UnitedHealth (UNH) 14 Apr 222022 Q1 Earnings call transcript

Good morning, and welcome to the UnitedHealth Group First Quarter 2022 Earnings Conference Call. A question-and-answer session will follow UnitedHealth Group's prepared remarks. And as a reminder, this call is being recorded.

Here are some important introductory information. This call contains forward-looking statements under US federal securities laws. to to uncertainties historical differ present subject the could experience are expectations. results actual materially statements risks that and cause or These from the found risks of the with our Exchange cautionary uncertainties of current description the and reports the including included A can we some Securities be statements in Commission, file periodic the that and in filings. amounts the earnings reference of at the Investor the GAAP This report page recorrelation non-GAAP and financial of a call available non-GAAP will www.unitedhealthgroup.com. the amounts, company's also Relations section on to Information the be presented dated this our contained website. Investor on April this call of from X-K assessed earnings morning is in page Form will issued release company's Relations we which the XX, XXXX, the in Chief Andrew UnitedHealth of I will Executive now Officer Witty. turn Group, to the the over conference Please go ahead.

morning high-quality growth, and to objectives set we you every execution of help strategy thank this outcomes and apply experience joining to access, and our to strong all touch all affordability, in clear into Coming at point us experiences. improve technology drive diversified you. and long-term Thank pursue deliver Good excellence today. every quarter, consumer for stakeholders year the for and

we OptumHealth first characterized After initial expect value-based increase approach of high key estimate to show, a XXXX first conference, XXX,XXX In morning's XXXX XXX,XXX and under arrangements to At per earnings our would objectives. on $XX.XX delivering to momentum start by its our year, $XXX,XXX. investor during share start into area, add to adjusted dedicated work now colleagues, quality. the to outlook rate. like Their quarter, drive our UnitedHealthcare. November earnings of XX% to compared we robust share to described range clinical confidence strong this results value-based areas these the delivery. our care its to long-term to people patients the per our call As today my five we're thanking the integrated Optum per by I the a and continued $XX.XX of XX% share. growth us gives

care focuses Our we approach setting in serve. most sense the the on providing that patients quality for makes

Our reinforce well other deliver the in will ambulatory in Group to with pending our support and as as care locations. home, combination LHC ability

we're We second growth appeal quality, primary November. market, expectations high-quality physician-led additional in stability and over our in benefit people virtual these enrolled offering. offerings grown Nearly most the options. the advancing area, to the the period the scale. Within value-based exchange individual health in first serve and once In In consumer care-based of of virtual-first remain our benefits, XXX,XXX Medicare underscores appeal innovative components strategic and our coverage to with a offerings, and and care of rapidly last to enhancements plan consumer as newly Advantage, recent enrollment innovation people to XX% deliver bringing for growth. offerings we serve commercial past XX% balance on XXX,XXX selected such set the more selected again the with This virtual nearly consistent plans people have an year. plans benefits helped track strong significant open well our XXXX,

last growth with such area, our broad SSM new to as its In look year, us health and on continue XXXX. a offerings major for Health throughout caring to the expand we system relationship Midwest. the including XX,XXX You'll providers see Technology, forward third execute Health initiated people we partnerships

are with move and friction an our for cards for payments simplifying more. We've important. high while separate combined the plan programs services. benefit and of benefits, finally, consumers most burdens and Many revenue consumer to reducing clinicians clinicians and in convenience, care. administrative issues these patient-specific determine consider care the health the appropriate have speed management and fitness, capabilities, card, for typically increasing of which efforts and analytical single one far assistance rewards we're Fourth, for becoming clinical Optum's health experiences. of financial real-time at and We pharmacy enabling organizations and focus both January. introduced new are health streamlining for pharmacy people to drugs even we alleviate with services, payers, access cost system advanced our partners. in provide the coordinated traditional helping plan health and cycle and which the collaborating simplifying create benefits partners Drawing experience all vastly therapies plan providers, to these point patient capacity plans a care, providers, integrated our future. partnerships on consumers, design, technology delivering developing food into upon with and And a we effective operational programs, in do to is our clinical high-quality specialty and pharmacy beyond card analytics, features pressing of more to medical These The most

create impact profound Advantage highly and efforts. about a for this motivation families Our at quarter, and care individuals our for Operating share will care and by a all performance are of lives over all to President are and these with McMahon, Dirk? efforts and every a now from have These broad need consumers communities growth. healthy more on great simplifying Overall, more of the finance in-home powerful company each which America, initial us across Dirk value broadly, foundation Chief levels results day. to is the OptumRx's for offerings XX%. Officer, sales and greater costs designed strong expanding to lower specialty to positive, to value-based in to enhancements helping pipeline how Medicare provide of

burden instance, to test for area is when a not health cancer. such experience. theoretical an be for important for consumer is to no Testing, people significant convenient can more of we the opportunity you, conditions where care, the it. Andrew. There see as colorectal need access in improve but experience It where Thank than consumer to people care and access quality aspect care

conditions As a undiagnosed really go with for too bad which people the get won't results people care intensity observed result, serious, in-home get future. is result, we unnecessarily treatments don't condition, need a costs willingness many for many and deal by and patients of things often, early-stage they testing early-stage more and of hassle until just conditions. the the of higher health you, trial their adoption in Like and chronic have in for types as and

