UnitedHealth (UNH) 15 Oct 192019 Q3 Earnings call transcript

Good morning, and welcome to UnitedHealth Group Third Quarter 2019 Earnings Conference Call. A question-and-answer session will follow UnitedHealth Group’s prepared remarks.

As a reminder, this call is being recorded.

Here is some important introductory information. This call contains forward-looking statements under U.S. laws. securities federal subject actual are or and that uncertainties expectations. These to to differ cause results experience materially could statements risks from present historical A in the Securities uncertainties Exchange Commission, risks the of cautionary that and and description statements periodic the found included reports with be current in and file we including of some our can the filings.

section amounts Reports will reconciliation page of to Filings GAAP A & Investors reference Earnings the the amounts. is the non-GAAP also on at This call available Company’s of SEC non-GAAP www.unitedhealthgroup.com.

is on this Form in presented XXXX, we Company’s from Information release October page issued dated morning call which our contained in Investors the accessed be the the and earnings may XX, this of X-K website.

conference of Executive the Please the will Wichmann. David now UnitedHealth Mr. ahead. over Officer go turn Chief to Group, I

Thank today. morning us you for you. joining and Good thank

achieve the lower for care in XXX,XXX increasing value health everyone, system, of this The people health time. at provider dedicated one to quarter health Group made again patient a next care and generation and progress improved better measurable outcomes developing experiences, UnitedHealth person aligned costs at

net cash of year-over-year were revenues billion, well-balanced turn, our to these year Total In earnings Both flows or three earnings per and through earnings. adjusted times this and results. UnitedHealthcare to or X% quarters Operating growth $XX.X the XX% strong, and grew $XX.X $XX.XX. business. billion first Optum $XXX across contributed we revenue delivered to X.X advanced strongly share billion

$XX a year-to-date XXXX full range year’s $XX.XX have for to year share. on our earnings performance, increased we per this to outlook of adjusted Based

at our health building potential all on for designed achieve growth operating always, and advancing full growth innovative societal and costs the to As care driving on platforms, the returns unique and people, consumer change this are our and businesses, of scale, quality enterprise. focused lowering experience, strategic we

find we environments in a one to We similar of the ourselves record strong in thriving track fluid today. have

Commercial These uniquely both health are risk experience care at presence self-funded significant high-value diversity, delivery a not orientation, in perform fast-growing ever-changing businesses, for through and aspect coverages, States. combined us health care United health people and in diverse weight every our are considerable environmental with of and scale, across to This and at all allows a in conscious with for and initiatives. investors, new including the services with We Medicaid Medicare, conditions. care, emerging the wide adaptability forms we serve, spectrum of you, substantial, consistently

necessary align built develop system. purpose the growth to more and next modern changes the is Our agenda generation, with health to effective

We U.S. Americans are delivery, America; designs platform, on XX average. lower Accelerating million driving digital directly transparent, local transforming reinventing care markets in point-of-sale consumer with per more our per saving discounts, and costs digital, serving high-quality million responsive And now health this XX% patients of $X,XXX portable XX next nearly pharmacy at of services, is their XX the consumer-centric serving include maintained January recommendations and population within being personalized potential advancing Engagement care data to the benefits. reductions. incentives deeply cost proprietary, doctors. double-digit strategies records for and real-time XXXX, extended best hold to around medical digitally consumer enabled, in South person plan nearly by achieve U.S. care year action nearly

in people. deliver again traction differentiated Advantage to well-positioned to products Dual offerings our fall. and value Allsavers Harmony and NexusACO, are distinctive to growth And the this commercial Bind, Medicare markets we beginning from Our gain considerable drive the are

costs quality, Our relentless focus experiences on increasingly apparent. is and

Optum. and with greater Our of a all-time in at results; at XXXX at exceptional three-year X of XX% an Every completed NPS our have high referenceable. regular levels or members just Stars Medicaid XX% states are payment one are been never our higher; for UHC audit plans we year consistently expected strong Medicare

overall decade, line, MA come as for I half could the per averaged go past premiums for costs have below trends on. continue preserving X% expanded consumer care. care to health benefits, we’ve in cost and medical even well capita Our our operating

progressing sense a get today should fall that efforts our performance growth of You business our many dimensions beginning multiple across is to place. in and with

enterprise Higher the quality, socially growth. these to built health experiences, the consistent lower enterprise, next in and themes continue better been generation outcomes for a will be system have way, building and our costs, conscious an for

I businesses Andrew with with Witty, on Optum. to for our you our updates confidence, of exceptional business CEO and financial turn starting So, and expectations, leaders results

Dave. you, Thank

aging through system. people most therapies, a analytic chronic health applied and the rise intense achieving throughout tools set all an gene to simpler, deployed challenges by is more unparalleled with increasing of expertise experience, An and system. multiple health powerful areas information numbers and technologies, clinical are notably specialty medicines costly with and Optum on cost-effective these and conditions, the addressing population, focus the of data far-reaching increasingly consumer an into transformed distinctive underpinned all by improving physician assets, therapy of

simpler core system integrated provide We’re capabilities and higher advance a solutions transparent more lower closely our fully more and while more outcomes quality cost. making bringing to even the at together

care. data of is evidence-based now end-to-end over honed OptumRx enable is health approach holistically, difference medical aligning management and and for been and using meaningful protocols treating patients a pharmacy, This behavioral patients has years customers. and making several needs to

people of to with pharmaceuticals expect and including triple five the savings access of are years. higher-quality years infusion includes This five specialty services Realized patients costly serve we deepening over XX,XXX to setting, drugs, to next services. over XX% per to The delivery this with convenient, who direct less our high-cost number support XX% versus comparable an to number inpatient through infusion need has doubled specialty than more capacity these than last we and more quality. the

in list other systems, driving health for a fuel information and with as the health extend capabilities those participants technology cost such growth backlog the sets, plans as diverse to positive last expanding is agenda quality best-in-industry innovation both momentum and John strong UnitedHealthcare client increasingly impact Optum. continues the experience. and broader of governments, OptumInsight Muir solutions across OptumInsight the rapid system announcement solutions Its Health an these and offered spectrum in are having is care of on quarter. Business health accelerating of

provide like focusing But, services people how focus cost to patient care, to surround OptumHealth specialists better at are exceptional technology-enabled to largest optimal local OptumCare care today, OptumCare, primary site lowest proactive, integrated works and modern with care the health form and preventative a doctors information of insights empower physician the the I’d them in-home We the total and outpatient system. of and deliver outcomes on for impacting and physician-led, We select health high-performing part positively by and systems that of on medicine. to experience. with service. with is

care understand an intensely delivery local We experience. is

at So, I’d are like delivering developing of and to provide range capabilities a and full of local how few our OptumCare level. a examples

most Southern among geographies Nevada to is continues and our developed grow rapidly.

