UnitedHealth’s Medicare Growth Helps Weather Ongoing Pandemic
UnitedHealth mentioned web revenue elevated to $4.19 billion in comparison with $2.35 billion within the fourth … [+]
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UnitedHealth Group’s income eclipsed $4 billion within the fourth quarter of final yr due to a robust efficiency within the firm’s medical health insurance enterprise led by Medicare development.
UnitedHealth mentioned web revenue elevated to $4.19 billion in comparison with $2.35 billion within the fourth quarter of 2020 because the healthcare large’s various portfolio of medical health insurance plans and its Optum medical care companies enterprise overcome the continuing prices from treating and testing sufferers with Covid-19. Revenues rose 12% to 73.7 billion within the quarter in comparison with $65.5 billion a year-ago.
“Whole individuals served by UnitedHealthcare grew by 2.2 million in 2021, led by continued robust development in Medicare Benefit and twin particular wants plans and growth within the broader Medicaid market,” the company said in its earnings report for the fourth quarter and full yr 2021, which was launched Wednesday. “Together with Twin Particular Wants Plans, Medicare Benefit membership grew to serve greater than 900,000 extra individuals in 2021 with robust positive aspects in each particular person and group choices.”
The extra well being plan enrollees helped the UnitedHealthcare medical health insurance enterprise revenues develop 12% to $56.4 billion. “We enter ’22 having generated robust shopper development in Medicare Benefit and noticed additional progress in Medicaid and rising momentum in our industrial enterprise,” UnitedHealth Group chief govt officer Andrew Witty mentioned on a name with Wall Road analysts to debate firm’s earnings.
Medicare Benefit plans contract with the federal authorities to offer further advantages and companies to seniors, akin to illness administration and nurse assist hotlines with some additionally providing imaginative and prescient, dental care and wellness packages.
UnitedHealth’s efficiency in Medicare Benefit is essential given the extraordinary competitors with established rivals together with Humana, Cigna, Anthem and CVS Well being’s Aetna increasing into new markets whereas a number of smaller well being insurers and startups have entered the enterprise lately as effectively.
UnitedHealth’s Optum enterprise additionally carried out effectively with income development of 14% to greater than $41 billion within the fourth quarter.
Witty mentioned the well being insurer and supplier of medical care are already engaged on methods to bundle well being advantages and companies to promote to employers in addition to authorities purchasers.
“Robust collaboration between Optum and UnitedHealthcare and with our many exterior companions helped us develop in serving each industrial and authorities markets, unlock new innovation, introduce built-in services and products to {the marketplace} and considerably enhance the variety of individuals benefiting from value-based fashions of care,” Witty advised analysts.
