UnitedHealth (UNH) 17 Jul 182018 Q2 Earnings call transcript

Good morning. I’ll be your conference operator today. Welcome to the UnitedHealth Group’s Second Quarter 2018 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded.

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

thanks quarter Good for joining for morning us everyone, report. our and second

helping satisfied. are in and by and but the us care deliver lives build care, advancing XXXX, in strong and work reliable beyond. our value health drive experience system the Consistency We position in at healthier live and high-quality people critical mission, in to experience better service for consumer fulfilling are to from These innovation loyalty. our are results financial Encouraged, trust growth and system and retention everyone. across how make and to XXXX, consumers, and physicians the health health Continuous helping encouraged large. care and improvement businesses customers, far

$X.XX grew illustrates billion share. half, Adjusted XX.X% adjusted performance billion. to XXXX on or path. first increased operations XX.X% earnings revenues flows grew and half First billion, year’s execution $X.X from to net cash to $XXX.X per this Compared strong of last $XX.X

flows new to net previous outlook to from guidance. our which operations share to of $XX.X upper XXXX cash And billion, for of is $XX.XX $XX.XX full-year, range per approach end we increasing earnings expect the our share. the for For adjusted is per a

XXXX, in meaningfully XXXX. points is after Net in tracking Promoter again our to Score enterprise-wide increasing Importantly, advance X

Our our our across government generation will at that strong believe improving or our of market rising. particularly advance evolved managers, to and benefits at physicians across plans personalized employer consumers, and the next UnitedHealthcare be digitally to within seniors combined delivery the highly XXXX. continues of and NPS remains consumers care with with strong customers base upside practice and Quality emerging solid, strong NPS to NPS opportunities by services commercial Global network around are our innovations Advantage consumers. with business is benefit pharmacy XXXX, X-star served and enabled, with their improve a be our offerings Medicare in will OptumRx. performance. consumer-centric strongly looking We on health businesses, and performance rated program distinguish customers and more XX% Approximately further among we base in

developments Venture open some sharing through organically; innovation investments; of conference. in For innovation we be create annual continue strategic look plans top health local just the XX new and, capabilities. investor innovations partnerships businesses with and building our forward these ongoing businesses enterprise; of other investments and throughout to acquisitions our and you We and at from source years we commercial benefits, expect for HEDIS a will market health to care in future rated more up categories XX through And better help two XXXX, ago. than in

percentage pharmacy and NPS care pillars. value. scaling As care gains Results five those do is our continue five Transforming our growth, expanding people customers Group customers, services serve in analytics We while lower we carve-out deliver technology our across care and across and manufacturers, award you in ways pharmacy costs, are one years’ at our on of both plans and to service market on engaging employers in our and better more rate, business, retained integrated patients. we medical capability, five, and refine value higher plans industry. Over to share experience and the while clinical clear long-term pharmacy and pharmacy data we care we UnitedHealth expertise, and services. those applied existing leader high carve-in new basis. years, growth synchronizing retailers to distributors, a suggest services the a in are for apply health approach, than experience, platforms, with a differentiated hardening, competencies Health a so have experience focusing OptumRx the simplicity, learnings XXs and arena proactively competencies core just to yields now transparency, know, pillars. year-after-year. in continually operating core and market Applying employers has

and This lower services appointments consumers, doctors’ and Together, by Here’s take. produce on client’s these because identify helping value. consumer and close likely they customer pharmacy physicians the actions critical quality, to data thousands while better year value to real our how helping time, processes medical in care and will basis. highest is works. insight a prevention consumer care. adhering diabetes satisfaction. action our use to coaching engine action specific analytics an lab, next need multi-channel no this actually adherence from hundreds costs weight improve digital specific to then pharmacy advocates integration or hospital help regimen, of an by and advance benefit Optum’s XX%, people, pharmacy help chronic digital approach produces clinical, individual or demographic, manage to they information at administrative, likelihood would to most improves the level medication loss and are behavioral of schedule a X%. the taken in deliver This patients, and That integrated not a individual element is gaps admissions program. We Perhaps ER reduce a best condition, of

integrated the patients we record, will that people coverage These direct flow experience practice the course who of over to of PreCheck continues the a timely, year, offers prescription to of cost is today, the a at to million delivered transparency of capacities many at and consumers. as convenient helping PreCheck and into as X for care. figure service over next the electronic point treat grow through the formulary prescribing XX simpler the while the MyScript physicians physician and months. digital will consumers OptumRx OptumRx result MyScript. real-time pharmacy their Already the Our have counter, clarity, simplicity as and PreCheck information aggressively pre-authorization their MyScript next physician by emphasize medical delivery

pharmacists sites. We delivering provide counseling day to homes specialty XXX,XXX over to specialty Our patients used infusion modern same provide and in clinical provided delivery, day via pharmaceuticals have telemedicine. services, our providing convenience through in these and times by annually, pharmacies hubs prescription we with delivery apply value local begun receive next support long refills for needs. their and these Patients through services medicines more of maintenance using to and advance home their services, refill have broadly OptumCare our dates

as than sale the offering to will more consumers. Finally, point improving counter. discounts the for pharmacy insured at benefit be embedded million a of leader in real we in consumers are design value, X These UnitedHealthcare basic transparent, consumer meaningful discounts

us and reduce We for cost role the the giving in a both drugs pharmacy net for unique are incented customers, chain. only the total value the people supply to medical cost party of

spending. value. simplify cost the pharmacy All five quality, the trends, performance highest ensure and safety, improve service experience part of of across care growth helping medical access and our fulfill our health patient the these consumer’s growth while Innovation, serve critical mission capabilities reining be pillars appropriately we levels will in to manage in markets us help doing to and all care advance and

Andrew it Andrew, an on turn welcome UnitedHealth now Optum our Now, let update Witty Group. me to for to business.