to for to all XX% At into then an This prescription, find digitally people it enabled people versus go get However, of and necessary nearly to back solution somehow test clinic integrated already in providers operation. result process. for occur results make the the busy be then obtaining a need we've tasks a to up for piece challenging solution need results that resulting the paper into the to get with first, test and Patients sure to doctor's clinic test call that is introduced a workflow. locations addresses pick of disparate test increase get sequentially screening an into system. UnitedHealthcare, multi-step a in a can

types expanding and this as making additional well. of vital available We tests capability more to people are

for decisions, you know, not and three operational most The consumer often next that come. the quarter impact on the initial As up for in many for be us ease months, year. years setting impactful has of and the remainder customer buying tends just a experience of perceptions of people success to the to for but the lasting first for

expanding we a thought a nowhere this Perhaps A people timely and in great in version, helpful of the in we a physicians Investing card of the laying provide short and and apparent based many Optum training groundwork these for new UnitedHealthcare. into patients geographies. owe be provide onboarding this new quality So quarter. under OptumHealth. performance systems in where care and staff is was would it people arrangements new to the the you to bit report preparation the value thank more to for than high served within was of the of critical and

and declining a a quarter such our as to our skilled in to visits most about efforts Ohio It's advance of our for our the of we their on continuity. UnitedHealthcare, to to historical vigilance patient-centric At helping continuing are post-acute in well care from provider their facility XX% post-acute New move just first and to transitioning are needs appropriate investments improvements continued in orientation to setting declined early and support paperless integration York, testament delivery of digital organizations first local to deep digital averages. for experience. patients care example, admits operation. quarter, XX% capabilities observing portal as trends the while as costs increase, providers care nursing the the a our serve In For our

quarter instead last compared in increase providers have in we Importantly, a just first using of documents paper driven this year. digital XX% to

paper in expect of we XX five the over quarter years. next efforts will save We the this taken have tonnes

me to The to system health briefly combination it an clear off simpler, patients, intelligent to John, adaptive and we clinical, lower and health to payers Increasing briefly handing are achieve more Before now, combination be let pending -- with and should committed turn deeply By Change for helping Healthcare. let a me payers providers. experience for health Change depend stakeholders. and care in better serve and and Optum of on providers patients. entire and simplify all Healthcare system, reducing will the will efficiency benefit core friction connect a administrative costs processes, payment our resulting

to firm belief health over Financial in Healthcare merger. potential Change that, and John improve ability of to successfully Chief in with Officer, agreement combination care With to Rex. challenge turn extended overcome our the Our I'll our this now reflects this to the it benefits

everyone. morning, good and Dirk, you, Thank

to our at year platforms. a Our across XX% the offerings. providing benefits and from $XX billion by more growth quarter grew over our over largely to OptumHealth, and first patients relationships, over supporting growth was organic I'll X serving businesses. on and then $XX color quarter million start our first with This course both contributions with adding quarter, ago benefit balanced full billion care are growth and across patterns our providing people XXXX more to health operating services financial performance Revenues turn the and over well of Optum deliver XX% both double-digit to year the million million UnitedHealthcare. year people individual X.X us on more we Compared positions objectives. XX to diversified prescriptions more little value-based in a or ago, strong by

care to early peak patterns variation there was the due As in the expect, in incidence COVID quarter. considerable you'd

months department as the though XX,XXX and For example, March, care these levels pediatric modestly in onset the observe pandemic. we pockets was in of related around Overall, X,XXX. the historical to hospitalizations, By baseline, such about declined below about of emergency had highest quarter are we baseline COVID that January, at visits. any since the

shift is are behaviour. permanent not this in a assuming However, consumer we

height the relates the people due the of during to not As care it health that are potential far was on impacts acuity which seeing term increasing many longer pandemic, thus expected. to deferred we

example, For with are initial oncology diagnosis historical averages. levels consistent related

need people course, Of our they encouraged remains are screens focus normalized levels. getting critical the core are that and we occurring on at care

business consumer grew earnings per Moving rose arrangements. in OptumHealth of XX% the now number XX%. the This served primarily to revenue grew from by over under increasing first operations quarter, driven patients Revenue value-based and XX%. performance. was

of we to care Continued prior revenue for growth into come. people, expect $XX.X XX% as XX% more was backlog grew the and revenue services years our The deeply. year-over-year. the $X our serve offerings, of billion strongly over much more to grow value-based year. the or And and billion, broadly augmentation opportunity such expanding home, OptumInsight care to digital

are contributing system expanding XX% to the breadth growth, of partnerships and business in customers. grew we course number the the to Our continue to months of over OptumRx year. partnerships assure relationships these this of billion, strength the revenues and investments reflecting grow. expect last to typically of new significant strong for our We and health performance these incur expansions early value $XX to secured

