UnitedHealth (UNH) 14 Oct 222022 Q3 Earnings call transcript

Good day, everyone and welcome to the UnitedHealth Group Third Quarter 2022 Earnings Conference Call. A question-and-answer session will follow UnitedHealth Group’s prepared remarks.

As a reminder, this call is being recorded.

Here are 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 followed included reports with be current in and file we including of some our can these filings. will reference amounts. non-GAAP also This call Relations on the of the to is at Investor financial the earnings of GAAP non-GAAP reconciliation available A section and reports company’s page www.unitedhealthgroup.com. amounts Information this release is Form in we website. XXXX, the contained issued October company’s our the from which dated presented in Investor call on of the Relations maybe accessed this earnings morning X-K page XX, and of Andrew UnitedHealth will Group, to I call the Officer now Witty. turn over Executive our Chief ahead. go Please

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

out As the increase continue we our work in to recognizing XXXX, approach our UnitedHealthcare of range to and Their who earnings to of deliver and XXXX day and stretch share. a those the start $XX.XX day balanced to $XX.XX to outlook durable let by me growth per efforts allow final for people diligently we us Optum adjusted serve. of colleagues, and

mission we and enterprise, on advancing remain an strategies. focused our growth As on our

critical the we into quality initiatives more and expanded deepening through more robust more growth efforts value, to and consistently while the care beyond. relationships aim in a more is consumer is Our this more accelerated serve. quarter, their past Consumers to communities that with more we serve economic responsive individual benefits to XXXX on in health several that people have to especially those to strong people launching current proposition, and In already drive offerings, value-based and affordable reach means care accessible, foundation deliver needs. which want environment on high

to provide Walmart develop announced clinics. Georgia XXXX, Optum that in consumers enable value-based provide in retailer its September, technology will into clinics a Florida with care collaboration Starting extend in XX time. geographies will jointly example, America’s health and expertise additional and we to over largest For will long-term in Walmart to and we

As expand by to as benefits services dental determinants and access address will social healthy the be we collaboration, and health more. broad improving foods, to such of opportunities medications, there vision

We wellness Optum health also and including share consumer million health and will launched grades, through millions introducing the with active in of Affordability Health monthly customized Ventures, end-to-end need advice cost a the content people commercial consumer benefits. month called RVO company In of situations allergic to to marketplace, portfolio Health tens digital we insured emergency and drugs diabetes, reactions themselves January on other medicines families. insights is and access to to services in life-saving their those platform. value it announced for essential component need and them July, they an seeking the with serve for determines especially for when we zero healthcare, of proprietary than Red more severe visitors us relevant partnership and a products digital starting its prescription broad consumers XXX Optum discount each distinctive Optum’s and combines health Ventures health products digital line card. Red enable with a with platforms, the popular Store engage platforms. partnership clients’ through This and Perks connecting a of RVO services, media

can vital self-funded they zero with Now, exploring working employers medications are who provide are for how co-pay. we these

are people. this And than X will with we million employers. be to additional So far, available many engaging actively additional more benefit

We health those are improving without also for to access even essential coverage. medicines benefits

home. obtain insulin a will it to help without partnership be insurance with new to month and to consumers their delivered able a launched Store Optum example, $XX have they for For Sanofi

seniors in enrolled health who are to XX% nearly have consumers role Turning benefits, those American decade and plans people serving And are significantly incomes better why are outcomes today, compared diverse, increasingly are MA. Through choose more of vital the plays average of fee-for-service measures. a There than experiencing in across Advantage, MA to Medicare wide complex care than about a Medicare more senior. reasons health Medicare compelling seniors in needs ago. Advantage traditional lower spectrum half a

our XX% have high at MA Medicare For a over of is example, lower lower to to rates in for less net served diabetes And accomplished lower is rates this XX% is of due of People provide any those complication. cost. lower as people more at care. cost this the complication And deeper, as value coordinated fee-for-service. members levels compared much with to spend over and This ability government. XX% MA to by delivered serious of category

benefits, We the occurred again access important are United universal and we affordability, on path value long our even on in health life. offerings people confident will the Medicaid. year who more this have this with of cost in rising objective consumers differentiated daily of coverage an ever towards expanded milestone an has than once focused Much States, more the Today, have coverage, resonate are to given supported. simplicity