Thank start Optum you, unlike whose platform, all any which has is today business health the expressing appreciation by the work world. toward extraordinary Dave. created admiration other I’ll care those in and my frankly

the as OptumRx nimble, grew over grew serve in data As Directors, and it nearly Optum in advisory as person Group serves analytics, consistent, a Optum X% services. XX% businesses. OptumInsight’s its X% company to we to last prescriptions, of year, and to again than of of business to its strength diversifies backlog to last expand ways, earnings growth about the of pursuit increased year-over-year, CEO, adjusted capabilities Optum at further as the the disciplines. driven am more OptumCare now, this of know rose and revenue both mission. XX XX% per the more and on had And expense of impressed people, the its by to solid, million, strong second growth it the In vibrant inception, And growth year, This from have Optum’s its over technology, every since and and UnitedHealth filled breadth by with people continued its revenue and process Board by Optum’s its for expansion, advances and operating points revenues talent $X opportunity XX.X%, fundamental revenues will of people. embraced level get over margin billion. opportunity and member share. company basis market grew to due strong billion number grow performing company of I approach X% producing quarter of XX operations Overall, has continue in is and more nearly to $XX more second XXXX, the serve enabling earnings. market-responsive and well. OptumHealth and the Optum young it quarter I grows

margins Optum segments three operating strongly. earnings and all Importantly, expanded grew

customers primary comprehensive to wellness beyond. capabilities. health billion to effectively cumulative a services. to to front has working moving real deliver just with care their for intensity easily programs, at or market-leading and has digital engagement early an to many. growth positions like and Rally we for now multi-payer scale, health, paid Rally best incentives taking digital and these screenings, consumer value health the their XXXX Consumers care health earned emerged care the in plans for creating loyalty. benefits pharmacy consumers, differentiated pursue platform, marketplace. like part the system. sustain coaching the apart their models, pillar, consumer. much select us a health Rally triples needed, Digital assess when incentives while physician, individuals fully digital helps ahead, stage surpassed actions $X engage receiving looking to into in health, is improve operating our to families, engaging By of implemented care standing is with is Rally smoking, UnitedHealth Optum, Group stop digital in Now, name of health biometric people number from our three higher door telephonic selecting as legacy a consumer and, growth the of Rally,

actively our customers of XX% than working medical millions and steadily, their costs. avoiding to of experience compared to Already analog integrity. result, administrative coaching ago. efforts digital, and As of their clinical moved and maintain OptumInsight engagements one-third customers coaching only are supporting in continues grow payer to have entirely more our approach this customers, a improve payment year dollars wellness with downstream large an and one to new are quality, accuracy small,

artificial like and for care and Our improve capabilities the and Performance intelligence deliver enriching in care the to sets providers. to for valuable structure Savings to the to natural physicians, At embedded the Optum use procedures applicable improves NPS patients creating care are of of long-term for administrative growth care the and pillar health who see performance meaningfully more of while nationally. care. sustaining range of and and offering clinical Analytics, effective less to information another compared systems service one-third in in data quality, clinical XX% the evidence-based models, modern payers processing in for more important deepening more are XX actively scores of have is clinical than nearly advances our Americans advance of curve, Today, business locations more and, digital are XXX of it examinations providers health, sites proven benefit product of and and care OptumCare, people. enterprise. This its convenient in locally effective like both we than we health the and OptumCare early use sets areas medicine customers. all sites consistency community practice is at we and growth language

XXs Dave XXXX. delivered being and care high value three health client higher Finally, the OptumRx, plans translating is including retention at continued say, pharmacy new heard the for wins, services rates into NPS new you and as in in

for to in prospects In even today and businesses processes UnitedHealthcare’s at health make Optum care. next XXXX. now, come. to for position to We turn performing difference are for by call as preparing to like us Nelson, energized I further for I’d in believe And technologies grow hard with the investments strengthen are the years has meaningful we am and Steve a to XXXX, CEO. and over potential people, we capabilities sum, our growing well our work year, and already

welcome. Thank than the nearly past more billion over X.X serve UnitedHealthcare year you, Medicare quarter, All-in, revenues over $XX at State & Community our people XX%. advanced more nearly and growing pace, XX Andrew, with million to XX% grew more to than growing in and billion the & XX% months. last $X by Retirement revenues a

to nearly business steady risk-based people. quarter, serve XX,XXX growth continues of grew people senior sector commercial this XX,XXX million serve with public Our people, offerings while more XX the and to in

of products our We similar for total, performing The also to over last year. quarter quarter expectations, the operations managing In in our pricing experienced well trends consistent commercial quarter, billion in-line grew quarter costs we cost products fee-based the UnitedHealthcare. are steady, of remain second receiving we’re and expectations. And, from medical minor across last on attrition in $X.X second our earnings remains X% with second administrative risk-based also second year. with

are forward, enterprise more we well global. and on Looking growth progressing consumer-centric two pillars; benefits,

better As continue digital the align to as digital resources consumer we the advocates, system health measured care our improve and value-based approaches integrated position greater modern, approach achieve consumer simplify delivery, and total enables people objectives. navigate by information by care and This experience cost who help personalization, benefits, data-empowered supported and experience. consumer-centric value, human care improved and of increasingly modern In and we NPS. with flow their our and

X% driving key a in screenings, X% our seniors in of a in room of rate with visits. products, increases is Medicare emergency XX% and lower value-based the care doctor increase example, regular number use For

business. care, for the for the as a decision patient, whether make impact benefit at health about person a improve with the healthy helping which effectiveness to all our true, of and treating their drivers a offerings. their moment on best themes executive that in All to a need quality they of then affordability simple ultimately as hold a issue, possible cost, and overall people understanding prevention, consumer it medical growth making patient satisfaction. satisfaction, a and making retention it, focused These and them It’s decisions consumer physician or value the is business

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business American and runway well strong for positioned, long South is stabilizing a young assets, a with growth. environment business Our