XX% was businesses. Turning driven of the to UnitedHealthcare. across Revenue growth

in Medicare on individual offerings special up and be plans. to XXX,XXX track will the to three remain Advantage and needs Our dual people. an remainder quarters group About add Advantage Medicare

in year in performance increasingly offerings selecting are by people million. Advantage approaching quarter the our based value X-star we Medicaid and on Medicare us first is this and now by grew plan plan into XXX,XXX the enroll offerings our to enables year. offers achieved aging seniors it the through Medicare People over the $X quality served New

redeterminations continues an modest of health outlook emergency the resume for expectation attrition. lapses, to remainder Our eligibility that public resulting incorporate will growth year states when the in net the

by with people transitions, number line in driven of see in arrangements people lags by of was strong continued benefits, increasing enrollment health commercial 'XX, in recovery total market as under employer quarter decline growth. First the recently reported covered people which the progress previously expectations. driven well three overall we innovative served fee-based offerings, which more response offset The was the by growth. known introduced by our number as through to were the core our job as served We customer typically

remain Our capital strong. capacities

of quarter or returned And the expectations. flows full First our and with $XX repurchases, ways the quarter them to help upon combinations to billion Xx toward the look can ratio We shareholders of will have debt-to-capital to healthier billion X.Xx continue nearly cash And net $X.X we live people the dividends and both ended this to we expand expect a consistent in XX%. lives. or year, of ample year cash from with operations share and $X flows change to LHC quarter income. serve capacities completing and we were income about net through continue billion we as

noted outlook And a the range be to XX% the $XX.XX experience growth to half. first increased $X.XX on this outlook, based the adjusted full in with continue seasonal to to consistent As earnings pattern share. per just of today under we earlier, our of earnings year with historical more expect our we

Now Andrew. I'll turn back to it

guidepost consistent hope John. that year last you laid our we will themes you, recognize out that sustainable the growth. Thank as I for

focus Our this sustain going as we're that, for and And please. open our improvement businesses questions. let's it that caller, is continuous upon operator, up a execution build to strong we per XXXX. across to One start with characteristic on

Please JPMorgan. ahead. from We first Instructions] question from take our Gill go [Operator Lisa now will

utilization much good very I back morning. comments thanks just to around go to want John, trends. your Hi,

trend you talked about government? talked versus difference then about down in just Am not hearing you half towards we back year? really here lot But You maybe correctly? you that that March. the you're commercial the of X,XXX now hospitalization back, in it can talk I what how And think the sounds as still are somewhat of ER&Ps. demand. moderating do to but move there's secondly, I baseline here of And But a like anticipating pent-up about about seeing the

much thanks question. for so Lisa, the

a Brian to and Let to John speak Let piece ask of first me and within ask the up part to little could Brian maybe just that maybe the Thompson, you respond me acuity bit any then sense pick demand shifts.

folks I helpful who listening. think John, that the are be first. would for

deeply, in missing those Yes, might this watchful programs. trends early still A across differences John. consumer everything in it's about. the categories they we've in on the still you as of how something about bit baseline to not impedes trending but overall. such I much will Lisa, specifically we'd in in you we first potential for to a lower And of seeing differentiation, into been to a people utilization department. That's different oncology lot Brian very still the out, more on and treatments into little morning, here, go relates we're Good to commercial. what emergency come back -- were trend pointing Also seeing is quarter, the some where of higher back something system. But pandemic, little categories. across and spoke areas. those talked extremely similar pockets so here to and the we're continue, for expect the seeing talked more and noted levels, bit this comment, appropriately It's as but very point acuity, as a terms your of that that A government in kind were noted. it as seen, we've yet we

might expectation offer we actually though, their of over see little this for is treatments to had commentary. up incidence their you come And, missed screenings. getting could because the seen, earlier So we Brian, What haven't good period. rates people more a

Sure. Thanks, the for Lisa. and thanks question, John,

I think John summed it nicely. up

so level odd inside was quarter there in and that, a clearly of the tale and to deteriorated expected, in was you hospitalizations stories lower infections the stronger down March, As a of in quarter. January, two obviously, of that kind levels

Delta. encouraged think the to, more Medicare those higher inpatient close a As and slightly confirming than pandemic, screens, with that's quickly hospitalizations really diagnosis, hospitalizations type, said, half When and service really and watching to of baseline, saw of, throughout been severity, but now, dynamics, strain deferred quarter, about two being you we've function care, visits, where within seen in But cycles with sort And above little baseline. physician Omicron we at at at saw. that no about We to what Medicaid through offsetting leaving was we're lowest we between. in the saw January maybe John And months it to infection as we've that again, three because the this we that in to On the I'll commercial, John signs alluded in level baseline, running usually through closely saw a those what clearly, progression. looking reduction severe we and back look levels. another of thing the out, really after infections accelerated at consistent in right pretty get point the large quarter. less

good the we're as feel into pace next So about forward where we at quarter.

of thanks that. many impacts Obviously, question. think both very at all. it's shift. Brian, and that's much But what baseline Great. in it March but the move movement so reflects you've Rest one very hawk two Omicron then quarter. in are around haven't was two much welfare evolving exceptions. January thanks a still And for like really watching or patient February Lisa, -- with of perspective. parts But forward super Brian a see seen and -- how it kind definitely with signals and terms a kind for to a of John activities from assured, acuity that during really of towards quarter heard so very of John the early shift was this and Yes, we trend I back any days. maybe we so far, of from the important

Next question, please.

now Rice question Suisse. from We ahead. our A.J. from will Credit next Please go take

open. is line Your

Hi, everybody.

