UnitedHealth Group releases strong second quarter earnings report
UnitedHealth Group announced total second quarter revenues of $56.1 billion for its combined groups, which include UnitedHealthcare and Optum. Second quarter revenues grew $6 billion or a strong 12.1 percent year-over-year. Said David S. Wichmann, chief executive officer,
“Today, UnitedHealth Group delivers increasing value to more people, driven by strong execution, consistently high quality, deep relationships and our distinctive combination of clinical, technology and information capabilities. As we look ahead, we will drive our growth on the strength of practical innovations that anticipate and respond to increasing consumer expectations and clear social needs.”
The United Healthcare health benefits group grew to serve 2.2 million more consumers year-over-year in the second quarter of 2018. The company stated that the increase in customers served, a higher revenue membership mix, pricing increases and resumption of the health insurance tax for 2018 drove revenue growth to an increase of $5.1 billion or 12.4 percent to $45.8 billion.
United Healthcare highlights include:
- UnitedHealthcare Employer & Individual – Increased revenue $742 million year-over-year to $13.7 billion. It also increased service to 50,000 more people through risk-based offerings in the quarter, while fee-based products decreased by 60,000 people.
- UnitedHealthcare Medicare & Retirement – Increased revenues by $2.1 billion or 12.6 percent year-over-year to $18.9 billion. The business served 45,000 more seniors in the quarter, including 30,000 in Medicare Advantage plans. Medicare Advantage grew by 450,000 or 10.4 percent year-over-year.
- UnitedHealthcare Community & State – Second quarter membership grew 15,000 people sequentially. This lead to revenue growth of $1.6 billion or 17.1 percent year-over-year, reflecting 12-month membership growth of 330,000 people and services to an increasing mix of individuals with higher clinical needs.
Optum, the health services business, generate revenue of $24.7 billion, growing by $2 billion or 9.1 percent year-over-year. Second quarter earnings from operations grew $327 million or 21.5 percent year-over-year to $1.8 billion, with double-digit percentage earnings growth rates for each business segment.
Highlights for Optum:
- OptumHealth – Served 6 million more people over the past year for a total of 92 million. This growth led to revenues of $5.9 billion, up $819 million or 16 percent year-over-year, driven by gains in care delivery and behavioral health, digital consumer engagement and health financial services.
- OptumInsight – Increased revenues 9.6 percent to $2.2 billion by, driven by growth and expansion in technology, business process and care provider advisory services.
- OptumRx – Second quarter 2018 revenues grew 7 percent year-over-year to $16.9 billion. OptumRx fulfilled 332 million adjusted scripts in second quarter 2018, growing 3.1 percent over the prior year, with favorable mix in specialty pharmacy and home delivery services.
Based on this strong first half 2018 results and the business outlook for the balance of the year, the United Health Group raised its outlook for 2018 net earnings to a range of $11.80 to $12.05 demonstrating its confidence in continued growth. You can fine more detailed financial information in the group’s Quarterly Results Report here.