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

The reported this XX% over well-balanced growing Steve. than last billion. more year consolidated includes you, quarter to Thank morning we $XX revenues

from billion. Our $X.X share, billion, exceeded XX% cash operating $X margins. on per nearly grew earnings operations steady XX%, from Adjusted to growing to flow $X.XX earnings and operations our increased

of XX.X% offset to consolidated and tax, business of changes or minus care basis impact medical last quarter, points. ratio to within year. minus mix expect development, commercial the we our the expectations plus plus health XXXX reflects to in basis range of both by well the our with care compared to our reserve XX Turning In the trend X%, XX details, range ratio of in insurance of XX.X% continue or points, run

favorable cost was quarter’s to principally This development XXXX favorable quarter from business. due true-ups the first

tax pressure revenue quarter basis the year, of and business in like cost and lower second only operating innovation over higher Medicaid that operating investments about health We and despite across with percentage return operating Medicare expense businesses in cost the cost XX offset board. and Our ratio the increase development. insurance discipline point X ratio growth XX% strong increased last of points including from

share we Turning equity on board In capital to XX.X% XX. our balance by acquisition XX%, shareholder longstanding strength of to and our total distinctive exceeded flexibility. for second our directors at $X.XX activities merger ratio was June, and focused quarter continue our annual XX% repurchase maintain sheet, dividend continue raised the our to rate an program. of debt to to Return and we deploy through for and per and June the diversify company to capital share, further

and to for taking second strive as We while realistic of XXXX of view improvement, XXXX, ahead half a are the optimistic and the look prudent and performance into continued future. we

cash range we from mentioned, to expect growth in operations adjusted share, $XX.XX billion, Dave per now As the to XX% $XX.X earnings $XX.XX to and XX%. of flows XXXX approach of nearly

about We John. one of at one serving system at the as millions a with time, people, think result person time. health you you, a numbers Thank today of the shared

We continue increases our to deliver quality. affordability and shareholders. long-term the our sustains provides even mission our Doing serve and advance Growth value, differentiated and we more and opportunities simplicity, performance our in to people ways value growth. so for fulfill

grow we our investors. expect year the and to strongly the this ahead we we society focus year, perform to shift our midpoint As for continue when to and pass begin enterprise to of innovate, for

and across see now, won’t more we cash increasingly We expect this broadly global the grow specifics care distance than into to and tailwinds get health our portfolio. diversified of We expanse earnings flows revenues, headwinds. uniquely at but

system all growth diversified our across to As deeper this was deployment, other the value improve and coming businesses system. our improve consumer-centric technology will To health achieve NPS receive enable serve from lower make These our cost longstanding in investments strong to the largely our in five are into individuals mechanisms at financing achieving differentiated and improvements, case value delivery quality come. XXXX, our tailwinds growth, years innovations and pillars, structures, will and continue distinct heading to investments aimed businesses mission. the for from internally, growth the optimization, generated to also sustained

we to to health and surrounding the year. expect costs continue expansions next policy As debates into care coverage headwinds,

of will for return coverage and we and and or of Additionally, the on tax tax. delay in insurance outright higher consumers will lower XXXX premiums the levels of our repeal people, for advocating this cause a be customers behalf health

we those capabilities and an our satisfied, and as our Perhaps and perspective, business to serve. area better will to for the impact growth are even organization’s growing capacities may value strong more are continue agility, be, deliver even we to full of given enterprise-wide to serve reflect solid leaders. we change As work nor of restless my focus and more pace performance performing speed our critical our results, consistently has, so the not transformative full to to, intense and this our we seem, must potential. This Despite enterprise. of top-line innovation at, and unleash from improve drive our not

quarter on third on there. November you some hope direction annual XX. can call, Tuesday, in followed full join our provide will XXXX earnings review initial us Conference We our at Investor a by We

caller for question as get please your will we many questions. the we open people possible. per so can to as Now as call One

open. [Operator go Please from will Justin Lake is take with Research. line Instructions] first your We ahead, Wolfe our question

reserve are Thanks, on morning. questions good development. My

you to I Given intra-year then you hoping trend we could give some reserve any just what trends and mid-single for overall commercial but increased lack just us Thanks. companies on if development most Medicare was to make understand set development yours. cost the Medicaid of the quarter, to sure color the relative claims think in And you your about digits, tell of and segments. prior across I quarter you year have reserves, confirm adverse talk wanted deviation development us prior can each and percentage

Okay, Putnam. Jeff there is

and When know our very comfortable end question experience reserving the pleased historically. is really Thanks accuracy tightly we we're reserve with quarter a look look you medical, modest, for position overall in-line when our development morning. process year-to-date but year Starting time, controlled medical and as of where percentage Good second because the was prior we quarter at with reserve-in it of with that’s right are you your development, and over maintain time. at consistent our over as our of Justin. fairly the year-to-date you our

related view that we’ve we but on of as trends, now or we date the Medicaid medical similar with not last are would offer anything last seen into year and Medicare really with in respectful out and and cost some a the but at the also into we’ve could to As we stand then state-by-state for growth call had very leading that manage really or stable in always couple trend looked time, we are trends consumption businesses, Medicaid increased nothing inform there trends works as those we be and notable trends to to our are trends, comments. elevated commercial that need get seeing right trends areas year to I market over year Medicare of don't always details total, some and working on but by on down, generally category those. to change are to

that leading growth? what mentioned, terms The like market on you apologize. of in expand Medicare your trend I just you would can that drive

to ask could to speak Thompson I Brian Maybe, that.

Sure. seeing saw I is in consistent want to we're the Hi, trend very make not What really any seeing we're in here. Justin. Brian XXXX. clear. emergence of what Thompson XXXX, that we Again, with

retention given and meaningfully do onto uptick in growth, is, see later and as leading of folks that compared of the a both market our rest utilization I are to well in life. new point the market. think have form enrollees, for holding We the as our prepare grow seen the as we improved we

us provides we're and forward what XXXX share that’s again, and looks now and in XQ XXXX XXXX. like strong the XXXX been baseline we for in a to for seeing as good So lot gains saw what we very a look market credible

you. Thank

please. question Next

go Piper go to We'll Sarah Please ahead. Jaffray. with next James

is line Your open.

