UnitedHealth (UNH) 16 Jan 182017 Q4 Earnings call transcript

Good morning. I'll be your conference operator today. Welcome to the UnitedHealth Group Fourth Quarter and Full Year 2017 Earnings Conference Call. A question-and-answer session will follow UnitedHealth Group’s prepared remarks.

As a reminder, this call is being recorded.

introductory important some is information. Here forward-looking This U.S. under call contains statements Federal Securities laws. present subject are materially uncertainties or to that statements from could experience differ and to risks These results cause historical expectations. actual the current risks description in reports and cautionary Exchange periodic we that statements some and A with Securities including and filings. the the of file Commission, can be uncertainties included found of the in our will amounts. also call This reference non-GAAP filings financial section non-GAAP the GAAP is reports to page, and the www.unitedhealthgroup.com. SEC the A reconciliation of at of available amounts Investors company’s on Information the may presented X-K this in contained website. the on dated this call of accessed Form be earnings morning is in page our which issued release company’s investors’ we XXXX, from January XX, the and over UnitedHealth Officer Chief I would to now the Group, like of conference Executive to Mr. the turn David Wichmann. ahead. go Please

that categories closed and This joining individual advancing we one a at thank fourth to maintaining wrapped growth our top of Group, XXXX in benefit than revenues our increasing more at our for and carry we Banmedica that investor both reported are more $XX MA $XXX many. billion to November. shared operating XXXX for year billion you in tax the million are of you half of two XXXX nearly morning with us ahead conference morning Full We Good today. healthy end the into exceeded for completing special serving XXXX. consumers we we outlook focus the XXXX results XXXX. up start Medical earnings cash signing adjusted $XX.X of into front. Optum successful earnings know on by We needs effects of both of our at and flows changes strategic both to turn expect we mind to momentum grew growth conference. per And forecast share with quarter provided billion the DaVita and strongly grew active of from UnitedHealthCare while and to and had season group the needs We plans dual operating another an ahead Operating sale the share the XX% five positions year-over-year. $XX.XX per December as

begin So today tax reform. will we corporate there with

was lives is starting helping helping our mission it make today XXX million score million in intelligence, and and approach where the for and determining health investment initiatives to live work better individual promoter everyone healthier existing and our initiatives health people and a health and XXXX. with between net our costs effects gap the improve of Our healthcare a net where far system point $XXX of for tax reduction in enormous could and fee We should that reform in better corporate lower billion after system far minimum flows better and million by record our be. loss best premium in and through artificial local ways additional to estimated are data more quality. for ratio digital $X.X is health, expected for operating affordable health higher More healthcare XXX ambitions custodianship, and to make will concluded a to investment $XXX specifically related achieved That’s accelerate and health communities. cash due as health that recognition improvements and million earnings revenues we recapture analytics, an insurance

and later will throughout by we this day. phone offer $XX.XX more in per cash XXXX earnings and available We to all flows and John call $XX.XX as diversify mission cash Investor you ambitious to long-term agenda We Day. turn adjusted discussed with aligned enterprise fulfill range increased the in in expect expect from to to share the $XX.X billion. and operations of will billion the our the invest on better now to the for details flows remaining usual of we $XX be our grow Rex to

Before leaving we multi-year the plan its cost the continue the would occurs, insurance value to ultimately to and repeal return note to deferral of high for strongly by those tax our Texas, health we to advocate impacted tax. If deferral I the given consumers for that XXXX society. a and

conference, highlighted As healthcare in are we pursuing pharmacy healthcare areas, in services, and growth our centric delivery, investor benefits, digital key five diversification and care consumer global.

discuss Through DaVita helped establishes individual then Group a establishing in special delivery new And care Healthcare’s goals. again we’re group growth with decades plan in of in Nelson advance needs for several XXXX advantage for Banmedica healthcare medical will December United these busy growth combination market. Our foundation dual and should Medicare South to lead Amil Steve and Americas and markets in Medical ambulatory us The primary to OptumCare OptumCare. come. local Brazil, services the America and for with and

Now to Chief turn Optum’s with starting let’s Renfro. Larry businesses Executive,

from further Delivering for to create Thank growth revenues growth XXXX Optum Full us our rate XXXX. grew acquisitions We enabled by revenue and XXXX exceeding nearly XX% billion. from drive earnings you, earnings $XX customers in increased businesses individual with Dave. $X.X operations for XXXX and billion to strong again strategic or performance. margin results in with simplification X% Optum and result earnings business balance year, opportunities strong improved management. XX%. ranging focused to innovation businesses cost is and XX% growth The investments in

from XX% scripts backlog XX% for of year-end. XX in Rx by million serve the on Optum In full including XX% X.X% expanded advanced producing quarter to quarter. our growth base. large people adjusted quarter, XX helped reporting XXX this Optum basis outlook. positive by million grew every year indicators margin entered operating Strong for We and year earnings fourth business. OptumInsight growing $XX billion. to Fourth more XXXX X.X% full with backlog growth at and a business operations fulfilled the Our fourth points than

we number strategic increasing customers. deeply more sophisticated became Our continued as with involved relationships advance of to an

across all a people XXX,XXX Over state Medicaid the will state eligibility or you program surface give first as sponsored government program. other eligibility through state benefits the services, population as state Virginia Optum’s new health to me In access Optum benefit platform. West engage about highlights. integrate well Let integrated human to few half became

serving on and strong health build capabilities differentiating our to expect We plans.