team store accelerating initiatives pharmacies help effective to just care experiences Change providers Healthcare employees Looking risk consumers, assuring with access a lowering over them coverage. to to periods redeterminations upon system agenda we who whom about is coverage enrollment with effort enterprise simple consumers include and Partnering I health is retain education to it ambitious launching our the adaptive and efforts payers those and to and to coverage shopping recent our continuous direct effective for while our potential organizations Healthcare, retailers outreach we XXXX welcome and health create deepen those and OptumInsight with to annual all costs expand and they reflects vision our coverage. community more partnering The will formally The assure while to technology eligibility team McMahon. consumer multiyear resumption their are Underpinning engaging and more serve. drive eligible for and for of for and to pursuing and for available team shared the colleagues, compassionate participants. growing an next newest have Chief continuity started benefit across capabilities. system. with help our options year, combination for Change President states want to our and I With and turn Officer, assistance national the extend working given at build that, identify talented Operating Dirk efforts high help to our care employers and a educate in is priority of at and are of and

Thank you, Andrew.

its transaction days As more mentioned, excited include: and bit I Change OptumInsight. a of lastly, connectivity. simpler thought about providing point more benefits are payment of Change commentary robust health provide how accuracy; the and claim physicians; claims administration care us, point-of-care system process I Overall, are obligations medical on first, Andrew improving at together payment total standards patient in and transactions, upfront. can we behind built integrity integration health Healthcare we within simplifying fully strong make by of and by efficient. grand to focus work aligned including in insights just provider service improving the payer very applying brings automating we quality stream, a second, combination the a of the reducing offering editing of and on at EDI would of critical With friction evidence-based the workflow XX network the areas by delivery payment our Together, recent

growth together to working have intensively started gate create of OptumInsight. for to and reality make era the of out teams next Our a visions these the

We to all combined confident our better are capabilities will enable that very healthcare us serve constituents.

of you employees need rapidly almost every comprehensively families to range same employee focused traditional, sizes, groundwork the their resources operating engaging industry, is hear populations. behavioral needs been sector both want have the spend deeper I health as no this the evolving these the support resonating area. lot to support for their health. on imagine, levels Companies OptumInsight, and of resources a person meet deeper and representing provide might in consistent also and I The but and building levels in broader and of of message. in we time increasingly the Across of Beyond for customers, more a or matter all customers diverse

is we it. doing are Here about what

tackling are we access. First,

including have behavioral health our growing operated and expanded complement years, by owned behavioral challenge. behavioral practices We you many a is of network clinical And of of health XX% as the a XX/X last know, Optum. couple over by

range portfolio digital them. of are supporting get a needs, to expand offerings they need So resources allowing continuing when patients of our we to

new prioritizing. level through made These more We improved health we to customer improvements health have of information is role more help right condition-specific of vital we Behavioral plays also an the to navigation and consumers experiences the well-being serve. access a the have and challenge care to are are improved we the easily tools, of people satisfaction guiding people integral behavioral quickly. overall consumers significant health getting appropriate

increasing So you affordability in continue – quality area. so us sensitive all access, and will you clinically see continue to and will this to important

people elevate in for their of challenges holistically, tenet is includes especially home and highly people care care. meeting outcomes, more mobility to Another and people, better focus can expanding our they health consumer where clinical homes. result experience complex settings, know in care We improve capabilities needs for our at that are, with which patient

serve deepening us clinical confiance expanding for more and post-acute for behavioral opportunity experience to in clinical are real The will them. the multiple turn while over of need it So us to of offerings their value-based so, we patients for acute moving an OptumRx. keep with settings, significantly people that, positive of to families I together now a conditions creating medical, home integration and settings, addition capabilities more the traditional palliative care Officer, and doing infusion Rex. John breadth our With help we in bring Financial check teams Chief in beyond effectively. our and reducing care By chronic

Dirk. you, Thank

our is As long-term you a story know those substantial one tell can numbers and growth and and of near tell story broad-based of the well, listening potential. numbers

anticipates third walk double-digit next care remained by to both quarter numbers $XX in of Care So, year and In some through revenues grew second billion for continue the those you. the normalize. our patterns or the similar billion, UnitedHealthcare. let Group patterns to and those me broad-based XX% highlighted Optum UnitedHealth of quarter of at quarter, planning $X.X with growth