XXXX on question Thank environment. you. is commercial My the

that the you RFP call, pipeline normal. is national … account mentioned Is last than the larger had On

having are hard headset on we Sarah, a – you… or be hearing can may you can time you, a so you something,

Sorry, is better? that

thank you. Yes, it is,

is commercial I my was think there could national so, So, you us as larger pricing, walk that small I mentioned RFP you seeing national market the concerns been on last account and some pricing, question through how on than the call which you middle normal, develop? XXXX the pipeline account believe are have

Sure.

I pipeline think question development team. accounts the relates national to and

Sure, thanks Sarah morning. good

on I continue client nice accounts So, this theme that to obviously through some would more in progress selling as a you expansions the us season. tell is client At and season. as leave well had also in to national front, we’ve quarter and continues some selling clients, as as last season, had well, we’ve to there existing wins, is but selling that it still we point, new that the resolved be to we would is I the this as around think shared be quarter I amplify likewise the progress incumbency really

we group retirees offerings do convert We and likewise middle segment in through very the are to the doing as again well market to to continue year. well work Medicare we

sort is account that So, national the of profile. self-funded

also told quarter, and in that to risk-based the offerings. are commercial had group as a through it across market about I see offerings segments we expect think middle small individuals, environment market return to pricing we last groups you you from commercial relates bit from to had nice happy the our growth did the progress quarter asking as to we and as would We second perspective, to And risk-based all as year. through contributions well. in we the were

We we positioned of and both that So, it well look as competitive, at has we and responding market competitive. pockets status. to, as ourselves we’re but by served footprint broad well funding have well our it that competition segment as been environment always by find is geographically,

portfolio talked performing. price about this high expand that product to along for are value providers that and aligned As done that and well to we’ve some really increasingly time, form continuum in get our we

on some what segments you and So, hopefully is in that the color happening commercial both fully gave self-funded in markets. the the insured

Sarah. Thank you,

please. question Next

Jefferies. We'll go next to Please with Dave ahead. Windley go

is line Your open.

flip as here, could the the about wondered your of technologies, how good question. drivers then business if broadening are either competition so taking the Andrew technology of broadly And or uptake to secondly my part, that? the Thanks from different Hi, talk and adoption morning. talked over first think performed technologies of year-to-date, do or very of Wanted about a we environment Optum, the directly an pricing Rally for OptumInsight has two-part you margin and in might about you to mix well of rate more see company? uptake where kind

Okay.

those both the want take will We you questions. Tim to take first one?

Sure. to question. for do very that. Dave the thank much you Happy

and significant occurring a really specifically So, terms mix drove that you be significant second risk coming quality growth and business. quarter on an of the two overall then well business OptumInsight, the as about it opportunity of growth in is that’s and the continues is Frankly, that we think the important, you payment as and through in around important area and but think of XXXX items. about integrity, really the Optum, discipline about cost a quarter across the amount discipline financial businesses, is management, we margin and heard is One, talk OptumInsight referenced pricing and that to as mix we also in us the there amount as all and well.

job in script Rally done work last into is lines can has something company a Great. Andrew they’ve went proud that alignment well. question. single product tell the that if can will course making you make of on that was advance the you four a just remarks the with them, of but having of And as Rally Thank years. in for of I a very multidimensional few developed as we're I then along taking over the lot Obviously, described. it of there a very and our nice

seeing are to probably that respond need. greater offerings uptake and of of we we accelerating levels So, uptake as consumer our business the expand fast to very in fact

our responsibility increase premium for and/or today. example, care that effectively now the designation of to that are physician group the So with we people XX find rate in also platform the way we a started services which when to registered responsibility as we registration search gave across sitting other consumers, appeal and million which for a I broader believe program, dramatically an somewhere which is Rally gave around consumers Rally at

the requires in to also consumers really received. of they there So, we to that that is the of is of in believe but improved that that a best cost continue the containment, terms health the way Rally offered to we on each get expansion value both chassis terms that single value the significant and provide

we’re continuing it to for diversify how consumers expect that and to we expand that best that to utilization see next well. as we action health that people the developments see will the forward to and look and individual drives we simple with So, increased serve result a as offering the and record keeping and

you. Thank

you, Thank David.

please. question Next

next comes from Wells Fargo. question Our Peter with go Costa Please ahead.

first could past? how then the related Optum revenues to how under it’s welcome you hot growing understand out you I you. quarter in morning. question different growth M&A? Good slowed you expect first And you seat, to going Optum the much at quarter the Optum. be Andrew was kind forward first itself your relative of in can what to of in regarding Thank is about from and in My grown aboard want to if down that in the the quarter, spike

of the Sure. Peter for question, the ask have. the over has question. I address second first, them terrific Optum, in terms but much unparallel of me of in of foundations the at of very we in a part asset have assets second your terms early days to obviously that think very the here thanks this I’ll in Tim company seven years rarely, base laid is the last portfolio or I terms eight been of for

direct patients portfolio. what interface high care this consumers. the a full see, think touch points I with potential provider at bring gearing is level really very As significant forward, and be much I drive to how we very look the opportunity life start the around all to centered to is between think going assets these of of And to and local we as we

a capability, high delivering all and then of extraordinary backed done extraordinary of to So, contact bringing drive and that total allows by us quality business with ensuring all evolving face to digital down which is commitment high-quality commitment care a frequency underpinned with real way. of in tremendous care, an to really an cost care up

steps, question going of of So, parts have going I is us I all sure the the I characteristics next really the figure got more to described. business, this various much specific very on far quarter. Tim think understand now I to to on the it absolutely are but I the of tenants be making course of focusing the way in to, is the I’m all think the forward. going those business, out What with working be which could of just characterized answer team to Maybe, pass thus

