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UnitedHealth Group Medical giant UnitedHealth Group posted better-than-expected fourth-quarter results despite a 16% jump in medical costs.
Shares of UnitedHealth and other major health care and insurance companies fell in early trading Friday after the companies reported earnings. UnitedHealth was the first company to report earnings on a quarterly basis, and many analysts see it as a bellwether for rivals.
UnitedHealth said health care costs, its biggest expense, jumped from $53.6 billion at the end of 2022 to $62.23 billion in the quarter. The company has been dealing with rising costs in recent quarters, particularly in its Medicare Advantage business.
Overall, UnitedHealth’s profits rose about 15% to about $5.5 billion in the quarter, bringing it to more than $22 billion for the year.
Fourth-quarter earnings, adjusted for one-time items, were $6.16 per share, and revenue increased 14% to $94.43 billion.
Analysts had expected sales of $92.13 billion and earnings of $5.98 per share in the final quarter of 2023, according to FactSet.
UnitedHealth provides health insurance to more than 47 million people in the United States. The Company also provides care, pharmacy benefit management, and technology services through its Optum segment.
The company also reaffirmed its 2024 outlook given in late November. UnitedHealth expects adjusted earnings in the new year to be in the range of $27.50 to $28 per share.
Analysts expect earnings per share of $27.87.
Shares of Minnetonka, Minn.-based UnitedHealth Group fell nearly 5%, or $26.23, to $513.45 in premarket trading.
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