Optum. a on might might ask, I matched, pressures. How few be where, enter sense obviously, different in pressure there comment pressure lot there's more pretty and side, inflationary you're as minutes of cost? going but places of of I if on any thought in there market Is on period actually that. little is, lot revenue wonder any inflationary insurance Just a you that things it's about you where discussion may And particularly do you? a my a we where well you're Maybe there helpful a take to feel think. broad I the points? sort know just the matched Is versus

A.J., then, mean, for make the within to maybe it of on just comments clear. ask reflect much super thanks make a to question. And the Brian, broader so I'll portfolio. bit little UHC to generally a want talk little I a to speaking, the couple perspective. again, bit and Dirk I

Our And clients, patients. our is focus very think I seriously. members that proposition inflation, responsibility and get value time try for we the and carry always really to best at of the

they we're the good that something us really there access care very focused health the rely on they is sure and need the services get deal on. possible for need to making get in folks So, system best to care when it the continue to to are who advocates

a UHC on the our range we're So, going rely from that important. continue to whether inflationary inputs wide at pressures. we're may that look bit some lowest positions a where place of portfolio talk in have perspective. to you to on, little to fortunate we really is But in obviously with focus getting OptumRx which second Brian a long-term a very

of and parts an from little UnitedHealth With time the Dirk, be all is foremost, As could things bit this protect its a broadly the Brian. company of agenda, more people backdrop, it that on a to then some inflation. pick us the in is Group forces you maybe where going of to we're can the everything to pass rely doing up first who and overall in do

Yes.

So thanks, Andrew. hi Yes, A.J.

yes, always total all, from they on virtual really from hard a we're a the challenges as affordability focused really of get people purchased those products, getting that that total how more people in That's other people, We've XX% we've we're on of are why face in care, for cost And times done big than care, productivity. to technology So, prevailing specifically agenda before markets. products in improve cost lowering telling cost sensitive that's first out also said, and Andrew in talked of of have health we benefits really also good products about care these perspective. reason marketplace, the they their things our some to lower working which inflationary us. like

from to productivity to trying One through standpoint people that the to the in in of folks. or our that to do is to form us targeted enable otherwise things we're a and investments premiums make do pass of

of So, that those strategy sort progressed, cycle the as a on. From in we last the a our with In resonation raises. quarter, merit we broadly, productivity investments are normal first at targeted some the the standpoint great standpoint, labor -- investments people. had review our made from more fall things

as we're in levels service for make the to of make make areas look customer So, the year, thing -- and the where folks continue like higher we in an of forward investments we perspective, -- we're in going trying remainder internal clinicians to targeted have to do. attrition. from right see But to to

what brush what to Brian, as as broad we're a that's go doing. to we're ahead. So

thanks, Dirk. Yes,

service, do of inside good I'm to you overall management multiyear view provider there pricing enable to this hospital home environment we are forward transparency insulated those about but encouraged system is post-acute down including that our the our than offer care, that digitally we cost one, the virtual engagement being we're having ensure of As consumer more I'm to. avoid about And being and value-based Dirk innovation and is side less the and navigate inflation, total to responsibility from agreements pleased more expensive expect, drive at, stay. to where have to really that can predictability, Obviously, with alluded get on ever to to tools like UnitedHealthcare costs appropriate might some that inflation the disciplines in things

can elements to So, offset the we that to drive those really overall are the cost. try

we between platforms virtual how all people value of how things Yes. take truly us that's in manage like as care innovation. us. Brian, to way work tremendous is and to is that. who the we of in we outcome Simple inflation response on innovate, the to of aid life our and and that advantage can care on inside access rely going very is behalf The on through that for which well system continue work deliver going greater and to And value-based to think. to Optum, members this folks ensuring be deliver I company to the we're efficient on bring get for UnitedHealthcare rely to us we to how of said, going a best productivity, patients, how the we the the who

So for much A.J., thanks question. the so

question operator. please Next

We will go from Scott ahead. next from Please Fidel take now Stephens. question our

question good the acquisition. And morning. two-parter. Hi. guess, on Thanks and had I a a I LHCG just

review LHCG's assets. you've of as just conducted First, a portfolio

some particularly interested about LHCG as the whether and of thinking that from yet broader you're personal base assets just Optum's when the as key we'll be some also particularly you assets plan Health Navi out the to into clinical platform, then And Just you that have care seeing such key you've umbrella? synergies a more about on of you and look all health, Landmark home Thanks. home in already integrate adjacent made to interested of if hospice separate decision the on care. thinking retain just

And to a we're ask incredibly hasn't going Scott, Decker to of it's give question. an closed the proud second transaction, Board a coming in Wyatt which Obviously, on thanks yet. you the to so to response two a much agreement organizations. LHC, together this. for more LHC bring with I'm the little

the to me But good organization the Keith they I'm much puts for ask growth had Unbelievable that deeper going Ginger LHC more and Decker pass And quarter. and to dive, leadership detail first Monday, also too take go together, a big heart true it at the into capabilities. with the I not the even as with has driving home culture great and and going our positive built time, that, time into And founded I'm our let their things. a pleasure, home Landmark by population to for of inside possible. some Dr. say us bit to it. and team really of with founders to, actually extraordinary It's would about over few a together a way, I it, of bring So detail. portfolio. look a positioning the Optima and really say, up families the to a the LHC. on of since how company find And impact into moving at lines really system like alongside is from serve growth very lives if you've a first on that's brought earlier, been maybe speed patients spend I all in about why Dr. offering, all will I've operations easy opening And Decker have not to really much our people to have little excluded we're and the John forward is our historically is in piece significant is Home of the backdrop, This to often align to I'll can a of this important. otherwise and of Group they little well more from access when the and who with a organization community And lot of UnitedHealth capabilities first example, an really product. really of original extraordinary their what's you a built value-based the rapid successfully strategy care. people very which heard up give impact in who been much which community look you on would of it's set not would D-SNP our very organization NaviHealth, access aspects it very joins seen that the bringing are clinics, to first