health plan receive of had work and patients, We physicians from risk growth and local by at received start sites a modernization data our manage related Blue the OptumRx, SSS, management. clinics strong Shield customers interest to Blue technology alliance transformation we Rico. XX selecting service. our Cross award analytic healthcare platform quality, quality to cost for Our quality relationship cost and and in members, ambulatory to multi-year companies an with off transparency driven The in is total their Puerto excellent care

and delivering Combined OptumCare and serving is payers. the now well affiliates annually. diverse practice working a XX their Medical includes Acquisitions of ambulatory in billion targeted Like a their to respectful non-hospital leading areas. primary combine Group, center quality operations same-store levels, to behalf for doctors, new of expanded Surgical management one-half targeted affiliated context size in for than grew most XX healthcare we local diverse of development implementation more on billings DMG they $XX employed platforms, or this development, for in million in And XXXX are XXXX technology. metropolitan with of major markets vibrant. stages research, than procedures of value-based with The these ever seasoned accelerate DaVita care growth and with the into the driven We behalf are revenue development. shifting in care completed pending of ultimately. markets, by practices X% our customers patients delivery XXXX. with This physicians We surgical our manage Finally, and to market revenues year And the and our more group or in resources. acquisition XX be leader care known X basis, engagement our added exceptional the its the are performance care client a of settings. full are Advisory market nearly plan capabilities on complex OptumCare will high physicians strengthening depth Diagnostic, more new early Board, patients annual we on a past the leading with still our Quest care driven DMG, surgical fraction market and care and pipeline consulting OptumCare of

bring resources, and capabilities membership. accelerating health and in engagement their that next value Board’s serving Optum forward The X,XXX hospitals the comprise further the to months. Advisory systems expect six And to We we look

and to platform of right physician launched more thousands using we than pricing consumer MyScript schedule. plan appointment by now innovate tested now $XXX to health this useful to PreCheck for and needs. administrating its of Rally patients, at are of local in of MyScript being doubled connecting prescribing, in information the XX type Finally, large A IDs searching hospitals X.X number from million the continue PreCheck firms and for scale better We million point Rally people interest consumer selected serve is transactions. while everything the of a for prescribers as solution physicians million, growing. health has tens than several workflow. with used for nearly already Rally Market incentives. physician’s appointment We the in renowned more technology market XXXX, with

to capabilities will members brand. our XXXX. of unique OptumRx under all end active science OptumRx and XX% we offer the expecting by to And analytics reach the it data of unified We prescribers

and NPS, years its continue to our glimpse making relationships, XX of to are raise We the Optum current system better grow progress get beginning just and long-term to we are to quality, work and optimistic for but innovate over about built develop was our everyone. potential. only to a advance healthcare opportunities

the Nelson, Now of Steve the let UnitedHealthCare. turn it me to over CEO

operating in ratio XX% early our of medical X% lower trend the billion billion, we Thank XXXX controlled impact that care The forecast as X.X% Moratorium. higher. exceeded UnitedHealthCare’s across and XX Insurance $X.X community. X% businesses relationship, percentage strong for we and basis a renewed you, the full managed posted X on points Medical seasonally products Tax were individual our XXXX to was those we rates Larry. the long-term. forecast. costs year the lower plus senior’s our positioning Operating for to XXXX was minus commercial end as with near of fourth operating long-term basis continue serving Optum, costs XXXX XX Together the quarter trend participation well, XXXX. the grew year-over-year. $XXX positive or in improved expected. X.X% Insurance year medical our mid-teens AERP ACA Health to the absent well An for of with offerings employer about original growing reduced points behalf growth margins growth We the the we’re and growth strengthened revenues full for and businesses and for margin and year of XXXX cost key pleased well or serve. Individual exceptionally and were X and performed Like Optum, performance our report of negative

cost also UnitedHealth We admissions. to and advance we’re digital determinants in the ER national Nexus And in and cost innovation, earning to group, X.X including more XXXX grew growth. walk more we the which million serve our we into continued needs savings Colorado markets of employers for further In strengthen U.S. X pocket to XXX,XXX complex to in our of quarter. Medicaid miles, the we growth in numbers XXXX XXXX for on medical reflecting to segments, strong including ACO almost devices serving acceleration service customers and nearly in quality through million risk ACO late customers reductions interest with for the Medicaid, our to performance. in several the In of fourth the available we and year past pipeline further robust enrollment market X with out of more commercial annual Medicare from western $XX seeing group significant and visits, again seniors self-funded XXX,XXX and New plan connected more for organic plans manage half to continues consistent in people growth people activity and XX% and period, this hospital performance entries people XXXX, Motion cover in served inpatient XXXX, the into than state, Medicare, strong to special quarter expectations. we and the up success as be The enter effective for states In XXXX. to entries and length second customer York. UnitedHealthCare dual quality continued expenses. million wearable healthcare nearly and increasingly employer employer And beyond address cost and more multi-site the new high Wellness UnitedHealth needs four-star slope Iowa. look of retirees wellness leverages special trackers the social and care on the as readmissions, XXXX first dual expect used higher northern Virginia have group Minnesota large to physicians more We In serve retention targeted serving wireless management of is expanded million In employer Participants see containment. into technology. a for incentives Nexus offerings and by new planes ability people in in and premium based in achieve our stay, group seniors of products, XX plan. expansion the from served and in we individual, national in full Medicaid million And support Program next health generation product ACO California XXX,XXX people looking needs. year. better we’ll in-market from began over expect XXXX XXX,XXX Based upstate

We in line the of carried balance with the and global, year quarter our XXXX strength led positive expect modest had and over small XXXX. performance by that businesses membership fully in sequentially momentum growth growth some Investor group quarterly followed In Conference the into Brazil in our first projections. back by strong pull

people D reminiscent and provider managed and better Banmedica Chile, to operating X,XXX centers. nascent access health markets in ago, seeking Medicare and We beds are decades the were medical lower X.X markets in American US growth In in apparent the advantage consumers managed expect and XXX the Medicaid with exist. opportunities first and Banmedica healthcare at is add hospitals and XX in quarter South services ways Peru in Part not of these the sponsors opportunities healthcare serving plans two XXXX. cost, and million when a Columbia were benefits many benefits did benefits of and

for markets advance more past opportunities to have we expect in the in We growth as US. or in two decades these the

our new of and designs, value retention reflect rates innovative outlook engagement sustaining competitive growth and XXXX the offerings and the to effective XXXX cost of business bring rising network distinguished benefit service, and improved Our generation clinical customer demonstrate value the consumers market, rising our NPS, strong control. and