Sure. the Peter, for thank you question.

and of I posting strong, advisory both business ago care significant of OptumServe and as year-over-year. both board, of the but with new with businesses, integrity. X.X First, organic and that volume payment in OptumHealth with volume driven and of plans in then our those it OptumRx the terms there, the very terms volume growth what is that’s we at OptumHealth, growth sales billion, and to at both were come OptumInsight, Also, by of of up growth and up a as I X% rates important strong also The growth billion as in-line strong at was the it well. market sequentially I our in understand would terms specialty looking to when growth double-digit also or posting in health think revenues OptumRx it. earlier look as in new of and of clients then revenue in as and delivery of very X% well is mentioned XX.X growth well pretty rate growth say is, growth quality then with OptumInsight those rate both compared ways each Optum year-over-year in expansion, with a terms In revenue overall year expansion as in risk of growth have behavioral that growth addition on,

businesses our solid really expectations. growth in-line the across and with So,

M&A quarter quantitatively what would versus hoping was growth spike the from was growth out exactly the I last this quarter. you

I tell but appreciable We that don't an would you specifically not out spike Peter, it’s difference.

Thank you.

Okay, you Peter. thank

Next question please.

Please to Goldman ahead. Steve Tanal We’ll Sachs. go go with next

I are context, really do comment with sort risk you decline what Thanks so, or that be of you just and guys. now of Thanks. coupled morning seeing quarter on of ASO strong to I'd Nexus why group a And question. decades long stalled there, think greater for if or follow if of for there? seeing to group up out the what’s ACO, sort this another you're happening could Good hear risk has shift in ASO, us products give wanted the that is? just on demand the you curious in slowed in growth Can sense business. you

Dan?

Sure, This Steve. Schumacher. thanks Dan is

a sort few the and self-funded attrition. is, but tucked on international You things normal the reality, regard of quarter-based seasonal is the to and In accounts just had in there with first in particularly there, just our decline enrolment. quarter pattern, it

outcome you years X the if that. look XX So, of last in compares at that much keeping very is average the or with it it into

So, really front. we the seasonal on the ASO just see normal pattern

seen several the had I the of think or a trend would acceleration years. migration what an asked there pace say, I sort in recurring be change to a last from you theme the to That self-funded. integrated is it's in to fully over comparable a continues we’ve add about

portfolio see I contributor as on So, to and done out take-up I that. acceleration taking fully we or insured any large are there actually really to share, believe the that think wouldn't We greater is it simple the value mentioned then for with externally, and around as before experience sure as them. improving our around it then making continuum both consumer importantly expanding pair have well partners product and talked performing making we we of and personal as about rights, the we’re in OptumCare, I had work and delivery market that care we’ve that what side that don't deceleration doing is high spike really

I about also You think had Nexus ACO. asked

national the as reminder We those offering to are accountable phone on care and for just that Nexus excited a offering. that prospects build really for a continue the is ACO product and

we've year we together solution. XX,XXX best that again to and national as to enrollees solutions Today XXXX. that Steve. string get turn got about double we our that. on we the a the double onto So, into We’ll time Thanks locally look by we of the end

marketplace growth Nexus but insured of you’ve why what would is be it’s the progressively growth to on if last really these of tied Steve and this and in the group one because of are the of before to over putting distinguished three years benefits, bullish the may be really question you that. growth example, or course the to so, and forward look hit So, centric for that we pillar category going growth ACO were designs new around consumer us, on

and question. Our assets attraction around than ways digital behavior you to lifestyle use creates for to modifications a consumer as ability Thank products great to these other well. engage your

Next please. question

Thanks.

We Baker will ahead. with go Please go next to James. Raymond Michael

open. line is Your

your venture some Yes, I health care. you. of investments thank promising was the future outline your drive could reshape you in-light of if wondering to

We’ll Wichmann. start with David

Yes sure.

and synergies respect management. of would Optum health of healthcare Optum services consumers there areas, a in digital Optum Ventures, care to care to able that is some more analytics, also I conclude us the consumer on-demand, being the generally toward So, use I analytics to say agenda. is navigate. arm with improve and four between help things and Ventures Optum invest to scalable that the focused give lot companies invest system Ventures health easier in that good in platform on visual would say the providing Ventures and data to board. health sort healthcare and Also, Optum Ventures test are health The system and main really Optum they shots access across Ventures reliable focused make health, Digital and investments

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add I would a that bit if little can. I to just

dialysis We category maybe when self-funded you as a we drive promote to marketplace, pretty well. at dialysis group our this be as of a couple in alumni, called, revolutionary particular fit value also [indiscernible] And of really we market that company will. use, [indiscernible], last the segment well just as comment which would insurance as called market advancing to platform, on-demand a a characterize consumers healthcare in build if platforms well weeks new mention our where on organically terms is as greater with couple. this would are inside we to business I to created businesses a I trying in the being trying holds an company company and for which as whole the potential home-based well venture announced partner created in that time, also and would then insured as One along

greater are couple a when to together we hope examples. get to are of profile the These those that for So, we additional things in a you extent November.

please. question Next

Kevin from is question Lynch. America of Please go Merrill with Next Fischbeck Bank ahead.