We are people evolving need. our they broadly focus and respectful people getting we longer cost of screenings patterns the acuity highly always, to for watchful maintaining at trends. remain encouraged but are consistent term obtaining as norms. with And are And we medical on see levels care preventive stable,

value-based growth care customer home year-over-year market billion retention settings under quarter OptumHealth’s our the to revenue been at year. revenue third grew Growth consumer OptumRx patients grew per revenue revenue growth performance served to specialty, care relationships across services care backlog increased the from new as by in prior continues in And to increasing quarter comprehensively businesses, now sales year-over-year continued delivery And meeting XX% services. the double-digits momentum people to led reflecting in $X.X provider the in of ambulatory acuity Looking number $XX.X serving specific strong. by OptumInsight’s Pharmacy growth care grew people show expanding billion. quarter, of their and behavioral XX% the led and types continued higher compared served pharmacy growing and and of needs expansion the community by the pharmacies. and by offered payer have XX%. be the revenue of including businesses. continues increased to X%, surgery. to Optum revenue homes,

provides XXX,XXX greater expectations, Turning insured to XXXX newer, past commercial our increased better this continue choice has plan. in half more grown expect and of continue strong the X-star a health domestically by as through we Most to The to the year over served X first our or UnitedHealthcare we enters grew XXX,XXX by offerings with year-to-date. all of refinements achieved were XX% consumer-centric in of businesses with offerings The in Advantage the and finalized. opportunity released solutions offerings. serve XXXX will health Surest, we and health our such star offerings. needs. XX% also Medicare serving so state other with people our and any with continue promoter certainty as than net needs which customers’ the our number in dual people by people UnitedHealthcare, benefits both UnitedHealthcare over than to plans, special and by people see were consistent planned to revenue year experience with long-term more plan growth in rise Products strength affordable we more X-star recently planning reflecting as the contributing. their number year. we People members categories, long-term programs. of satisfaction, offerings far our our ratings XX. grow served our in virtual increasing score each strongly, consumers of XXX,XXX to plans awarded recently, differentiated ability individual The Nebraska a are to And continue consumer TANF, highest deliver offerings serve by Medicaid care overall CHIP demonstrated and to score aligned by exceptional our our level of

were in system. Our further And adjusted year shareholders have a net the X billion capabilities, through dividends Year-to-date, which the providing vital XX%, build share income. $XX.X the the repurchases. or of benefit debt-to-capital to capital and people We ratio flows and capacities first X.Xx of health ended upon strong. we months broader to billion quarter ample $XX to continue we returned serve remain from the both operations cash with ability

our the this As to per earnings noted earlier, to given $XX.XX a share. strength we our performance XXXX morning, $XX.XX outlook of updated business of range adjusted

think enterprise to an XXXX, of striving long-term investments we these and today featuring making the a our diversified growth foundational are strong broadly a year for story future. So telling numbers conclude

Now Andrew. it back I’ll turn to

Thanks, John.

about a early with customary quarter, will observations is close next third offer As of the year. we

for reserving investor November conversation of While most conference. this our XX

are on per forward come earnings in been hope has we strive New in this XX% investor is to getting you our York. our the XX% growing priorities. meet of runway sharply clinicians, per excellence their With care and to to care share as to enterprise long-term rapidly look for of Medicare a shareholders. that, growth. one as and again top exceed we offered conference Question-and-Answer you, operating on an few strong employees Our we in businesses executing valued and November And we value-based in At to estimates of goal. operator, earnings keen Advantage performance greater discussing levels all the focused to grow a open that of The detail executing our range. serve highly our current and person would a toward have advancing with see expect, long businesses reasonably are I it a we you’re with do, capacities, course, scope XXXX OptumHealth communities to with well likely our view our And momentum positioned Session strategic end we questions, analyst the creating as delivery highlights. so expanding growth a long our much majority on reflecting in case growth strongly continue with outlook that consensus settings and Among customers, of we you and plans can our We offer focus at let’s our sense to please. up year. to organization and, innovative expect this consistently well and the the initial caller the next at commitments for and distance, consumers

[Operator first will Credit Suisse. you. of from A.J. And Thank Instructions] hear we Rice

for Hi, the comments. Thanks. everybody. Thanks

issues. the said basic you going medical this cost to concept with that As you view Is and about know, project ‘XX the pricing think Is to of – through of off we commercial year that’s employer return your utilization. so and basic would your mid-single getting there more John, trend something process with discussions that normal forth. allocate continue unusual about a in the you’re I in X% is trend the in maybe Is groups medical addition their employers, to with something And that labor traditional being – some an put or traditional is bump we’ve discussion providers heard you’re for to digits. dealing seeing place? X% cost range medical up discussion

the So A.J., aspect question. thanks for of for much next that key focused year obviously, And a planning you’re so on.

