Core Viewpoint - Investors are currently rebalancing portfolios and strategizing for the upcoming year, with a focus on underperforming stocks, particularly UnitedHealth Group Inc, which has faced significant challenges in 2025 [1]. Group 1: Company Performance - UnitedHealth Group Inc (NYSE:UNH) is the worst performer on the Dow in 2025, primarily due to controversies following the murder of CEO Brian Thompson and a surprise earnings miss in April, leading to a lowered full-year outlook [2]. - The stock has seen a significant decline, losing more than 35% this year, with its price dropping to $324.13, marking its lowest level since April 2020 [3]. - The stock is on track to close out 2025 with only five monthly wins, indicating a prolonged period of underperformance [3]. Group 2: Market Sentiment and Volatility - Despite the underperformance, short-term options traders are leaning bullish, as indicated by a low Schaeffer's put/call open interest ratio, which ranks higher than only 4% of annual readings [5]. - The Schaeffer's Volatility Index (SVI) for UnitedHealth is at 30%, in the 19th percentile of its annual range, suggesting that near-term option traders are expecting low volatility [6]. - Historically, UnitedHealth has outperformed volatility expectations, as reflected in its Schaeffer's Volatility Scorecard (SVS) of 99 out of 100 [6].

This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. UnitedHealth has pledged to make a range of improvements in response to the first outside reviews of its business practices as the healthcare behemoth works to improve waning consumer trust. The independent analyses, completed by FTI Consulting and the Analysis Group in November and released on Friday, didn’t find a smoking gun that UnitedHealth is leveraging ...

Group 1 - UnitedHealth Group Incorporated (NYSE:UNH) is undergoing operational changes due to audits of its health services and pharmacy benefit units, focusing on increased automation and standardization [1] - CEO Stephen Hemsley announced a comprehensive examination of managed care practices and pharmacy benefits, with 23 action plans already in progress, over half of which will be finalized by the end of this year [2][3] - UnitedHealth Group will share the results of the HouseCalls visit review in fiscal Q1 2026 [3] Group 2 - UnitedHealth Group reported that Optum Rx is modernizing pharmacy reimbursement methods, partnering with three additional Pharmacy Services Administration Organizations (PSAOs) to implement cost-based contracts for over 17,000 community pharmacies [4] - The initiative aims to better support community pharmacies, with 100% of community and independent pharmacies in the Optum Rx network transitioning to the new reimbursement model [5] - UnitedHealth Group operates through various segments, including OptumRx, OptumInsight, OptumHealth, and UnitedHealthCare, providing healthcare coverage, data consultancy, and software services [5]

Group 1 - The primary goal of the "High Income DIY Portfolios" service is to provide high income with low risk and capital preservation for DIY investors [1] - The service offers seven portfolios designed for income investors, including retirees, featuring three buy-and-hold portfolios, three rotational portfolios, and a conservative NPP strategy portfolio [1] - The portfolios aim to create stable, long-term passive income with sustainable yields, including two high-income portfolios and two dividend growth investment (DGI) portfolios [1] Group 2 - The "Financially Free Investor" focuses on investing in dividend-growing stocks with a long-term horizon and employs a unique 3-basket investment approach [2] - This approach aims for 30% lower drawdowns, 6% current income, and market-beating growth over the long term [2] - The service includes a total of 10 model portfolios with varying income targets, buy and sell alerts, and live chat for portfolio management and asset allocation [2]

