UnitedHealth (UNH) 15 Oct 242024 Q3 Earnings call transcript

Good morning, and welcome to UnitedHealth Group Third Quarter 2024 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 found included reports with be current in and file we including of some our can the filings.

of amounts and will reconciliation page of to section GAAP A earnings Relations reference financial the the amounts. is company's non-GAAP also on at This call available Investor the reports non-GAAP www.unitedhealthgroup.com.

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

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

you Good joining morning, and thank us. for

the As of people UnitedHealth you Group pillars. our in to growth on saw our release, deliver continued

providing and more care patients, with are and deliver and more value teams for people the system health simplify alike. providers looking to restlessly employers high-quality more health Our benefits, for and services ways

By X the through with care new X.X this end offerings, have billion commercial million X.X more million fulfill than consumers in Optum serve more Rx we value-based arrangements. grown prescriptions will to of and people than for year,

on Healthcare year will redeterminations, and the the done mix, member first Medicare care challenging cyberattack. the patents of all state-driven its member the have the people navigating CMS impact Our cuts this novel a and in Change effects period, more certain Medicaid rate of and

challenges. the XXXX. our unforeseen deliver November continue changing a XXXX outlook we our people's strive commitments to not have distinctive a that still could within back anticipated, efforts, to we full first of in environments offered financial to to affirm on range those and thanks of many factors While the we can through culture of you Group part earnings UnitedHealth year been It's

I care long-term XXXX, this in to to that XX% of will XX% objective. health As will important remain we -- Amid durable, in invest dynamic that capabilities continue shortly, value-creating sector. it's address look to our we support the I growth this company a this, for the and period we

We commitments this future promising respectful are pressures and want ahead. the our before in again challenges. faces continue years next this Even we're the two will with we highly the growth sector the year. to to as within I investing We balance environment, well our positioned the optimism. in future, known reasons us for remain optimistic for potential even highlight of managing the important to

by Card every program, system. to execution, both Gold which people's First and system. will improve of To is national innovation. prior tirelessly of the we particular, reduce authorizations the experiences our launched that in relentless for month, improve a focus year we the quality the qualified In first-of-its-kind This XXX,XXX care, with continue the work and in-network providers. this number on health reducing friction quality end, help while to affordability can

an be our work. in important to is Artificial tool starting intelligence improving

Our advanced people. freeing hours lengthy to be use up can summarize histories, of for spent practice that AI caring better patient clinicians hundreds

review AI documentation efficiently, Our and saving more patient improving to generative time nurses use service.

tens people better while powering of advocates to on improving more driving advocates, inquiries, efficiency more and allows searches. consumer our as provider in experience, with higher our interactions This NPS helping the is also consumer AI of spend millions scores. complex reflected consumer time

enabling teams help software build drive to technology to our speed finally, help enhance is using AI technology necessary quality the and And engineering to modernization.

navigated for on are benefit top be the XXXX. as value will adverse believe we choice focused as the Advantage environment. as on we to much quality plans and Once and, today, execution we again, also a Our annual consumer we continue enrollment in consumers. is beginning Medicare focus Medicare-funded possible, evident we offering for stability With on even

value-based underpinning the element our to of second to delivery growth A care. is the on our system health commitment transition

years, is over consensus and among policymakers care, that XX bipartisan the experts there often superior and been care has patient-centered value-based care, integrated, health system. fee-for-service and to is a For expensive unnecessarily outcome-focused fragmented that

and Across patients. development Medicaid. fund and outcomes taxpayers X care It to and it in empowers care, the for presidential beneficial clinicians the better saves focus private-public in value-based on administrations, money CMS innovation care. for the provides Medicare has called It of for models customers providing most who

It care highest it develop helps is The quality value-based sites highest sound. this value. but combine incentives is on and based ensure effort and not a for those patient's based that volume to outcomes And and both care from the patient incentives cost at the simple decade-long delivered moves experience. service, rather of rationale to health on solely

for primary the to system. organized value-based purposefully effectiveness patients engagement transition Group, and UnitedHealth powerful, care The and of requires support value-based At good is for to care. it's It and patients we're with and clinically deep proven patients, the chronic setting care care, managing more to the foundation accurate conditions to slowing progression. disease diagnoses, driving to earlier, more coordinated move connecting effectively recognizing

and or Optum in Health visit benefits to fee-for-service this than Medicare, models screenings cancer readmitted their more better and receive care fruition. be control likely and hospital. the diabetes seeing be in room to of people served XX% work We're hypertension value-based come of less emergency the to People to are likely by

use and our the One which care expensive at is impact patients be and room helps safe better example of readmissions. for who may program, coordination discharge ER of emergency risk unnecessary

that readmissions, learned on both which a are have and patients facilities. managed impact is which substantial a problem the can a discharge for have We in ways specific

resources them, engage and emergency for is preserves experience the teams the to currently a and for money emergency in discharge. inpatient from X safe care patients. This truly them who provide is hundreds better medical managers those of helping a need month. markets, nurse proactively information facilitate to Our relevant to each already record avoid outpatient stays It approach, saves

offerings These many care. that employers, behavioral we're patients Our dozens many of integrating in payers sign in from and value-based right care care areas, primary, from the on market serve and a confidence track. people the come service home arrangements now of clear surgical, diverse