nearly XXXX. Our there XX% just since has physician base by expanded

In Medicare Our peers. in cost with commercial data, doctors HEDIS exceptional allowing well years better of care analytics, trends more is the the and medical cost Advantage than than measurements supported are fully nearly averaging are last people, In technology population, per than less quality of arrangements. XX% than record, single a them whom to X-Star lower and our X% the XXX,XXX over XX% care capitation with than Optum total by competition. all are more to plans year XX% two deliver

XXXX we the arrangements, levels. through people In nearly comprehensive California, region, care the value-based the accountable are Southern serving triple in now creating most platform X.X million

XX seamless California co-created Southern in and platform our coverage, our nearly people by uniting provides through network as serves achieving XXX geographic distinctive a recently OptumCare Our physicians, of With comparable to offerings. called UnitedHealthcare we Harmony a XX% XX integrated savings presence with system surgery care and ambulatory that centers. compared aligned clinics care, UnitedHealthcare’s product coverage experience open and payers a for of

our more physician from and nationally in care continue across state single a expect groups the Advantage care trend across advanced that people to us average. This national XXXX, to one-half to recognized in deliver at for XXX,XXX providers Texas, runs Houston. to expand sponsors. has In the up patients, Texas, than Antonio Medicare communities in a we XXXX. superior benefit medical Austin like clinical San Dallas, producing outcomes enabled serve This and geography is In from XXX,XXX relationships value-based model

are surgery experience for in newer we stage augment Finally, forward with other taking region, create steps more partnering urgent major align our a Jersey, integrating assets, care centers MedExpress New seamless centers to patients. and to a OptumCare and ambulatory

has practice more grown commercial by and market Our XX% consumers increased than our its in the than in Since XXXX XX% Jersey lower base XX% the in peers and care of number of deliver served New by advanced cost XX%. Medicaid. total approximately has physician OptumCare offerings

outcomes and driving are serving payers base, lower To applying quality, distinctive physician improve summarize, data collaboration, we growing analytics health costs. advancing at and our diverse technologies, to

We and quality, experiences more aligning will dispensaries. to leading and pharmacy regions, number as in as this our of and well broadly across specialty Optum presence, OptumCare expand further growth and OptumCare consumer pharmacy, a community-based integrating improve including and health our and performance. areas, growing All local deepen in services behavioral to clinical earnings capabilities cost physician structures

Dirk With UnitedHealthcare. turn CEO to that, McMahon, it of I’ll over

Thank you, Andrew.

more depends as affordable. vision UnitedHealthcare that delivers health to a enhance to significantly consumers, and element we that a quality. for a greater value share making costs Lowering system, Fulfilling society is sustaining health pivotal one as and on even creating mission access, care improving better Optum customers and the whole.

do a have this. We multi-faceted agenda to

few UnitedHealthcare’s me a share with Let perspective. focus from you areas

that XX% see excess In medical more business effective consumer-responsive, considerable alone than sites. spending There commercial be to to of well can shift opportunity cost-effective provided is care should delivered higher-quality, settings we sub-optimal, our in more our spend and high-cost on in more sites. these and

those and beginning are by having there XX% over procedures administered safety specialty of advantage significant be example, optimizing we’re and not we sites. better is opportunity imaging comparable, fully often better, delivery knee if significant quality. settings performed cost procedures hip replacement drugs and savings Similarly, more provide alternate with with the to traditional centers, and settings enabling to settings in through to for For ambulatory be for a

the expanding of service efforts are that additional year. services would this We this to high-cost part of approach end site our rapidly by be of

to efforts in billion these XXXX for in expect We customers. our $X.X savings deliver

physicians high-performing providers affordability provide a our people high-performing billion opportunity. to total with outcomes and scientific, X% annual evidence-based for and is is measured costs. this health clear The data Across lower on respect by as know businesses, savings to at and care adherence We health systems. also medicine access $X

designs accountability Using referral the philosophies health record individual total advanced we Our financial and good foundation, and are on and designing cost emphasize clinical increasingly aligning to performing to as is of Andrew the and which care are both improving products Innovative providers these downside providers while upside Harmony, care. high-performing and experience, quality incentives new who the with measures. our mentioned and full a care include network patient capable like who product products, example. reducing share of capabilities earlier,

significant also settings. to acute potential to post-acute is transition There patients care better from

Over millions XX% analyzes points at patient. year, deployed setting the of the selecting the care a of that physicians On the setting help readmissions appropriate for the needs most we that’s individual’s technology unnecessary arrive unique circumstance. for new clinical data unique specific nearly past reduction an in by we’ve average, to realize optimal

are care efforts. administering Technology we enabling the health ensuring cost these as system focused is always, of on And integrity. reducing and

and affordability doctors, efficiency digital their while across to in reducing support tools investing administrative We’re system. improving the burden

to calls phone provider year, these decreased to XX% thanks care example, investments. have this us digital nearly For

as efforts productivity billion. $X save And should should customers and well. this $X program billion abuse more year and and save us our than over automation year next waste fraud, next Our

are businesses. access care focused high-quality lead greater of deliver can products we and providing you on more through clients to greater our for people while our by we and people the highly reducing care the innovative total These new, of As for modernizing value and services. tell, value growth our all approaches improving actions cost to and

of it Group. UnitedHealth John CFO turn I’ll over Rex, Now, to

Thank you, Dirk.

