UnitedHealth (UNH) 14 Apr 232023 Q1 Earnings call transcript

Good morning and welcome to the UnitedHealth Group First Quarter 2023 Earnings Conference Call. A question-and-answer session will follow UnitedHealth Group’s prepared remarks.

As a reminder, this call is being recorded.

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

release of amounts and will reconciliation page Information of call to issued section GAAP dated presented contained maybe Relations on this A is XXXX, earning Relations the XX, morning reference financial in the accessed X-K the the amounts. Form of is earnings the Investor company’s non-GAAP website. page we also on and at This from which this company’s call April available Investor the reports non-GAAP www.unitedhealthgroup.com.

I the turn of Group, Andrew Chief over the UnitedHealth to will now Witty. Executive Officer conference

you. Thank the year. focus all the of tight UnitedHealthcare of deliver joining helped half quarter last adjusted execution, total This offerings. increased per of $XX U.S. in continued $X.XX, within billion. XX% over and people in us combined and with Growth about Optum on the XX% across to UnitedHealthcare share today. served strong balanced by X.X the number this first of commercial up earnings you Good us Year-to-date, million, our broad-based our morning growth, well increasing revenue with was for quarter thank colleagues and

XXXX. value-based are compared we nearly At OptumHealth, December fully more now serving arrangements under XXX,XXX to just patients accountable

per this the we for of a full front one per in adjusted outlook Given $XX.XX share. for morning. earnings you topic know range results, mind these is our to increasing I of strength the to $XX are year share

with start Advantage. will I So Medicare

Advantage to evolution With notice clarity the now this for hand, short greater of important mid-term in the we program. have Medicare XXXX

a implications changes XXXX Our through will in submit bids just working and teams ready few to for we the are of weeks. the be

the support of the to behavioral the and potential risk diabetes, particularly some for of to to as the including more impacts the concerned allow model, relentless lean beneficiaries remain multiple we people minimize us, and on decision adjustment we needs. phase-in available more, and changes appreciate our and of manage complex member on unintended about our changes. phase-in time CMS’ While levers for consequences with diagnosis focus do adequate costs This we will needs to patient ability around on

work will such and offer as and We into for and come. expect enable teams grow scores product strongly to differentiation investment have Medicare of to as value Star continue us the to measures beneficiaries years quality to as many put value to years our well leading

the program, working better MA promoting We fee-for-service. fragmented, access, cost the solution who remains under less as and historically system. care for are And goal outcomes, traditional underserved CMS healthcare committed with best especially care, stewards to equitable which it the effective people with have face its who been of value-based best experiences supports promote to exceptional long-stated of lower importantly, and

a access more in value. and and rate settings. hospitalizations They convenient medicines, outcomes, an such critical and more benefits, prescription consistently health They that lower know health XX% greater integrated as care. including versus avoidable care derive can dental of experience seek suite with they hearing MA can comprehensive Seniors better fee-for-service, of over vision, much

million Advantage Advantage In choose Americans, all are of satisfied report Medicare. compared pocket out a traditional half year fact, than spent in today. they their why coverage XX% to fully of seniors of about in less typical $X,XXX and Medicare highly Medicare Medicare seniors, well seniors over senior more with the care. And Advantage That’s XX

growth foundational in priorities, improving company. including This of Over approach our value-based consumer our on across experience of consumer the focused is the to past year, orientation our each care. we support

plans this Optum, be important patients And one million Optum. patients we the are people arrangements double in example, accountable them plans or commercial the fully UnitedHealthcare were expect where to value-based Many other focus benefits, Medicaid are served members through by we in year, Medicare increasingly, many of care These of X of or For with about of will XXXX. benefit than years. for more serving Advantage. at growth serve an we coming the end

extensive behavioral and to well care outcomes health providers and than tens and while spent a we of enable infrastructure thousands are approach. people participate lowering specialty practice for essential By improving more offering investing the healthcare integrating costs to in support have all virtual delivering decade We with ambulatory in overall. across traditional comprehensive value-based and of pharmacy transition and in-home for patients, better settings, system in-clinic, care care measurably access this

on robust is we drive zero members track growth are all and Our strong Surest commercial XXXX. firmly care employee-centered life-saving services are home our pharmacy our in benefits, providers, to of on commercial our what of we do. including to to the innovative the in put for and focus these within our heart consumer through co-pays patient drugs, on initiatives insurance delivery and health very both consumers continued financial member, improved early indications and helping at and more, to growth offer growth From services offerings, for our

that completed. people serving UnitedHealthcare working provide support to to benefits and redeterminations, Medicaid access options. so process much as when on is their state benefit understand our and best the people and programs this and we our the process we with One now others possible as more resumption in expect information started, of be coverage has partners can note are And last

turn will Operating Dirk? Chief Dirk UnitedHealth it to President and Officer, I McMahon. over now Group And

for states. now on has activity up help Thanks, to Andrew. been it this preparing when redeterminations, over months, we Picking many resumes XX in as have people

live assist retain renewal their This to coverage calls to We if are with and plans. guidelines outreach transition includes ensure closely to options educate longer are navigate or they alternative effort and Medicaid help existing with no working process coverage eligibility find can members other to they Medicaid-eligible. members

