UnitedHealth Group is a diversified health and well-being company that operates through two main businesses: Optum and UnitedHealthcare. The company aims to enhance health system performance by improving access, affordability, outcomes, and experiences . UnitedHealth Group offers a range of health benefits and services through its various segments, including care delivery, analytics, technology, and pharmacy care . The company's significant revenue drivers are its UnitedHealthcare and Optum segments, which collectively contribute to its overall financial performance .
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UnitedHealthcare - Offers a comprehensive range of health benefits and is divided into three sub-segments:
- UnitedHealthcare Employer & Individual - Provides health benefit plans and services to employers and individuals.
- UnitedHealthcare Medicare & Retirement - Offers health and well-being services to individuals aged 65 and older.
- UnitedHealthcare Community & State - Delivers health benefits and services to state programs and communities.
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Optum - Comprises three segments focused on different aspects of health services:
- Optum Health - Focuses on care delivery and management to improve health outcomes.
- Optum Insight - Provides analytics and technology services to enhance healthcare operations.
- Optum Rx - Offers pharmacy care services to optimize medication management and delivery.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Andrew Witty ExecutiveBoard | CEO | None | Andrew Witty has been CEO of UnitedHealth Group since February 2021. He previously served as CEO of Optum and President of UNH. He joined UNH as a director in 2017 and has led significant growth initiatives. | View Report → |
Chris Zaetta Executive | EVP, Chief Legal Officer, and Corporate Secretary | None | Chris Zaetta became EVP, Chief Legal Officer, and Corporate Secretary in June 2024. He was previously Chief Legal Officer at Optum. | |
Erin McSweeney Executive | EVP, Chief People Officer | None | Erin McSweeney has been EVP and Chief People Officer since March 2022. She previously served as Chief of Staff to the Office of the CEO and as EVP, Chief HR Officer at Optum. | |
John Rex Executive | President and CFO | None | John Rex has been CFO since June 2016 and became President and CFO in April 2024. He previously served as CFO of Optum and was a Managing Director at JP Morgan. | |
Rupert Bondy Executive | EVP, Chief Legal Officer, and Corporate Secretary | None | Rupert Bondy has been EVP and Chief Legal Officer since February 2022. He previously held senior legal roles at Reckitt Benckiser and BP plc. | |
Thomas Roos Executive | SVP, Chief Accounting Officer | None | Thomas Roos has been Chief Accounting Officer since August 2015. He was previously a Partner at Deloitte & Touche LLP. | |
Charles Baker Board | Director | President of NCAA | Charles Baker joined the UNH Board in November 2023. He is the former Governor of Massachusetts and CEO of Harvard Pilgrim Health Care. | |
F. William McNabb III Board | Director | Director at IBM; Member of Wharton Leadership Advisory Board; Member of Columbia Law School’s Millstein Center Advisory Board; Board Member of CECP | McNabb has been a director since 2018. He is the former Chairman and CEO of Vanguard Group and serves on IBM's board. | |
John Noseworthy, M.D. Board | Director | None | John Noseworthy, M.D., has been a director since 2019. He is the former CEO of Mayo Clinic and a renowned healthcare leader. | |
Kristen Gil Board | Director | None | Kristen Gil has been a director since December 2022. She is the former VP and Business Finance Officer at Alphabet, Inc. (Google). | |
Michele Hooper Board | Lead Independent Director | President and CEO of The Directors’ Council; Director at United Airlines Holdings, Inc. | Michele Hooper has been a director since 2007 and Lead Independent Director since October 2021. She is a corporate governance expert and leads The Directors’ Council. | |
Paul Garcia Board | Director | Director at Deluxe Corporation; Director at Repay Holdings Corporation | Paul Garcia has been a director since 2021. He is the retired Chairman and CEO of Global Payments Inc.. | |
Stephen Hemsley Board | Non-Executive Chair of the Board | Director at Cargill, Inc. | Stephen Hemsley has been with UNH since 1997 and served as CEO from 2006 to 2017. He became Non-Executive Chair in November 2019. | |
Timothy Flynn Board | Director | Director at Walmart Inc. | Timothy Flynn has been a director since 2017. He is the former Chairman of KPMG International and serves on Walmart's board. | |
Valerie Montgomery Rice Board | Director | President and CEO of Morehouse School of Medicine; Director at 23andMe Holding Co. | Valerie Montgomery Rice has been a director since 2017. She is a renowned infertility specialist and serves as President and CEO of Morehouse School of Medicine. |
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Given the simultaneous pressures from CMS Medicare rate cuts, the Inflation Reduction Act impacts, and increased specialty drug costs, how specifically do you expect these factors to affect your Medicare Advantage margins in 2025, and what mitigation strategies are in place to address them?
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Your initial 2025 EPS guidance suggests approximately 8% growth, which is below your long-term target of 13–16%; can you elaborate on the key factors driving this conservative outlook and your confidence in returning to the target range in subsequent years?