value We led grew serve by earnings expand. quarter, third latter enterprise, continue Optum opportunities the X%, businesses. to more operating UnitedHealth of grow of saw and Group most the the broad and grew strength ever higher across revenues to people In X% at the the levels and

over health Advantage At growth eligible revenue seniors the deferral from growth led impacted are members X% UnitedHealthcare year, by Medicare tax & with added. dually last by Medicare and Medicaid in was XXX,XXX UnitedHealthcare, Iowa nearly program. XXX,XXX the Retirement, was by of when served increasing revenue withdrawal insurance

programs last remain year. we costs single remain commercial now Medical our in XXXX late digits. the We of in trend Cost well-controlled. lower across see the running government outlined trends the originally half range low

ensure as of our slower sustainable than are Medicaid anticipated, state improve, the we closely The levels. financial is rates our pacing partners originally performance to continues to work business to with while set Medicaid

as effective most We Americans, need. millions most are are access programs, for the care provide they deeply to quality committed in these way importantly to of to those

XXXX. We expect steadily improve our to performance in to continue

businesses positioned uniquely grew continued The quarter. and system earnings the at are to Optum served services XX% performing levels improve as the largely performance. Each OptumCare. double-digit third per consumer scope health in due revenue growth remain overall provided to increased, this high and intensity of delivered of the development OptumHealth

strong value across XX% its resonates led of services. growth payer adjusted the gains single At OptumRx, account. management, and proposition by achieve markets, and grew in transition customers. a OptumInsight $XX continues technology, billion, grew with as revenue excluding backlog multiple to large X% to scripts OptumRx operations cycle

at billion well-positioned first the net our balance capital strong through the return businesses And year leading remain dividend. months a and or to flows continued capital shareholders, times nine sheet remains with cash market $XX.X X.X of this earnings. Operating deployment of for to

Our earnings per to year. mid-point to at range per adjusted year-to-date an last a XXXX of $XX.XX results the share, from raise outlook outlook $X.XX us our increase the initial lead to provided share full for strong we late year $XX of

on of to and strategic performance. strong allocation In focus are year summary, diversified combining management cost produce our growth, capital another

turn With Dave. it that to I’ll back

Thank you, John.

and perhaps customers and translate coming distinguished value things back, growth and shareholders. sustaining you for consumers business real returns across Optum, sense ultimately Group to Standing and our the and into UnitedHealthcare place UnitedHealth for into that

time offer some for this performance the at know, thoughts early coming year. you we of As year, typically on the

translate commitment of next We this are value approaching ways. health system tangible into enterprise-wide to the growth evolving, XXXX with optimism, in particularly given market the generation

more year. typical prudent updated a shift And are that has posture XX% distance, as estimates handful point for would next recently adjusted starting more lower core our on to have observed at we Understandably your the to XX% performance nearer earnings also center long-term committed attention to now performance, to begun achieving. the to this expect, we of share per a remain to of starting this we the end

keeping for impact apply we allocation, us $X.XX of our with starting point, attributed the approximate this normal over insurance $X.XX of in-year XXXX. XXXX the and of in additional To M&A, health should we into And per balance the practice, accretive of exclude year-over-year, this primarily which share to capital tax, the XXXX. impact strategic

December As to progress XXXX endeavor is look custom, we conference X will always, provide a through detailed investor as at as we performance expectations outperform XXXX. at our and

growth. remain growing how and operates societal with operate health generation, We and aim developing an distinguished every to day. next driving committed system, our considerable continue patient-centric and the That’s business will returns towards to our business

One let's you. as question Operator, it to for Thank can open questions. so per please, up caller as we possible. get many

our take Please We'll Instructions] question Research. [Operator ahead. Lake Justin first with go from Wolfe

XXXX. early Good on commentary Thanks. I your appreciate morning.

up follow to wanted there. I So,

point think drivers lower talked the ex the you that the us what -- target, XX% given half. of XX% with looks Can long-term end to going where XXXX? that are like end to close target of about you key of You pretty the share and we closer over significant being growth at you rates is the into why momentum what the low starting kind the should

it. appreciate Fair I question, Justin.

guidance distance giving know, at know, our be the time XXXX, call. also you time avoid at as on as the to specific think, this conservative. I year from this try posture, of and And, we this at to more tends you

it's reasonable relative a growth may core attributed operating initial censor to So, XXXX. at of to apply performance, a this we've of if point as of really form give prudent word, and I And we trying lower own year-over-year what where the $X.XX a to a our suggested, use expectations end to XX% provided $X.XX our position long-term that and your near to to then the we're distance views. to think XX% HIT estimate consensus rate, for is pathway do

$X.XX -- then, and or expect I'd so. way a then around would when And that we something That's what you of with through deployment of plus minus December. XXXX sure be that without All you range or like to form us put come to are the strategic XXXX. the into would balance out the in capital capital, additional likely expectations strategic these and

in you standpoint. experience cost, the the So, the marketplace transactions an better assets people results we've know, putting for Equian together things that on as example we fully done, But guidance. drive like persistently have quality as to solutions, and been an as patient this to provide the considered we're drive

four we or I So, those referenced continue in remarks. will the that the platforms that are my five so prepared develop to or

terms headwinds for of In us.