no coverage. for who employees are and are extend will for eligible to eligibility to We enrollment awareness is uninterrupted with some increased UnitedHealthcare as also for possible and With plans have care if engaged for executing coverage access people and people annual employers ensure many monthly plans, are detailed subsidies, longer many our other qualify premium. Medicaid. to as with eligible extended they drive periods no

our serve to we delivered people Let benefit access add and the the and to patients platform. Consumers value relationships will the me opportunity now serve in that value-based in need. their through have year from capabilities accountable Nearly our expanded will more in all have and fully homes. to deeply turn services effectively we of have home this to home-based support we

capabilities this important key our of four highlight area. will in I

million First, in make we and to This X.X patient the more care than visits that the expect help and we to to needs physical of designed patients’ in-home clinical year, identify patients setting. homes to with clinical continue assessments, services social needs. offered and visits other scope expand

in nearly Next, ago. in-home care as return This to safely will into people after post-acute year, and many support. care supporting home million about This patients and connecting entails stay. people This transitions. with X as manage twice additional we in role through helping avoid years inpatient readmissions settings, just an XX an important transitions, plays hospital helping patients

seniors and nursing assisted is area, This community clinical who facilities for living senior housing. senior live in skilled and care Third dedicated care.

and Our strong of clinical and care and among outcomes. quality contributing patients and teams care provider, their on-call coordinate in staff provide additional of facility to they resources, care layers all primary caregivers,

patients. of area fourth conditions these patients clinical taking special a multiple needs the And individual more dual capability Medicare and require different care and medications. coordination patients are nine to individualized On approach These for frequently and managing care. chronic is chronic average,

patients approach higher better reduction XX% in an with patient outcomes, over XX% of XX high-touch high of to Our leads a NPS or four-star hospitalizations, nearly in plan. satisfaction an with including our

combination LHC Group health, compassionate encounters year. capabilities. XX with million home high-quality, provides hospice recent patient care with each expands in-home post-acute Our over services and LHC

the from a season. And patient’s care to learn the provide just capabilities, LHC’s shifting health. build care and finally, can in services. will and growth strong acuity another We upon we of completed expanding OptumRx scope pharmacy

service We plans labor expertise customers to obtain variety use that to wide our and the relationships help treat are We lowest and best net a clinical employers. winning to the strong and commercial new conditions customers health by from cost medications. governments we and specialty of offering help for across cost, call

benefiting UnitedHealthcare’s introduction existing the are backs. from or the of introduction such consumers short, with zero-cost year addition, ability and gives footing equal life-saving last In consumers’ of manage our best-price benefit; which branded we drugs; biosimilars Price In whether Edge, on the option them product. to off have efforts on as

that, John over to With me Officer, it Chief Rex. Financial hand let

our we has we ability growth. an execution deliver UnitedHealth and generate to that We serve. Fundamental to if live durable potential, we know long all for Dirk. Thank you, to or will to of strive commitments aspect high-quality those continue essential exceed our Group’s been up meet

to businesses first foundations, performance Optum. growth us. from We growth will come upon the UHC expand expect Our which the to strong was of continuing quarter future across this and drive highlighted achieved and have accelerating accomplished by you while the the

and first served more about first importantly, UnitedHealthcare. people double-digit our Medicaid. achieved over XX% growth serving the million prior serving more $XX This commercial, of comprehensively. to at by Group and X.X Medicare and of the was $XX more X by revenues UnitedHealthcare across people quarter year billion. grew both growth served Revenue all with grew or XX% months Optum $XX the – billion billion in businesses, year the them with growth strong by nearly in across UnitedHealth Optum

with remain patterns trends. consistent Care recent largely

and are long-term consumers are toward of Emergency and such to Physician sites as pediatrics to to levels, performed pre-pandemic outpatient office appropriate people inpatient levels a preventive example, activity lower categories and settings levels nearly visits just are reflect at focused occurring continue historical orthopedic years procedures ago. ambulatory compared lower. continues trends remain with to ambulatory under trend care. growing X of roughly ensure one towards care. while helped screenings than quarter modestly seemingly Today, Cancer movement in walk-in other remain room obtaining in efforts the comfortable two-thirds more historic care. with by virtual cardiac part few For

continue indications see As signal for acuity, data analyze emerge. to closely could but yet have always, to increasing those which we

increase businesses OptumInsight in year, value-based to The first by grew consumer $XX.X in value-based the per can the by care billion, $X at to expanded we the part the of reached revenue grew Healthcare. offer. to revenues last backlog nearly due the in and an in XX% we levels Change addition of billion care care XX% of patients $X.X patients individual increase billion. served quarter. arrangements. now over of the as number XX% of revenues OptumHealth $XX served a by grew Looking billion Revenue driven performance under

have grew As the results, growth expect of expect first integration they we we discussed first in will accelerate Script XX%, and new we growth billion, customer continue double-digit adds. across $XX into which investment exceptional $XX in to second driven a million component as year driven to by our in customer were increase and strong half, quarter our was before, the revenues home well activities, by OptumRx the quarter. the community businesses, last retention pharmacies. as including delivery surpassing over and

grew businesses, all We served growth points to $XX number major NPS in the people in across growth UnitedHealthcare, billion over strong categories. with since revenues of for benefit At last of our up continue year. nearly specialty our of XX see XX%

serving up commercial, and first newer our to objective people individuals. to in serve for million we that quarter gains to large as our year example, did Offerings this given pacing both employers performance. more the set and led For well X are out offerings employers and affordable more

end Within members expect quarter. Medicare in add the ago our XXX,XXX provide with The year to Advantage, exceed in we stability of the offerings for our this rate. and shared XXX,XXX value underscores consumer to to we receptivity over consistent membership the product grew upper intention that new and Medicaid to year, we November you XXX,XXX now seniors.