Officer. to John the UnitedHealth Rex, Chief turn I’ll over Group’s Financial Now, call

cash our Consolidated earnings of delivered again enacted tax adjusted XX% well-balanced of you, and reflect Thank newly of deferred exceeded per top were flow US non-cash growth $XX.X Steve. on in revenues XXXX. operations $X.X We strong statutory from performance rate share in XXXX. XX% added re-valued earnings billion liabilities We in earnings federal $XX.XX XXXX. in XX% $XXX the billion, which to billion increased

adjusted We earnings per share. from have this excluded

$XX.X share The obligations too existing the now affects $XXX November $XXX revenues, the UnitedHealth change Our our revised rebate cash of to expect revenue to from will related We incremental operations be XXXX triggered the accommodate rate. $XX.XX reflect we in which lower Conference. as We to from outlook by XX billion expectations Roughly ratio new in billion for range been to tax set range adjusted lower line rising XXXX, million at which now tax the operations to effects in XXX Group billion a XXX flows the expected to rate The solely Dave premium expect $XXX our tax $XX.XX billion Dave loss I $XXX billion through. have within referenced earnings approximately investments per to referred million to on million which million than net rate lower greater fee earnings XXX to the now $X.X expect we impact to the range lower items insurers with to XXXX. up. to prior of XX.X driven XX%. half of attributed the requirements, billion of such premium This step by and gross Investor range. million from of by items billion. with several a reduced from is $XX.X is prior

to investments factor strengthening noted reflects improve innovation value. serve the Dave system, and within impact the healthcare this people our the from end The other P&L growth better year while $XXX million and

million in accelerated million these will investments XXX XXX incremental expect to operating We result expense. in

current to toward businesses, Our expect both maturing still ratio XX to We these range medical run points. basis investments in our XX.X% leaning allocate of now plans while care Optum. XXXX a minus or plus

driven rate to the related increasing basis the outlook, solely prior XX by again midpoint our from With is tax much change. mechanics as points

capital midpoint these the minus our points above or capital of market outlook. our targeting of with the includes we overall returning basis in capital addition, a business pacing outlook, continue long-term. to to while follow to ratio position In impacts, approach expect the basis points XXXX XX% capital debt run ratio to rate and consistent a our range the plus approach shareholder, with range allocation. we in our to XX cost XX prior respect longstanding expect steadily over operating XX.X% in investing This to and a maintaining With total to a dividend, toward

the capital below momentum a revise work. contained flow XXXX opportunities Dave? we The outlook XXXX with of takeaways and strong in included XX% is this total XXXX growth entered morning. put table and the improved financial debt at information in guidance and our to are significantly to cash above a to with flexibility, year-end package All earnings supplemental ratio clear capital that

and strong operational growth, UnitedHealth as NPS, virtually XXXX Top-line year result, rising strengthening and you, John. every by a Thank for culture performance. advances, service, Group financial execution was a measure. strong strategic

because sustain to serve this require and entering get with mission clear ambitious We and a pace direction momentum solid it. are and culture we XXXX importantly most and plan done. our We those to much

potential and investment and your enterprise. that of realizing Thank remarkable for the of full you interest goal. goal Our growth this remains in support social service

now will the questions. open call We for

so to as you question one a as get Asking limit can to many we piece, possible. to

take from line Lake question with ahead, is Justin first go And Wolfe Instructions] we’ll [Operator our your open. Research. Please

Thanks, detail reform. good morning. the some I on tax appreciate of

down a bit to Just little wanted here drill more.

to and you that insurer than XXX most million of or First, about from fee the health talked XXX that being impact. the more of half

grossed might you you would how the you XXXX that Medicare assume to Medicaid to but love and because the Medicare. thoughts can it's give in XXX Medicaid And through then on I to hear XXXX, how down, seeing on us differentiation that to for more pretty much really of you needs is much that that zero understand the back, go require that tax up be is smaller by commercial or any taxes is have the think be would business half that’s your is that know states the sustainability Thanks. - XXX, the of help passed clear I would you’re beyond much of benefit here which reform sustainability more on helpful. importantly how including

We’ll you premiums. the details $XXX impact Good little talk John million a question -- of Justin, appreciate more to it. on million bit on give about have Rex the $XXX the

to is with to and including relates you not the we’re hopefully as also I XXXX, question of particularly appreciate pricing variables understand with dynamics it give it stage. at that As market is position a attribution to number elemental market can cost. always in really the this also to commercial subject the case in respect guidance negotiation respect a of to but

with at sure though and belittle please. not progresses not quantify see all we deliberate but four to giving will to it's year five the tax, health that something want -- for This what it as is as So, the of you and math. in the to the XXXX. as and it’s insurance that of applying do happens effects that simple do not very John you so discuss guidance be we we making context the as

Yes, Justin. good morning

how Let on that call me benefit just give everyone on here. a will little background the which more works

rate prepared we how our look P&L, this through the of I the larger tax So the gross, comments through the just lower works federal my impact mentioned decline. in when component recall, premium is as

results So, and of health across flows line course insurance the this through remember that heard and in describe of the me the premium a impacts you as tax upon the that in ratios P&L. the gross morning P&L non-deductible, that number

of the So were course as pre-tax at earnings impacted. the a of result gross operating

As that after-tax it the neutral line requirement pre-tax. on declines, earnings it’s but impacts

what we attempting really here. are go that’s to So through

of spotlighted up the went terms for the of of in think the understand this, program were tax the easiest one I kind arrangements we our whole because explicitly the of the for state to where made here non-deductibility. being ones some around arrangements when state you of gross really into

where arrangements has rate state to collecting way explicit some of they we’ve that so arrangements. to terms we about when described. Dave other that go So an a explicitly are that parse impact impact as gross flows declines that to through. we’ll of are those There have out kind going that contractual and as so and them joined up XX%. in amounts some not of collect businesses how the be right I’m impact, of specific you’re But

sorry am confirm the having think have wanted Medicare passed here. In consumers just guys you via up about -- to never lower I through gross it to benefits. you talked not I

commercial, time you Thank expect already And that much Is back over do correct? this to get of how given in So need and commercial back. to be you. much then is doesn’t that on number? how

connection -- and that’s of the all in it Justin as in relates benefits. that Well, obviously offering we to subject with -- negotiation a the with particular occurs to annual in are CMS Medicare discussion

to benefits a Our net population. scores offerings, that with goals That’s benefit as maintain of those promoter pharmacy the as to keep network consistency as as very possible access, much to are leading always offerings, one strong as much as formularies possible can stable be. contributors and

goals to much stability maintain as our as are there again, So possible.