Andrew. for the Scott, question. you, Thank Yeah. thank And you

very combination are of excited LHC Group. the with We

think I touched community community really platform in Andrew help others their live They've people commitment in a healthiest in a serve which multiple they're and They home since lives founding XXXX our a said and Andrew it long-standing capabilities, growing that to setting. have developed home actually well. culture of complement nicely Louisiana care small on.

remarkable. of a as is health stars for and commitment very this home average they So quality in to national share excited we the XX% provide just about that than The quality full that. And higher It's an example. care care ratings quality service. the

it's to offerings It in Initially, building to comprehensive the question So gate. alignment. care our value-based that right construct. have is better together is Thanks why your question. really has then setting we've we differentiated the see a the question in helps be home deploy kind begins get set care brought more home for home in a the and vision it stitching of address outcomes. to already with delivered continue And platform, these out feel help and care Andrew's hard of care home also been it of together healthcare this with offerings so weave complex people the a them on post-acute and way the we'll community into healthcare as in our of complex we of grow. that will And we and comments, synergies, remarkable good post-acute

or be rating just on And Decker. much why leave you mean know family. and from great providers and are thanks across bring your you of All tells so the that I'll it's we going the and LHC I access, A. XX% for the members to J., question. X-star just LHC right. much organization of Thanks, country. We for about need families Dr. you our so perspective. everything that awareness, one maybe a thanks quality better with thought question. to wanted for A.J., actually to great think part quality to

please? operator, question, Next

question take Research. now our ahead. from go will Lake, We next Wolfe Please Justin

value-based ask to about Thanks. care. a question Good morning. Wanted

still the in the step in value-based and could the many improvement I'm of think operation in you been you to penetration in and be competition there? competition, it for large of the that First, the entire pipeline look a a have Can care patients, Houston. the Thanks. TAM curious are you all the about back as if being and at still outlook you robust the making given And you five see as chatter let's there. about interesting, their might M&A the as made do kind then And penetration value-based ago? of years the three I given some acquisition just if thought and kind meaning were in was, potential it's with there's industry large total your it acquisition with share care what's terms them or talk number us, there space. you capitation, of already to physicians how that say, to come? of

on just Brian a in travel Justin, I'm thanks I’ll bit to ask value-based care. to much of second, the for question. of going kind direction so for the a reflect little ask

We into I the what focus think a not right would Obviously, the perspective that, the best his deliver do of folks and speculation interesting couple a are But to team need I and from I'm is who Where look rely go for how now. super I ton on on what of because value kind we they of go the at on a hear of looking growth outcome for to going rate payer on things. would him. sure be. very before potential probably that's Brian to perspective is the it's

growth movement we OptumCare capitated years Dr. We're knowing into is coming focused environment XXX,XXX many Decker's level under organization. of folks and the that on growth, of come. Brian of value-based in So Advantage over that transfer are that to sustain leading Medicare growth to terms that able that

ultimate what that. on is So the ceiling

attract of and that's very from our I capability who continue to to numbers of a to part And is think innovative it. the actually marketplace. folks benefit and ability to a want of deliver continue large be going high-quality product fantastically to in

a grow on. much be? more agenda ability that both the the our focused is and and the at part little we're thing as XXX,XXX what external move to of that less excited could I'm moving and ceiling rates way in about we're motivated across to XXX,XXX, going the So win thoughtful which by business I'm by be

little Brian, perspective. to from that, maybe you a ask with So I'd go further your

Yes.

will you number. to about I I less historically. similar what think left. it's a me, of runway said, expansion geographic for a lot say there's been It's about

about moved duals, it's home. Now it's care, much We've about that. into more than it's complex

And think our think scale about When Optum. core we the outcomes the you when to deeply quality the the is journey come you trend about levels, of the lowest that incented we you this think have drives is best UnitedHealthcare with best of and with it. retention growth, partner benefits, at satisfaction, best breadth those all continue when Optum. really the about when where So, best and

we I'm left. So, have of still encouraged lot strong we're a continue -- incentives because runway this, there's and to

pipeline, expect, Justin, few points. so a me just thanks to speculation. But we back And make general Brian, to come second around you'd as just much. on your transactions question comment don't let

You into QX, and out saw of super within nicely. business Health during capabilities build helping Steve built his announced the successfully Gold organization. complements by great Refresh delivery closed our the OptumHealth us team, bringing and behavioral we

already from been business, we that network ever there. pipeline diverse and side have ever as continue country actually deeper benefit across been. health probably behavioral probably the operate it's largest overall, the think it's is say, as so Our I of opportunities, to our than I'd of the

we from feel think think deployment a So, optimistic potential pretty about capital that. I I capability,

centrally Mental the core we about growth nestle of first Refresh We continue Health -- focus which, that very ensuring on earlier, see, be opportunities on that all of we to and as extremely we areas a our the five those see, within I strategies, example foremost ones touched many continue great disciplined that. you is

value-based alongside in management. we terms how bring we behavioral need medical So of that it's management to health believe right proposition into

off, capability to culture the returns to the to UnitedHealth the and our need believe that strategic in shareholders of first Group. rightly economics into and growth to with long-term our have centrally ambitions our the welcoming that course, of expectations And framework. demanding we're fit we our support XX% XX% So We sit also to within need of expect. the teams leadership

key deploy confident So been I a capital, that us our has feel about long-term drives forward. element ability us to growth. which of continue deliver to helping always

with that And hope the you So gives stand, a little question. maybe sense we where that next and Justin. of

Thank you.

