UnitedHealth slashes profit outlook on higher costs
UnitedHealth Group (UNH) revised its annual profit forecast downward on Thursday, citing sustained high demand for healthcare services that is expected to keep medical costs elevated through the rest of the year.
Shares of the company tumbled 19% in premarket trading. The forecast cut also dragged down shares of health insurers Elevance, CVS Health and Humana between 2% and 3% before the bell, News.Az reports, citing Reuters.
Higher expenses tied to patient claims in government-backed Medicare plans for older individuals and changes in enrollment to Medicaid plans have weighed on the industry for more than a year.
Costs related to the company's Medicare Advantage business were far above the planned 2025 increase and were consistent with the elevated levels in 2024, the company said.
The company now expects 2025 adjusted profit per share to be between $26 and $26.50 per share, compared with its prior forecast of $29.50 to $30 per share. Analysts were expecting a profit of $29.73 per share for 2025, according to data compiled by LSEG.
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