to just Brian of ask focus Obviously, on lot make me the from been let that and well COVID is reflect there trend. on you broader years, comments bit couple UnitedHealthcare impacts I medical cost think last about as of little the a as might more the a for a detail Thompson of perspective. Just couple effect on of

through a think I I less moments. year, different in of bit effects, There I this the system, of COVID COVID. like think there blend it’s different is now cost think as little we’ve is parts system a but become at living honestly, about rolled of much inflation, possibly capacity the the things has tightness things the constraints affected in like as market labor system of effect

more through whole more going a that as go actually pricing might this you translating just been been become is sort think maybe, of need think perspective, of influences forward. ways has what forward. maybe there you’ve I on how So because Brian, in complicated With thoughtful high-level terms some of in that issue some little going deeper you to you’ve about

Sure, Andrew. the thank Thank for question, And A.J. Brian Thompson you. here. you

As have trend we our that historical of look And made, points some cost some higher a them price pretty forward, to planned norms. for obvious and inevitable. would little and that Andrew think say of we do I than the are I

XXXX lower reality The being the just a first starting that point. is

costs. we’re provider really hard on would both value-based of And working the consumers a arrangements certainly we’ve impact same down patterns contributing though just the mentioned I to of alike. that, don’t you trends than at say labor to employers pacing faster included these negotiating emergence what respectful our perhaps how probably partners. return seen really our manage at and of And know, addition historically. and suggest pace we’re with again, in care and they I how of we being that. time, to the normal, would In inflationary is certainly

just unit meaningfully more little higher seeing for enriched addition, just at rate. bit. are that And end those a price consumers, lowering designs virtually not we that accelerate product costs whether it’s we’re points and in products, mentioned a So a driving a we every really is folks that those for consumer day. about how dollar not model coverage priority really serve is only choice talked But We’ve and first a as surest that emerging support lot price point. lower

So elements we’re side, product only and forward those how of looking view the our dynamics some not to costs. but in are

in a points, so is, I away have degree the one thanks is taken key of sure saying Brian there pressures well unavoidable some behalf our – is from that you’ll our Brian, really of clients everybody there macro there we’re much. and Yes. think, something and A.J., is customers. And about on I’m doing of of is but what that aware the environment members our look,

is focus Our plans design of whether way the high-quality affordable care more can marketplace, deliver at platform that’s folks bring the all the year UnitedHealthcare, after into is in on year like are through year. we to develop that, to OptumCare, designed that surest innovation way develop we after rely something ensure then levels and that to in the value-based for which

So of they in a come confidence that to stability expect. can the healthcare

this. So to responses can sure a environment, we but as extremely It’s on Thanks, strong tell, you we’re making dynamic it. have that’s question please. viewing we’re obviously how And focused, really next A.J.

of will we Next, Raskin from Research. hear Nephron Josh

those of how morning. some looking capitation? coming the you many consumers full of those Good for is now components think within given and consumers are numbers then then form of how a some much just or many of Can OptumHealth on in that actually thanks. maybe Hi, sort And how and are refresh. OptumHealth many OptumCare? from arrangement of us I and risk are revenue how refresh of OptumCare you’ve

thanks so your good Josh, and much to hear Yes, question. the for voice,

quarter, good, a performance give very in little pass Wyatt that. continued Dr. more strong OptumHealth on to strong second very flavor you to a a I’ll from So Decker overall.

you about me which those lives question the out let asked Just of one is aspects, fully capitated within there. pick a

little obviously, that in we that if subset through fully you’re you has number XX% million of arrangements. XX capitation about So a still think after so under about of folks platform. who OptumHealth a OptumCare, Probably, or look

in the the it’s small growth of despite strong through per you lot fraction can that you of sustain this So organization. in look of revenue way after XX% in shift, reflected very that OptumHealth. influenced really that’s average but the – the part that a capitation our see that’s A number impact tells served total that consumer really of is by still lives having, we

context So key sustained particularly a what growth to long-term now all of that’s it pass is little in give there, Wyatt underpins lot OptumHealth together, fits a OptumCare, in to you and more how and of of really runway which Wyatt. piece a our maybe confidence bit