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With Medicaid redeterminations leading to higher acuity among remaining members and lagging state rate adjustments, how are you managing the timing mismatch in Medicaid funding, and when do you anticipate alignment between rates and current care activity levels?
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You mentioned aggressive hospital coding intensity increases adding unnecessary costs; what specific actions are you taking to address this upcoding issue, and how soon do you expect to see these efforts positively impact your cost structure?
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While investing heavily in AI and technology modernization for 2025, can you detail how these investments will contribute to earnings growth and operational efficiency in the near term, especially amid existing margin pressures?
Research analysts who have asked questions during UNITEDHEALTH GROUP earnings calls.
Justin Lake
Wolfe Research, LLC
7 questions for UNH
Lance Wilkes
Sanford C. Bernstein & Co., LLC
7 questions for UNH
Lisa Gill
JPMorgan Chase & Co.
7 questions for UNH
Andrew Mok
Barclays
5 questions for UNH
Joshua Raskin
Nephron Research
5 questions for UNH
Scott Fidel
Stephens Inc.
5 questions for UNH
Albert Rice
UBS
4 questions for UNH
Sarah James
Cantor Fitzgerald
4 questions for UNH
Stephen Baxter
Wells Fargo & Company
4 questions for UNH
A.J. Rice
UBS
3 questions for UNH
Ann Hynes
Mizuho Financial Group
3 questions for UNH
David Windley
Jefferies Financial Group Inc.
3 questions for UNH
Jessica Tassan
Piper Sandler
3 questions for UNH
Joanna Gajuk
Bank of America
3 questions for UNH
Kevin Fischbeck
Bank of America
3 questions for UNH
Stephen Baxter
Wells Fargo
3 questions for UNH
Dave Windley
Jefferies LLC
2 questions for UNH
Erin Wilson Wright
Morgan Stanley
2 questions for UNH
Erin Wright
Morgan Stanley
2 questions for UNH
George Hill
Deutsche Bank
2 questions for UNH
Josh Raskin
Nathron Research
2 questions for UNH
Whit Mayo
Leerink Partners
2 questions for UNH
Benjamin Hendrix
RBC Capital Markets
1 question for UNH
Matthew Gillmor
KeyCorp
1 question for UNH
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Multiple healthcare companies | 2024 | In 2024, UnitedHealth Group entered into agreements to acquire multiple companies in the healthcare sector with anticipated considerations evolving from approximately $4 billion as of March 31, 2024 to $6 billion by June 30, 2024, and eventually completing transactions worth around $10 billion in July 2024, excluding the payoff of acquired indebtedness. |
Change Healthcare | 2022 | Completed on October 3, 2022, the acquisition involved approximately $14 billion (excluding disposition proceeds and the payoff of acquired indebtedness) to create a more integrated health system by enhancing core clinical, administrative, and payment processes; the deal also featured a $2.00 per share special cash dividend and a $650 million fee provision tied to potential legal challenges. |
Recent press releases and 8-K filings for UNH.
- Adjusted EPS of $2.92 on $113 billion revenue (+12% YoY); ended Q3 with >50 million domestic lives (YTD +780k) and 89.9% medical care ratio, 13.5% operating cost ratio, generating $5.9 billion cash flow; debt-to-capital at 44.1% after $3.4 billion Amedisys deal.
- Paused share buybacks and M&A, targeting debt-to-capital ~40% by H2 2026; anticipate reinstating capital returns later next year.
- UnitedHealthcare repriced risk businesses for 2026 margin growth, foresees ~1 million MA membership contraction to boost margins; Medicare margins breakeven in 2025, expected to decline further in 2026 absent funding changes.
- Optum Health refocusing on value-based care, narrowing networks and exiting ~200k PPO lives, aiming for just under 3% margin in 2025, with improvement in 2026 and targets of 6–8% by 2027; Optum Insight and Rx emphasize AI-first platforms and double-digit pharmacy growth.
- Announced low single-digit billion non-GAAP, largely non-cash charge for international and restructuring actions; full 2026 guidance to be provided with Q4 results in January.
- UnitedHealth Group announced leadership and operational improvements, including repricing actions aimed at driving margin growth in 2026 and returning to double-digit earnings growth from 2027.
- UnitedHealthcare repriced most risk businesses, forecasting full-year 2025 Medicare Advantage medical cost trend of 7.5% and adopting a 10% trend assumption for 2026, with an expected 1 million member contraction in Medicare Advantage.
- Optum Health is refocusing on value-based care by narrowing networks and exiting 200 000 PPO lives, anticipating approximately 10% membership decline in 2026 before growth resumes.
- Optum Health’s margins are projected at just under 3% for 2025 with improvement in 2026; Optum Rx delivered double-digit revenue growth and has 85% of customers on full rebate pass-through arrangements.
- The CFO highlighted a $6 billion V28 headwind, accelerated investments in AI, Optum Health and Optum Insight, a return to normalized tax rates in 2026, debt reduction, and repricing tailwinds to support earnings recovery.