QX, the Great, raised full what probably about you least guidance thanks. are Sound, so range with you by a because a bit beat few the that other guidance the Banmedica, you third beat, the pretty with raised during year, even has happened at though guidance deals announcing far a the struggled that’s year-to-date of than a big because I things few been. little in want a I ask less guidance QX basically to guidance

highlight so the Is M&A if half first to fairly guidance trend would been by or far wanted the you headwind kind one-time of see the in you there solid a I then you why, So, in know given rectify second anything of pretty half the half? in year? raised given more you the and from coming a as could hasn't know first the tailwinds

Kevin. Thanks

pretty actually over strongly the course year. we’ve I of raised this think expectations

so. substantive and that’s new at about [ph] of identified pretty in pressure So, or the twice that total midpoint HIPAA effect we’ve quarter the $X.XX despite by around flu $X.XXX and a of some first

by raised or it it least at so $X.XX year. look So, far so, at we’ve we the vantage about my way point from this

economics and in America. think healthcare measured constructive are on balance change drive focused continuing South full but improve innovation on the investing to look is, we see we’re So, to to in deeply as growth, cost of could enterprise the North and achieving importantly we’re focus both and potential you capacity this containment that XXXX and we I

rate are I can long-term a interesting so five buy We and you as or to winter. continuing these for that Medicare also to first well. of remain deeply MPS in of advancing did growth that in outlined say, on for which the we should that businesses and measured again it driving invest growth we achieve sustainable our is we focused now is quality, have quarter So, Medicare the areas in committed past right diversify MPS us, we by

and same the characteristics third happens businesses in not UnitedHealthcare of well. to it second quarter Brazil the the particularly accretive So, as as bare the year,

aiming fourth a as see see material results part that in they given you’re relates maybe has our to So, that achieve. it of that will assets this full of to quarter closer well is that start the and to potential to is just improvements as or we But I don't lot what laid out to so. much is is what our that what and its suspecting company this performing team potential its so and and ambition is the is

in term. our will long we growing for diversifying after going the and So, are and and importantly get to it continue after continue get to investing growth, business cost, to we

more can your serve more better. question. good for systems we So, health Thanks, and so people

Next question please.

next go Wilkes Sanford Please ahead. go Bernstein. to with We’ll Lance

I margin was that Yes, long-term good adding for and Amazon, what's them partnering of cetera? then overall the I et of was strategy cost a looking was I with or with so in was Pillpack morning. also guess you far of although of online United the the OptumRx, entrant network, product drivers had questions looks PVM particular, Thanks. in I like pharmacy as question how in in the up like them at to margin for couple interested there, related of understanding quarter your the view up, invested just as and in are an and on some view

you Appreciate Lance. do it. want take that? to John question Prince, Great

the Sure. Lance, for just of John question. Thanks general. talk about Prince, in Maybe CEO OptumRx. margin the

We are long-term X% to comfortable outlook with of X%. our

on also in and with over product different the we’re of over when The we're fluctuate ultimately, our drive long-term mix think an business with comfortable our but time. time, specialty will variation and of really see product in outlook with quarters, so and driver a home-infusion the perspective. is see it market how comfortable mix think terms those overall I executing you from our I we really

pharmacy, online the work across partners system. we with of healthcare terms various In

We our very last specialty key of have in been our experience the our focused been half. driver growth and our and infusion business, over delivery, our on home has the consumer that year a

done MPS in improving our have of job We the those exceptionally areas.

businesses Those more added we work this to you been been a look has to day both where the that. retain market become in to in wants based hyper-local for the home are I delivery strategy, to investing be that, on strategy we the whether be online want day and they specialty in and digital we’re question. consumer next pivoting in year. six have etcetera. terms think hyper-local. Thanks us to wherein this how We’ve going same execute fusion, We flexible we’ve and we’ve year, are And I relates got think our in against heavily the of good market a if at so XX We add six mark we market see with in service.

Thank you.

please. question Next

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

Hi, everybody.

about think restless areas first I half, by maximizing are sort underperforming good standards this you of you what pretty done industry, referring the So, made about we comment performance could prepared few I where this better talked then the towards ask satisfied the not remarks maybe you end and you’ve in to XX% are still comment point with areas comments? the just thought EPS where at are consistently. for the I most and what also to of with in think was you growth think your the you Dave performance drive, where those mean, I

Thanks for it. the question A.J. Appreciate

in terms I those have we done particularly about is think of We think really didn't levels marketplace fair large ASO some that not how of but are I case disappointment, it pleased say to have overall. with highlighted of the today. we we talk

this is over that with required is and that but our a extremely it a in interchange of that that past consumer we company, our good the at place of MPS of example with of satisfied capabilities Very you performance If look the same demands. respond the I and reflective the years so need the improve. not up think course winning the of manage to anxious time moved order to to that get performance, to are evolutions at and

agility is is broadly pace one maybe just we to most I’d here. technology the driving digital another by that say nothing our is the I are use and want and at don't figuring adoption but of demand to there by you to this and with greater leave So, believe of of wrong these out of measures point-of-view, just of respond challenges which measures one I kinds move and speed company be has, to with emerging we market the services. with most able that that should faster one that for capacity

of We health the how of difference systems and but view bigger consumers faster are all we the is a make these health them, effectiveness of well the with up get on front my need of and into the to hands people.

a are of so bit internal we maybe higher this inside little currently what have up largely enterprise And because chuck achieving, we’re view of a capacities overall. just the than call, maybe good to expectations what it having

So, to expect this it up. step

Okay. Thanks All right. a lot.

