higher John, human organization calling that than strength fundamental no nothing the our and of this of other

system help system the and our to continue we're deserves. care add beyond, value-based on Looking to to health ability efforts our focus the health confident consumer-orientated value and build ahead XXXX to through in to America

objective, And that's committed a both remain capabilities we reflects long-term growth the also that solidly XX% and our opportunities why to we the goal to XX% that have.

And now, for operator, up questions. open we'll it

Operator

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

Albert Rice

I by us. appreciate the all words He's about missed of Brian.

the Obviously, in the fourth Just cost expectations. relative on about consensus maybe quarter, focus to trends and there's comments in MLR. to variance the

what thought. all sounds the things greater little It than we the It was you're had similar you like out cost items probably seen to are long. calling a year

view the impacted changed unusual -- -- you're like that changes in in that of those any anything still And there anything any items sounds so your trends? of on And the the intensity saw it confident in Was outlook, there those MLR results? your quarter nothing you 'XX. 'XX fourth in

Andrew Witty

to good your for in to to yes, view We our We the right. didn't I'm QX saw that growth. about totally That's really your question, to very response that of feel And believe much about in question. to how a come that a changes in going 'XX. terms last sec feel how we see ask your we priced a in the going obviously 'XX. John into huge just into mix you're view to difference Nothing much part so go challenge that good in, we question. But of 'XX. 'XX. thanks deeper of represents there really A.J., has anything we

for John love on Q. I'd to But you deeper the go

John Rex

A.J., on so a few things this.

in So very coding line quarter. specialty call, much on we we seeing, of called items terms are ran and that the into the in we in fourth with quarter saw prescribing terms out trends so had in the of what hospital that intensity the third that third quarter the

on seeing to saw something of continue. anticipated that that, those our in with we were trends. in we acceleration view outlook. we would expect prescribing levels So in Especially, the were I We're tell stabilization that. you in line 'XX trends we the those seeing and before,

that, in how we 'XX, anticipated the in of But that terms the intensity faster we Then as kind element staying back just those 'XX terms also. other that of talked, than we 'XX the at important levels quarter, and moved in third we're seeing in elements our good we the something noted feel elements. the in we that seen those of we coding levels see improvement very expected. levels have had mix, about and move as that And was we into the we that

out to couple we in the If XQ, of I'd of were say. call things things kind a

all, mostly typical by driven the seasonality, So first of move seasonality. was

XQ ago, normal a offs, similar a of terms those point we You that XQ also that. elements, to deductible in was that year see move the basis wear move sequentially saw in

I'd point things, just couple call here. of a to But your out

sequential I'd it to put points XX basis the revenue in probably call here. effect category move, the So XX I in that

So in coming that, our have group strong as in, MA performance, elements which over the there quarter. think hitting been the might year, about some was elements the course of that those in where and refunds such and

flu The in XQ. to that, move. Just elements rate say, of -- points. that points RSV XX XQ impact, revenue That's to that to typical non-run of like of the quarter, category that revenue that XX terms kind was normal a impact, impact basis the kind nonrecurring in and I'd probably some the XX I'd of, about basis was seasonal, in put XX

that think being much of the in seasonal rest the move then And of impact. zone expected of pretty

element one the revenue the you. So effects is be that probably would having some impact. -- there be Thank would call out I'd probably

Andrew Witty

A.J. for Thanks thanks so much, John. again, your And question.

please. question, Next

Operator

Josh Nephron. We'll go next with Raskin to

Joshua Raskin

like consumers? comment on question you guess, talked million. count I the that, the Health in dropped consumer on apologize about change but portfolio things the segment. missed changes did I know and and you but this, A about I Optum X I the if

rebates of in you the And is that I'm side a of some drop as if impact And noticeable on mentioned then wondering that UHC terms just MA the in related well. sort to the of margins.