As respectful medical Medicaid a particularly In sufficiency on that to deeply even always expand, as we funding, the individual Medicaid costs. particular, population look becomes Also, at, of line the states. government larger of we're in budgets of markets. -- item the continues it

make be we And set. something sure that is needs so, persistently managed and need to adequately to it's

I'd you things is products that of and in to this back the of and is may The HIT good obviously healthcare on too the growth. is unfortunate, and of like all platforms costs But or back we’ve comes this course as shown thing And say miss building it release tax, already much all of in development that. pacing be expensive. is adding And that tried top NPS, that well. insurance size for this you we of and coming which The given then, progress which new health investments. burden

reducing -- Bind new entities over and expanding these lot a as platforms, resources as size et time. panel businesses. drive then, And that for so cetera. the business discussed, like we become breakeven; I They expanding start by We into available startup our have the losses risk-bearing of OptumCare them costs and

in the difference that of and momentum a the makes are your rate Company these persistently you last before those maybe that in in and the -- a we've a growth So, are this like felt for of years have two that to terms said time. Thank in bit between of over at. long-term what to cause kinds decade the of of particular things And that XX% we're XX% that each might you question. drive just order little investments kind where

ahead. go We'll Stephens. take Scott our from question next Please with Fidel

environment released. Thanks. Question competitive has the landscape is that been MA just data on the now XXXX, for and

how feel then your you positioning, about next you whether competitive so, more can about the year? the talk Thanks. like you And is pricing in relative feel getting market if competitive for Medicare Advantage and also environment overall

bullish it, Thompson I’ll think, pretty Brian Scott. discuss on I we're let But, this.

Hi, they about been has annual our enrollment in And as I'd We and also value would see that what stocking don't to will strengthened up Brian Thanks benefits tax and sure very the the XXXX. accomplished early the we that morning. very each come every like question. the XXXX. as we and make the we’re we’ve begin goal return of I their disrupt that year this have Thompson the offer offerings coverage in is we're optimistic XXXX. the face marketplace community I expect, here. the as regardless for that is the year to only are say will broker that particular, in to the say positive. benefits we and I'd in but our market have our of many how Scott. how seniors first with for that shaping say offerings we’ve the not pleased up say our will feedback from seniors in that, respects, that and headwinds

marketplace for in again, and looking Medicare position offerings optimistic our Advantage So, very it UnitedHealthcare in XXXX. the forward about

Dave Jefferies. ahead. Next question from with Please is Windley go

positive. taking your quarter for fall. were a enrollment product those that that Shifting elaborate the Hi. several you on were you if in traction little in bit question. to Thanks related, opening commercial. the traction. I number about wondered remarks, Dave, was this can gaining commented and if commercial in pretty areas The

seeing latter. in as the Yes. Dirk XXXX let to contributor Bind respond thoughts. think, But Kind traction a for the be it it nice of relates I gain the and considerable market. beyond. two to former, unrelated to should we're I’ll us And

Then, that But, had something is ACOs, think effectively we've product over which care the with is to down overall. as make health marketplace time networks they’ve effective. on-demand to is had feature, I [ph] to more is those of our NexusACO performance-based while. the be case resonate for offerings beginning [stripped] more a

that touch is that. fall gain a so, win want nice do traction. to we on…? And to Dirk, nice you this with here had to respect starting And

Yes.

Our of gain because the was in insured our M&A fully largely, quarter efforts.

a If flat you basically nice space, look the ASO we're we we XXX,XXX grew quarter, members. In organically, had quarter-over-quarter.

the positive we’re So, on that quarter. for

going business to us. back business balance to As going we attract insured, the and that expectations to continue margin and look in for XXXX, groups produce fully to enrollment retain our we're sustainable long-term growth

bullish we're from So, pretty the on enrollment quarter what happened perspective. in

year. the part continue -- The of that, you with I to the on more forward in moderation grow. and full pretty just And that to to David it and we've the of the it to job occurred And business done moderating a we have the both might to to of do we team’s we're started grow the markets, look the slow out only risk that's is And just pleased so throughout in have work getting that business. we some employer progress individual. nice extent. have that seen the to But, commercial thing that off gates add

Costa Wells We'll next from ahead. question take go with our Please Peter Fargo.

would $X.XX if take of year. XX.XX tailwind the Please is, my reduce you're is the growth XX% that if Hi. wrong. math my guess the midpoint, saying this But, clarify HIT by off of that be from amount I is I XX.XX maybe sort question

next then guess HIT the grow year. So, XX% subtract That year from $X.XX by next XX.XX, the I gives I’d for say start and XX.XX a of for itself. you at midpoint

is $X.XX improvement? earnings. Medicaid a business was so, correct on $X.XX And that's that math dependent much How of my improved the if of

of to us math, around XXXX, we'll nice the range classic if be it is the -- progress, progress that. what the and say, quite elements made up well. The I made half well. the they a I not cost put quality we that just thing to progress networks Medicaid would in things of a that, -- is to back around as I And progress all specifically make would have the expect XXXX, typical and math. which around would year have containments put would on is next financially, it making to don't as that on the only businesses. and for add making firmed a -- following characterize elements is that of continue And bit. progress, improved range I'd expect would I nature of I'm all in it know we from but into But, comment our of as progress contributions which that

across broadly XXXX and have generate well. we'll You'll lot guidance that conference And well. December of see And and that momentum York good which when we will City. businesses Optum, New see coming to it on UnitedHealthcare as additional on into to offer our a in investor from in drag that continues Xrd healthy detail dose be pleased a the as you'll of

with The is Capital BMO go next Borsch Matt question Please for Markets. ahead.

of would future XXXX, would, when talk that this you've something where is already start being that that you of excluded, not -- that. you XXXX to from accretion keep M&A is realize to expect way. being off saying you about earnings to M&A course that's to could out you just of additional for continue you understand, excluded I you're very are source want and what But normal if a on you from on I in or coming it the just much what year? get the Maybe done pointing for do, that

M&A never not earnings say expectations related unannounced any to or would that’s either closed. around I

So, its deployment you've Kind for and which earnings communicate profile if That's us growth. It the done I've two-thirds better this market to include Company generates can that for would set us might well that reason it what capabilities consistent foundations have third from about or accretion seen least we're the Company there. as presence, that the transactions that of so from of as But, dilutive here. it whatever the really way at well. is and be we is decades long-term the people. organic what for through have It trying means capital. for of typically that thinks in a the other about two in the serve hallmark been of been and assembling to pretty

capital. that was revised performance $X.XX the gave So, you that what we're last of time maybe guidance conference part less because signal trying this of -- of those our than today. organic guidance, original -- because are that of of the just that's year, of Part which deployment the is or an just at there was really we range gave stronger to on investor year last the front. we another is But

situations is to for what and us at typical reasonable continue as then execute. this to So, set ones, forward. guidance expectations arise, is our level, going more raise prudent to And

on just ask could that. follow-up I If one

a with assumed level it and range, share repurchases. of some also normally out include start does You

some methodology is your is that allocation there changing. of typically off with, capital So, unless start you