- UnitedHealth delivered Q3 adj. EPS of $2.92 and $113 B in revenue (+12% YoY), with a medical care ratio of 89.9% and investments of $450 M in employee incentives and philanthropy.
- UnitedHealthcare repriced most risk businesses for 2026, projects a Medicare Advantage medical cost trend of ~10%, expects ~1 M MA membership contraction, and aims for margin recovery by 2027.
- Optum Health is refocusing on value-based care, narrowing provider networks, exiting ~200 K lives, anticipating ~10% membership decline in 2026, and targeting long-term margins of 6–8%.
- CFO Wayne DeVeydt plans to reduce the debt-to-capital ratio to ~40% by H2 2026, pause share buybacks until then, and expects 2025 operating cash flow of ~$16 B, with formal 2026 guidance in January.
- Adjusted EPS of $2.92 in Q3 exceeded analyst estimates, signaling improved cost controls and a turnaround after prior challenges.
- Raised full-year 2025 adjusted EPS guidance to at least $16.25, above Wall Street expectations.
- Q3 net income fell to $2.35 billion from $6.05 billion a year ago due to higher costs in government-subsidized programs.
- Optum Rx revenue grew 16% to $39.7 billion, while Optum health services revenue was flat at $25.9 billion.
- Medical loss ratio remained at 89.9%, in line with forecasts, highlighting improved cost discipline but above target levels.
- UnitedHealth Group reported Q3 2025 consolidated revenues of $113.2 billion, up 12% year-over-year, with earnings from operations of $4.3 billion; GAAP EPS of $2.59 and adjusted EPS of $2.92
- The UnitedHealthcare segment saw revenues grow 16% to $87.1 billion, serving 50.1 million consumers, while Optum revenues rose 8% to $69.2 billion
- Operating cash flows were $5.9 billion (2.3x net income), and the debt-to-capital ratio was 44.1% as of September 30, 2025
- UnitedHealth Group raised its full-year 2025 EPS outlook to at least $14.90 (GAAP) and $16.25 (adjusted)
- Roger Connor will step down as Optum CFO on November 1 to return to the UK for family reasons but will remain until April to ensure a smooth handover.
- Ben Eklo, a nearly 20-year UnitedHealth veteran, will assume the Optum CFO role starting November 1.
- Optum oversees over $250 billion in annual revenue and is projected to deliver $266–267.5 billion in revenue and $12.55–12.85 billion in operating earnings for 2025.
- This CFO change follows broader management shakeups amid a cyberattack, rising medical costs, and the abrupt CEO departure of Andrew Witty.
- UnitedHealth’s Optum division, through Atrius Health, acquired Acton Medical Associates, a 45-physician primary care group near Boston to expand its care network.
- The deal reflects Optum’s strategy to diversify services and strengthen healthcare delivery despite a $6.6 billion earnings shortfall reported earlier in 2025.
- Acton Medical, founded in 1955, joins Atrius Health’s network of 700+ providers serving 749,000 patients in the Boston area.
- UnitedHealth insures approximately 51 million members globally, including 1 million outside the U.S., underscoring its market leadership.
- Bragar Eagel & Squire is investigating potential claims against UnitedHealth on behalf of long-term stockholders who held shares between March 14, 2022 and February 27, 2024.
- The complaint alleges UnitedHealth misrepresented its post-merger “robust firewall processes” between Optum and UnitedHealthcare after acquiring Change Healthcare.
- On February 27, 2024, the DOJ reopened its antitrust probe, triggering a $27 per-share drop and erasing nearly $25 billion in market value.
- Affected investors can contact Bragar Eagel & Squire at no cost to discuss their legal rights.
- UnitedHealthcare unveiled its 2026 Medicare Advantage plans, available to 94% of Medicare-eligible individuals, maintaining its position as the nation’s largest MA carrier.
- Plans feature $0 premiums, $0 copays for preventive and primary care visits and Tier 1 prescriptions, plus dental, vision, hearing and gym benefits not available under Original Medicare.
- Offerings include expanded access to HMO plans for 92% of beneficiaries, D-SNPs for ~80% of dual eligibles and C-SNPs tailored to chronic conditions serving over 46 million eligible individuals.
- Prescription benefits provide $0 copays on Tier 1 drugs at any network pharmacy, $0 Tier 2 copays via Optum Home Delivery, with 93% experiencing stable or lower Tier 2 copays at retail.
- AM Best downgraded UnitedHealth Group’s Long-Term Issuer Credit Rating to a- from a and its Financial Strength Rating to A from A+, revising the outlook to stable from negative.
- The downgrade reflects a significant decline in operating performance, with $6.5 billion in additional medical expenses expected in full-year 2025 and projected operating margins at roughly 50% of 2024 levels.
- Despite the downgrade, UnitedHealthcare maintains a strong balance sheet supported by very strong risk-adjusted capital (BCAR), conservative invested assets and solid liquidity from cash balances and credit facilities.