Andrew Witty

so Josh, for Yes. much question. thanks your

and start to details ask a then John up few on pick to ask me that, Dr. please. Desai Let

John Rex

on strategic the the in terms count that, into impacts go so been initiatives ongoing consumer that that the of Josh, some have category so and of would here. of

in we -- So that. of have maybe just our on think that been focus -- elements where may terms deemphasizing about some we are that

urgent element of area time was that was here. category deemphasized is approaching now. an We're care in care. kind standalone So bit differently would urgent a when go we a that that important an that There

however, you serve one As those and on hours have you after a of geographic marketplace, by presence developing probably in focus start having just your better that. patients more density, can of clinics

one emphasis that out. in area we one that's So got areas have terms care, urgent diminished we of is of the and

it, some those and were narrow diminishing somewhat driven have initiatives really, of we been kind offerings we So counts that of typically part were about. talked by, of that that the call strategic

broader of on their the that where In focus terms was seeing you're of Desai XQ was, and Health to that. in headed emphasis terms kind turn the and Optum in the I'll of where margin comment of and some of impacts Dr. Amar to some

Amar Desai

around patient a Josh, operating step our we've the integrating executing post direct our plan back, as well cost and medical on so VXX, including as been lower to to year efficiencies. take management to business engagement reshape multiple on business, efforts

mix the a we had of So membership been year. a as of had legacy number quarter, took noted. changes, we We our and refining at has the contracts, which look restructuring planned some of onetime which some including actions, impact

did some clinical program quality in then we membership new as X/X. the make and well quarter STARS for onboarding for on coming as on the And investments

said, we position feel XXXX. into That very about good stepping our being

organizations, provider care strong We've again, reflecting across they of our our care the had AEP strong. also network Our delivery provide. growth very the strength differentiated retention was and

in into VXX better progression, as our also with payer have it. understanding and of of the the relationships second We year. And year have a evolved this we're contracts

is we're the our And the in And favorable 'XX, highest of impact XXXX, more at maturation risk value-based time. is again, cohorts engagement patients. a in engaged efforts As foundation patients engagement our value-based best into were among over we of this ever the for our step for us then of our XX% patient spot. and XX%

significant targets. for and for confident long-term question, around underpinned It's efficiencies, margin we're well Thanks and our So affordability operating stronger. as model Josh. overall, operating is momentum as delivering engagement our by the in Optum these Health against

Andrew Witty

the a Josh, if changes reiterating with just I really that challenging say I'll month ago you year maybe very XXXX And so lot heard that even Thanks something a may outside finish of for response, just coming in of a by the me off much. modernize the reductions the we how administration, in from we're relentless and shape also commitment -- our from and to we alongside world the continue like to terms perform, funding longer of term. around company

the just heard and not know clarity business, important and, going patients you our our real from about you and as heard what there away And have the aren't referred giving to we serve. we in strengthening we talk just and Amar shy making ensure that Optum on they chance alongside recognize were members is the of we We're future that focus really John the most some core within us possible as to choices best business gives business service necessarily what to Health, parts who supports in highest the past. to of importantly,

we touched think that's company you want And the I just on the of the the saw 'XX, be over years. seeing John And develop during next year, the how but just you're shape Amar that commentary and in really on. to on very the organization what several reflected focused, not

the If much Josh, question. question. so for thanks go your we to next

Operator

next JPMorgan. Gill go Lisa We'll with to

Lisa Gill

One, two PBM very large a to Andrew, to business? what I XXXX. your now do reform. Really you here. means things that to think at see that we'll reform There seems right point some talk be in want drumbeat about

perspective. that seems actually big there do. maybe what understand market potentially ways very a And then secondly, bring a is the viewing marketplace versus actually disconnect be to PBM can you from incremental Congress? to educating those you how educate Congress you better Because talked Are to it the this versus PBMs about what in