Next question please.

go Raskin with Research. go next will ahead. we Josh to Nephron And Please

line open. is Your

around the around and then specific area, or Advantage. guys how how market over submitted that curious be any about couple the you're Good curious what exchanges, reimbursement, would guys Medicare relatively Wanted last first to that and are that. getting in Advantage expansions next second and public you guess or there years? exchanges, interested thinking Medicare within the overall if interested just we've public market the of potential And thanks. you United you growth so there's have on generous that the about And especially a then in morning. individual more relative I over your I'm two decade thought Hi, opportunities now bids, think just seen to XXXX, ask

here. you, Thanks, Thompson - Thank Josh. will Josh. Brian your Brian Thompson Thompson first Brian take A question.

rate, direction that versus the points changes it's up define around I last with good some As provides the all the complement quarter, nearly for year three by then greater XXXX framework certainly policy benefits and that around encouraged flexibility we last you of seniors. how mentioned can

that coverages I mentioned, environment think senior and provide ushers in will and stronger [ph]. innovations opportunity the do you in benefit for that an enhancements As an for serve XXXX

be MA. for So, should great

As in momentum I expectation an with will we share that demonstrated think about last our continuing as it, the we've in gains XXXX over well. approach position four with years of the XXXX

as maybe And it relates I'll that to exchanges, just take one.

state our Josh that which years and as changed I said us about made joining in us. want past, Exchange. market-by-market the a be there very having you we'll has overall. that think small our is, absolutely to group presence that may as we we've one just I in And exchange. thing know for now, participate participation some decision penetration that to largely as state out modest kind to the Massachusetts there were always, we of that evaluate want required One where read have to of I for our to since reaffirm know first was decisions fundamentally back we has nothing future you due turned a a the on made several you out all noise basis. by are right to grown point was

the for necessarily wasn't part. it So, on our question. Thanks voluntary a decision

Next questions please.

Jacoby next will Ralph go Citi. go with ahead. We Please to

Thanks, good morning.

of utilization back MLR, maybe talk you about of maybe acuity? would moved it or And want Can cost Thanks. break then to seen much to just Just trend a higher and moving out the in helpful there between X% parts. claim whether give in to obviously expected, we an how lots per just uptick you've us go you're versus may quarter? the be bit than cost of sense then of if seeing you a be can the seasonality unit and last in MLR what Medicare terms piece, impacted

you, Quite inside Ralph, for few thanks but a Thank Ralph. questions the that questions.

- say favorable just there changing business and change all then go for development the outlook at our and is was with that we're and impact other in-line described, full-year favorable direction. less tax we right mix First the the year-over-year insurers' on element the is that, expectations as an that we to our the and on not earlier, is noted MLR,

over bit moving its still you'll at As not change in time our overall is No with unit a of I as that driver expectations in in category those acuity, unit total point. from hard cost that utilization, out then have think last on Banmedica, against a what each inside it's piece was I service primary upward on and there we really naturally category we to in-line remains the And in aggregate acuity a as versus What X% far base, expense work Dave - material Banmedica little on earlier little think view lower our it's given though see as place would being will categories. of bit the factor keep X% of our to cost this utilization. size acuity medical the touched acuity well. pressure each appropriate

expectations from our very conclude that in-line for you trends are So, this the year. with should much the

of with to the Our they costs health the that consistent very teams in we've trends, pricing are performing taken actions care are and forward very a well containing view past.

international, it You Banmedica as well. to growth it that international South comment very very well, baselines, America our as start take nice should around strong businesses offer last are for relates in year-over-year, good our performing also

question Next please.

Taylor We Gary with will ahead. go Please to JPMorgan. go next

Hi, good morning.

days at wanted around the then flow this acceleration such hospital in and it's point a appreciate the saw to about on revenue being down and trend pickup I of just in marked have on just and point of to a you more profit fact but hospitals seen that second specifically the is, specific to given touch a first on Just hospital quarter, any I've little kind piece, if trend? comment we've quick your trends visibility two-parter. in claims with the heard just of same-store talking all Any is, payable ask tiptoed comments,

have that take think when throughout the I'll as and we we into and well. what expectations year I really with things as last one Gary, the first our coming that consistent aligned and move it year, really are were

question part first want do to to your you The respect that? the of Jeff, days, take with

Sure.

of range seen to to historically, we've earlier, to the contributing are a level well linked decimal also Just point claim us mentioned, typically and things was modest we by, as that value June reduction timing, XX, to our it's submission to that XX.X risk receipts just of – a of to with little this and we continue there to there's talked and One in day is, that. couple you quarter about when reserves see as comfortable provider expected second that and down revenue third there capitated timing been we last to start released our which XX changed relative to year. directly when a impact days, out you've from quarter payments we're from days is within here it about to it's ACA period that XX the a the individual year-over-year And other effects closer days that's had XX. elevated it where bring we up than

Gary. you, Great. Thank

please. question Next

we And go Please Steven Barclays. to will with go Valiquette next ahead.

for few taking good are but This a replacement of Okay, from around outpatient just getting in the great. we bit total knee and new calls Thanks question everybody. the in-patient a is morning granular, to setting. the XXXX expansion the little now

the should I'm think in level availability at there seeing just this, some an you're I also could high far mean savings this now level, phenomenon this year? just so setting. because the in cost lower So, at Thanks. curious there of cost around be a around be increase utilization what high I but

from Andrew Maybe can who respond. Hayek, to SCA us came

view on the that with think offer do acuity question. shift policy is the I overall setting, outpatient based Steve I'll general aesthetic and quality some surgery, and center cost all for setting surgical and to that improvements in surgery care. commentary. technique to announcement our the will the surgery Thanks and the including consistent higher and that's experience of technology alter technique more improves CMS of

commercial joint total So, from growth seeing a been in procedures have SCA in space. continued standpoint, replacement an we

We've with basis that a of know a We procedures on for to eligible for the patient. years. terms widen and shift that our think commercial will really cost terms to good a with even we NPS, expect Medicare seeing patient that those physicians happen we high them cases. a for the health that be fantastic experience, coming been and savings. great are it’s number needs plans then to of and to in beginning We the benefit collaboratively preparing quality outcomes, substantial Medicare see standpoint, from of working years very range and continue over very in quality And are of to

patient care So, the thing all health and system. right the the to for

for which viewed great ambulatory invested SCA, in the to have acuity we and one properly of with quality ability surgical as meet reasons right positioned people offered those need why is were Which settings, consumer the that to higher expand in to the in and surgeries some greater ambition satisfaction. we higher more its and platform of levels

zone. a XX in reminder, SCA Just as NPS operates

so saving progressive XX%. very and doing consumers about So, while

please. Next question

Our Leerink go with Gupte Ana Partners. next Please ahead. from is question

specialty have out for Thanks to pocket your if any drug Good pricing the and seniors. transparency RX, taking on agenda actions reform aid on morning. question. change The you of the in spending overall plans is for question and or Good. administration's

was and the bundled of the largest D, three curious? at have I just Part [ph], PBM set with with Medicare integrated Advantage, – largest scale BFRX You capabilities big