and citizens Thanks, thank two-thirds to will the both you, our for our model solutions nation from Today, value-based our the that Andrew, over care revenue is and growth. correct outlook Josh, optimistic of as capitated comprehensive continue Yes. to care continue Absolutely strategic importance on to are well our business question. as offer healthcare to to derived of value-based to grow. constructs, and

ample pathways As Andrew pointed for out, have growth. we

going like excited and together we going us talked platforms Northwest we markets am see I bringing markets touched that and have new increasingly today. historically You’ll deeper is serve that broader the about into as well Northeast. that Dirk the we’re on what in And as – and about the today the Pacific

community in populations OptumCare. comprehensively constructs So those is serve we more broader and a set think of of and helping us servicing to bring home value-based

the behavioral, Thank lot and you’ll about financial virtual, labs clinics because OptumHealth capitated as we’re bringing me all bear So increasingly, grow you. talking our to of a to value-based well hear value-based as and risk population. services, our

much. Thank so you, Josh Wyatt. thanks

April. please, question Next

Nathan will Goldman from we hear Next, of Sachs. Rich

Hi, the good question. for morning. Thanks

about get you think I but think into normalization the year, on year? biggest have pattern the been that are kind non-COVID continuing in recovery normalize. impact the talk fourth How you bit running next volumes below we could to mentioned utilization a maybe can has the non-COVID factors And both you quarter? just utilization of for thinking you is that care as baseline concept about of this

Yes. Listen, Nathan, thanks for the question.

now, ability becomes COVID a constraints think blended around area desire and like QX much QX, Plus, to super like narrative the historically is access this over COVID As good system, through in flu, the things are earlier, hard a to I months. a course, the things cost-of-living has little working system capacity the narrative more volatility or of about way right folks’ been few is I to what as said – and is a you an next we sustained. ensure think which particularly try in go to

So all that is I mix. think of the in essentially

balanced year, We’re think, reasonably of the play seen this going a now this out. stable portfolio. bulk pattern I the taking, is how reasonably of a view for to We’ve of care across utilization

normal We are taking flu. a year view for

not don’t out time. in evidence flu So We seen this just really ourselves to we’ve staking any at very know. decision all couple no say low, be of in There to we’re support last point to is very is either high. particularly going as the years,

view next you very a We Thanks And next into we’re of well confident we know, question. feel very and balanced this. how things the all way flu we’ve we as about correct And tackling themselves which, like will forward QX year. or roll for us. we’re as as essentially into So to planning particularly QX can look taken for the the obviously, affect quarter we as reveal year-to-year. flu, differentially that’s course

Next question.

Research. Wolfe Lake, Justin

A of morning. membership couple questions. Good Thanks.

open redeterminations for on kicked enrollment kind what your what in would membership of to Medicaid terms early Thanks. you I given of thoughts happens the think starting? market? potential any post XXXX And mind First, in then the view your the do of on Medicare here, love in hear with Advantage, kind for

Justin. Thanks,

comment So Tim I’ll in and Noel ask Spilker Tim a to second. then

year introductory that, as potential said something couple redeterminations to kind a really of in comments the call, really thoughts into. Just next on really of Justin, issue – as is your at are my going organization, an are a I questions, of is the important prepared for we and leaning beginning we

of redetermination on, focused progress could and setback over dislodged a many that comes to emergency because huge to would last their situation terms ‘XX, extend coverage. that’s on when an in end, And the that’s be through ‘XX years very a the we’re lead concerned where made depending a health folks to get public cycle during been and that cover. the from We’re

can we really Tim help we really So feel a but participants of sure the some how is retained talk ensure people we to system can are a an will on focused which its ways where redetermination in it hope people cycle. we in coverage. area are all second confident that the get a important in through in that as area, we lost things the don’t entire and it’s lean go industry and around make

going that’s So to super a important be area.

Spilker enrollment. to talk Tim pass ahead. on then ask Noel that about to a little go deeper me Let straight and Go open to

Yes. Thanks for the question.

then, detail maybe first, So and just respond of more November that January will Certainly, the around in redeterminations respectful by the we’re in change. very play. we consumers how the specifics, in and the will terms in are PHE of And assuming end will and some course, a vary variety of that of share in state numbers, we’re resume of factors the so will pacing behave QX. but

be hard XX mentioned, to for course with Andrew working months. we’re will as the So of long-term states, really a a This our over big lift effort XX customers.

our access to really outreach then connecting So trying individuals data like part consumers, with through to engaging care, providers sharing, we’re through pharmacies. and do communities, so where engaging they places

So work, this members to through ability our able of that, they With Tim. over proud it to support hand go of as change. we’re that to and be we’re proud I’ll

Yes, good morning.