Summary of Healthcare Services Conference Call Industry Overview - The conference call focused on the **Healthcare Services** industry, particularly the **Managed Care** sector and its outlook for 2026, highlighting potential margin improvements and policy clarity as positive factors for growth [4][10][11]. Key Points and Arguments Managed Care - **Earnings Recovery**: Most Managed Care Organizations (MCOs) are expected to reach trough earnings in 2026, with potential upward revisions thereafter. Medicare Advantage (MA) is anticipated to drive margin upside, while skepticism remains around Medicaid and ACA Exchanges until MCOs demonstrate margin improvements [5][12]. - **Enrollment Trends**: MCOs are targeting enrollment declines to improve margins, with companies like CVS, ELV, and UNH focusing on this strategy. Conversely, HUM is positioned for membership growth [12][52]. - **Regulatory Environment**: The 2026 midterms are expected to create gridlock, reducing the likelihood of major policy changes outside of CMS rulemaking, which could stabilize the operating environment for MCOs [5][12]. Pharmaceutical Distributors - **Strong Fundamentals**: The current strength in results for pharmaceutical distributors is attributed to stable generic pricing, MSO growth, and a robust specialty pipeline. Companies like McKesson (MCK) and Cencora (COR) are favored due to their strong specialty businesses [9][16]. - **M&A Activity**: Distributors led M&A activity in 2025, with expectations for continued integration and organic investment in MSO capabilities in 2026 [25]. Labs and Healthcare Facilities - **Demand Trends**: Labs are expected to see steady demand trends with a healthy backdrop in diagnostics. Regulatory uncertainties may impact pricing and mix development, but overall operating conditions are stable [9][12]. - **Facility Performance**: Healthcare facilities are positioned to benefit from favorable utilization trends, although policy uncertainty remains a concern for future earnings growth [12][16]. Additional Insights - **Investment Picks**: Top investment picks include UnitedHealth (UNH) and CVS Health (CVS) for their cleaner stories, while Cigna (CI) is seen as attractive but with more complexities [5][14][17]. - **Margin Pressures**: Medicaid remains a challenge, with companies like ELV and UNH guiding for margin pressure in 2026. Investment income is also expected to be a headwind for managed care [5][12]. - **Market Dynamics**: The ACA Exchanges are viewed as a swing factor for MCOs, with a wide range of outcomes expected due to potential shifts in market morbidity [12][43]. Conclusion The healthcare services industry is navigating a complex landscape with potential for margin recovery and growth driven by Medicare Advantage, while facing challenges in Medicaid and ACA Exchanges. The focus on regulatory clarity and strategic M&A activity will be crucial for companies as they prepare for 2026 and beyond.

Core Viewpoint - The article discusses the 12 most widely held stocks by hedge funds in 2025, highlighting market expectations and specific company developments that may influence investment decisions. Group 1: Market Expectations - Lori Calvasina from RBC Capital Markets anticipates 2026 to be a good year for markets, despite recent drawdowns and ongoing market angst [2] - There is a notable upward revision in earnings expectations, although not as strong as previous summer figures, indicating some healthy movements in the market [2] Group 2: Hedge Fund Stock Holdings - The article lists the top 12 stocks held by hedge funds as of Q3 2025, emphasizing the importance of these stocks for potential market outperformance [6][7] - UnitedHealth Group Incorporated (NYSE:UNH) is highlighted as one of the most widely held stocks, with 140 hedge fund holders [8] - Uber Technologies, Inc. (NYSE:UBER) is also among the top stocks, with 143 hedge fund holders, and has received mixed analyst ratings recently [14] Group 3: Company Developments - UnitedHealth Group is undergoing operational changes, including increased automation and standardization, following audits of its health services and pharmacy benefit units [9][10] - The CEO of UnitedHealth Group has committed to a comprehensive examination of key policies and processes, with several action plans already completed [10][11] - Uber Technologies has seen a price target adjustment from analysts, with one maintaining a Buy rating and another reducing the target, reflecting differing views on the company's strategic positioning in the autonomous vehicle market [15][16]