service honored to offerings. We in Medicaid continue and the and towards our Indiana existing we Texas, managed to Carolina state wins North advance as momentum the are recent people of to expanding with in moves have Medicaid

future. with quarter, reflected remain outlook, effect, track an billion and capital billion Cash to well more operations we were payment. X.Xx $XX.X consistent flows approach billion CMS from with we $XX this Our the capacities to people into about operations our flows the share to billion, dividends to through In Adjusting full for serve from year the $X.X and income. continue to grow strong. far in net quarter view repurchases of deployed capital expand and over about additional returned growth capabilities cash our first our shareholders $X and quarter at

As Andrew of increased earnings XXXX share. our per today, outlook a we to based year growth outlook, full upon $XX mentioned, range adjusted $XX.XX this to

to of the second the with with historical half, expect consistent the We just slightly first patterns longer-term comprising half than half half our second be earnings full progression year. more broadly

Andrew. Now to I’ll turn back it

Thanks, John.

comments us per and flavor our our Our XX% we’re a share this on growth the call in target. to outlook year for earnings why of gives long-term XX% confident

and Our execution growth it’s on serve. across always, we businesses an enterprise focus is those broad-based within bolstered, increasingly driven and as behalf on our of by

that, up caller per for it operator, open let’s please. One With questions.

ahead. from with [Operator and Instructions] first ahead Suisse. A.J. And our take we will question Please go Rice go Credit

and news all some to has the the as forth. what And if the so possible. your the in lot for things historically, had is than thanks just approach to I’ll rebates, in industry does And of a the just of some are much. ask OptumRx perspective then PBMs more and the today, discussed to breadth you know some relative being relative maybe it’s us because remind Maybe that spread the approaches give pricing so people on guys review Washington OptumRx whole of specifically PBM. well I of comments. Maybe Thanks a been traditional

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

Let me our Cianfrocco, I’m of then to make OptumRx who looks a comments, business. and hand going Heather to couple after

for in into one the is think the It’s comes So within where space part also system I the point common significant of first of innovation a entire marketplace. system. most mean, touch terms off, incredibly of I health It’s healthcare. the critical an pharmacy the

you say, a behalf and money. consumers. Having activities that, if have patients, a in where let’s needs on need monopoly important risk, for which PBMs play here. rebate central operates. sure are that terms has of be we’re in are the one holders, So affordability really of of ability That’s used the a way. over to make set that in value drug is to real effectively that role which There essentially this various there otherwise of about counterbalance be to said that course, those members, just not it’s the who PBM that to the effectively historically companies would of delivered is mechanism members situations And mechanisms have been behalf a product, there you so have kind The negotiate. in negotiation price procured of on monopoly see particular all prices

their in know, who the sure well way in led of commission procure OptumRx Optum, majority making back As payers you example, A.J., the on particular, passed of has employers drugs, rebates plans the are for to and the overwhelming those typically us of that, transparency terms behalf. to the or

advocating lowest the in really is we there players two, the cost right who there Number get and strongly to a needs across very the As advocate believe through we drug now cost. that the more pricing, And broadly get for we few are Optum, whole hard look in the marketplace, net counterbalance to market one, mind. whether don’t for we there company committed at we I significantly. the think or to through a continue we only lower there Number of landscape are prices, pharmacy rebate and list reducing PBM. we things to are be

We’re cuts very because happy that when people cost. cut list prices

rebates because cuts We’re that very when we happy secure increased costs.

committed focus transparency. net So we and on continue we’re lowest to cost, that super to

of is for last to pay also cost patients, why business UnitedHealthcare finding for books life-saving with in year the we drugs. ways initially which directly bring We’re to can benefits led we committed which zero

of kind that’s landscape. the So big

maybe pass and in you detail more. I’ll more areas a to into, give now take that her Now Heather to little could bit you there’s Heather?

you. would Thank supplement say, Sure. just And A.J., just maybe and I thank you.