that, of the of if think what one we’ve you which the that’s back will good relates and have described. of two here, morning, As these the will, outlined that mechanisms here piece value goes is we this a we through businesses. if regulated you to it market, John got have about recapture to of business But regulated the a taxes tax it million unregulated. market One million to we’ve XXX XXX that if that you chunk the

addition that, to we thought of case majority be health our The be and healthcare either know we well. we that residual the to costs really that through to helping invest John advance million reduce we That’s in areas to people improve to the Optum appropriate a attributed trying the we P&L, and improve mission healthcare where most best is and/or achieve healthcare and can healthcare aimed million quality In as know business vast this continuing for things future. and then to of this XXX would we happened invest felt in around it best was in reduce helping described to XXX that systems. costs quality us to at in

long So We haul. at over balance where that the think are is fair that’s that’s today. we something it’s balance. think that sustainable a We

Dave take we with from next our ahead. question will Jefferies. And Windley go Please

am how type of far be figured something favorability side -- or I'm about how process OptumHealth your I that designs favor do that including a plan want the critical in more benefit you I much you am I system work building in before it there? is there the doing of to to mass networks, questions that avoid of you your would one. to if UnitedHealthcare there? you are wondering helps to I you get going how that that think it can on extent something what we out, you a build along toward plan do, now, Hi, is healthcare can OptumHealth would OptumCare some need curious much am lot the morning. curious good In something pass-through, build you will to is better, that, I tax to on are are

market, would what a are the misunderstood to XX offerings its question payers is characterize no multi-payer platform. around a pricing great about of platform, dynamics normal dynamics broadly. around OptumCare serves the marketplace. It negotiated favoritism and and that’s in other there as including Dave things applied plus with our that is it’s than one The particularly It’s a UnitedHealthcare, you often

and Andrew, to some you not more a patients. intention want how the so, to we strategies offering ambitions so payers do that our And of broad there serve touch our is we’re engage to provide of that can But advancing is all on -- business? and maybe

are much in a committed ambulatory we medical OptumCare the groups, very to we including today’s payers at models our centers. is serving and in payer and our IPAs, multi Optum multi our surgery to our and strategy business care neighborhood In centers markets serve our comments, integral

expand as medical IPAs, payer those of with success. strategy entities. them worked then and added of quality, of the to communities impacting added maintain the we that to added those to So, those help and serve fact, by their continued we in groups, as at of And as have as value we SCA, partners providing payer trust the multi-payer serve earn work each we we’ve confidence look we we in and have members terms the MedExpress, that And around continue outstanding patient record experience the our to you relationships, country. very carefully track we the And we total care. partners do and and the cost of

kind So, of Dave it’s our well. works UnitedHealthCare the that closest to value very that payers several but payer, the out that fair say customers certainly, those get as of to And do do with of collaboratively it. are get our the OptumCare, best ones OptumCare,

Next question please?

Capital Markets. next we’ll BMO Borsch to the with And Matt

experienced, in or the X.X% And to could about to from from back trend. dimensions, number couple that you And that UNH was if Thank think seen the change of the related it and versus high And And impact softening one that is impact of prior in by this could just mix? over going the you for what economy if the the guess we’ve is talk fit the a that you’re the X% you. this one, XXXX I year? understand different of that several specific? relative surprised I here? of at all a there that is, if is medical hoping in outlook I to benefits you just range base of something up the question conservatism trend plan to sorry, deductible pace anything, as your years to seems last like

all get try all will those I that’s right, answered. Okay, Matt, to

and medical in of a worked taken teams control for and healthcare the how trend for to it for elemental some talk view really what But, nice our about very beyond. trend at the to a to relates overtime. ways of it deep have year-over-year healthcare and all XXXX hard have trends job trend done -- forward respect of is teams has advanced cost. the I reflected you XXXX, continuing the our prudent our Usually, to economy think are? also maybe comprehensive and XXXX mitigate developed did approach and Do trend items want As

his at now Steve in commentary as touched and X.X%. As we’re Nelson mentioned where Dave on

clinical the place model, the we Dave of alignment So quality right manage XXXX. have improvements around as wouldn’t out, to partnerships our trend I do and the out to low point continue from the And specific, and reflects care, ensuring line the there to things XXXX and we that laid XXXX, well. efforts Dave that the seen category, is end this to base nothing change across of year respectful but as -- seeing wouldn’t as our right we’re that at view conference. that level we’re would a ago range mentioned service, broad of that through and always economy improve really especially our point for cost at really It our been our investor as in closed we’ve we mentioned, really like completely anything as effectiveness our right of to point with with of the

played on employers about in same Is more change rate pace how of What the plans. you benefit that’s role move as this into continuing at obviously high the a going to year? deductible that to

on will Schumacher, Matt. Dan comment that,

It’s Matt. Good morning, Dan.

morning. Good

it, you what the at As dimensions right. couple look of benefits to

adjustments the of insurers feed some the on deductibles little rate -- are if employers look I the pushing in faster make as due part of to XXXX putting and think compared in have a the deductibles, in more to that’s up you benefits. We to pressure pricing reintroduction, rising to at increase XXXX and the bit

you If say progressive plan year-over-year, just buy been if but of choosing I buying just are those has relatively that trend that thing proportion at continues the people downs, long-standing XXXX. that look designs, a was that and at think I XXXX, you would aggregate in look more comparable that are in a

next Stephen our Tanal from Sachs. ahead. take Please question go with Goldman We’ll

were as and investments And things these of give if that programs how accelerated XXXX. into I’m in flexibility us looking that had million on the a to a of sort can for touch you minimum incremental wondering flavor XXXX of with sort all questions, to pricing tax $XXX rebates. regime for sort do the to to on for much I’m XXXX MLR relatedly understand guys. plans for described the Thanks anything what just curious of that release. then side mean as lot might whether the the $XXX of Wanted could And enable well? and for

part have that will the on Rex then question wrap fore investments. and we I’ll Maybe John the address of