Group 1 - President Trump plans to convene major health insurance companies to pressure them into lowering healthcare costs for Americans facing premium increases after the expiration of ObamaCare subsidies [1][2] - The meeting is expected to take place in the coming weeks, with Trump emphasizing the need for insurance companies to reduce their profits significantly [2][3] - The health insurance industry, represented by AHIP, stated that premiums reflect healthcare costs and that insurance companies are doing their best to protect Americans from rising medical expenses [2][3] Group 2 - Over 20 million Americans are projected to see their healthcare premiums double by 2026, which could strain middle and low-income voters already concerned about living costs [3] - The Democratic Party is focusing on the rising premiums as a key issue for voters, especially in light of the upcoming midterm elections [3] - Trump's public pressure on insurance companies may create uncertainty regarding future profit margins and rates, negatively impacting the valuation of the health insurance sector in the short term [3] Group 3 - Trump announced agreements with nine pharmaceutical companies to lower drug prices for low-income and disabled individuals, claiming it as a significant victory for patients [4] - The agreements include commitments to sell discounted drugs directly to consumers and to launch new drugs in the U.S. at prices comparable to those in overseas markets [4] - Trump expressed optimism that these measures would lead to a rapid decrease in drug prices, potentially making them the lowest among developed countries [4]

Core Insights - President Trump announced a set of drug-pricing agreements with nine major pharmaceutical companies, aiming to align U.S. medicine costs with those in Europe [1][2] - The initiative includes a new direct-to-consumer portal, TrumpRx.gov, allowing patients to purchase certain medicines directly from manufacturers [2][4] Group 1: Agreements and Participants - The agreements involve 14 out of 17 drugmakers that Trump previously urged to lower prices, including Amgen, GSK, and Merck [2][3] - Drug companies are motivated to negotiate to avoid potential regulatory measures that could impact their profits [3] Group 2: TrumpRx.gov Functionality - TrumpRx.gov will serve as a central directory for patients to access selected medicines directly from manufacturers' websites [4] - The portal is expected to be fully operational by January, following a promotional launch [4] Group 3: Pricing Details - Highlighted medicines include Amgen's Repatha at $239/month, GSK's Advair Diskus at $89/month, and Merck's Januvia at $100/month [6] - Gilead's Epclusa will be priced at $2,492/month, despite lower costs for insured patients [6] Group 4: Impact on Medicaid and Medicare - Companies committed to launching new medicines in the U.S. at prices comparable to those in other wealthy countries [8] - Medicaid programs are legally entitled to the lowest drug prices, with Bristol Myers Squibb offering Eliquis free to Medicaid [9] Group 5: Industry Response and Future Outlook - Health policy experts express skepticism about the agreements' impact on overall drug prices for most Americans [10] - The agreements do not impose mandatory price controls and leave many brand-name drug costs unchanged [15] - Ongoing discussions with additional manufacturers like AbbVie and Johnson & Johnson may lead to further agreements [14]

UnitedHealth Group has laid off dozens of remote employees in healthcare technology and services marketing from its Optum unit, who were given two weeks notice in November, sources told Health Payer Specialist. Most Read from Fast Company Fast Company has reached out to UnitedHealth for confirmation. Those employees were based in “multiple states on the East Coast and in the Midwest,” according to that report, and are among UnitedHealth’s roughly 400,000 employees across the U.S. (It is the parent compa ...

Core Viewpoint - The stock prices of major U.S. health insurance companies declined following President Trump's announcement that he would meet with insurance companies in the coming weeks to negotiate lower prices [1][2]. Group 1: Market Reaction - Major health insurance stocks, including Humana (HUM), UnitedHealthcare (UNH), Cigna (CI), CVS Health (CVS), and Elevance Health (ELV), either retraced gains or fell further after Trump's comments [1][2]. - The decline in stock prices occurred after a news event where Trump announced pricing agreements with nine pharmaceutical companies [1][2]. Group 2: Trump's Statements - Trump indicated that he would convene large, wealthy insurance companies to persuade them to lower prices [3]. - He expressed optimism that a single discussion could lead to price reductions of 50%, 60%, or even 70%, suggesting that these companies have been highly profitable [4].