This to stakeholders meets is and payers that to serving customers patients, with state of committed innovation, needs Group, governments proposition the future. into UnitedHealth quality, providers, value the health with of effort and better and and federal joining a in all and now the system help the build integrity

hard more year out. in the this products a yet our It's about the optimism But continue we enduring to and because the people Fundamentally, reason and of enterprise. services grow simple thing we it's do are growth year and and future offer. to more make, a of to purchasing long-term organizations for statement

Now Rex, I'll President to Financial Chief and John it over our Officer. turn

the products long-term and customers, new served improvement for, deliver being Thank success. well to and we all you, Andrew. Strong root our taking people you. through to us continued sets are people services across look Amid to upon and of more among growth in key commitments our our what year, this up the innovations have. unusual takes experience always These puts company we seeing are the

activity many specific we and, reasons, expected care levels for which transitory most quarter. of I'll observations persisted likely today you. believe, X the on for know X at noted Certain start in period top of offering than as we patterns that patterns mind some by last primarily we of care is higher we

and than been pronounced coding extreme. notably actions coding First, Certain by still upshifted quarter. coding which have are last hospitals, upshift the XX%. some entities flagged more having intensity their In persistently by in intensity we cases, factors the aggressive,

are this We unnecessary additional actively health cost burden system. to addressing the

The rate are minimal old year rates. also updates. both acuity redetermination typically activity Medicaid status mismatch relatively shifting, has That timing data States member the setting when changed. and stable. is number over state noted with significantly the second last current has often their the continued average use item, impact health members that eligibility of well people is quarter, a of levels between care But in covered and mix

annual more than cycle lagging as updates As factor through activity, a well us period activity as care pronounced of data, timing, anticipated. remain short the a that for rate care of was current the result well the

more those was acceleration high-cost of rather A certain medications, a in prescribing and rapid emerged used substantially period to primarily treat third cancer. in disorders the that cardiovascular specialty the item autoimmune disease,

to acceleration the catastrophic coverage factor the Act, the Inflation individual was contributing a eliminated during believe requirement Reduction which phase. We the coinsurance

As the of many this of phase enter you year. know, more the second in people half

manufacturer more a sharply While factor we activity drug pulled this will meaningful year, more become into some XXXX, this than of campaigns anticipated. this in anticipated

with let's turn and over billion $XXX results. again the at Optum UnitedHealthcare. both quarter that, to of our grew X% than more year, third Revenues growth strong prior With

type we the especially approaching are and we increase billion $X was care of over by by both those billion. grew needs. serve, the and driven in among an revenues and offer Health Optum the and with patients complex $XX home This services in number

Rx $XX pharmacy over customers specialty offerings than new well as as benefits to grew more by management our in in and by growth Optum strength billion, services. from driven care $X billion revenues expanding pharmacy

backlog OptumInsight revenues more billion and in billion than increased billion, from year. $X $X the quarter the last by were nearly $XX stable, revenue approaching

Turning to UnitedHealthcare.

innovative reflecting added are of Selling business than continued as we people tracking has indications X.X the through Our favorably domestic offerings. uptake more 'XX, season into quarter. UnitedHealthcare's third commercial million head strong

as providing contending benefit The initial Advantage year. we largely changes Our as expected much plan while consistent last seniors, patterns. the care possible on Stars results X-star in fall, plans consumers and stability funding balance 'XX ratings for with year this in with is plans for what for better-rated or CMS saw cuts, IRA our Medicare offer initial

case increase. As expect to years, in percentages recent the has these we been

retention We in often new support post-redeterminations with Rhode advocating ensure performance underserved period and people resources and these Island, and states people. to to strong, funding expansion the our Florida adequate Colorado, hope recent families In state Medicaid, Massachusetts, and are Michigan. and including for in customer continue awards remains to

quarter, were objectives. from $XX billion or nearly Our capital billion. capacities and year-to-date cash net continue operations In growth remain underpin to flows and $XX were the our income, X.Xx long-term strong

via year, $X.X we billion to shareholders this and dividends share far have So repurchase. returned

we including better productive our range longstanding serve in Additionally, older to relationship a AARP Americans. more of billion than have wide with and opportunities, $XX and updating invested strategic extending

some and capital prioritized activities care repurchase. is and as over As advances support highlighted repayment flows such normalized, share these last devoting providers care Payments have to we claims for of after underway. providers most quarter, resources cyberattack, the

the the for about midpoint. year Change estimate from now disruption full 'XX, be will Regarding share, $X.XX an costs former Healthcare, per we of increase business $X.XX

capabilities As excluded not are recall, from you the keeping revenues the loss with these of earnings. fully These ready adjusted of cost may effects serve. encompasses disruption combined business largely to

business new modern, We continue customers our transaction volumes capable with bring now and to to win more pre-event work offerings. levels to with back to and secure

build half will over to the pre-attack the expect of to next estimate continue be We back 'XX year of to 'XX year's level. roughly business and levels impact the full course