Justin Tim thanks here. for question. Noel the

to at on start remarks we ‘XX last the if pace XXXX, with grown end year right and opening cap XXX,XXX conference in year we’ve the Medicare with gave end kind investor on John growth our first, and of mentioned XXX,XXX may I about guidance that are now, So that’s of an lives we lives. this just full year consistent with

So into about proposition head in feel our value ‘XX feel XXXX. has will the like way that resonated momentum good and

our So, benefits. broker positioning, great like the drugs feedback on product like community from dental how our investing, around emphasis we and in are benefits the utilized investments most

to don’t guided the this the very I respect in Advantage see With outperform again, the feel industry good I we into to of growth. vantage point growth. AEP ‘XX XXXX. basis, tomorrow. differently chances to X% industry, once for So, to gaining any reason industry to my long-term kind it from have X% Medicare share like have over And heading and have

Tim. Thanks

please. question Next

Stephen of Baxter Fargo. Wells

point? OptumInsight, just coverage then you to I add love Thank this pipeline Thanks. I claims facing. us, from expense. new they challenges the you the what you the business and expectations have customers is remind health partners, Wanted post lastly, work guess hearing accretion are hear much revenue to as how Hi. for you of any How divestiture system to would grow your change Yes. about you. update at anchor And for given are developing? year this on Can next ask

Hi Rex so on for respond to change the Dan am to the point part that piece. going ask question. of and Stephen, question, to then accretion I will up Schumacher John first the much thanks the pick

So go Dan, ahead.

system in are side Thank Sure. the under backdrop terms care them a Obviously, things labor shifting partners health pressure. Appreciate wage the you, of like and of Stephen. inflation, we question. of some about from of lot talked shortages, And macroeconomic that.

short-term key like to because responsive to they digitally mid accelerant the find the as a patients. address value-based engage very their example, an with of preparedness become we we to things care present engage importantly, initiatives, but some we some or how with systems those So, on long-term, in needs, for be then transformation their as that are we really of health an able opportunity market,

so reach. areas we have that And of expanding been some the our are those

been existing really growing pipeline, really and have us We that gives a around and outcomes, have relationships, that the performance. robust is confidence to encouraging and been has conversations what’s advancing. have And been from able drive been strong our pipeline we

And time contributor. that a how that are continue to and will so be excited to develops see we over

next – well represents of terms year, In it a of current into on of not in our and quarter terms our it look as we backlog, relates north about backlog less contribution. we coverage have revenue And of half coverage into year. as revenue to next surprisingly

Thanks Dan. John?

for it be accretion accretive On year. will Yes. so yes, next change,

the of we of the on and the divestiture an we investments the I important in impact that year occurred year that, integration to and close a Also, as that a business year important having expectations terms view. the – later then for bring the with the the you year earlier certain has make I full costs out am closing the that terms are of it of – when also and closes we an in, will that. terms within versus that like done magnitude terms will out consideration when of think really, what year, considerations very on the in and it get we magnitude of as the in aware, impact in are in in sure In factors

and things So, have XQ. you it, and two play that just knowing about important to Maybe got think you that might also do as the in here there. models actually how XQ

seasonally is in wouldn’t that. be we it’s lower operating half a additive So, elements changes. know half of second on the fourth you to expect change the to few terms earnings well, quarter. One, understand in OptumInsight’s earnings. A I for

considerably than typically stronger half half. the second First

there that here. So, comes and will we costs incurring be in. the will transaction Clearly, that be there impact how