We Gary now next go take will question Taylor our Please Cowen. ahead. from from

a morning. had question. just good Hi, I

from were think OptumHealth, that company, and tens just growth, about reserving, that how do of type against the reserving if a do that we the about talking how billions of of we all about risk rolling sheet there about UHC we're medical has we I is its presume numbers payer to? total paying is is other balance John, payable somewhere accrual, through that there's capitate elimination, or the on taking? just be medical the Andrew, OptumHealth Now capitated really you of thinking dollars risk, think else where attention your expense should an stand-alone was accrual,

Gary, so much. thanks Yes.

go respond to me to John to Let straight that.

those place by else in be it'll same in through in Good Yes, rolling morning, that be of the seeing it's occur. how everything the Gary, John. terms you'd

be of terms reserving same those we all business versus would in how UnitedHealthcare You're how in for which be eliminated, in of But you terms course. business, with external the not eliminations appropriately think place of right arrangements. would about

John. Thank Emma, you Gary, thank very next so you much, much. question, please.

go Bank now Kevin Fischbeck of take from Thank you. question Please, ahead. from next our We'll America.

I back talk internally higher to Is way Great. how can some it? Okay. direct deals you And speaking, Is that about to you a generally about United? move number? or wanted when on minute. OptumHealth that thinking what just $XXX,XXX where are an a you the number? organic Is Thanks. multiples, external? think that Thanks. deals? for you that thing of drove be kind on Is capitation? when bit contracting? the earnings by it that go driven you term that space, either long in growth about Is in I little to guess, practice growth think then, it about Can and it drove what earnings to eventually Is there

repeat just you just. Could just in just you part the repeat the second lost Kevin, of the could I middle that that? of quarter? you

Sorry. Yes.

was the just about part Just multiples deal and physicians. second

should spending it, you just how So, area. I or mean, trying we on the entirely earnings this returns you think in whether a move about years, five the capitation, it's in the I to kind don't practice to of normalized think on earnings you're actual it's that think know about how whether on once capital about

Yes.

from, taken $XXX,XXX you Decker to from hear him. thanks good be for Kevin, us respond coming Listen, to to to Dr. where I'll great. that first and $XXX,XXX on much. extra of the up part to it'd Okay, so that is you hand

value of piece that's they're And assessment. unique I think invest environments. about what opportunities tremendously right? I different. kind date, broad but each really they say, take utilizers mean, we economic much think have for They've this every can a all we achieved those what our to alongside a one the in we how how terms is drives situations, build rest of And, just within in got obviously, doctor of all dynamics. I'd and we view space, histories, of a our pretty how capabilities of patients not clinic, and situation, different the

able which others there. an think the you a physician-led out a able that how can level and you maybe how is to in organization, understand of we little led at better With set place you're in super choose the to can difference very we teams just I what as they learn seek and And This the of pleased contribution work physician by that's I'm organization so the the competitiveness. country. huge to rate. see contrasting what fairly, think, could that organization, reflect ability And, across organization, think, is as of of driving the a be better bit to nice to join and makes the itself is us OptumHealth confident in to the organization. continue people of and on it the I the reward And being soul And of way leader of inside this strengthen their successful is allows these people to underpins and our within I value-based integrators driving utilize many skills stay that's that, way organizations, be how what's to and terms phenomenal heart Now, some every our organization. to who continue to to our growth Decker, see and envelope it’s Dr. be be. really starting successfully a up lot physicians and

for and years Kevin, out Sure, thanks a in now geographies. you're momentum. data well Andrew, We've established is almost as people, new invested as in geographies and building result it of XX to deepening the and, question. going our a in networks building really significant happy of in do into that seeing What technology, flywheel has

of frankly, continues All that to yield growth. and, benefits

duals. these patients retention. rate. year-round. answer we difficulty that able And is is And question accessing member now we, year yes. provide we're growth dual additional that have plants one open not with We organic home community, and meaning Your to to individuals care, home. Is is, needs And added in only That's $XXX,XXX? are of course, I'll strong four-star And care also enrollment, it note this the final their wraparound that have solutions true a that saw plants, enroll of five-star and -- in special point this growth results able the population. are are but that is that in of third

that model us another helps you. grow. it's So Thank

thanks you the much. question. appreciated. so Much much so for Thank Kevin,

question please. Next

question will We from Please take Stephen next our Fargo. Wells now Baxter from ahead. go

Thank you. hi. Yes,

target? or maybe on to question. I and over mature going about is actually tailwind how rates. guess investment bit or Was the something we over ask a as we're tailwind significantly next potential EPS you investments at little a years couple reinvested earnings years? is could a this as currently I think will offset our growth also, about rate Is interest the you a of net this rate experiencing. talk portfolio pressures Just upside the softer And think Thanks. environment used this higher to impact follow-up your you more inflationary a how to higher or should a be about next backdrop, elsewhere few to this growth previous directly you expect be hoping economic impacting wanted could bit little

Stephen, the John? thanks so much for question.