As the disruption impacts discussed. earnings the patterns quarter enter of we the we outlook reflect $XX.XX narrowing to to business final adjusted our $XX.XX range to a 'XX of are year, we and care

company's the the discipline and to challenging ago, commitments of term. growth range confidence long in delivering in within a another the the the Our circumstances, innovation the for nearly of and year of even deliver is enterprise we ability have diverse established example

back Andrew. to Now it I'll turn

John. Thanks,

Before we preliminary depth I next investor upcoming we'll at provide our year, questions, about want which more review some conference. in to turn to your observations

our businesses our for in growth Rx, Perhaps customers. business innovation and continued most performance that season the UnitedHealthcare's best-in-class is offer are potential performance commercial and for remains selling see operating momentum which strong. Optum and element both the well, We important

very be Optum many compelling, The consumer their we've proposition over Advantage strong continues come. key market factor this for Health growth value-based ahead. of businesses a are we and a see be to potential that potential in to the decade to been will building approach value years the The for highly differentiating beginning care and in of Medicare growth well stages early years

dynamics. unique build we and XXXX future same contemplate the as for taking our we're into account time, outlook, and several At the

First, of we and Reduction impacts Inflation the the most people rate the timing the the second year significant cuts and of CMS the concurrent a single negative Medicare into that serve. of effects Act year, on

remaining Second, acuity the timing of the customer reflect of rate within which do yet state mismatch Medicaid, higher not consumers. actions,

planning a we're will and view. And these for we assumptions continuing respectful noted, managing prudent these XXXX capture John believe that the components, activity to third, care of actively our and an be addressing view initial in though early appropriately

The those to of businesses. factors majority to impactful UnitedHealthcare XXXX expected the be are most

At typical. $XX the anticipate out than conservatively we more upper range result, XXXX around we'll As in a of has distance, been offer we share. per this end December is the for stepping expect likely

view year our in look that in discussing our will technologies commitment, to company advance We We progresses, in our of in see seek AI investor committed investing this our As XXXX remain per at to on discipline year and our and as growth initial always, we we long-term growth detail modernizing on you pillars to and objective. December us beyond other greater exercising forward to much and as earnings this XX% always performance. with with operating so a will share opportunity X aggressively, New building you focused see to York. the in conference XX%

take operator, Now questions. we'll some

first Lisa with go Gill to we'll And JPMorgan. Instructions] [Operator

expect observations about your you John, the here where talk impact to 'XX? some go Can talked of fourth in about to quarter. that you I to those want back you

to talked also do impact about And rapid in which I Optum you one, talked positive your into specialty really third that about acceleration 'XX? you within seeing the the think but about Rx that want the you're focus playing side. we How business the on Rx, on

question. so for the Lisa, much thanks

come me going that Rx. make to then alluding we'll a and of UHC, ask to Brian, impacts back ranging you're Let a comments. wide And couple Optum ask to set for start, of It's to I'm to. Patrick John then

start John. me let So with

Lisa, thank you.

of So maybe and a here. few shape messages here just these of some comments kind the

persist, would of to what of So here. first expect subside in what all, expect terms we to we

assumption, we're the we looking What noted, elements as terms here. bit that. different increase in quarter specialty the the thoughts the some in in planning most So end us Andrew to of at have for had little of more for is, with last these our start of quarter I'd a what was notably, the and rapid we'll saw than drugs, we get would

look the year was of that forward tied with the of that. And year. that a of And elements for are think, midyear have the prescribing those patterns we year. as sharply really on IRA, in at the would and issue, But of half shifted really, the The you was really some next bit shifted has in happening into second components there, out one pull we been those that more planned this some unexpected.

provider Medicaid coding understood. seeing been out has in I there. The think mismatch the what -- more other the providing probably intensity more timing elements conversation, understood are been we've in also in the

maybe some him we'll go around bit So little to Thompson Brian a and let address of those elements.