it certainly, is are news. – the We in

the We’re essential in you service. services. the I’d mindful these also interest this I guess of client for But point need to essential

we manufacturers of the pharmacy to negotiate but consultation sophisticated Andrew to from employer pipeline to just and reviews, drugs the and clients plans. not cost mentioned, and that committees that services and types supports government net therapeutics that large pharmaceutical all administration services benefit all of the clinical to sizes as and administration network lowest available, and PBM provide health Our with for drive through

bringing the that with high list into price up putting the I pricing that that, and to the just clients, the model latest by are consumer And make them three offering and formulary, we strategies not like our our I’m cash together strategy Those with sure mentioned with accepting business get find by our take needed the clients it’s that is at real-time and fact to The market biosimilars members’ really our on in and that to validation innovative out-of-pocket compares transparent biosimilar some those market business the OptumRx, from capabilities, those Price tools the together the And the competition model parity the cost they the Edge does best appreciated. differentiated of clients price. Andrew originator that of the list needs. scan with the proud valuable. price evolve innovative and that our across like brought offerings

new the to the So season, last years, a I’d highest one over the very of services we are that point of the strong client I terms in think needed. shows selling retention fact and that had us

choice function. to and business continue capabilities of understands distinctive addition, and and transparent sure ensure OptumRx We others to our that make in client we service, business we to needs evolve value the we essential sure to make the and that of clients’ policymakers continue everybody that model models while will our PBM preserve engage that

you’re is just PBM, much incredibly the just clients. our also OptumRx right. But more that important our is I opportunity which take to so guess to say – than

are of proud team. We so the I’m proud them so of and

which members home, and that day. infusion that behavioral very really the rely high model for that support pharmacy, opening offering then, course, XX/X clinical but over intimate a on saw growth market our drugs those to our in in community a benefit just You And in NPS our a pharmacies. specialty capabilities services of very our but in financial. the patient business, health we assistance, our including from to our from distinctive distinctive and the But XXXth do need it providing pharmacies oftentimes, nurses X,XXX every with of and just not specialty celebrated in is

of but So of that the proud our service their and incredibly PBM breadth job the clients in mindful across choice. serve OptumRx very is our preserve to

to business, because runs stuff delivering nicely for the and to And more Thanks, Heather members Heather. also a appreciate competitiveness clients, just And at the moving why their That’s we’re just at the from are quarter, the us, of I XX% the look not is why I a to pressure we’re profile as referred come model, leaving we portfolio retention they just revenues our that in really second non-PBM all balanced within and they’re to part. of clients of have. all And think us, growth half in validating the employees. It transparency, is A.J., what activities. this that and talk degree levels pharmacy really the rate costs. the really bringing the portfolio. OptumRx said, and those and what people down That’s reflects as She portfolio record of for here, great on which it’s growth innovating marker, about first more more more super our growth.

important to the topic, it. question. thanks raising chance It’s and an A.J., So that having share appreciate we for

Next question.

Lisa with ahead. take go our will We Gill JPMorgan. Please question from next

going coming I’m One, cost trend your secondly, about pharmacy very and think managing about drug think we side a it PBM how Thanks we of that’s the for then minute think just you to of side a care drugs. the GLP-X from managed as to the morning. to from comments how do really stick around perspective? want really much. about hear this business? your And Good cost truly new do

a it’s question. great Lisa, Yes.

interesting be would the it think, from on that. I actually, UnitedHealthcare hear to super perspective

ask Brian just the of CEO to there, UHC, comment may I Thompson, So please.

Sure, Lisa, Andrew. good Hey, morning.

with start kick start the the real and of XXXX a or to in our would we’re year good me insights we say respect being pharmacy. either that I position. Let our really a seeing no to discussion. trends off XXXX. here to validated It’s as overall change lot assumptions GLP, as medical With with are our obviously, planned,

spend is we in We an has The loss that of as increase it use. the have our included weight overwhelming managed I This single any with XX% And in context put in our been I one important terms digits to would say usage authorization of diabetic that it pharmacy in in care, and on-label our expected, one medical. overall is of certainly trend Keep X%. GLP-Xs. than it’s seen our requirements. low had majority in is less think mind, therapeutic in well of about class. overall

So managed diabetic use for. in of year-over-year, care, had with majority increased terms we what and well off-label overwhelming consistent planned in

super well, Brian Yes. listen, it puts Lisa. No,

an critical those really time some these medicines the be to be plays I that, properly with – marketplace. think to make forward people, clear first is – really all, where Diabetes what’s number we to obvious We particularly of consideration of which do here super seeing areas that management. and of news is an I obviously as we comorbidities. That think going two, for I we’re it’s of going on benefit we from example get of facts out, aspect weight use in this they’re to innovation important one. medicines. sure roll to the from sit, be like good need focused is understand listen, think as need patients Number about we going how and reality

focus element Europe. and eye bit lot of And we evolves. things final prices then there’s phases. the close a business, I got affordable, as pharmacy their course, you learn, in these see just by little heard see of And And finally, course, on a on how to to think, business. of key prices still of be our So the as be through the – a progress going we that’s of this insurance the we encouraged side our keep side the obviously, a to

going we’re and advocate very be pricing of best looking on going to to We’re and that. medicines, for members behalf on consumers to the get these

to here. come plenty still So

particularly days, expectations, thanks still question. of early much think Brian I the the out very in Lisa, for the just for that nothing question. Lisa, described. range thanks

Next question?