Andrew Witty

interest. your of much this so too because first high. comments it's not heard thanks are a in at in comments, lot not super clear prices U.S. United made of that's is topic and that years. you've of pharmaceutical us a last people's time just obviously make for the several any surprising I my those over and the Lisa, the question, And And

holds really we the its company situation to to are only has have also every chooses by the single which about a price account and, freedom happen. the think way, is once the mechanism to that, is where price across you issue year, pharmaceutical PBMs it set which really that the you As what effective system, that inflate the see really the

those there and really and down is very that, and and prices. negotiate But the to first PBM The others try try on employers, Lisa, need behalf states of people understand. that is truly thing hold account to to within that to unions, bring

The PBM ultimate cost for acts on the their the are state consumers are plans the ultimate It ones organizations. underwriting typically behalf the the behalf of such. by union, that patients, the and their payer, beneficiaries ultimately on are of employer, they're acts because who the medicine the of the those supported who

of references and hope this, how to this me a often you focus is make to in situation. works, it's we, terms That What's across sector, the on the I and facts and couple of mechanism lost that the critical alongside understand really it. important, others heard is of therefore,

off. in other America Prices to de price set in high relative the any first are too novo world,

rest inflated every the they're world. unusual Secondly, pretty to when that compare you the which of year, is

bring states. to are those negotiate benefit down, we back to those that negotiation, those are of achieved rebates. do significant, as They rebates, employers, with which the passed the to are Thirdly, choose prices unions very what and

receives where the decision, through UnitedHealthcare, those drug. population the the consumer of we manage, the to patient have the pass all employer who we we of benefits essentially where in the way over control and Now that in case that

like rebate. that the see of to same. the do benefit they others see So We'd

a the the this why is we about. rebates state That of morning, and be all policymakers in concerned overall are is system, the opportunity hear to that money is negotiate the often people we payer, at back PBM to full system, that for goes the to that there Within of also XXX% lose what the a where thread committing you pass-through union. or

that Right already give enough the want just system the us now, those through. way retain to passed argue we we that excuse pay clients unfortunately, that even that But that people because of properly. residual to not working XX% that is to is -- small

off taking today. that excuse We're table the

We are transparency. to committed full

to We system. and full the committed setting the achieve who of takes are for lowest away to the net price, others the relentlessly that cost to pass-through work in clients. would is system across like we with believe everybody excuse We the really to

see we'd benefits wants work year to work it we're of across like going that, with others to We'd that's like make with to how who see us with And the the and policymakers to anybody engage country. happen. patients this and to

so thanks Lisa, that, much With the for question.

Let me go please. to question, the next

Operator

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

Stephen Baxter

staying on policy wondering XXXX. I as Medicare to notice Advantage, the the any areas as final. perspective So potential see of you for you was from or encouraging to advanced guess, concern any anything front. advanced had progress you if on just I share early

And even these point, share? I a it that's think you of that as in the a trend taking that embedded would company seems in that right perspective in the elevated if many reflective then cost reimbursement still rates that like guess step Is direction. related XXXX, we saw is not the a

Andrew Witty

on for Stephen, to the going I'm comment Noel question. ask that, please. Tim so much thanks to

Timothy Noel

the Yes. Thanks question, for Stephen.

April. time at As point finalized you and this know, these rates in won't until are preliminary be

of that. therefore, so speculating not to probably start on super And elements productive

a much looking I relate very to host will program. new items it say to the forward on engaging also and Advantage other Medicare this administration item we of are the as

Andrew Witty

cycles, not what's right? what difficult like is we'd all been is last much, several and the hasn't to figure so that important this it's years. reflected see that few next it Tim. most trend out So suggest, you in retrospect way the And a hope over to was, we that in that as over Stephen, rational, Thanks

And behavior. improve. there's hope super 'XX. That that. we kind year is we seen this Medicaid, just When states it's will historic interesting. come. That's We've we've that saw been us, at important discontinuity And create rational you lag, clear you you simply see look will, element for offset the to if it's as rational, in surprising. not what that and some that, of the in And been really of can that

want over we to MA It's see hope a from have and that's we understanding years. and way to of last state. all around seen the appreciate a setting we that. see, in several that, underneath return We rational important, the not super the rate what that But engagement

Okay.