Advantage mentioned, John you Medicare the play might Rx, here the to how for XXXX, again, will how this as Lisa, John. specialty in me Sure, second largely contained start in And surprise let feel ask priced out book. that's I despite with adequately our possible. and half, very

XXXX. roll consumers drive is planned as What the elements a biggest we a IRA done the utilization greater 'XX. to maximum being continued had it to for induced for out-of-pocket in Obviously, with out, lower there's

more not out XXXX, for accelerate levels at into covered that we're but not in XXXX. would play We're that to XXXX. expected suggest in that it We seeing

that a will contributing. We've step-ups, certainly and thought believe that's would I be for the in But changes we've these about benefit consumers more out how particularly come large-scale because gradual. and feel it manufacturers seen did for good in little play some doing some Again, priced certainly richness more it to promotion. XXXX we with XXXX. anticipate also

it Rx position. reflect just on Optum maybe Patrick, And from an

Yes.

out for mix, high significant So us. renewal that this last including where The growth in first, would specialty, in drives year Optum year we PBM plays I into and had in rates revenue XXs. in a record selling the of terms growth Rx, call volume season

out our which, call also Lisa, pharmacy as specialty significant know, and you hospital infusion, arena, health and system but I platforms. our growth, pharmacy services, community

to X and -- whether which and then around or value And services products that Savings customers consumers have has Weight $X Edge, customers. our manage and this we specialty new new specialty, continue help million Engage, And Price year; over and to billion deliver over products of really a members services, including around the consumers arena purpose-built IQ, specialty where $XXX it's got our we're saved number saved million; or to spend. we've

question. And the Lisa, thanks, for Thanks, Great. Patrick.

Next question.

We'll with A.J. next go to Rice UBS.

about on formulate XX% like relative $XX, I growth? what a a wonder comments I appreciate to some sort of early of growth, sort X% at is normal the if tailwinds XXXX. any of So size headwinds looking to XX% to way different the to year there you're looks and of

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

Let bit. me this just context a little

ideally we'd obviously with will of be in continue to culture as off, plan a be, deliver, and First the the year start the always but organization. would typical year, that to a see you

net-net We terms funding of reductions the and, unusual that situation in externally or still cost seen through both some government seen. extent, various of strength terms we've system, clearly COVID the right on some volume unit of to the a in are pandemic coming particularly from MEDEX that cost, continued pressures and pressure probably still somewhat now we've also in the of effects playing hangover

you pressure see the of that we year. kind in which of see All this

Now important future set is as -- XXXX, to the we're out we A.J., think of trying about the something what long-term really company. for it's here,

external about in the this in think, press and what clearly, described, those being both the pressures which release So clear I they morning, commentary we've are. we're

out to means value-based the investing care what's in It the now opportunities, into mean? the reality. drive away next same of to advantage pull from future we're in over really time, sure means making What taking platforms. this going That decade. we filling technology the continue does At of and really our leaning out is exist that investing build what which mustn't in organization do

in to opportunity the us develop OptumInsight new look full consumer to across our sadly give based modernize our lacking transform give which newer new chance across something experience, is which So bring organization, technologies, we much stack opportunity us products, really forth health care. the to on way a the U.S. transform

of things as we've now, these year we opportunities sit that those same been sit All are the talking they have which various headwinds in right about.

value And is we're we on not XXXX pull in 'XX right, term, that's the making responsible from next long decade, what really for and making in responsible what longer-term we're in investment in terms plan so the sure really of into we place sure short-change what organization. for of plan the our a doing back we're is don't leaning creation focused believe putting is

as your capabilities, a plan external acknowledges a very beginning the to than the distinctive always Now I set sure make capabilities build the the us sure which every continue of pressures into we it's at beginning. we which that cycle the for what response said next years. your XX we're for we think will to of going and at lay we the question, make good question. A.J., XXXX, do aiming play think to that is to But I go you out to Thank to retain appropriate build powerfully for better out really for

Baxter Wells We'll Fargo. to go with next Stephen

Thanks X were fair you think color developing that unfavorably that for called would about maybe is of Or being QX all of the to those same? it When the on one factors quarter, you the the MLR out. as out larger? call MLR the about factors them you think in

pressures changed if you've I what to whether And midnight don't think of are guess, date. rule all and coding on you the needs much in for maybe that you this update the this where the management, make side? quarter? to attributed manifesting front? us coding the operationally, to not, I on Can happen about think we on when at And to utilization progress

the a on for then I'm much start question. John to to you perspective ask more and very ask Thanks that also. little give bit going to Brian Yes.

same out say Stephen, with quarter. in called of in would look were zone terms Those versus really, the we but or a the yes, as expectations it that zone roughly them. we kind elements the in in that -- quarter was the impact I we all you quarter take, in of our initial at they're shared roughly give same ago, they

Brian?

the for Thanks Yes. question.

