Key Takeaways UnitedHealth Group Incorporated (UNH) was recently dropped from several Russell growth-style indices including the Russell Top 200 Growth, Russell 1000 Growth, and Russell 3000 Growth, effective June 30, 2025, according to Simply Wall St. The decision reflects both a sharp decline in UNH's stock price and a shift away from traditional growth metrics. Earlier, Mizuho had warned that UnitedHealth's surging volatility and deep market value erosion might even jeopardize its place in the Dow Jones ...

Blue chip stocks possess several important attributes. The businesses behind the stocks are large and financially strong and usually leaders in their markets. They also have a reputation for dependability. The company suspended its full-year 2025 guidance, mainly because of higher-than-anticipated Medicare Advantage costs, and its former CEO Andrew Witty unexpectedly stepped down. The Wall Street Journal reported that the U.S. Department of Justice has launched a criminal investigation into UnitedHealth Gro ...

If you're seeking dividend income, bravo -- because dividends are hard to beat. Healthy and growing dividend-paying stocks will keep sending you cash, no matter whether the economy is booming or slumping. And that cash is handy not only for retirees. Younger investors can use it to just buy more shares of stock. One dividend payer to consider is UnitedHealth Group (UNH -0.64%), with a 2.8% dividend yield. Imagine you're seeking $1,000 in annual income from UnitedHealth stock. How many shares must you buy?We ...

Key Takeaways UNH stock is down 40.4% YTD, underperforming industry peers and the broader market. Mounting headwinds include rising costs, Medicare scrutiny and a CEO change amid a criminal investigation. Despite solid cash flow, UNH faces continued earnings downgrades and reputational damages.UnitedHealth Group Incorporated (UNH) shares have tumbled 25.4% in the past month alone, bringing their year-to-date loss to 40.4%. That’s well below the performance of both the broader industry (-29.2%) and the S&P ...

In this articleUNHFlags fly at half staff outside the United Healthcare corporate headquarters in Minnetonka, Minnesota, Dec. 4, 2024.Stephen Maturen | Getty Images News | Getty ImagesIt took six months, countless hours on hold and intervention from state regulators before Sue Cover says she finally resolved an over $1,000 billing dispute with UnitedHealthcare in 2023.Cover, 46, said she was overbilled for emergency room visits for her and her son, along with a standard ultrasound. While Cover said her fami ...

Few stocks have been as resilient as UnitedHealth Group (UNH 8.14%). The company operates the largest health insurance business in the U.S. It runs the second biggest pharmacy benefits manager (PBM). And UnitedHealth Group has a fast-growing healthcare technology and services unit with Optum. However, UnitedHealthGroup just hit a five-year low. Shares of the healthcare giant have plunged more than 50% below the peak set in late 2024. Here are five things investors need to know. 1. Pulling financial guidance ...

Over the past year, America's typically predictable health insurance industry has been exciting in ways that investors hardly appreciate. In a nutshell, healthcare expenses have been outpacing the monthly premiums that insurers collect.Rising utilization rates have affected the entire industry, but one company has been particularly bad at anticipating the trend. On May 13, UnitedHealth Group (UNH -11.14%) suspended its 2025 outlook and announced the immediate departure of CEO Andrew Witty. What happened to ...

Financial Data and Key Metrics Changes - The company revised its adjusted earnings per share outlook for 2025 to $26 to $26.50, reflecting performance challenges primarily in its Medicare businesses [7][29] - The consolidated revenue outlook remains at $450 billion to $455 billion, with expectations for UnitedHealthcare and Optum Rx revenues to exceed initial views, offsetting a reduced outlook for Optum Health [30][31] - The full year medical care ratio is now expected to be 87.5% plus or minus 50 basis points, indicating higher utilization across senior populations [31] Business Line Data and Key Metrics Changes - UnitedHealthcare's Medicare Advantage business is projected to serve an additional 800,000 people in 2025, while Optum Health aims to add 650,000 net new patients to value-based care arrangements [16][43] - Optum Rx revenues grew by 14%, exceeding $35 billion for the quarter, with script growth of 3% driven by customer retention and new customer wins [44] Market Data and Key Metrics Changes - The company noted a significant increase in care activity in its Medicare Advantage business, with first quarter indications suggesting care activity increased at twice the rate anticipated [10][29] - The company experienced a sharp increase in elective care activity, particularly in the group Medicare Advantage segment, attributed to higher member premiums driven by Medicare funding cuts [36][66] Company Strategy and Development Direction - The company is focusing on improving engagement with complex patients and enhancing clinical workflows to transition effectively to the new CMS risk model [15][39] - The company continues to innovate in its service offerings, such as the HouseCalls program, which provides in-home clinical visits to seniors [21][22] - The company emphasizes the importance of transparency and affordability in healthcare, aiming to reduce costs for consumers while maintaining high-quality care [28][132] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with current performance but remains committed to improving results throughout 2025 and into 2026, targeting long-term earnings per share growth of 13% to 16% [46][47] - The management acknowledged the challenges posed by recent Medicare funding cuts and the need to better anticipate and address second-order effects in the market [90][96] Other Important Information - The company is actively engaging with state customers to address Medicaid funding issues and is optimistic about recent rate adjustments aligning more closely with member acuity [41][130] - The company is concerned about legislative changes affecting pharmacy benefit managers (PBMs) and their potential impact on patient access to medications [126][127] Q&A Session Summary Question: Medicare Advantage cost trend expectations - Management indicated that care levels were anticipated to be consistent with 2024 but have seen a significant increase in the first quarter, particularly in physician and outpatient services [49][55] Question: Connection between primary care visits and Optum Health performance - Management clarified that while primary care visits have increased, the challenges in Optum Health are due to the profile of new value-based patients and the impact of the V28 phase [58][68] Question: Impact of elevated care on group Medicare Advantage - Management confirmed that the elevated care activity is primarily observed in community and group Medicare Advantage, influenced by premium increases [98][102] Question: Long-term growth rate recovery - Management expressed confidence in returning to long-term growth rates, supported by improved 2026 rates and ongoing engagement with state partners [106][110] Question: Medicare Advantage margins and timeline for recovery - Management stated that margins for Medicare Advantage are still within targeted ranges for 2025, with expectations to return to historical planning targets in 2026 [114][118] Question: Policy implications of PBM reform and Medicaid funding - Management highlighted their leadership in transparency and affordability in the PBM space and emphasized the importance of maintaining access to medications for patients [122][130]