get me Let that. to just back

ups the The $XXX of rebate half component. to is than that component comprised I million, that’s rate of really of on the here million component MLR the how has clear lower clear terms just in on works. that federal be minimum $XXX with two less to to really greater be the components as premium do that gross just of that declines. tax to want So, and

it’s of less the just million. $XXX is address premium $XXX impacts, lower really majority Dave will the $XXX So that up, mechanical recapture million, half to the And of investments. the minimum on $XXX MLRs, million that to the impact than million gross

good a it’s Steven question. very So,

you health to to structure think to things, consumers cost our occurring will a is people fronts. in and quality two investment to it. relates and and million really investments that’s our if as it have system laid picking individual to delivering the ways pretty up the we’ve $XXX number is the to across of well those services you’re done strongly to greater order both of here advancing improve of the $XXX on the of ambitions what the of continue which to application earlier, improve value the MPS which So, thereby to business through lot I when find it’s includes in One accomplish one as P&L P&L through going out we’ve the we it’s million a broadly described the on technology are as I to within

should if You our change to will. you an as partly great in at uptick level of a look that the response rate in run the of expectations tax, investments,

billion more market us in you’ll advance in $X.X things And care delivery business. the see we in platforms, like is just or so cash which that is improved strategically quickly flows to balance, which the that our align Beyond the discussed.

as foundation know, we our example. of presence midway in the local you in quite not business, market markets As an establishment of through that are the

So we investments of capacities are that precision things an and advance that can our areas technology platforms genomics, that apply investment organization see medicine, our things nature we as related like us believe to additional the of some you advance will portfolio. where

question with James. Michael And from the Baker next comes Raymond

of a get to active year. are be a bit the if size gave that sense segments compared of last pipeline to opportunities of trying more And could market the helpful? Just PBM year would color that on this you little of

year, our growth the PBM, a including XXXX. and pipe both growth base see John? this nice We customer within have the in we for nice

targets. So we We really strong off year. just finished a new our had business

both XX% terms plans. including at We at solid I based, almost retention seen about with Day existing We’ve Investor as also in we’re health our good our client had growth really of retention. talked

So really across broad for based all segments both XXXX. market

early. terms think still XXXX, I In of it's

actually but early. their pretty pipeline a but good year-over-year similar, it’s We pipeline, still have is really

market. we so We care And the the strong we’re strong wins quarter, have XX/XX/XX growth won’t comment the growth. segments our really resonating. say market market in are right see more in changes story than I value selling now. And that of last others is deals end the some is I’d about so any don’t and for summer first say for seeing I’d of active big until terms good what already, pipeline

interest buyers model. pharmacy sophisticated from seeing We’re care attractive to that are services our strong

with J. Please Our next Credit ahead. Suisse. question is go from A. Rice

and acquisition deals; of went accelerated pace give brings and that deal we could seemed I now be balance for it We’re us we after outlook Maybe you to flavor the a be Can I’ll likely them is certainly target. ask you like accelerate UHC about deals; know as an got and a maybe can update just mean function through of and it greater sheet to growth there your have it in seems could out feel particularly as BenMedica on is the Optum I’ll function we just and infrastructure; an of I ’XX that more since of environment build a to faster end. that toward as the And could the area the availability throw in year, confident it as you acquisition integrate R&D? you back your little bit? be where pace into a focus with accelerate. as a both the pointed maybe international the you pace, in

it's time. accelerate -- is to question. good didn’t the our really acquisitions that pace we Thank two happen There you, that just very nothing at really of come J., acquisition, A. those coincidental

investments our South two with business. get nicely interest growth additional the us markets. indicated measured we an We’ve American in five and of areas into BenMedica up to line global, allowed they in have that long three of indicated, As that

years, to position us there. advance We our allowed studying markets have that and those been for about five

the in again DMG coincidental transaction. interest the an strategic terms platform overall. close open care but then ambitions the highly would process acquisition, of As you which our more to other characterize we’re as in building I one and And in that right Optum know, now was

would a Joseph So how Chief International Executive have moment our I to I can, America if no anything shouldn’t a of broadly. UnitedHealthcare broadly. Molly maybe who infer our acceleration, allocating take just our spend International, with BenMedica like moment, positioning you really South is to Business, capital on respect and we’re to just in

the for A. Thanks question J.

is was improvement. Let ambitious application for that And how expansion; pending we’ve enterprise with me are view BenMedica; in benefits across perhaps more expectations quality transaction pretty seen that just both a with focused analytics. fully and a driven plan. particularly perspective in we’ve our the three my on very in area strong really margin delivery and of increasing, Brazil; the that second, touching Latin we broadly. business, team to that clinical, on in and capabilities technology, of our progression our then XXXX businesses. The the by things Brazil, our innovation on Very combination executed management of first in related the started on localized global business we‘ve health being offer pleased America, and and improvements data and the BenMedical local competencies

So we continued strong which advancement, with BenMedica. really expansion brings entered Brazil momentum XXXX me margin quality for and in to

consistent delivery. have with delivering countries. and the in three Chile, healthcare is of in management high record track those a and have proven There and have for strong for they their and both business local As across time. leader benefits Dave Peru, market really that both mentioned, built we known all time And across very a medical Columbia team very suddenly margin BenMedica lines a organization a long we are growth long of market across a

combining platform enterprise open strong close in to strong that we an this So see process team we Brazil, our by analytics. technology and across, again and that yet similar value currently capability, a to quarter. would to clinical, and data that create tender and opportunity Transaction expect local with is

also equal across U.S., Latin our position the for opportunity systems leading serve will a our private to see then and four have America these us really region. serving in in characterized private markets. these of that markets, pivoting public So by opportunity to term view population well a dynamics healthcare largest the that And a but BenMedica to more in healthcare roughly healthcare. countries longer a holistically We growing as affordable attractive of put broader and perhaps growth the broadly. more by of of economies acquisition Collectively, more as emerging demand

the we’re value we are the well creation focused positioned really over markets. think horizon those bringing to on for and we So value long

course, of conference. you And as this of discuss on at investor this to that our had which of to the So today. we came the because took bit already right the time a referred there, DMG, chance we’ve hills little earlier hadn’t

had relates on provide The deployment that’s markets to to those Not again the measured in they one Thanks. to closed, other a there well. in ask belabor markets of reflective those that expectations to to our want risk of capital acquisition make inherent of that the might those. profiles just that Advisory international stress markets. comments it will in to As Larry volatility I I Renfro are this, And few respectful returns as our risks those particular, just and we approach markets, each deeply exist and one but that those are of in each will that was measured, be be approaches that Board