being stays feel build had cyberattack, timing that it as quarter. quarter, about in own subside relates here the what the of certainly new the we we third to during has more versus Last As that expect did but to our appropriately we largely related utilization outpatient, upcoding spike it inpatient is persisted. behavior to management somewhat talked waivers

few setting. this As the in inpatient mentioned an this and a key difference is largely of at outset, a focused certainly our systems a already our practice. hospital large And we is on outpatient driving by It's remain part stay The an consumers borne of do utilization of John management. care it. cost evaluation between too-expensive on

in see we we vigilant on past, to hoping focusing So as that to forward. we'll review this continue this, more remain and look to the on to we're it levels abate seeing used

right. thanks Brian, much. so All

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

pieces to landscape Advantage seems There moving the than to be Medicare more XXXX. usual entering

Advantage So just next strategy then And you think how strategy? to and important Medicare growth to the changes UnitedHealth's maybe your market. you from to take maybe step enterprise weakness in if about how And competitors potential over can back few overall coming specifically, a is speak years?

thanks for very Josh, question. the much

for given to the day just make then selling a Noel, very Tim timely first who M&R business, Let obviously, going our season couple you. a is little the that deeper into comments MA And of of XXXX. go new ask leads the and me year for today

through important of pieces look Health part is really you several one Optum but of as There across a elsewhere. Medicare whole is different of of are to care the the very So Optum, group health very businesses. in particular. from is it UnitedHealth course, a and Medicare Advantage, obviously diversified linkages Advantage Obviously, business, of Group, of what

of why deploy the Josh, would seeing over us laid is, share, you're as MA sustainability It's care business health should elements mind grow, critical signposts where other where and continue we've the years, really important we long-term what for expect time, you you'll is the X pillars And over But it's that's the business capital. as the course. put as X many to I that's out to say, our last of of company, or to the for see growth where opportunities look of we improve X the system. of

of care, and bringing design, modernizing be to building or our So all what XX% state-of-the-art the forward. GDP, an are areas whether a benefit company. key that the X bringing capability MA whether of for economy, within technologies that part of but it important forward pharmacy new in us represents in to those the that, element which be opportunities drive ought of is growth transforming be the financial is marketplace, services one of into value-based several a to

having of terms alluded of in come out benefits comment. think us to, way very team to I sets give think is we through given how cycle, not a calm, in the we're Tim last overreactive to enter parts Now this that into year. more we ask see what moving which said has us balance, place that the you the We'll in think all correctly cycle XXXX how planning seeing thoughtful, goes. the I'll benefit very, I proven in be right, led terms of I up many year. that, very of good on this this some as And design

a we or step about didn't a gives if X were over those avoided, will, like problems most feel to -- fix to importantly, as we look that in But mistakes next out make that not year don't worry -- ago, we that it significant us that we X thing years we're this we're situation. which always is really you confidence having

we critical that's served much been and the moving of critical patient-centric, lot think, I well. as Tim? and, this to very It's going us be parts. think, well it's I a be have reactive. serve We really to not year. that consumer guidepost Tim, It's to over And followed

for here yes, Good. of our I and Thanks, the is for it that Andrew change also, strategy really the mentioned. But our the in dynamic and the right lot. a underscore Medicare would a vision very now Yes, pieces And business period marketplace. Josh, question. some doesn't

today. to So underscore that a I'll couple those just are key of environment this

One that is the that's important saw a includes that is in revenue we the see particular and now, year is subsequent play pressures continue a as year that and And it rational we've alluded facing. long-term given deferred planning than environment any very And 'XX, us maintenance that had you have view, more And in never a to response right to that always pricing ensures program you'll any carryover that don't Andrew to, out that out. in. into for an play that we're today.

as for what with any well. our year. make strive to in do and possible stability as that, prescribed trying PCP always $X the copays this meant much to provide of as then commonly Along we has in X preserving that consumers for And can most to year, medications we XXXX, near that consumers $X to sure copays are

to to possible will and Medicare for consumers, a core we really what for much choice important as element that listening beneficiary, that we as that's and that then needs plans consumers meet their It products as preserve And also well. have want. always be design

continue to this important, partnership continuing continue is more what value our that's to us And providers. around to That's some we're this best create create environment And now. there, And the of that headline pressures value. and is our really lastly, opportunities great facing. is of in into the leaning see there light program care value-based opportunity right is for to and the the with we

offset the headwinds ML efficiencies AI are along are we pass and some another us new in really some technologies nice and program. to giving the provide able that more beneficiaries the of emerging And around finally, be opportunities way our considerable efficiencies to that those operation of be the and

environment. foundations Advantage our don't really, But dynamic principles the and core some of Medicare very yes, and our of strategy change. programs So

if funding thank the and just funding want regulatory change you this, -- coming of volatility patients step in well MA the through you're amount super terms neutralize top members. back, for what just dynamics, noise Thanks, his marketplace, Tim's just insufficient in of Tim. on to how look basically of a to And touch try growth Tim IRA is terms to lot change, future coefficient and has and team done it I flows of and that Josh, into of VXX cuts, you in team at aware and of