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

Yes. ask like this Hi, about changes manage the necessary and the some It the were you’re I year. to is company thanks. you. to changes they’re background changes wanted on felt making of would why to made. to Thank the implications later prior cost going get work authorization these great how be once to you

Yes. that. Brian ask Stephen, much address the to I’ll so for question. thanks

thanks Steven, of quarter of Hey, volumes this overall. third eliminating question. the Yes, will the be for year, our in we beginning about XX% authorization

high-quality and systems a to provider time. groups We’re for the XX% authorizations most have eliminating might volumes I’d over and adherence that medical that demonstrated our of overall. another going altogether also care requirements say be be to

to say to like new that though, and get lot it’s opportunities say, to decisioning would really really authorizations, we our of need I are in this and really surveillance this leverage have a time. months new with clinical this alike. demonstrated reviewing a if our really say obviously, We over a And on authorizations And last of place, over intensifying with out Don’t really and streamline and that started have here foremost, safety. our would that against desire customers culmination surveillance to so there’s what the to partnership for the get as encouraged with and will several we’ve that it in patient process to to some reduce need we of because of us any some continue process that is additional OptumInsight balance, in I evaluate prior pressure capabilities win quality robust first see and point really on and Really, speed provider the technologies of we I latency things. constantly it’s but both and guard importance the our anticipate experience, processes, to satisfier of capabilities. do said, by get the we focus groups a see care. will I of trend our the analytics consumer for we really

be add, new perspective might of so I as think next lot an about or where as that create leveraged also and thanks technology Brian, OptumInsight, here, organization play a the as this friction Stephen. over year exciting in opportunity can take out to we Yes. connectivity us you And well. think X, of out Change of we much. collaborate. the just how is I area A UHC the into gives terms integration can network to also OptumInsight

It’s to Stephen by and so whole Thanks at much, still is we a building how streamline can we bring of the opportunity had up that space. Then so important we’re space within Brian. the a role do its friction an got ton OptumInsight, interesting how So Brian we from really across of an lot capabilities organization. kind of leveraging that – what take you this just technology out a little new there’s there and core. the bit really

question? Next

Next question ahead. comes Justin Lake go Please Wolfe from with Research.

Thanks. Good morning.

Just wanted to couple sneak of questions. numbers a in quick

DCP, this normal Is just a of talked that it closer kind on year? First, kind you Is thinking sounds quarter. this of like what be can spending range anything looking kind Kind through more to like the EPS money of flattish you forward? of moving kind more – walk about see went a going we on down if And for looks out for parts instance. be Wondering second about there. quarter EPS I the change, you on – do should of it in where there in know settling then at seasonality, Thanks. of terms the might you it range? year-over-year.

Yes.

so Rex to much. thanks Justin, I’ll ask please. John comment there,

Hi, few in Justin, seasonality terms a so comments. good here of thoughts morning,

of we’re for investments wouldn’t also, as yes, and from we actually some OptumInsight making And little impacts seasonality. or build So the that reflected zone the so I that quarter Change $XXX future. and are of impact quarter be I in quarter in these the million so the put call higher also. to actually bit second a in integrate that this we expect But

in just full the the that. kind the little In half to bit first we I than year a just terms see the versus the commentary on where earnings historically that also, seasonality, of what little in of I to zone more year. generated done, of year be a half have want of give the expect second you of of half

we and of typically to similar you would would close levels terms typically that the have look few on kind seeing patterns, in – things level, clients I on at would and tell if in DCPs also really and just it. of pre-pandemic just this just more date run show. more in payable of your commentary commentary would run, we those terms of there, get is back, on you, to to a probably kind level question On the typically So we of the that that your expectations of impacts some pre-XXXX

of business what addition levels normalized be to in some here, consider mix at kind we being to impacts. would So,

usually of little those. also – count the D in just – there, growing move would was terms somewhat of are sequential we I a areas faster Part say in impact is day a the first quarter, the in that of have rapidly cycles. a Thank and also on payment of bit Some kind there In you. And little impact from seasonality. growing little affecting

Justin. Thanks John. much, so Thanks

Next question please.

comes Goldman question Rich Next go ahead. Nathan Sachs. Please from with

the how the few of ask guess attractiveness changes Advantage growth how model by for model lower morning. Thank Thanks of seniors rate prospects of attractiveness arrangements? the and And on for next market? risk the on and to for questions. think relative do the I of impact the you are the full-risk over CMS. you. viewing Advantage I the growth years Good any phase-in might Medicare that risk wanted changes Medicare impact providers have

the much so thanks Nathan, for question.

I think of probably things of back I clear. here, just listen, couple want step So you to super sort a would make as

our think and here, which beneficiaries, have important allows these doesn’t really it the protects CMS’ of to make we appreciate that effectively, bit a sure transition is glad to are be very in phase-in the way First changes. damage decision that. we certainly, the a any was to and transition – to program. off, we really goal see kind That It for really managed really

things Of in we areas. course, requires important and some that that. fundamentally, really we a do us appreciate much it very, think to little very was differently But

doing number quality best what’s by look driving is right program we going principles them We as outcome, And the program one, space. that’s out of we we how the going cost are really Nathan. going to are in be robust of this beneficiaries for believe of so two two, for best to going to growth to best an Number members here, to We give this is to and to care this crucial always do, our be incredibly As a experience and we sustain think value-based outcome. absolutely us a best we important are are membership we active. in managing of kind be guided important seniors. XXXX, piece terms as way guide