Advisory So you A. know part important where latter J., was Board in I The be the of you, I it closed, this November. would to something think

it’s as and believe sales as it complementary management this in enhance So complementary we��re is is the our It’s to it’s that to us. sales our the team going process very the very, their strong gone in well. well Optum of alignment, so pipeline, implementing business marketplace. and XXXX. but for we of in Well received really and playbook terms integration extremely And

We’re a good Board. of The lot looking out Advisory things of for

question Rigg from Next Chris Deutsche Bank. with is

least under a South Actually think it the approach a at run Thanks. to America, continue separately about just where one is name, portfolio this follow-up had cross-border the When global enterprise a overtime do becomes long-term? unified brand on strategy. businesses think international or and you’ll we both you for

North America, local an inherently South like Just is America market.

BenMedica names, a holding as three brand least and Américas also Amil in two But And very brands so both with then local or well strong time as company. strong being, the regard and series that Brazil, in for we Médicos in delivery in recognizable Serviços healthcare now the of they at have predominantly Chile, Peru, both very very insurance. and Colombia operate healthcare Chile, is

brand you to that posture. think in that will But overtime. that value part past will created this do see of the activity doing have most deeply these been to I we need for the with we branding the So Brazil extent we’re we’ve that clarify continue some year, so. To respectful like folks

is the from question next Josh Raskin with Research. And Nephron

and about migration And of And am curious for bit enrollment percentage economics that the curious med then going on your one first a open period XXXX? you of strategy I before maybe has And to wanted book talk bit about effect could talk coverage. stuff, So the a little changes guess today -- e., just switch. I think are little XXXX I if take Thanks. assume dollar is impact you a the dollars then what are the do or am better. on that lastly, step I for function a would the industry, in be gross returns dollars curious margin big is i. be think I to are But incremental? going any do higher. this more this you MA

from specifically overall. maybe the ask to a products more to Thompson MA I suspect, our question. supplement seen growth we’ve might lot Medicare Brian would respond you of comes But your As

Maybe Dave. seen the some last point. been don't change. the this and morning, this a change. I'll for this [Audio transformative start with see -- I aware We’ve Gap] big question. years Sure, now. thanks as Good for of

now really margins products there economics And we I continuation of But either. broad, both over the to with long-term. again pleased and be as the much this selling good don't as think think Medicare as right differentiated that big on is in plans, marketplace supplement certainly the Advantage very don't for in choice provide move are been pleased introduction the the that the of our Plan in have we like the perspective, and what vast but really have in both We of G and we of with the first of very terms our business dollar call marketplace. resonate today the are But XXXX the coverage, collision Medicare seeing certainly in majority in seniors' of a those we're terms of the choosing. the middle actually

Lynch. Kevin And with the from is question Bank Merrill of next Fischbeck America

although have benefits, watch year, reform over on that you might to the guess competitors next the I to so actually start back sustainability back follow book tax literally go pricing have benefit. a long-term change guess facing that the to the United wrote wanted of don't you to in and actually and almost per decide appreciate I wait. I put with I the suite. membership. obviously I and to And

And probably want think actually not versus that businesses. so wise pressure pressure to thoughts could I keep there much of business? think will benefits But would the any where Optum you perspective And there have within -- some health perspective your less so you decided is most on than get of give might initially you the that maybe plan would be that. competition largely would then be keep, on that? I how more think about to the businesses

so to the combination two million, health So return the the is as of rate most to of relates then, the to would on relates will. tax insurance amount reiterate, again second we policyholders, million you need it that is minimum One $XXX $XXX if that to the MLR to to just the things. And lower tax.

is returning So -- and those premium that I if a what more more is a I say, will, values of would hate characterize to but of mechanical element, consumers. you to

the which as in to being we're substantive you which transformative other you event think well system way. top to costs services characterize earnings, applying As managing if about the it as half our as broadly fully of amount more of top or I'll improve the relates the retaining what more that, substantial we On entity, dollar to better invest better, then that, market. ones our as the or relates healthcare urge flows all which is, components will. as services. that, and the well offerings of and portions of unregulated is which returned cash you to as it improve substantive. to And Those relates as in a sustainability, then business, to tax the And and the health see marketplace. the regulated about reform can being on aspects change in invest a bifurcated that -- and One again, the UnitedHealthCare, to affecting I other are think are investing, would

outlined. such a been already the substantive that be the reverted to premium because So in we our that in that's back other fact changes we’ve have of values, view, amount plus we it believe sustainable,

value. you So in allocations from our pretty if intention right how is on, which made at this best is distance, reform stage utilize the tax to determining this it’s early we’ve will this that

Taylor ahead. question go And with from next Please we’ll take Gary JPMorgan.

want Just call the and growth wanted meaningfully growth a accelerated sequentially. revenue growth OptumRx, revenue and it anything us accelerated like to for about sequentially the the looks to out there accelerated pretty year-to-year ask bit -- OI you little And there.

Gary, fairly I’m that we not got sure your it question, was broken.

if you it So could rephrase please.

I about was asking OptumRx.

you, much Okay. better. Thank

growth, revenue accelerate the a like fair And pretty the looks well. growth, sequentially year-to-year was, revenue growth sequentially substantially, than as OI it amount question accelerated and the

Just us performance? color a more wondered that could you give little on if

I’d Sure. please. Prince, John ask

our terms key in driver the the scripts. that In of of increase is acceleration, I think strong adjusted

volume, look you at X%. our is up is So driving scripts if our adjusted which business, our

long. Our scripts are actually accelerated been year all

the other quarter So any our in highest script QX year. growth versus in the was

terms of the in clients, had success So new that we’ve market in clients. on and keeping is really business the winning taking our driven by new existing

other is Specialty so key it the One been from And has the it. from business. driver that driver also Pharmacy

market, highlighted existing business that we plan open we’ve the that’s been the you also in market the where Day in Investor that very with at both and market. specialty compete successful So

Our story resonating. value has been

has been for members experience physicians. solid, very and both Our

that specialty been And driving revenue growth. our a all been has of getting lot business, so overall our uptake pharmacy we’ve in

So very the solid standpoint. from business

your for you question, Gary. Thank

to as going little questions try here to bit We’re get to possible. as this pace up pick a many in the

Next question please.