please? question, Next

Operator

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

Justin Lake

to I've adjustment. got follow-up quick Medicare on revenue I But ask here. question a wanted a Advantage first, this

quarter higher appears for as more adjustment this might revenue. employers maybe of like than a size annual And the pretty like given surprise. of the came it Given is come in that segment, X% the feels employer expected, the or have large, the MLR this --

you could periods us you what's How why trying this have just us And XXXX? do So do surprise. on? all Can of the to? mechanics they color understand. a to tell Maybe give more what Is been would work going here? relate it

what saw more expectation And growth. do AEP your Curious during to still see mid-single in of then both my at MA proportion of industry question from then actual you X% And expect digits? growth you on growth AEP? what terms do is come you

Andrew Witty

let I'll just two an Justin, you of thanks instead That away this get much so of sneaking it for question. one. way time. the with impressive was

you taking second. Bobby take leads Bobby wouldn't to the John, Hunter Justin's I'm and ask good first So going the our business question, part then Medicare. in to of if mind

please So ahead. go

John Rex

Justin.

in running the impact refunds revenue rate all terms element And yes, here. elements, so a these was non-run putting that MA it. of there one So are -- group and few were other certainly, customer through kind of of those we're adjustments

while and last surprise so expectation of ratio where such. In terms terms Not perhaps a terms not, refund not the those given in understanding see, set care in to be revenues out MA you develop that's been when of employers for anticipated they of a ago as better of okay, do group kind in performing year as as plans, our there's a certain or terms and though and we going performance things we've we medical the to these in we're because surprise well. of

call And we view. the a have elements, other our relative of Certainly, incorporated then in some surprise. wouldn't to them year didn't ago, I those

have would we understood in In been have of, it terms would months to something those elements. well, ago,

this. a surprise been one our that up a But there one was I the of to totaled on give XX here call view few them few, has was and it MA I that wouldn't group to they refunds them. where trying And But example. are last XX, basis of months to being points,

go to I'll Tim. then And

Andrew Witty

No, to Bob.

John Rex

Bobby, sorry.

Robert Hunter

Yes, yes. question. and Justin, thanks, John, Thanks, for the

come with much results, target of expectations, things year AEP. to with our full out growth XXXX, XX% achieve that our how we for So up there. do to we than very MA and the to played to on of pleased us are for of Very more growth XXX,XXX us aligned selling that year in communicated. terms remember we've changes track puts AEP in Really to expect it full the important

growth ensure and is this X/X Also And really worth returning we're teams for customers. we've to activities our something not new transition smooth unfamiliar a of I'm and level with. proud noting, our on readiness executed of the

offer particular, the we're dual strength to and products and itself, our highlights at a John near that offerings. some growth growth value on really to retention offering HMO diversified a the nice and geographies. across testament within great seeing really performing In Maybe balanced consumers. plan our full also few mentioned levels, to our record

we And maybe experiences have when I who folks that service the And last see value a to year. making lot back of a years, offer about and this and decisions. put seeing testament prior to proud we as that to us compared return as really they're left year clearly in coming year. in to individuals their Xx to many members this I'm those us models view really are as the lastly, UHC of

see years, factors. in rate, fluctuations and a other believe growth the still in of changes X%, growth that terms certainly you long-term can rate we of In on benefit based X% to certain continue acknowledging to

XXXX. Some in similar will was of in out that And here present dynamics play XXXX.

value 'XX line we're expect for XX% the on generally than That that we a the to ever surpass in 'XX standpoint. from to that to and over more penetration pace MA in growth confident with time. said, consumers So MA offers path

Andrew Witty

acknowledge he's last strategizing many the over couple have like. I really out Bobby, played years, to and very just how VXX the thanks through because led external so which And of changes, much. Bobby want of personally the to navigate through the

really associated with that here, And multiyear performance in and just you've right reflected talk coming that, heard the fruition. I that see we're a think to described. delighted growth always a owned cycle Bobby of to about in you've that's in the credit I'm heard think I the and playing now us ton strategy

mix XXXX And makes are completely up it's for that for and mix which improvement answer, described that And of you is heard differentiates just that elements Bobby's heard very aiming been you essentially from we've important. UnitedHealthcare just feel what super XXXX good very those all improvement, important very, we which in about.