that more you that cycle into important of, flow otherwise, than would through this never really disturbing we're amount in It's Because, volatility see have in think, important now. to right the I tremendous market. stability,

going not we're that. to And do

strive members them with give to we to experience. of terms patients can our a for patients, going believe unparalleled are of both cost to an fantastic and By them and We experience. and care We're to outcomes, quality can going in to Optum, everything possibly set first. put we those that our do introduce of many we working

that And we're has of that through when the been year plan see kind never things you're that than more that. you been work is seen because of what work next year the volatility going see last and we've And to us how valuable announced. have already to again for seeing

be the And members not members, What have long-term we great hopefully, this short UHC of to to to period up the going we're all sure of going make do volatility. work of day. to that lots potential are what sacrifice folks We're in And the going today is insulate first today. built selling to line experience. of is picking

We'll Wolfe with Lake go to Research. Justin next

share incremental is are including and improvement full the in potential Medicaid color we've XXXX seen business Advantage sector, expected. all performing target your Medicare if guidance, year in within on the improvement volatility, how us the of the give you some margins. And implied duals third hoping you've was quarter expected XXXX there I color also duals, business, the Given with us been on of -- ex some maybe could relative your any pace that's and for to

thanks the so Yes, Justin, question. much for

Let to ask me Brian respond.

Justin, with me about for start XXXX. as approach would duals let our about duals, we those I position we very remain say and the products business, certainly encouraged of outlook the

and quarter, see us. about element pressure impacting I our a for think that's of as last obviously as in that items XXXX, talked the redeterminations, we this be quarter . Inside remarks will Medicaid contributing it is our growth well prepared X X the from we book. obviously,

on us. I'd now do and the really trends to weathered up where that at current rates now looking volume impact we redeterminations, like how our to of are. catch that's the we're storm say these What is cost behind probably

it's momentum a state some we're suggest. hopeful we'll close responsive strong the normal rating that not than to real funding seeing advocacy our at cycles would partners, time. we've that maybe with think gap faster on trends rate I that but our yet And and seen And we're our this partnership through

to I quarter, volumes disenrollment. key that one point that beyond those But had acuity stayed the care. for, traditional items was and again, in if just the point the left we higher planned element behavioral to were I'd just to And of that those of

many partner looked our implications. behavioral some states of have to think cost care. with And Many to us states I so. of access to does us have done expand that our have That

soon that emerge. big we'll see as So the we'll see hopeful largely will to would and that we're states these now really if the implications hopeful seeing of rating being year, pay we year suggest. cost the rating that tailwind catch And cycles that this these trends these we're responsive up traditional in volume our again, driver more cycles through be than

so thanks Great. Brian, much.

We'll next Stephens. Scott with go Fidel to

was to one, other just but those obviously, commercial higher hoping than about elements, I Medicaid costs excluding that the talked the X and some business were those the to elements X were -- -- over how you in that expected. coming of I toggle guess,

and of commercial that into markets. sort you're -- bifurcate maybe I those flow could into group what then through of you those how guess, and, both if between individual seeing Just commercial

how XXXX sort just for then margin the informs how and trajectory your products of view comfort priced exchange individual there. that you've with just on the And side, your on

so thanks Scott, Yes. much.

me ask Kueter to Let the give deeper Brian of commercial on view you to and kind a overarching give to little Dan then you pass business. maybe an

inpatient redeterminations about cost aren't business. an I stays performance, a for but the our management other feel -- of our Medicare points mentioned obviously, in commercial around pressure thanks commercial The and inside the Medicaid and provides space at our only largely about, Scott, part specialty It talked really items the around question. business. Yes. throughout not we've the X Advantage, really me our clarify. good to outset What that opportunity and we

our Kueter, to business. Dan of it I'll And CEO hand that

exchange you offer competitive And Yes. our that Thanks, the business, space, and I that about, the is the Brian. our question. our environment. dynamics Scott, market trend the as asked in offering, thanks the footprint pricing in respectful product for can other of which and include geographic

for full we forward respect view with cost a have trend. of XXXX, priced For in our

are that side business, have the programs the driving group applicable not and commercial those the side. As noted, trend the that to some on government be or impacts Brian are in whether John individual

XXXX, So for unit that our provider and behavioral to for we is XXXX and the for cost view business access services. expanded pharmacy with trend time discussed remain enabling have our the drivers commercial things the cost, some now: in outlook health on consistent

been have driver those the So in 'XX.