of services, capabilities Given the broad management as ability our super to to on well as our manage we value-based funding in ability evolving provided activities by landscape. cost feel confident the Optum, established clinics, portfolio our in-house and focus

given pull had to have make the year intervention, we through sporadically that they kind the be popularity experience changed, a super be patient patients think understand, feel, care of sustaining equipped we brought whole longitudinally, clinicians. say are also seen treat, clinicians to able always and all to about a levers it’s is focus this the in different to how year, we change to than yes, in to fee-for-service after little We this which through portfolio would concentrate that XX,XXX and for that’s the So, advanced on practice manage rather between of of or Optum, can overall that but the so these popular just look evolving. physicians, about way be sure to beneficiaries. I programs but We really new well this more have, the other every it’s cycle to physicians prevent, last to diagnose, in change in changes thing. like we capabilities value-based responsive different years, able a – have

of the to to of do us. of people about significant growth to future coming would going part continue are of continue in. Honestly, and seeing we are expect think same to for year. important this we we numbers course, care the And the I value-based see a marketplace be very

have to appreciate our the good question, things we Nathan. We environment. today, about And sit to do respond we feel course to it. do to the as changing of ability So, I

question. Next

And we next Please our will ahead. question to from Research. Nephron move with Raskin Josh go on

at if both, UnitedHealthcare ability that achieve Hi. guess don’t but similar speak to long-term, Thanks. the rates? that, more UHC within plan It I a to MA margins. in and to the as to rate specifically, to growth and we maybe curious attractive expect membership balance industry seen maybe And maybe grow on need you industry benefits you how just looks to material I what an grow and think to do recent am to against stay think years you see fare? you the target specifically, will sounds have OptumCare similar I more you and how your want XXXX you if to could like maintain impact impact

much so thanks Josh, Yes. question. for the

give Let you thoughts. few Brian Brian? me ask to a

gives cost what really our minimize of Certainly, to time Andrew that, to I just that I Andrew gives Hey said. will evaluate impact an Josh. us just opportunity that And beneficiaries. will phase-in us structure. Thanks I shared. think this question. for X-year reiterate, Because the reiterate this optimism the on

make on First consideration manage we that the and the to Look, think foremost, to like I deeply environment rate had this that have this. sure first we are it’s impact. we that focused time not a that’s navigate

remain our had grow in So, XXXX, as and I it value again prop to We broadly. good about the intend say Andrew very We optimistic certainly in that MA market position it. will about has just feel we said.

We expect continue that the to now. marketplace with to continue to have the we many strong grow in demonstrated we years XXXX. for momentum And lead

obviously we optimistic. we planning, are and the our that just benefit but can middle encouraged So, with of are you share in I

so Great. Josh. Thanks much, it. Brian. Thanks I appreciate

question. Next

question Lance Bernstein. with Wilkes Please go take from our ahead. next will We

how have about Thanks. MA patients? little non-UHC your And got, Could growing going do and patients? the bit and OptumCare far rate impacting environment ability to you a is high add see risk commercial the environment this premium talk you as that? in employer potentially specifically the patients and as full-risk progress accelerating non-UnitedHealthcare And you how

much question. for So, Lance, so thanks the

make just to of I upfront me looks then give comments, who detail. Wyatt a after a Dr. Let and couple will ask Health, Decker, you Optum little more

that, delegation. Optum so seeing full we So the really first X a fully year see being Health, is can support to just It’s people off, towards just lives broadly Super supported is as clinics. million you years. oftentimes what’s Health, now not full capitated an real service. about X integrated clinics, by – differentiation. important remember X think the that last incredible over progression within really or this so Within head you here, under are Optum years That’s or

provides that at capabilities Home. it’s for and It’s we underpin This a members that who fantastic So, is clinic, are of this behavioral, could be service it’s in the really the comprehensive delegated. believe virtual. set Optum

rate to It’s year. strong, first be growth extraordinary see this quarter continuing Optum that super already Health. You for XXX,XXX transferred

you also And my step back substantial grow a of there in is it that is non-UHC of to commercial value base comments, quantum UHC of there, in diversification in and an as look well. which a big mentioned into of increase piece But moves course, risk as the and treatment that, As hood underneath strategy a opening Medicaid. I delegation all continues very it. of as

detail next are why, diversification. little you important of so. just year or a So, give Maybe more about the thinking bit terms really in talk a how little

thank Well, of large is we Lance. to comments. of But care. of comprehensive Andrew. clinical underscore Lance, some work all a developed that we who I differentiated national Yes. most and And have closely, value-based model payers you, particularly, with Andrew’s thank you, would care appealing the and for

able of so but to platforms. patient person a just this the that lives little hence, to we serve. are a heard care will a you community see continuing fashion, our other McMahon provide payers and earlier home bit Dirk members or about value-based just who and on we our grow these on who payers And and many both value is comprehensive that our from in offerings, all And today and of see patients the And you with us weave book to comprehensive national of one at we member, we journey and them regional that’s side the of and healthcare. together think not to the the

chronic multiple have some diseases. And

differentiated our Some want have well, to do the to have that healthy effectively. and healthcare issues is in help to staying and focus them catastrophic unique industry. we some that on And navigate and ability

So, see will payers. I you think continued multiple with growth

as the And provider, view have on, so not ourselves enjoyed of particularly as a will senior do ages year and solely We this Andrew lives we a commercial. continue as touched to but year healthcare as provider and that really all progresses. and walks for

a us already Texas, million of in part and And Massachusetts you. going fully So, California see in and to continuing established as offerings markets today, payers today. meaningful in as X our you Thank grow those into commercial will we multiple lives and have commercial are well new they with capitated markets.

thanks question. Thanks much so Wyatt. the for Lance,

Next question please.

from question Fischbeck with Next of go comes Kevin America. Please Bank ahead.