go to the next me please. Let question,

Operator

We'll to next go Lance Bernstein. Wilkes with

Lance Wilkes

long-term is NDS comments Could beginning Great. to call. really a one things know you think, And the the the little that's at over of out know customer levels of guys there, is difficult which things, are bit about of your at. look metrics talk hanging other appreciate but I you satisfaction. measure, and I investors I

where priorities? capabilities? any for your you and you company little as are growth some of sorts algorithms a impact And it prioritize in talk of of the then economic algorithms, those dissatisfaction sources what long-term or the Can perceive bit algorithms strategies your what And be as about to just you far major measures? on have does

Andrew Witty

affordable, the health company at mission Lance, of less of complex, to trying the question. it's core about easier to just that, less thanks by means reducing all for about it the the And improve making to trying so everybody. not of make if also company, And confusing. look access, that, system the at cost it's listen, the it but you for much it and the more

recognize said I to as work lot be in a opening there's And done that still comments, in we my of regard.

a or those to confusion where how continue areas to goes long some get hard on at process about frustrated improve. to for Some that that, work like, areas for maybe are of the key obviously, in people us claims claim it to takes

I of tell deemed that they're claims, look safe are stage. which all are be And clinical X% the we whatever reason not held treatment claims than get up across less option. to get a you, other But in can for know when of before you there claims, process you ultimately because reason, for half effective or rejected to

are; which claims those sent the of all wrong they because majority overwhelming to those the are things. the held held have up were them, patient have company, didn't the they of information on right the Now up benefits, didn't right either

through all in technology more Now a dealt the industry. be standardized that could with approach across

across a everybody. the pleased to that across and very I'm engaged And organization solve say are to we sector for very, experiencing the with heightened this energy much whole

to to back for avoided or a the processing, and view, all approach, with we've more that XX% be going focus having wrong my be standardized place to That's a adoption intake that. end in of probably mechanism. to alluded a could it of claims, of And which those us key up real-time standardized percent then resubmitted area the on, all and

first company last PAs around And continue effort over sits the with very this several that. mentioned to the just in will Advantage Brian improvement. frankly the and very we're I an much close activity all one like, overall of Medicare that years of the the led and really line around steps. work to reduce That's to do

this one collaboration for emphasize all want But criticality companies, work be of really just got not to all help those we've patients. to to something looking the what company, patient, aid to also changes. to opportunities they but design just of That's with here sorts important for forward the can engage for one; for I because an catalyze on toward, and just not try administration but to

area really that is great progress we we second around consumer just The believe experience. consumer making I where of are improvement opportunity -- are

whole easy a any toward life. consumer why in with been than years you company. no And we've or engaging on the have any focused move health different several this last why your in the engagement should that's any the for over less world feel care So other system capability the reason there's

making that I we're really we're terms breakthroughs in operating. believe on And how of

and this UHC just so choosing of are visits year, this our App X/X consumers app about in That's of of of examples, us mobile the digital whole UnitedHealthcare, to by of year, our #X year. look Across look XX% year at The engagement another couple app you health January increase X/X you the Google UHC were their app remains record and up year-over-year. stores. a the just growth. a with care Apple If

about So whole is the across UHC up X/X X/X. by is the Everything app up. of

up app to It's This want They been is their want to be want registrations us talk are don't want us a use nearly make to XXX% to to year-over-year. us. phone be. access phone digitally. They call. shift. to an American extraordinary to They where Our consumers to able moving

We way work that continue through. to

every getting XX% make of what About We're able year without the less members now. phone to making call. the to needing up need and they pick talk phone to are They're our calls. members

All are fantastic of metrics. those

the go other common is Rx, interaction point healthcare consumer in point, American most big the Optum engagement across You to pharmacy.