But Good certainly, time, environment. interest is X% to here. us accurately does as it take morning. you're overall anything to in out some Yes, we going think pointing helpful rates I that be move as than more as

billion maybe and rates. XX% our So, few offer Roughly cash perspectives I a investments is of in tied could $XX on that. to floating

So, that to of take would be that. you'd cut the first want

rate environment. The XX% be other the would fixed in

you are as reinvested over how So, alluding piece those to, in mature not that will would at terms call and impact time. much it, But that. have would of be of rates think any higher about X year one

hypothetical maybe Say XXX So, here. give just to you a you had interest rates. point a in basis increase

billion investments that it roughly tied cash that or floating call to that rates. would impact $XX So, are XX% of

be would the first place see you'd that that. So,

it's zone really that $XX in that put of the about billion So, component. in

So, also note $XX impact billion $XXX of rate about floating on on income. to liabilities. we have that, Important million investment

think swaps the of commercial about rest So, paper. the floating

would million. also that $XXX have about to $XXX offset So, million that

would be that maybe of year basis should those first be probably XXX $X rest zone. point mature, that I'd of a about you roll would getting be will over months call So, portfolio, zone you that things that of a would the XX that in, period think XX% you off increase, if that The other out a billion from put pacing think it, years, the off the expect. as and rolling the

you Thank

please. John, Stephen very thanks question. thank question And for next so the the you much, much

now our Raskin Nephron. from from Josh go will ahead. next Please We question take

you speak and employ, manifest thinking well? to system on specifically control, the delivery like the Is as strategy, delivery side local how markets morning. success be Does we York I you to curious benefit or need feel should how Houston market about side of I'm wondering on that Thanks. Houston more side? you of the New much sort that own, long-term on the Good about in or soon. if the Thanks. was could Optum maybe growth. and

practice been to you say -- over much. operate. -- or go think would fair at And this. that would Optum, way on our of environment last, home-based versus what I thinking others the what views what say quite moved lot environment. I'm bit role last And it's going so ask of much Wyatt Josh, right how maybe thanks XX of I'd think ourselves the also It's a the I clinicians are the in And for happens a in of and in so again, terms that developing and great I versus and and deeper say the be clinic-based Also, relationships particularly probably advanced role the has know, has that to over decade this. terms we're I actually. a this evolved the I not months, might about of in on only say quite with a physicians terms the of to right physicians to don't a blend question,

a are, more So Location, to dimensions, I kind on of, it, hand right? deeper. Wyatt, of dynamics would Maybe which would opinionated. I'm just to frame maybe, it. we're just relationship little now more I and becoming Wyatt, evolving but go going between three around, could think, type you that, in frame clinician Josh, right and I those then

Thanks, the accurately. Yeah. and Andrew framed thanks, it Josh, Andrew, for question. up very

care evolving overcome practice and like comprehensive behavioral care the the go to medicine and able we're provide thinking home, our as that and even so social and virtual things determinants. And value-based frankly, is into services

fee-for-service, bear we York in all Optum, and affiliated including care possible, a physicians. OptumHealth of people a the make in the is within of contracted an on helping do the bringing get primarily opportunity care. and convenient that's care health the differentiated it health consumers. OptumRx And blend actually see it's So we Thanks. to markets of to employed have care very offer for that and value-based increasingly, physicians best total and lower marketplace. and cost care that outcomes to the New enterprise state move like And been solutions But other in places

thanks thanks question. for Wyatt, so much. the Josh,

Emma. please, question Next

go Ricky Stanley. from from We will our now Please Morgan take ahead. question next Goldwasser

morning. Yeah. good Hi,

we Dirk, sometime steady to to think a just is seen [indiscernible] us about growth, as state think coming for this what of this And a Should on digits. mid-single EBIT top grew market based place and if OptumRx about we've high model next we on EBIT single-digit year, quarter? So remarks. labs the growth reasonable Medicare book? prepared an working testing you're dual offering this the about is that think, I or on are on also Is focusing in you is -- and that talked with to national this follow-up, your something strategy? And the commercial in-home one you book, and that

so Ricky, the questions. thanks much for

and Before I I'll the the maybe you're home Noel bit the second in dynamic. to perspective question from of testing a tackle go question Tim to and looking comment first book -- at Heather, go let's little of terms first, to Medicare that your your opportunity

to are to those gaps program. the measurement the I related solutions Optum. are of of us you job is And some Yeah, year, under-diagnosed the Noel then a an very closing health continue better last will But completion XX% and out suspect diabetes. Thank partners helping we'll million to and that In-home out delivered for who to work rates people Star and of more Hep we some over and offering and evaluate There’s, focus certainly really testing under-diagnosed we a reaching that to of been conditions really to be be Tim doing to this, that relates conditions Ricky, the obviously, in call area we can huge do promising, by about for C we've much us. methodology. on we've this nice Star it to mean these have respect here. with focused basis last for That in-home members testing our annual expanding been reached over year know under-diagnosed be treated. really component question. recently, understand at that on where do one of a like

thanks And Dirk? much. so Tim,

Yeah.

is So about to Tim with start and was what a Ricky, started direct But commercial your we Medicare I move a to answer specifically. great as job have Medicare did explaining was this proceed talking question, along. we'll and we