Great. MA to want to I minute. a just back Thanks. go for

about a opposite, the scenario it offset harder a year it’s But fruit year I the You is is in few it’s you it’s thinking an much understand XX% take in a beginning, there think impact – where how that. or the is your out changes don’t to you difference in off figure to to harder to X the important growth. are this. in impact ratable, to individual there guys to Just the are you and to EPS and years. just always adjust next phase-in MA play Are to impact is being three more three, easier it’s component year or think sounds it out trying how because is offset more and because the like years are targets you the XX% time, to then allow and this that understand if as you enough I – time should to about it have as to adjust to at in we the low-hanging have to that the not offset isolation to there easier to where as in one, growth saying over happening will to you I want adjust? time your over significant is it, X-year clarify same if way about the but impact think trying next

thanks so question. much for Kevin, the

first much long-term that to We you We the absolutely of view your rate are right. this in per – quarter. remain point, firmly again see growth zone you the the is are share that very we adjusted XX% So, of no, to in. XX% earnings

Brian little a into to respond going predicting competitive get in we sharing is different are much vary expect I believe so go And that, We that on. to forward. continue in horizon will will plays we we as is other terms course might little a this things suspect, and differently, this bit on come, to to think this. something we choose probably it change around changes of making how any that zone but differently. bit our think very be And all Other do to the about and some a things of out, behave I going – we much I of actually. all the depend given want talked as is may of Listen, as phase-in in environment, quarter costs here, we providers be see, that through companies made will areas, as our for – Obviously, to comment to very this. far or How the earlier too exactly I earlier, sure not much that. actually

are We It’s time. a close super cycle. getting important to bid a

of making bids And are We deeply working we through way work confidence gives it. that’s want way we to that try And best the us we up align and we continue that sure I our what and question. Thanks on for we that competitive. do CMS that, where on after the as in much a with which that, phase-in wants sure to beneficiaries to grow. and can being the make so will we end To need super fixated appropriately, are are chance to earlier, looked gives our said do.

Next question.

ahead. Morgan Next question comes from go Erin Please with Stanley. Wright

for terms can there taking of Thanks anything commercial your relative And expectations? membership, my to On risk in Great. is seeing question. Thanks. to to you Surest are glean there? you speak is what your how tracking

am much ask E&I for going so to I question. the business Dan to Dan? respond. who thanks Erin, Kueter runs our

Erin the Andrew. John the track, remarks, momentum well in for component his Thanks rather, meet continued be was last in first of conference Thanks product growth our – puts we billion question. to million prepared of And momentum the goal Yes. in us the as targets our about back investor for investor – growth. accounting $XXX to our Surest about the continues quarter component, XX% to as of quarter and adopted. of conference yes, a was that on year Surest that. said in [ph] clearly had the half $X.X

We national before have our of have one in actually shared nine that today. accounts product that

XX now on shared insured growth on down continues. XX for are product for the of to We take-up that that We this We states states. upwards an currently continuing see in was the on basis year product beginning available currently of product as a conference expand market the are a XX to offer in that states. that at fully middle into basis risk insured we that also experience And a Surest basis. year-end of with investor target

Thanks is into so and it for contributor our and for a of Erin. growth, to So, it the expect remainder question, we to future. year meaningful the be the the

like Erin, I up much. that seeing for rolled of super the organization. optimistic insurance of it’s half growth growth government rest last you we again in and we can as let so here, for this robust fantastic commercial and thank ‘XX. Medicaid the I important Dan, this mean you the continued this of said expecting saw in we second well. We think as you the in Medicare. books I into Q, are you see into the just are really might has feel are And year, it on earlier something Alongside add year. engine business I

even you a which just again, now heard Optum a to are to seeing capabilities be see the the We What value ready to company. to the the is is commercial have come little the commercial. thing bit to business more really which within its way in add is also fore developing fantastic

So, you thing strength in Medicare, Dr. Optum talking business has that leadership complement in up the as for about UHC’s Decker same built heard to doing commercial. just just example,

see it’s in can could As out. a in this shift super fire and how comes play really that are Dan’s in having that and growth what’s is organization, It’s simultaneously all those from important driving us, you good engines for growth we seeing QX.