trend into both the and with priced group those individual 'XX. expect And of and to we business respect We items. continue the full those have business awareness

much. pharmacy really, so just down price utilization and need years been of very about raised cost unit that really areas kind for unit Dan, lean strategic we outspoken and, X hospital thank there, the of to want And the we've drugs. And bring that a cost you elements are list of into. the course, Dan to X the

within bring very that. behalf tools costs try strongly we companies of to continue the commercial of behalf Until Optum to all We continue of books we of serve on to disposal advocate utilize our the happens, through on for and members down and who those Rx the that our business. at

all of we are in and and the loss, we how areas think one. an increase and opportunities how we also much ever leaders to wraparound important important we essentially biosimilar about programs be the kind like drug on possibly bring inflationary that's adoption which We're try bill, to of designed that down exploiting weight create can, from pressure as see as in

costs, unit unusually really aggressive to cost second high unit is some The seen asks. Dan referred one and hospital and we've

a much and But the hospitals, environment. want to try we recognize -- very within obviously, systems with we find fully -- the and care are working way new We work continue need critical we role of compact, to to new hospitals. of to delivery the hospital

we for to rise opportunity and rise. value time, the see We at a in ought the that believe see more competitive abrasion acuity for marketplace. critical for health great needs overall role systems money in to as see much hospitals rates But the want same system. the less to We come create us We the with for to with right marketplace. partner better

the partner to be that's whether that who new to in with be we the work of bring with who or hospital is working willing down companies us experience the patient areas to systems And So reimagine long the X experience, part super that innovate. of to down the cost, are want a and really areas are those what to interested bringing doctor run. are all want important drug with ways unit whether cost for

The going to be XX program And see trying it's to space of mentioned to forward opportunities. continue in one going national a and new to where Gold those sorts example, going just you're be approaches. Card of ideas, putting minutes is -- to active for us ago look we're continue I terms very piloting

Bernstein. to We'll Lance go with Wilkes next

there. about I you a Could X points had little OptumHealth? talk And bit

about of If quarter. the improvement you the some drivers bit little could in talk a of margin

that as seeing adoption outlook and contracting, segments talk in you're MA what for you particular, the in things might like adoption 'XX employer. far If about could other risk for in as be driving if

the any inflation in sort And seeing the segment whatever? high there, question. of to premium a environment things like but out then that's also PBC maybe other or responses you employer adoption, related binder like Are

so much,. Thanks Yes.

on if on John just okay. after comment ask to go like looks Desai, Dr. points, OptumHealth, your margin. that's me I'd Let who And to to second X

Yes, Optum decade year to -- now let's progress, and is to along $XXX advancing start the continues we've it strongly refinements and able billion we as the in over benefiting a business ahead as so, we're John. business past few with that look roughly it's things here such. make a way, building been is this Lance, or the

is -- the is mostly that of delivery OptumHealth? maybe It ago. that years continue see the types businesses a expect at versus are we that you to refine What care it portfolio is should what we're even X in. us So to this us was kind business of point in

should you portfolio that. see so continue on And us strongly the focus to

the will the we're of us, and So not heading we make for care be on and where in businesses don't as portfolio sense we'll have for business those that we we a lot hang theme the this in with that will and businesses focus decade. next for tightly -- value-based be

maybe moving needed legacy into also elements refinements such such while, in the as In that those been to have a so a there, and addition them that zone. getting in along, for and better contracts there

type So serve company of and really, they fundamentally having performing the the very they're with people here, strongly, engagement in at the OptumHealth. that

how we ahead we as engagement his next sure decade the And And how team of refine and complex has the is of to are that they've the and for those business the here Dr. Desai elements patients, and drivers job the then that advanced refine make build. performed. look fundamental our most with the that portfolio,

Great. Thanks, John. And Amar?

question, the for Lance. Thanks

about we of So very overall all, OptumHealth. good the first of feel performance

place and management our clinical some that XXXX, cost of to our businesses. engagement, on are against initiatives, accelerated management operating then We our activities in in put in X-year execute continuing cost and medical we services plan diversified focused affordability growth

On federal product country. particular, had a position that the for services, in disability as well point, pleased growth and with OptumServe business, a the that our in we've clinical with the have government we're agencies to leading exams medical provider where the in in areas resonated in of and the largest marketplace contributed launches very have new

diverse question As relates planned relationships with growth partners around and broad, growth we over your agenda. have strong XXX to broader it a across on are to payers, execute poised

here, in of this business. lines productive actually outreach also increased rate as in partner enduring In other a is an looking number market for, AEP, we've dynamic who we're discussed we payers really, fact, arrangements. in and but benefit capitated seeing level environment of operate plan In for can from funding who planning particular, and discussion ongoing around environment are

in and our plan that focus foremost, that quality our HEDIS anchored for our the continued then care network around first is, to particularly conversations really, community, engagement. achieve the in of to clinical including closing and of these of outcomes, measures, to providers are the partners looking clinical the strength in, ability programs And Stars geographies foundational in gaps grow all and

fact, over our engaged members, for year-to-date highest members. of XX% our In year-to-date, we've XX% risk

question. when and take broad multiple of business. that diverse not together, So Thanks grow and momentum a for way to strength the only but I in across great grow lines

very thank we're to terms the give of particularly just as perspective much. of Amar, And to where bit that her Head I'm you Heather Optum Great. of in looking care value-based the and ambition in as ask second a take little differentiates. from going to a it