January, clients. the You first consumers represented Optum look of enrolled new using who John, new now at XXX are They Rx. heard already you today X.X American million we from

adoption year. and That We're serve is less technology of people. those were cost bring in able privileged a We entirely X/X to on to the prior capabilities. other the modern at digital to them board than due

digital Our XX%. Optum up Rx engagement registrations themselves across are

but Optum want are to Rx. and we to continuing Optum also deliver led it. examples investing relentlessly, build what build And foremost, business service company by to insurance committed experience first not and has and business, then the are capabilities very most in understand how best, Those American those convenient all in this just been the consumers possible, of the

see and experience committed where with have That's We care Lance. this health improvements was easier than we're make agenda, the engaging you should it always to to been We're yesterday. to of continue the us going. tomorrow substantial make system

the I question. appreciate

question. Next

Operator

with Windley We'll Jefferies. David go next to

David Windley

Andrew, -- improvement I still I substantial. normal the SG&A. question course if If is you that's price. like to ignore in United on around emphasis efficiency I call feel I extract changes, for -- what My the your give you was portfolio States. underappreciated 'XX want might in improvement, the SG&A kudos

per in XXXX guidance. another step your down need You

are that Could those that the significant savings perhaps of about, sources talked of historical you're talk technology and durability savings AI, to of the of and the some sources the extracting? Both you've about the to norms. efficiency, relative of but those you that not

Andrew Witty

to give few ask or a to going I'm much. Technology so -- thanks then John overview, going insight examples Officer to David, little model. you little ambitious into and I'm a of give our Yes, you our a to Chief ask kind a

I'm of hear it you But AI, I agenda all think different the modernization from to call of to aspects. it's because not for be just it's would it going Sandeep. good technology

John, would mind But you starting off.

John Rex

of David, a digital so along ago, the the Andrew the savings, by those was commentary offering of that lines source moments adoption. few led

Group. UnitedHealth million roughly XXX So the of people almost we serve breadth across

phone if quickly. much root frustrations experience the be to to And seek we of that's digital the as the to our the those make do they cause smoother, being into get having customer experiences customer can being pick or customer when needs simpler, informed, adoption, deeper led they much insight or so that's service up faster, by any by representatives more led call, much kind more may having had,

elements accelerate. those seeing you're So just

said surface stage and with the bit we're in terms just very of here, actually the here. as what I Sandeep team, the these doing of to heading what scratching commentary, it opportunity. -- I are technology of my Look, work we're And a the little us teams kind it they're early in and feels

the So that super we ask when it's in terms durability, this in important questions where -- what stage you we the that surface would believe we'd we're and the kind you can feel about the of what could tell where opportunities we of early see scratching seeing. like the just we're the now initial be as opportunity. take we of I -- right terms doing doing

employees together excited we're everyone, have, be how who customers. that we experience as including the one smoother, consumers about things the sit our simpler about we're able going make a team, of and satisfying as with going think most So to for to and to much these we our are work

you offer maybe Sandeep, And few a could comments.

Sandeep Dadlani

thanks, and John, Sure. question. for the you, Thank David,

system on digital, AI, in and focused modernization our consumer the agenda largely tasks is menial automation in improving experiences. administrative removing and, Our general,

even call use Andrew we base of year. scaled and be of have you are last fully, XXXX, that's around calls compared hundreds the been And less By of that that will scaling received we this has to XX% same this end earlier haven't one scaling. noticed we fully. just efforts. examples mentioned, Some cases center consumer we our for the

for our getting and care, helps we focus clinical talked fully. that's quarter, Last scaled summaries that nurses health about on nurses

XXXX, health we Think facilities, and claims compelling processing the experiences, benefits As automated, of care much all helping contracts, in as more drive entire with focus helping the paperwork consumer provider in frictionless frankly, about are well. seamless, actually excited summaries documents, we experience. clinicians more and, digitizing and documentations providers

agenda. the So we're excited Thank you. about

Andrew Witty

the Sandeep, the If could question, David, please. much. on next thanks appreciate we move question. so to I