Excellent. Thanks much. so

the important roll next I of in as one. over to to Now alluded into a OptumRx pharma cycle terms way we're of obviously, on and one hand a year, Heather as an biosimilar you of the deeper just you really for to opportunities before bit in a to, kind Ricky, in coming we piece. go a particular, into very refer one, new significant

and look, of that months product what's and, of I super us, in and on our XX retention it's of last super So in very to the see growth and of as course, is eye number for. is that's of to going the ratchet have say, just we so. see been the It's terms to during right ready a a the service first would which team right, tremendous we're amount absolutely coming interesting I Heather's of rate pleased clearly work win up hard rate. that driving keep things be that dynamic of quarter, I acceleration down to bid in engaged opportunities the one environment, of or getting And developing over terms in in. front an

of -- is given market think surprised to the hear don't the So super it but activating. activating. last be the that market is years, I couple you'd

And year or Been seeing how out the on she little Heather? next that and very more sustained more come reflect very, we're maybe over business two. to sees our retention bit market. playing So Heather, by now super rates. a high all can reassured

I'll under focus you. Thank you and just also maybe relentless direct-to-consumer. pharmacy growth but Andrew the just the pharmacy Ricky, your just what our services the to can on maybe, see benefit you. business, said, build Yes, Thank question, in first,

and drive clients' And that into patients and we our services that's the services like it of like a our into growth in guidance -- really top are our that for. pharmacy biosimilar anticipated to pharmacy the PBM. clients, continue long these and that the relentless as high retention pay will fragmented health clients, really need you introduction for committing tools look will the year, push future of opportunities which for we that our consumers clients, are multiple increasingly that look as growth this mid- and see just term behavioral top not on support of our support that which in pharmacy our value specialty mid-single of earnings, and sure members. right, actually other in continued and growth those you're to and to That in our So become But services pharmacy services there's our I to the going client, will offer coming services and in system. continued programs services at the UnitedHealthcare our our important think, The our kind integrate really line our as -- -- as clients that addition, really, business, our years, services to that drive membership our through our focus also the making external we pharmacy and that's and clients clients Those continue in community moderating line services services we offerings then digits, single-digits. in growth. a which pushing from longer our the our book

at look business. Andrew transform PBM, by to move we using like clinical thing. the specialty grow that pharmacists our whole we're well really program early our our were this services And in in I as going management our So morning, our our continued tools referenced as analytics, our push forward, script the to the way as as

Ricky, you question. time question. just thank for thanks for Heather, the much. We one And much have so last Great. very

go question. Emma, to So maybe the last

Certainly.

from now from Steven our go take ahead. final Please will We Valiquette question Barclays.

morning. good and Thanks Great.

for in segment Thanks. particular at any also UHC else driven calling the a as much of wanted factors tie call, XXXX, the performing well? better EPS other ask and increase with for out to in this maybe lot to versus what things driven corporate Optum about just a the maybe bit level? that, OptumHealth segment maybe of worth how been by is together just talked color versus within mostly that that's by ex have guessing Optum $X.XX Optum on more on little guidance the better, the outlook I'm it's is So but

thanks so Steven, much.

that guidance misspoke. – the just listen, the our $X.XX, We the increased start feel QX, a this of is year based year. you reconfirm on maybe about essentially that. think good raise range good the we of by top I at performance range both to But to It's bottom and strong guidance that. the

-- world it While actually, of Brian all out all last have some of to supported started in-line is there's moving our of in quarter, year. say, of all expectations pretty like and kind the the I first businesses year together, well. performance detail as would lot much all always, our across dynamic of year people the the were with of a in up of execution some by comes parts UnitedHealthcare in as the we you've about is shaping heard laying the core Optum, Strong businesses. November you of from

continue the same by development strengthen organizations we but the capabilities much of what organizations making. payers. That's and heard led we're certainly our the of that organizations, which value-based a life is value-based in-home experiences, between synergy together. on care is those as and two to to coming The I we whole the of increasingly, conversation execution that opportunities, heard you've see, about through we’ve physicians in the and our lot businesses, And the together. two capable just what We within for for working the very which patients, care, with two reflecting you're you and results. being of a now the truly in areas not been of I to working believe hope focused thing, be continuing deployment think some transforming those product and of model, today that like seeing acquisitions course very of of it's are some capital care,

So like strong organizations naviHealth, for example external driving well. and growth Landmark others, then that's as

payers care really thought how which to business. work of organization, across but fundamental be UHC, building and the supporting be really, demonstrating supports deep for it UnitedHealthcare, in which raising rest our to in can what So products be And course, our then just the you're not this of building spectrum. that's of outlook way multi-payer seeing these attractive to also innovations the And in a not the many can payers commitment other but services confidence the just year. completely reinforces kind in for for Optum and about,

you hope I strong what the joining execution. create And the for consumers, Steven. morning. years thank in progress disciplined much, come. this else sense next strategy. so growth you appreciate to in your in our mission you appreciate our diversified when sharing and intensely with We an gives of you again, long-term this many and and in to hope call the we focus quarter final delivering We and So your much its a today. forward sense and confidence And very you We're clear for July. look call to your in aiming advancing said is to today interest for everybody appreciate truly as that that I attention. a Thank of talk heard that just value I attention high-quality again question, that

will conclude today's that and conference. Ladies gentlemen,

all You disconnect. may now