And in comments your roughly you impact earnings. how segment think as any operating in revenue on about think is really, purposes, zone about of $XXX OptumInsight of back on coming the my going without the modeling impact million of coming forward. course, So, we to

point other possible, integration look do acceleration any – on will extent to the important to the activities. We

do in So, we to million in potentially can $XXX benefits in in the ‘XX cost combination ‘XX outlook health of the the observations Thanks. and also. But look more incorporated that morning, outlook provided terms we the the change XXXX quickly, pull and of that ahead. incremental could we – the of that that of bring is OptumInsight our system that potential the over and all see might this to

consequential Thanks can the anticipating want John. I which investments. business. strong John create continued given the and And and the point you is within reemphasize, you in make we are important of us I up space the are through just guidance think sure have revenues make that to today right the a tees flow closeout seeing for But the we also we ‘XX not obviously only ‘XX, to very growth really

started will in it’s of in really our it’s QX in responsive as our we going So, to and pressures. increasing change how integration done consumer to we promptly can, as get sure of the employees capabilities, are in making sure which and whether continue whether cost our through invest we that’s the or investment we whether make beyond to that QX get living

So, as consideration our going forward. really thought important taken through that you work see that into and very much we

think marketplace. add that I together tremendous important OptumInsight. on technologies, it’s understand moment is This integration you great also bring complementary to – is how all to capabilities, the I the for – The other don’t I thing just change perspectives skills, want a is would

anticipate this Dan two work on. we And so excited And de two kind new a as lead really from through the very together three organizations or these to as to as Crescenzo Schumacher of OptumInsight we integration. Neil as quarters have are quarters, next this we roll goes well working emerging

said, And So, a have of we forward. potentially as points being energy our right to going the the in lot guidance make potentially space. released John into space investments this incorporated

Next question?

Fidel Stephens. Scott of

morning. been beyond. has continuity ACA Thanks. redeterminations here, It coming XXXX and care the how for changes favorable interested in know thinking some of looks there some like to for potential Good then just exchanges I you been about be in could big developments and footprint expansions market. that policy positive the competitive context also focus that especially has And Hi. with a back. are that

term. exchange in longer year for interested Thanks. next So, on just your both thinking strategy and

I really that question. appreciate

we a Brian building you give area detail and As to you been little years the maybe bit up couple know, X that. where this have or on more very ask is substantially an last over

see the Scott. for And relevant as a and us criteria We country. Sure to across totally. we emerging a more the place really exchanges broader Andrew. meaningful every each is year. Thanks important to this question, and coverage And agree certainly be it’s

our we In new four footprint expanding meaningfully. in expanding into while XXXX, states is fact, are

from end two-thirds the nearly leaving the by I here, XXXX to the of should start by suggest. or I again year, next of think addressable – we market XX% are around going of next and year

sure these a make with we partners footprint aligned in where and encouraged have receptivity growth we by not We folks states, ‘XX. are expanding process from again perspective reasons again, to It’s how in And our or we like yours. enrolled positioned looking are and performance are. as that can here, making that to and forward in. our redetermination get folks important progress. through leaving both partners sure are a and working distribution XXXX we but our only with this we manage So, employer product And ourselves

Thanks question. Brian. much, Great. that so Thank for you

Next question please.

Kevin America. Fischbeck of of Bank

Great. them normalization to has payers? all about back three again, bit, kind more have I in color a the different or across three back back trend, be a how a of Thanks. normal, which do you Thanks. you of want kind government, to of to little can. view that still to normal. XXXX, longer quarter expect about a lagging to trends take will been little the bit to looked get And should we the I give when if little talk go Can in you

of will Kevin, that. Brian a thanks question. the make so I on much couple comments ask for Maybe to

really with will for Hi. focus type, question, quarter Sure. on Maybe it’s the as a driver, was has driver well. start Thanks and the the it been that inpatient, I really service and Kevin. last

quarter, of I saw a third we when what in the largely at look So, repeat it’s second quarter.

pretty with higher, overall. in trade To certainly as might is normal. near shifts commercial, particularly interesting at more question, trend slightly a is would types to and at above I little I even I a Medicare just inpatient lines I a lines physicians consistent Outpatient service good little Medicaid, lower variation, had would bit Medicare some to business, to And suggest all ER than durable is seeing lower. normal of lower, little for mentioned, other system though, on be again, largely the patterns. care urgent that’s of developments. surgeries starting much inpatient, say say, care Beyond back But and service, little some of again, inpatient in but maybe normal lower, to a your seem other of the or excuse other back. inpatient inside levels. business, me, signs a

being a So, again, largely it. the most I repeat element what had suggested that’s notable inside quarter of inpatient last really

so for much, Kevin. thanks question Brian, thank and the you

question Next please.