Operator

to Fidel go Stephens. We'll Scott next with

Scott Fidel

sequencing comments that of and then have Was and margins hoping in of utilization would when of help in relative the will maybe seasonality effects if that saw just in any given some unusual on MLRs you us patterns the patterns, on the be Medicaid XXXX thinking EPS to XXXX, 'XX 'XX. about about different some in we thinking may that

thinking And that MLR around guidance full -- then having of that that a a different year. sequencing you're similarly, pattern maybe you for the of bit gave

Andrew Witty

John? much. so thanks Scott,

John Rex

I'd relatively seasonality, that half, earnings so Scott, as think of in of terms seasonality progression. for balanced say half, first in second terms of

full those midpoint, year will be about you In with and XX.X%. elements, of of course, first, start, terms care that thinking care view medical the kind the a of ratio ratio at

just number I points discrete And we noted earlier, level. included above as 'XX XXX discussed, a basis So items. had of elevated the about 'XX

quarter below within the of familiar. Within and with the the to of the look that, that midpoint the trending quarterly familiar and middle year. year, the pattern the the quarter above And up we fourth -- midpoint will the pattern then first

So I of some course, that while. kind a of those have those that that as already out by Slope out think through. impacted, would about think there for little be are also aware of because a Part the well the elements D changes you're we'd of been patterns

be also. of key impacted bit Those a would slope the that that the So elements. by will be

Andrew Witty

Appreciate so Thanks John. it. much. Great,

Next question.

Operator

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

Sarah James

assumptions of out, offsets, IRA? MLR. you I'll MA help any refunds? John, Group trend on your the us by the 'XX on some sizing versus rates 'XX non-repeated of components or And like called that like bridge of the stick could impact core you to

John Rex

certainly. Sarah,

So kind of big our we'd elements serving -- call mix here, we're people serving, IRA we're public the more sector people out certainly, a that in the impacts, of plans.

course, year of then, course reductions normal And course, the that's here. element. a rate kind the CMS of second funding Of of

the about direction basis cyber We'd impacts. America here as kind of that going South and Elements XXXX. those, probably about our certainly the other be XX size in think points would

environment initiatives trend, mentioned affordability also. that of view of have appropriately we And the you. as and other as Some we care the just in there activity then step also, Thank taking out. respectful I an

Andrew Witty

Thanks last have question, one just John. for so time much, operator. We

Operator

to next go Bank We'll Gajuk America. with of Joanna

Joanna Gajuk

about something for margins can So but discussion the also of I talk the Advantage being your that up the MLR come 'XX, high didn't in maybe business? in outlook Medicare guess, 'XX, in you

And your versus can for target 'XX do the second in I margins? So you the year-over-year of business but you that year margins appreciate, margin expect how improve such, particular VXX in explain in and us was 'XX? to just

Andrew Witty

Joanna, thanks so much.

Tim ask Noel me that. to to respond Let

Timothy Noel

question. the for Joanna, Thanks,

and as As to in of remain targeted is approach year we want about choose in year, not our we because in people focus and change we planning serve margins. may forward stability we any the any of long-term 'XX thinking were other about doesn't like think future. we engage catch-up a -- to about who pricing for on us prospects our Medicare view can good -- the Advantage, really our people sequential the to we need as And that in think consistent view lot that and which

not previously. with we here, lot of it very about really consistent change a So how thought

Andrew Witty

much. question. the time have so for Right. Tim, thanks this morning. Unfortunately, thanks Joanna, so And we that's all much the

to you very are we I energy navigating effectively want both help today, for people and all robust challenges enterprise much is and UnitedHealth each team distinct a opportunities for on that better the growth discussion. a care heard for to leading thank proud with and day I a to the And your time. ahead make and for an so Thanks serve. hope privileged productive capabilities session health team Group, our to you during the that focused

Operator

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

UnitedHealth (UNH) 16 Jan 252024 Q4 Earnings call transcript