Giacobbe Please go from And we’ll Ralph take question Citi. with next ahead.

more their A small of disruptive will that you mandate. think dialogue you’ve think and had time had little be, maybe lack being does how in Any thoughts guess sense on I individual your about the updated bit appetite you change and and order enrolment coming or back of to have to time back at won’t has passed with due executive I And maybe on your for your What’s XQ group. think. small their and that approach. to group, call relate commentary all around pulling

could you Thanks. well. that as flush If out

market executive order Alter the address just about moment. and I’ll Jeff to have a So here talk dynamics the in then I’ll

the think momentum limited it, order executive or has considerations at initial have the three one how momentum least we to that So HRA as I short-term is duration plans, and also the most well. but components association policy had the around

to of I available think insurance effort what an that lead are in is all more to consumers also to an participation. And to more So the these that products stability of pursuing I happening that that expansion broadly. is across administration lead and market think

the offerings are we’re So the way. expanding consumer think that each and geared of of really of regulations that, of supportive in and every have. I continues one that choice these And has

So access supportive affordable efforts of are choice provide because lower these much options. costs to healthcare well know frankly seeking you we’re alternatives and as improve and cost more to consumers too

plans like We’re have designed remind association important other is don’t enhance regulatory time still health the reviewing individual we others to this characteristics. of significant to speculate PEOs What’s group business primarily the they and But must potential and in carefully would market. the insurance association plan they matters. coverage be the market, that we’re these that on rules experience in like and in going not about health outcomes do to markets of order today, aspects you operate at offer small I and/or ensure and destabilize options have similar that our

then that to largely sure the unintended Jeff, aimed, first that making no So quarter, there on And you commentary with these. be that’s is consequences is please. respect of touch enrollment in will can our where

the another we that and you higher of group quarters introduction, has quarter the frankly, of introduction insured makes of run increases our our has in fully had from at and higher a When XX clients. investor conference for growth. end market much saw, consequence outlook of full unchanged year-over-year that at our you much a that’s strong As tax. insurer health growth dynamic resulting look is that XXXX strong quite of And premiums the XXXX,

at look one-one our in very with large So business. our in that enrollment larger mind, we

the of in to and we growth. our remaining see believe year group to continue that run that will we quarters three small paces, growth We growth the strong continue return as and

Stanley. And we’ll to Morgan with next go Please Zack go Sopcak ahead.

perspective quickly Optum? ask think Curious think what at Thanks. United highlight, rollout see to collocation your how that’s Walgreens MedExpress going you your you’re broader about about Day. a wanted Investor think have sites your for in I how about about you to at XX and metrics or and Just

has Morgan I context. keep to or attention this with so the JP gotten a activity this know I the want of Conference. week course lot in here, over at some particular, last the into of

also dozen a Walgreens to attractive that or convenient in would is about in put to this as more locations we final to good have model We reflected adjunct results pharmacy and venue are an than consumers. or of NPS whether into delivery. levels performs an without better side a we’re that very, systems. be meaning we was quality that had brought performing hoping throughout health part so online with that lower with XXXX higher just service in an see scores and surgical MedExpress their overall The our local a not consumers really I service that very context for at this of not but cost with care case can from of care provide retail high near want and as as MedExpress developing

considerable it house So health and and future things that system value see component people. nested market is with calls care local surgical This that just delivering be one that maybe the we inside a capacities delivery of ambulatory to nature.

deliver to possible are local these with that interests thing we can additional to is emphasize others to see exclusive an in as particular, as being as other able and This one, partners other want productively value just line we’ll venues if evaluate in I The any our people. to communities well. to is

go Partners. Leerink Gupte to Ana with We’ll next

you did XX you become systems? get choice? how type or competition the with health see side And then the you of of are strategy on DaVita and And private facing Optum are and either into the wanted or Obviously, markets. what other your out of on thoughts other your into providing do XX care to M&A. acquirer asset. the the What on plans So organic house, the firstly of build equity target

we’re nicely got for But initially Andrew -- to positioned go. wonder I here, we’ve long we if Hayek ways think but that Andrew, I a over

years care strategy build this to out and started first foremost, Optum high in So networks we care several value ambulatory ago.

in addition several years DMG another The process. step forward we’re strategy. so And into is of the that

DMG’s and care is and combine And each remind care Stars, outcomes true to enhance add And lot We’re need to to by we component anticipate allows with patient the in groups partner leadership. Reciprocally, are excited We we entering IPA, the overall capabilities about They’ve value. centers underway. results with the experience serve. outcomes, patient our that been competitive. midst remain that’s us to right an Optum are centers also and the and enhance and our We demonstrate we the value complementary. and care in of And for will care. through targeting capabilities provide doing And the we cost of to stronger. achieved and markets Optum local this, outstanding More opportunity we strategies to DMG. reduce very we believe But medical a can ability strong DMG. combine would the across many have parts. the that clinicians, clinical in experience. step of and clinical national I very into DMG’s make earn process And our and of us we forward value you that broadly, the ambulatory markets that leadership we’re surgery approval

more we that think So healthcare as capabilities, have we can enhance the ambulatory medical needs partner ability to we and that of partner. broader grow marketplace earn partner in a with right spot a now and various care and more our combine the attractive and more we And address the assets to become IPA, the group even attractive continue we an overtime. and become to we

and we So growth enter are it information, in consumers this early apply it's areas into key be one, Ana, the systems the technology receive one and performers difference make these markets very and thing good relatively on Again, enable very to for question, strong a quality, the one quickly, market. really health to five in feels cost and to things like future stages. those of other but assembling

to come coming on years to as more So roll the strategy out. continue we this over it

please. question Next

Morgan Frank We’ll ahead. Markets. go RBC next to with Please go Capital

now, particular drivers in that the any quarters in would what you on of if your called of behavioral growth one care as and What product? of of it government services, confirm several growth. that And to was then said I area. want then versus curious I health growth Medicaid specific For the you affiliates growth out give a OptumHealth. inside a you if just price additional or the could markets, us think I Thanks. and wanted also you services in-patient volume? break And X% is organic out-patient color surgical out clarification, more is of