Erin. question, the for thanks So,

Next question.

comes Ben question go Capital RBC ahead. Next from Please with Markets. Hendrix

much. Hi. Thank you very

if that key platform the Optum businesses Thank priorities discuss could specific strategic And wondering acquisition on We I have especially leverage. comment other the capabilities I the But received X EMIS this on the Phase with was within or Insight specifically. a with acquisition you in the number that now of investigation. know can recap UK, the you. can’t you questions CMA’s and

detail into couple of things question. regulatory Yes. a can’t the Ben, the Yes, for the thanks so But to get of obviously, I say. review. much

to care create other our physician fantastic we to Service. economies like And be innovation is shaped platforms primary XX% into capabilities another system. develop About start to through us it’s value particularly think Optum bring all helping can we Health which are ultimately able British healthcare a to We allow and EMIS, to which capabilities, also gives but has of a transaction what market the then different capabilities, connect really opportunity of develop could very providers. is the to of business in technology have Optum think EMIS care to many marketplace So, be One a it looked has to data marketplace of of is you interesting which a we its couple environment, Obviously, speaks connectivity. primary with, the partner components. abilities care-dominated has the keen Health. important different very software the type to very UK. our is providers pieces of company big years, obviously around a software data practices to to the very to for if platforms of to perhaps are believe some the alongside which very slightly around to are world UK U.S., systems And healthcare a much node had and to and technology it very – to but only start like go got a as long Optum connected the National which used to that, is the networks. would that that great time, analytic the we like, a have UK, other interesting akin complement primary in the not it could us U.S. a in

as for software diligently so see to continue much the an interesting We are why our UK. we in question, will the development. further to and progress this So, the working to technology enhance investments obviously, And it’s we be it’s keen we and the on potentially done. for Ben. get good think transaction Thanks that. opportunity And process

question please. Next

go Next Fidel comes with from Stephens. ahead. Scott question Please

given clearly, Thanks. and are have Street, year high the just were your you actually to you revenue guidance, the the target of Was the pacing end better And revisit quarter, now looking The to Hi. open LHCG. full you first just than MA since year. for closed eclipse

is can you the know initial if I momentum during guidance interested but gave a refined don’t of Day. it typically or So that. Thanks. you at give there Investor relative clearly, quarters, some like around seems thinking guidance you update the us revenue to lot the upside maybe intra-quarter certainly

so Thanks much. Yes.

Let me to John comment. ask

UHC those in in and Hey Scott. areas are of both terms really the seeing are across we some strength Good membership businesses really we terms good morning. the the through And in of in Optum of and retention strength of quarter. across growth in Yes, the performance call-out growth, Health terms new terms of a of growth other their of Optum businesses, customer in the and value-based and have wins the here they its live. terms strength Optum seen Rx, in in

in to where contributors strong the guidance. kind we little of a view view of ahead revenue So, are was all terms external the And yes, that. of on

positively see are type enterprise. certainly are that across the that. the terms seeing So, of we in biased to growth of Happy we

view You doing at you. are also first in that but terms here Thank right, the any year strong probably quarter to in updates distance, place not really start the of this year. full

Thanks John. last And time for question operator. please one

from Our Windley will Jefferies. Please ahead. last David come question with go

I in very versus much individual in. on which model, the me that value-based about target add grew the wanted you most and eliminations that in inter-company MA signal question And another care, changes care is us the Thank were a I value-based the for first between big that MA wondering say, I Andrew, is, if interesting ask that am am am attractive inferring to quarter. growth, the your Optum And wondering in duals I duals. views to seeing risk to target member Health and value-based is part lot, UHC. nice of particularly a care. MA between getting if a

very but if of question, important for a weeds target MA. know strategically, to still So, kind duals basically are a interested

the David, So, question. for so much thanks

right, to course, year, from of appropriate care large QX. dual significant is dynamic really A of really, that not benefit think So, fraction not value-based you UHC, but eliminations have within a – proportion have patients that a others guided high need of Optum capabilities. wraparound special because transfer integrated most you quite you Health-UHC surprising XXX,XXX serve such are see and of obviously, where as patients fraction. piece the we a risk And well, who a patients, is I large are particularly the big a complex last as approach in that,

premise true going your it’s to that. on slightly with certainly disagree I So, am all here. of

part. members, have of they down to business the MA, which way and the what look allow they in about complex an their not, in dual to possible. want are community not the or Optum patient. such activities capabilities, Health, disease a to certain they in organization early whether and is dial are looked portfolio job in special need which advanced or patent needs targeting Medicare member disease is aging they our an And for to whether us as need, whether they We we our that We match up mix our or response the whether of to capabilities in great an interesting efficiently patient after do David, that are the aging in And are type and of then thing to their after. and patients as and be are

serve. progress over these these we the and look executing lean we is forward with expanding the with focus call for to the and help thank and for stage then on drives MA. in make to across because this and that’s I much between all the community folks’ questions say, that would why I that XX% clinical improve space terms our intent in excellence on the we difference, So, our engagement we ahead. the It’s us you are continued Thank Optum of this to Health progress special deep so We those of sharing end you Thank think high-satisfaction well growth reason In that we just you our with and UHC this individual morning. you and your really to a healthcare at the impacting members a would on And am this – again at I afraid much. the backup David, describe optimism ability appreciate the of the question. meantime, at your And I programs the in offer remain life. going July. to in very support hope levels makes as us. that need attention what this of a And terms people board. call. leave sense lives system dual as year be of are they say and you. continuing brings their grow to in we important journey needs the as as of for

participation. that that, your call. does Thank for with today’s And conclude you

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