UnitedHealth reports $1.7 billion earnings leap
Strong, well-diversified business performance contributed to growth across insurer UnitedHealth Group (UNH) in the first quarter 2021, even as the Company continued to support consumers, customers and the broader health system in the pandemic response
“The unique combined capabilities of Optum and UnitedHealthcare and the unwavering commitment of our people continue to help advance the way care is delivered, improving results for those we serve and shareholders,” said Andrew Witty, CEO of UnitedHealth Group.
UnitedHealth saw revenues of US$70.2 billion, an increase of nine per cent year on year. Meanwhile, earnings from operations grew 34.9 per cent to $6.7 billion for the same period, compared to $5.0 billion one year ago.
Increasing full year net earnings
Based upon initial 2021 business performance trends, the company increased its full year net earnings outlook from $17.15 to $17.65 per share and adjusted earnings from $18.10 to $18.60 per share. This outlook continues to include approximately $1.80 per share in potential net unfavourable impact to accommodate continuing Covid-19 effects, such as testing and treatment costs; the residual impact of people having deferred care in 2020; and unemployment and other economy-driven factors.
Covid-19 treatment and testing during the quarter was higher than expected, paired with higher elective care deferral patterns. UnitedHealth Group is focused on encouraging and helping people to obtain the care they need, including vaccinations, and expects a continued rise in provision of care as the year progresses. The Company has provided support to ensure continued stability of the health system in response to the pandemic.
At the start of the year, UnitedHealth Group bought Change Healthcare – a move that will enhance payer and provider operations through cost management and improved customer interface platforms.