That growth rate thank same-store described, Frank, as a oversees is businesses. Andrew Andrew Hayek? those you. we but all

patient SCA so SCA, at with net growth the measure how for our X% we start growth, same-site will I that’s revenue so is organic several years.

and could and volume XX take that’s $X,XXX. than total pain rate. the could and XX of replacement in take that mind so less reimburse minutes couple hours joint injection combination Keeping or And of a reimburse $XX,XXX,

strong with high health very we markets, joints, cetera. complex the measure. right use M&A are as systems, the being our disciplined And is groups the we medical a cardiovascular, partnering the to health and spine, of ramping shaping grown as over cumulative dispositions and strategic the the high X% et strategy in pursue, as organic and acuity that’s make sure several plans focusing past that procedures, is up impact total we in portfolio, same-site years, the number, well some on growth of the have revenue reflection end a range So of very right

expense, And our our needs disorder. same-site to growing the with to the very we’ve substance performance across continue So consumers, abuse growth and strong that’s and health, SCA we ability rate. the X% script, including had grow On medical board we’re behavioral -- our portfolio. including the pleased was as our in as serve autism in Dave mentioned

to each feel customers good up product ramp And in the so And external and really segments we about our we continue add serve. grow we that very and virtually presence. our and of

the prospects feel XXXX. the the and very trajectory good behavioral, we’re we on for So about

Sarah with And James Jaffray. Piper we’ll go next to

the the trajectory ASC, in-patient track And does to you this systems to demand, you total of the surgical see your the OptumCare individual currently was service? or trend changing much of for seeing impact can on insurance and step allow from that? Can diversion that just one how back-end going technology environment? tell that you in is the speak annual taking said loading surgical it In I is this how you So the non-UHC OptumCare’s for that or you But Do of with ASC consumerism of versus past, the not location year impact further. members? past? in-patient this submarket wondering you’ve member could on data the volume basis exist and diverted Are side. am

a say consumerism. would into I wide stepping certainly ASC lens, fits from that back environment,

Promoter clinically as on site; Score cost price the And plans, various experience, questions; XX, consumers at it than based ASC our and roughly a more asking the in of are half being with asking we procedures quality on they study care when are appropriate to membership questions their outcomes, for the patients are in years care; so very are less patient same sites aware And more environment hospital as of care alternative well searching and for high over more. of the we rising of half the anecdotally; is do, hear responsibility and the financial based their they more to having deductible several attractive a have effectiveness; we of physician; procedures Net the procedure past environment. cost this; of setting

fit anecdotes our very we sites. consumerism So drive as we the interest does that increasing affirm and as data do many some consumerism have well well many, into in

of In quarter to year terms and seasonal, procedure would before they the the due spend. They the of fourth members the have deductible rather to patients when back-ended at end by are done nature, the plans reset. a get they're been years the always and that's have the

about this partners to different that diversion work new in-patient of And then nothing receiving, ways. trend. is there market measure we're plan in the share various with multiple that So of or in terms we or

this the very partners do We have progress. of higher spine, a days. opportunity to in a track acuity number procedures. capturing think still of pilots a very total we're better job We like appropriate is right, And plan clinically underway and We're to still replacements, with procedures. health it. about There complex the making feel of multiple lot about joint good early procedures, cardiovascular

future So holds. very what optimistic about the we're

And Arnold go with to next Christine Cowen. we'll

is backlog $XX really OptumInsight about uptick you areas you're nicely backlog seeing the really in where billion, in that OptumInsight? talk the traction specific could building? And where And quarter.

during In your to billion Larry's comments, shared, year-on-year XX% point, $X.X growth. To that’s opening backlog we XXXX. we our added

terms We had performance. So $XX enabled to objective. we're the us achieve in which pleased that a of QX billion strong with sales,

business, through QX as For came contributors our our ambulatory cycle that primary well sales, to the backlog as state business. government rev

billion $XX In robust Investor a provided us terms Conference. we forward, billion should path take you that the during to we very into achieve our $XX help to which guidance of XXXX, pipeline the

next Fargo with Costa Securities. go to We'll Wells Peter

your your called of in only you it the reform ahead quarter. But easier My even own question that out UHC on tax that makes the looks us. your like was for items, ahead fourth guidance. quarter guidance appreciate Well, I very was running much includes your expectations is so changed And the fact of guidance. fourth that the

some guidance that to were that changes you're about thinking there other forward? came more things going quarter? during there aren't we range why does the into of that or be the comfortable Or So at the imply play that now top-end should negative

reflective that of guidance established additional it's the to to was based or balance of the how depth company performance the this XX we advanced it's Overall, out instance, really first is investor of it our think and and changes with it's and itself conference upon we performance guidance. pleased Well, any and reflect of what the the Peter had for initial nicely quite core we're led appropriate I we're didn't of think how maybe the our time beyond. from At necessary the days XXXX XXXX business.

Let XXXX. quarter for expectations through reevaluate or here us our are a and get two we'll what

the what And you prior period the quarter, was if in mind? fourth development don't

think I million. was it $XXX

consumer and diversified marked delivered was revenue, thank strong, XXXX, meeting UnitedHealth outlook including you So Peter. virtually every a practical innovation, satisfaction. foremost and services, cash wrap and Group, performance UnitedHealthcare products earnings. growth, quality Optum distinguished experience measure, by or To up, first and by and increasing exceeding Financial and flows better our customer in

Thank and to trust momentum loyalty, greater you for continue carried interest many come. into to for and today. to expect years continued have quality We and scores enabling your this XXXX improve growth build and MPS

program. Thanks participation. And this will for conclude today’s your

now day. may Have disconnect. You great a