Yes.

can assume we you utilize and You dividend of the for which repurchase the or would that things our capital, normal get that a for. operating allocation range at include as a of number well as to capital core other share dose performance

We'll to Raskin Please go go Research. Nephron ahead. with Josh next

Percher Mr. here as with well. Thanks. morning, Good

the the in rebate. additional mostly of benefits. a President's Advantage is executive your that seniors question more to weeks order then allowing on even around conversation Medicare specifically to participate there centered around to the opportunity supplemental interested around was ago Our And provide like Medicare, in It some views but couple around savings program. sounded with were changes potential the in the

Medicare your what beyond? curious the sort and theoretically just Advantage, guys think impact order executive for in you I'm that in of the perspectives So, evolution positioning and are XXXX you how will on future of

leave I to any if then ask start him Brian I'll Thompson Maybe I carry if on, -- and don't oxygen.

are at of very for Medicare. -- our First so, Medicare have enterprise is we product a an essential for us. strong higher the least And as where connect more it product, they cost by performing gaps reduce to to Advantage original Medicare OptumCare delivers Advantage at product and A, ones seniors on when reduces even It's performing or a and that the otherwise cost would UnitedHealthcare much B closes all, XX%. by us, savings Part XX% least you that so as benefit

strong the behind way. is very a order today value in XX there in product, that a executive serves continuing So, high-performing inherent strong seniors is to million And hope proposition. is throw very what I confidence which

The other is it about in that I'd our NPS continues thing -- that to grow say category. is

think product. And pleased are the so, seniors I with very

you Did Brian? I anything, leave

Dave. were appreciate the it. for or health better it just the America and that the elements inside Dave executive the Again, all better product what in and awareness what Flexibility and driving that better really incentives the even with today. heard we order. of of benefits I promoting order, inside just adherence that program specific pleased education we're we've MA use think, Thanks, conditions, echoing make drive been to what certainly around said, executive can design provide, and for for for advocating I in to some the seniors stronger

you. we're So, only the certainly would that by the today program the suggest momentum going not of encouraged sentiments forward. popularity Thank but

go from Markets. Frank Capital The ahead. RBC is next with Morgan question Please

get XXXX? to was ability the its to accretive Thanks. early integration your I on and thoughts just around some hoping progress be to DMG morning. also Good

Wyatt?

for And question. DaVita centric Great. close very the and the OptumHealth exciting an and so operations Yes, June Thank of The the far. to tools in culturally you very medical was our event value-based quite creating the nation's patient we're both Group bringing leading be ongoing to pleased services integration, us. system. DMG have gone Medical much for with of well

quite optimistic of to you. Optum we're DMG So, positive XXXX. about impact and OptumHealth the and overall Thank in

for Dr. Thank those That's of don't Decker you. you Wyatt know.

Next question, please?

with Lance go Bernstein. Wilkes go next we'll And Please to ahead.

Medicaid was was performing like commercial about a out I little costs basically an and little quarter? Yes. the Could expected and things in talk the you better what interested was on basis how And MLR reverification? in, trends medical bit than turning in a

individual know, go give some on into Jeff, going UnitedHealthcare, give the of do -- you want details you on? want some color UnitedHealthcare. on as But, don't you Jeff the us CFO to Putnam, within do what's color of we to businesses So,

question. the for Thanks Yes.

be see And initial consistent look but to continue lower are by than our you about we we expectations to largest cost single mentioned, continue consistent noted John continue or business is as admissions. to of categories costs that X% XX low and our to lower minus tracking the range, costs very a remains still plus typically in declining As the and government see with trend projections. category, it noted, driver. half we controlled all in are bed Inpatient well little well bit of trend when now we at the points, talk we projections the decade-long also physician outpatient the our and Unit ranges, with days basis as digits. now flat in and

We're pretty pleased medical on costs. our with managing performance

as we even more these affordable do industry know, -- a a UnitedHealth and work to Thank to have down we of bring you. to levels. we you Group, As have lot lot an

Next question, please?

from next Sachs. ahead. is our Please go with And Goldman question Steve Tanal

comment risk you the growth I well the could sort competitive dynamics member the any commercial just guys. both wondering as ASO, approach maybe markets, was or and of Thanks. morning, those for thinking of both XXXX disposition your season for early the sides expectations if Good you selling as in on group business. as

UnitedHealthcare? of CEO McMahon, Dirk

appreciate I the Steve. Thanks, Yes. question.

ASO. with start I'll So,

had As of XXX,XXX good with a growth. we members I mentioned, third worth quarter in the quarter

into don't to to impact earnings. those losses. big prior into years. the than We midst defend up expect look more pipeline the any win, XXXX, XX actually X, X, material did We we nicely. that But, we're national had account look had as have in for a we losses one we we few XXXX, on selling shaping had a already season. is We've already into of and As

pricing competitive we typically pockets our for have continue of environment, buying insured others, for Board, cost upcoming X fully to season than our On and products more will competitive competitive X, season forward think to is, the the and some see to what in we across to products, very it's marketplace respectful stick looking disciplines of be and we selling we're trend, the but forward fully longstanding insured. we the the our we

Morgan ahead. next Please go Stanley. go Goldwasser with And to we'll Ricky

on X.X. Good morning. is Question focused margins of OptumRx

I you set up XXXX. when in expectations think in exceeded that you back guided

drove margin offset how bringing year? board, you're next for we performance and that what about think the think XXXX, as trajectory should the margin So, about we this quarter? And that the business considering on new

of CEO Good OptumRx? John question, Prince, Ricky.