Prince, Thanks Ana, CEO of it is John OptumRx.

drug drugs, lowering And you of transformative In on a And focused focused broader market. as drug strategy to what is cost very consumers. creating that aligned total for know is overall we is pricing, are that the decrease of on very experience. terms with happening Ana, really and in our cost cost healthcare in where in consumer

cost list that focused down very terms on, but focused drugs. drugs, price the So, we're more in of of of initiatives on we're bring importantly, what net the

we focused So, out a exactly. even doing what lot of ideas things that we're providing on are around

by people, investments cost, at know, now That is into the I all quarter, check late electronic my pharmacy the cost in that it the links the discounts almost That XXX,XXX doctor healthcare alternatives. is you in quarter physicians cost. script. his the idea an as on is does We've that formulary, effective gives David first from second very been it So, used started in medical focused and – what talked impacts people that directly lower on please we is that drug-to-consumer script. record of there in X being in million about transparency, market beginning impacts how helping think

market we price. to XX focused negotiations of we're payments, the that. we are heavily and on to pharmaceutical those lower our and list are our We focused very And right expand on on continue value the drug focused very encouraging in got partners – lastly, now

products people have to have done list as we've that, to with a them been on people working lower and they so, with when the And we've formulary. preferred come price put market

So, very focused it you been market we've a a care total cost on to we're improving the make and examples to things that reducing our practical gives doing cost, reality. series of that very in

Thanks, John.

you. Thank

please. question Next

with next to to SunTrust. ahead. Please David MacDonald go go We’ll

you. Good morning. Thank

increased what level Thanks. wondering Just drive level and if public doing to to was try local insurance increase private one and national penetration guys minute you the quick you're I governments? to a these question at also you're trying on on with at Global. the the could collaboration spend do more what of private

Global Chief Great. have Molly UnitedHealthcare Joseph, of We'll our Executive respond.

Sure.

very we supply around And affordable Latin health for serve. there for really affordability, see America healthcare our create our limited of core access those that a our platform across a is to care. demand outcomes So, focus and we and capabilities access and tremendous private private strong value

markets advance we they perspective. the are to these these are in our perspective more doing affordable core and that, with time, those make these in In that private to with open segments delivery combination more to from businesses work we more serve for health serve. healthcare holistically benefit and And up modernization, broader capabilities, care use market earn the a and trust healthcare Our of And serve enterprise and make government. platforms to effective we access over are diversified partnering both scaled. markets we it is medical from by they that broad,

and a not the use of as to analytics, solution examples with digital of the in to introduction really Molly in designs I and of Portugal. is cost-effective where the leading new countries is private that quality starting a nice on And serve of the we're team done product example, her the a and hospital public think working offering. government of strongest What in needs increased the market. to that had information very job provide script partnership capacities, and modernization our great particularly Portugal one our around you're feel historically innovations diversity deal of you people of bringing saw on have has of innovation and an

and for helps needs to that consumers you folks create expectations have private have. of demand those to systems point health the access price all serves and that multiple So different

very that we're they've So, with work pleased the done.

Next question please.

Matt go Please go BMO we’ll ahead. And Capital next to with Borsch Markets.

what on you. a guess to for – in If your the Thank positive this zero reserving, technical that data that, development. was in quarter term session I very I should first we we move is view there that there's that as had clearly is, just I'm you question on trying if to or could target here that's maybe the that the correct but deviation, the point, using the understand in But is a your – I'm sorry margin Q&A near-term you response just or again result is best to this is some adverse a reserve expect specific there ahead? bias

Jeff?

disclose zero. very been the Thanks for and business up built it do We Matt. years not target have it's that said stable That's we for question not a is something publicly, adverse by over deviation.

over over show up into from year. you quarter-to-quarter, QX QX doesn't shows carry really when you going really less it itself that up when QX. from shows to It is and dramatic get where a and Yes,

experienced of in indicated Thank the this really to related from all as that year XXXX as script, development it and QX that relates QX not quarter well. in first to the Our XXXX, it's Matt. the development you, we different

Next question please.

next go And Mike with Please go ISI. to Newshel Evercore we’ll ahead.

year? of from moratorium of Thanks. earlier, the I the And is think half you absorbed how the that from bigger renewals. a the headwind year in Dave, ask fee half impact first any that you're I right? wanted commercial expecting in the $X.XX insurer was health back mentioned much to of

confuse related to $X.XX, sorry really combined with to flu it that. of I'm the you, The impact

if specifically, I zone, hit $X.XX, recall this that Mike. $X.XX think I what component the correctly, was something in

of that but the second then, of in And it. half year, small? the Got most falling

That's right. Yes.

Thanks.

was day. believe metrics We that of to make all that we Thank – me. your your to questions, of that of for performance our the answer questions you. I concludes the one all calls sure and accomplished were able excuse

And so, good. they all appreciate them, I very were

resulting continue quality, reliable of and our we our path, – in improving Group, our for cash sum the and importantly, NPS satisfaction people growth executed return up and the well shareholders. So, report and UnitedHealth second quarter, earnings affordability for Revenue, the advance. people Optum but to serve on consumer scores for flow, strategic UnitedHealthcare to

simpler is value of more positively transformative much be our enterprise, While to healthcare, to we recognize people. there higher affordable to to potential of reshape quality, the and help be more done higher reach committed to are we full

of will This the continue performance Thank us many in come. strong we and for second year years the that joining XXXX call. confident this today. again are our in to for XXXX, half We concludes you

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

disconnect. now may You