we from JPMorgan. Lisa Next Gill of have

thoughts am talking on could very you business? that market, for update environment we we for what taking going in about think curious can about employers if I of to you type if plan my currently Thanks just into your membership move how much a And ‘XX. around just us give the that When commercial question. are trend into an health the recessionary mean

our Dan, much that pass the of ENI, new answer so for thanks Lisa, you Keuter. insurance our to would I commercial like will business, actually question. And that? Head Dan to

the for thanks the Andrew Thanks And Lisa for Yes. introduction. question.

are resolved. the in for As is the you know, our but at our point this national business other business XXXX accounts segments year, not of largely resolved,

and for that am I accounts us national we year strong pleased with in for year, national very a renewal we leaves XXXX. confident have of performance, year seen terms a also accounts As in which look what growth very a are we at strong sales

are of to the business yet The resolve. other lines

question certainly aware Specifically related are of those. recessionary your well about to we impacts,

net our would seen point, on we QX among note hiring However, based this at customers. have our I performance,

emergence seen recessionary So, we impact of book business. not have commercial of our in yet an

the Looking question, evolving additional as your forward Thanks that situation assess Lisa. continued economic to more provide guidance clear. and XXXX, we will becomes for

the much Lisa, Dan, for very for you thank you and that question. thank

So, last operator. question, please,

Absolutely.

for final Taylor come question Our will Gary of today from Cowen.

I for ‘XX Hi. want come Good back to morning. moment. just to a

of want wouldn’t initial consensus just initially make range. And a saying. where your be guidance. at was to I understand when the have sure I over the be say ‘XX, is course XX% to often year. to about I I But off updated are the I you obviously, the ‘XX what of earnings year Street that am current And has think look end about the up this you come guidance capturing hoping maybe growth I high think would

talked You about redeterminations.

Could to you respect, sort normalize. talked utilization You continuing in you might for employees. maybe talked you consumer I and say call us material that incremental those on those about, about healthy some to of investments it, else is you ‘XX think, also And are rank little there in anything to as weigh of you add headwinds terms for list? thinking bit? how just Is would a enough

recited want utilization great overly and into sure of optimistic. we not anything investments about we we have a normalize. terms go those our that that much really time terms questions. to slowdown on our kind the tailwinds you continue of environment, be are to as And so year, I to would I four mean levels, among nicely. for then really business if blend assuming seeing those are for as of talking just of in that probably thoughtful not and Question call on about very the XXXX, that you mean that in but thanks to whether of dimension, we course, that I yet headwinds, or you heard, say spent kind external of in in economic got marketplace, this see surprises It that, have the about headwinds, areas any pleasant we pressures, make would to obviously, Gary, mix. I lot see the think we start the of investments, not inflationary just be the on of the

the organization. to X the the in got our Very strong for served, OptumHealth’s momentum demonstrating we platform, Medicare platform, that on X.X Advantage. moved years, last years, evolution you of the other strong the at-home Now about think for which scale, patients significant clinic the has over growth a side, and tailwinds the are in business. has income very capabilities complementing

are organization, I able very say would ability deploy are really things we to where we we were material. to of our what effectively just continue scale in a look the and very interesting, versus actually, about. really ago. And also think the a and second it’s to capital The You those for for driving one another at do contrast pause where those of is then today the year organizations And marketplace to today tailwinds to substantial.

XXXX, about in year was the the end. capital in year-to-date $X of about which we deployed billion have number full M&A, So,

have As spent of we in $XX XXXX. today, billion

getting and of continued capital we ramp-up terms have of Rex our interesting obviously, deployment, around in earlier, space. substantial the very capacity. And you So, marketplace heard is that from John

we to have opportunities probably you to value. diverse all We discriminating we as number diverse across be we as And ever much key terms past in pipeline market the opportunities several a the as see of times the of see growth Very about very of that we platforms. beginning know, talked seen. in our have is

everybody, improve aware system a helping committed lives So, to of for tailwind plays the for have Deeply person next healthier later better work Q&A helping to our Gary, of I thanks live and of where you be to expect but End we will want year. going to mission see how how that that, York and of in you for Thank quarter. as think forward out that health and us, With to you us into well in the I the many to much grow. of question. opportunities its to so you time today. are for and the fully in thanks, hope people taking look everyone. New away meeting build make And and your company continue impression you. your for and questions We we a confident in for to ability and thank do attention need we

all participation. conclude And that does your conference. you for today’s Thank

disconnect. now may You