John morning, question. for Prince. Good you Thank the Ricky.

of our In terms margin, expectations we're with our the and guidance. long-term sort of comfortable short-term

care As you businesses. of is OptumRx portfolio know, pharmacy services a

community-based management, addition have and in our a pharmacies et infusion we So, of platform Genoa, specialty, like also e-commerce, to benefit cetera.

driving businesses margin those grow, our continue that's to mix. As

affects in probably time side, in that biggest in that of change, the the in our of experiencing significant is over business what underlying investing that mix We've providing. our significant we're and We're platforms services are our the growth. growth the margin especially services and infusion. all shown also is our So, portfolio specialty

of up I deals we've in affect selling our long-term terms we've pretty margin. successful not hitting our does the on that setting margin. So, for piece well won, guidance very That in expectations think for then, XXXX. And been the we're

ahead. We'll go Cowen. Charles Rhyee Please with to next go

to question. a think for guys seeing I Thanks your something taking I mentioned cost of on for savings platform much how to expect to double-digit you fall you Hey. Is and think efforts. expect that clients from that going something XXXX you be later to we would talking to potential that's market deliver like digital declines about billion and can Yes. you've digital that you the something to productivity could And the at Thanks. line? deliver the beginning, in about you or mentioned talked rolling think is been versus here. Dave, bottom $X able you're that reductions, you

Optum? of CEO Witty, Andrew

very Yes. question. for the Charles, much thanks

is that clearly digital significant element putting a the together. we're mix of So,

healthcare assets make around gotten physically, that and the OptumCare obviously, to centered convinced we by ambulatory really integrated empowered both we've offering much very We’re sure need digital. that of OptumRx, then but

we've in outside at areas seen platform We since platforms. year, users Group. one significant this in uplift, it’s available the one Americans using example; of beginning on that the unique wins the overall of you particularly main one half business about where actively UHG second the been If look five see some had it. now come in significant it’s of Advantage We've during platform new this to year of Rally, XXX,XXX on nearly like same Rally to that our

with of still early the though, for big and potential digital we're I'd a optimistic it's of combining with in the very it. services, but days area together our So, us. full of say rest about we're you. portfolio Thank

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

out been We've like of minimal running had the impact the on take very enrollment, we trend industry-wide state you. looks it Thank shrinkage a the and updates, eligible if the Medicaid math the sequentially. roles of impact of contract

that given to So, retroactive over. forward close I'm for you either a think swooning adjust discussions to from the setting wondering the any you update more if states? the And us on process or coming, that that handful mix for acuity season on is roles states with there, can rate of rates progress impact

Heather A great Cianfrocco, & Community CEO question, of State? Sarah.

question. the Sarah Thanks for

monitoring say really is, upon this what eligibility dependent well. as state varies specific you been market. would So, And to I verification by it so enrollment It's process. we've

and that the a off in it's update tail enrollment So, the of see up us. we with right that to factor sort and But back in or markets. come on sort process is that membership for some you change, in variable are and in states some even a of leveled of the some level been we from certain then to see see it's end and ‘XX off as date membership they their it's of ‘XX extent that become we

factor a us. it's for So

that states process; one, important seeing our with rate that understand that enrollment to our and two adjust considered acuity, smooth the in point, think, work the forecasted rates of of enrollment three your sure opportunities our that we to members forecast; for the our the the is, the it that. and I state for in their investments the we and make and aware the membership we're -- that we processes they're and we what's it's

see we these that So states. in

time real conversations very states have the look at We acuity. and the

issue, a the see the on of timing So, their sometimes of reflective it population based but reverification. we may be rates acuity

question, Next please?

go Fischbeck America. is Bank of Kevin Next ahead. with Please

growth to Hey. guys for the business business I that type you've guess, of Thanks. you a talking of this see bit do that going XXXX going redetermination the a as a to the get on. to you're again a top-line dynamic? is business to Medicaid little can about is Maybe and But, XXXX half become that is growing that this again? growth question. we states something follow-up we expect exited when start back a you few think Obviously, -- or

Heather?

Sure. question. Thanks. the for Yes. Thanks

where progress a progress as lot So, you seeing stated, say improvement Medicaid. rate comments, would we're as Medicaid. And previous quality, in he the continue mentioned in the a with troubled not of to is as from lot we our We're spots But, we rates as still we're had talked not last [Technical our to about in Dave we've and pace make year, in are seeing of opening making in to discussion, our are in to seeing strong seen the expect, Difficulty]. respect our in a being well discussions pleased scores. said, we we year, decent I'm markets. quality better high those markets of we improvement and growth we've population lot there, in as That

members value innovative So, make to our I And working states all Medicaid. and the performance the the we're really how that -- business our and our strong improving date. is progress full bring solutions to hard while, and sure made enterprise good we to providers behind with feel our about where team for continuing is the and to to do

XXXX. continued of I -- you Dave mentioned, margins as see, target get ‘XX near as expect So, And into we our you'll in that XXXX. think out improvement come and we through to

are hard continue So, at performance work see and at our us expect improving to it. to we

We'll with go next Please ahead. to Credit Suisse. go Rice A.J.

that that part Group. the Thanks. or is points. comment doing? look year-to-year are I significant confirm how margin at you services I key and about Medical that I'm the you of the of DaVita is away pockets assuming some down a of care so all how delivery on the Medical of just DaVita provide, If how Can Hi, everybody. they Group business XXX the from is -- OptumHealth, basis guess, doing, rest

Andrew?

Yes. for thanks the A.J., question. Sure. Yes.

them the So, performance. we're and DMG significant organization a start financial on I mentioned is of Really, in simply is coming its about that to optimistic very which speed improve looking a good, pre-acquisition as itself looking contributor function at is bring margin, of good, can to and lower business that earlier adjustment. integration in we why

full that's Optum benefits the But, and start shifting very and that in of to whole you stream. of across as go that his implied onto economics commentary, business in toward capitation bring the the of earlier more also reduction you obviously, we’re a clinics through patients, cost those do risk, as that this we significant As that. Dave an you journey clinics are so look then to significant, and consequential has care effect as of investment,

might say call majority of from vast Center I'd our broad-based within OptumHealth the businesses, the in SCA, performance we the one to mentioned this particular, just a of morning, America out Care changed of indicators [Later Surgery positive I by the haven't Surgical very whole Company across Affiliates].

of and within that we up year portfolio a patients. That's significant were us in procedures cluster a in QX part geographies service point up of very and for look joint XX% other growth spine and if at services prior, you. of comprehensive other year-on-year. over for total an of nicely XX%, one our element fits Thank of the key example it XX%, cardiovascular Just our our up you operations procedures offer

Valiquette next Barclays. go Please to go with ahead. We'll Steven

taking for Good Thanks morning, Thanks. question. the everybody. Great.

membership Medicare your XXXX, CMS to just or based XX% curious your So, of view up come MA Advantage. if conservatively the with X% next on the X% around in just bit this the on to growth year. is viewing But of little comments? deeper still more range, consistent year some are you This always in question slightly that for historical CMS drilling projecting in growth of time a seems with market

grow you still And also targeting in than in premium UNH dollar my XXXX, which past with faster the for something zero offerings by your MA over years what said seems five sense notable the is or you've your market probably little are obviously, you a membership increase like so. a to done XXXX,

So, for I XXXX, views I'm today? confirmatory guess, just any the that overall discussion given around for XXXX Thanks. looking around

Wyatt?

Steven. for the Thanks question, Yes.

heard it this industry performed us right. year you've outperforms in we past, of range. hope the I say more that. the suggested again As It to in they're years. that growth the X% range X% that rate hope last in I and couple

last think I between us the to relative alignment has where CMS year. and tightened has

of certainly Around strong here, XXXX. the will provide I into had all think I'm And track optimism. suggest the that's points earlier. optimistic comments sentiment you. that But annual Thank my respect enrollment obviously, think XXXX, greater we've continue up as takeaway. I period growth that's guidance. data and continued consistent the key shapes And continued record we’ll of my with to

We'll Giacobbe Citi. go to ahead. go Please next Ralph with

And offerings? you your much you the growing within behavioral Thanks. release, positioning called a business? Can specialty focus a Good in morning. then, little press talk that about your your part of within out is on specifically How of bit but OptumHealth.

across Thanks. So, discuss could specifically space? just more just hoping and the you specialty that broadly initiatives

Andrew?

you about specialty Are talking medications?

services? on in vision, services dental Specialty tacked No. sort other terms behavioral of health, your of

right. all Okay,

small them, up as we to upfront. you're from don't services be organization. say those often It's And we life-based to relatively be those or They let's and vision the XXX more So, the about do customers turnkey for, when dental market end critical the their of the solution a are compelling able offering individual policy in about I'd light that to that ones, business. are it, critical particularly individual most market. on that to benefits of as in so part bundle limits prevalent our together suite but overall to group the they’re We try to offer the lives. able offer element overall products. have smaller of the product term And the talk group call we

behavioral the the our that an use to of pharmacy that relates and be often substance integrated too, clients medical to that's able create quite look of it then all benefit, provide As alongside disorder for part integrated elements experience. a to offering to integrates which larger also behavioral seamless of health benefits

our through our particularly care markets provide in strongest custom one we delivery our the States. the set employer United solution an for sites integrated those large plans, of are and across of groups Some offerings where strongest performing

our business are they important So, to overall.

Hill next go Bank. Deutsche we'll Please with And ahead. George to go

going for to taking Good guarantees John, Prince. to expected in lower the drug probably in community is hearing the morning, be than broker are is This pricing the sponsors with thanks rebate we're XXXX. lower that being coming for from guys. And question. expectation John from one plan PBMs

there -- puts thought degree risk the I maybe I in if which to what talk of the and wondering the water you to could kind other where So, of line how to business? like indication you maybe can give And might us of was benefits some be takes about then the earnings. looks that OptumRx parts

John?

how George. of terms the revenue say I’d talk question, really in we're opportunities, in competing above of maybe of guarantees, market. the about growth market. Huge the getting the just is market healthy market right the market. number for in terms rebate number in Thanks I'd in just of opportunities now the say, the

value, people are for where value that a So, is very in market looking story obviously, And is well. resonating it our value.

is terms around drug I inflation. of, think, specifically, In comment your

That clients perspective inflation several lower is XXXX going focused materially our Drug years. from on has are so, for than in perspective. been client last from very on trend consumer a affordability, and a And the both XXXX.

much. result, consumers inflation. don't prices But however, benefit are higher prices as increasing As a than core still increase when and clients

market adjusting So our to pricing and reflect underwriting trends. overall, those we're

And our adjust delivering clients as we continue so, consumers. market that make sure we're for to value our the changes, and say I that just would to pricing

several trend clients our last been their for back to experiencing the years, have overall, So, which value low single-digit drives consumers.

be ahead. Please And next Willoughby go will with Steve Research. Cleveland

Thanks morning. for my Good Hi. question. taking

slight question PBM a on follow-up guess, space. parter. I Just two a the

transitioned over fully PBM just on how also OptumRx for business could any you then, XXXX? looks And the the provide in business Cigna the now. is color First,

know John? don't second depth we’ll transition, handle the We’ll But, question. I that address that Cigna the in at conference. investor

question. for That transition again. John Thanks the happening Sure. is phases. over Prince

through will XXXX. of rest of The happened quarter in first phase it the the the balance and third happen

that So, operating on see say transition impacted overall. going can have scripts doesn't in the with as first and impact you the quarter is any I'd It phase revenue that. earnings our well.

XXXX And our continue client. update We execute to perspective in Investor at we'll the for Day.

And next go we'll to Morgan. go JP Gary Taylor Please with ahead.

your Good of changes morning. a Hi. on a and just thoughts I public about had couple policy those. question

The venture second health shift market? anticipate XXXX. footprint for be how group near-term first you'd rules if estimates you that there X reimbursement million and public injunction be? want from in positioned charge would would last the be to small XXX,XXX potentially absent coming rule. and your Thanks. you or Medicaid, individual to thought are know had on long-term the for Do might issued pullback accounting to we impact the an off just I week, individual but either And just given that, is what a of people that

that deeply performance our to as say have given to evolutions in we're of to costs size case, expect have wouldn't delivering implications business, experiences. have about growth. and extent presence, the our broadly comply outcomes And so with relates to material latter. will it we regulations, rules sure not on and so. it Company's talking those capable and healthcare they would that system overall I is advancing on rules, healthcare projecting reduce around healthcare I'm our quality on they All and and those value rules you're improve to the that overall expectations and obviously focused of In the while the solutions customers a of its and/or the impact what I we're

reimbursement. the that's health So

was I'm And was the the other item sorry rule. that? charge what was -- that

other from was work migration are HRA The individual. and the on the what of group-based the implications the to HRA one

exchange the of think ways America HRA wider supportive a of the and offering they're and that for more over there prefer first in all, set broadly. of that affordable state-based higher We the we're essential options used seemingly and in expansion are people set offerings provide the greater consumers which These a we think, is will of the I of So, based set overall. cost options much affordable today. to out designs a simply

but of individual as to extent be value to go, things wouldn't ensuring part the over systems that think, the months reason I spent prevalent, individual effort are, our be these well-positioned as there be XX that's we've much why to offer in affordable migration for growth towards people space. commercial that well effectively the I some be we serve. course for our would so the may Company offerings people more able they last offerings. is of coverages suggest really -- aligned As I that suspect distribution And the that there to are the the and to fortifying drive that able

with John Raymond to next go We'll James. Please Ransom go ahead.

help millions down costs morning. look trends Good X%, just all you base think CPI. out struggle control, for I of. under still X%, cost every picture as which point to bigger popping trend connect healthcare being a is of hospital When well being can maybe spend I question. dots under -- of Xx category those drug you flat, Hi. More to know at solutions

that So, dozen things and and sort doing downstream of guys mind thing. you to in in markets then, -- push local risk your

the points work So, the get what step with rise down of Kaiser hundred so just this survey say high especially political good will you've landscape and already trend the pointing co-pay a high. all it I basis done? to beyond and function a why that struggling plans. to the kind take of and couple bigger problem, is being persistently And the am bigger

stuck So, matter at is do? X%-X% down forever no shutdown what more, just horizon a are there or cost we where we

overall, the starting narrative today And constructed power and obviously, all progress be shift. decent want we're think exactly I how to it's about done. Andrew, but we to some for UnitedHealthcare to there Optum that do work of create on…? strength I we're that comment was shift think, seeing really the down, bringing and more you And John. is

a And for. Dave. kind from how slightly I'm you're -- the think I the up and question for thanks you then out question. drive Optum of detail can much, one good of to very improvement lift a the just Thanks perspective Yes. pick going asked broader perhaps looking John,

drug and drugs introduced. inflation year-on-year. price to quite an of at look of new not that cost into last this year sorts right, you're but the those versus the the is Prince of today very Drug John being So, mentioned existing price of is price the therapies you drug is year drugs, coming cost comparing inflation and it’s products new what high But, addressing gene have only decelerating specialty market.

effectively overall decelerating if super the for behalf will as I the appropriate the think, look a need inflation curve. modernize is nowhere on price focus our our and to find that patients, exciting near continued are speaks -- need to on cost the of deployed, managing a ability think, we we sure mix I for you the make you'll utilization procure of of So, of price That those average patients. but system types They at reflected medicines. pharmaceutical really in customers to

example of can you Just look when get of this some signals you confusing data. why one at

the to years various or OptumCare now compared just beginning beginning I in three If in the where together the coming seen call and we're have Optum share the material from of Optum to within cost models of four gave we about see we're previous work back reductions an what the in to examples step comments perspective, excited tried of I preparation and organization. at date. is prepared now

to together have secondly, Optum, that that assets in first spread bringing and activity reducing network deepen the to the contact, the impact by we now is, U.S. goal Our several various all, the broader nationally; of across of cities cost across further the

We the have ambulatory We're that Company to to tens holds. data the with of and that can assets. those that hard now transformational. truly We think combine different together, working super bring be analytics

proof to really points the patients quality scale really across reassurance manage challenge costs. transform for being and U.S. able So, of is an the think these We we that's care to way its and bring that have now industrial you. give about deliver together them the the to Thank

you. Thank

time last have one We for question.

UBS. go comes Please ahead. question Whit that with Mayo And from

me for a squeezing lot question Hey. Thanks for in, just one covered here. Maybe me. outstanding

I the sure like Muir, what size of John any Just a that and share year, potential of is sense maybe perspective to about the interest the don't in additive other business, share relationship you can you for have not said systems what or first Thanks. you really from that? over health exploring you partnership can just that business a any

to Schumacher. Okay. Dan I'll turn

the Good morning, Whit. you Thank question. for

that transitioned is employees and the XX-year to $X.X diversified the from which solution more enterprise contract, our a to pleased nicely. has transition OptumInsight, provider organization. marks it over good terms opportunity. in we've off billion for progressing term, historically point of exciting quarter a And an duration that start Muir, transitioning So, to five-year John as it's technology our sizing, a and of over a a what to been I'm the is obviously contributes share More a backlog, we're of well. really solutions course for third broadly, us, it revenue

and fully of forward. data analytic that our integrate doing as domains people, across knowhow we our clinical really does both the we move technology our as and combination that of XXX,XXX our the assets, the as well administrative how foundations, we're capacities, what mean, So, do

profile the and wake advancing some beyond. the well in increased we're we we for to sure, seen XXXX those forward have announcement, look of So, discussions. and to And entrants in growth it our contributing

you, Thank all once and questions. with in questions. opportunities across quarter Thank again with have business growth future forward conference investor to York. To time ended look our those we our our about well-balanced Thank UnitedHealth the for strong performance, call diversified That's more concludes confident sharing Group you remain New today third and We at on you. business. Whit. summarize, delivering our the you Xrd December This today. for

this does program. conclude today's And

a great disconnect. day. now may Have You