Kelsey-Seybold an explore -- and I both commercial going think the that and to some moving striking and a But employers just commercial rise couple that that Heather edge out call some of joined to I'll really It's at groups, that think, a start but in me, investing been in key value to out model. see have heavily reasons recently ago. They're the do clients, we're based I the beginning, good rise of been move kind it's of to interest leading as our Optum to it's I forward new one years some of been we've to now. with particularly start in for of interest the alternative. And

do to that trend see I'd obviously see some we'd employers to already go questions. and going And those who I the to to I few see your beginnings do over starting we of see And -- think expect to important good ask years. that there think next accelerate evolve Lance, we're forward. going we're to as -- begin question, to that are we're And it, certainly start the

like. bit the a But of Heather, little member care the kind how viewing maybe you're from value-based to differentiation it'd perspective be of and share overall good just point a

Lance, opportunity. the for thanks Yes. And maybe, just Thanks, Andrew.

we're environment, this employer. it right, you're sense a value-based plan direct in seeing take described just well Amar for to seeing Advantage, think the I as predominantly for from -- the complex not funding sponsors that you're of the but seeing that environment risk in and care you're proposition it, those value Medicare dynamic employers

they're one, of I means experience, integrating their that health And for give the to wellness behavioral need, Andrew of It means, services and predictability that in at ability They're areas for the wraparound proximity health alternatives including they predictability. think for closer better as a said, services. more holistic answers times home-based and it well-being and the to member our again, better other principles looking it, clear means looking And is, and and dollars invest employers. programs.

The And other of members. to thing better every with our value-based we I'd ensure better point care. in out month, the affordability tools, Amar's incentives to on physicians aligned that invest only with are is and with they're with and to continuing not increased we point signals platforms, see the focused more outcomes

through the OptumHealth's they and help offer show that performance. bring across universes. increase cost And They're Those down Optum more also employers, high-powered, services more of and clinical risk -- to payers our those they're OptumInsight. our forget AI and But the the don't universal. the We're services, you're administrative services. we and that quality seeing in are using that including through other our

programs. guarantee do the employer services. the talk if construct accountable services, construct. of PBM or can a Rx plan manage the including about the where they for our or services, it, it can value-based pass-through Optum they the an those clear Rx, accountable we all take Optum risk wants in specialty is They And a cost do when We

Optum to and really think accountability, note, incredibly take Rx we're lose our accountability. to clients it trying transparency. important with Now but trying make for stands this transparency, simpler that I we're to guarantee important is don't or it's

would that to better other proposition. outcomes and mission resonating yes, our helps state seeing so of our point and the about clients, all Insight, customers, Bank through employers, benefit a better contributes they're offers I to Optum that's why payers. service we're every value So say, our and and services through Optum with should Optum with payers, experience. value-based consumers customers, federal and optimistic that, long-term with the We're through that and Rx value-based across But

the Heather, question. again thanks much. thanks for so Lance, And

to Bank America. next go with of We'll Joanna Gajuk

on quarter, discussion. OptumHealth X%. just revenues quarter-over-quarter margins. decline question I about a ask follow-up In quarter, question the want But to have was revenues. second The sequentially about I from the So did the about actually

a around So commentary -- streamlining that know contracts. I there and some portfolio and was

is business So So some place lines? that fraction -- of and contracts already on in exiting third something sequential that? there underperforming that was terms decline can in you've maybe did you comment a actually take the that or quarter

degree? from were to is you do investment margins year. in for what to what also guess, I margins assume again and next question then trying OptumHealth benefiting I And And ask the real about guess, income

so Thanks much, Joanna.

I is Let straightforward think me sequential -- the pretty a explanation. actually

to just little a give me ask Let on you John that. detail

would be And so portfolio, and the would the that the seeing that component refine impact yes, the we'd see of revenues. and what terms sequentially refine in that, on Joanna, out was refinements prime primary contracts, as of you're in discussing the might terms be there in continue we work legacy that I there. be sequential ahead really that to contracts

We'll Cantor go next to Sarah with Fitzgerald. James

you give could more a OptumInsight. bit hoping was on I little color us

is and how Change, going -- sales margins So business? your how pipeline the are expectations versus non-Change the on excluding

think compared think its the transition how tailwind we being should Change a is about we an a about on 'XX? or drag? as headwind specifically, then into that revenue XXXX, And earnings to business And

you and Change ask tech will we've in a to broadly in who second the Connor, little give more team in extraordinary acknowledge I'm business. just that to much. on the the But to the attack. Roger response want progress Sarah, share OptumInsight made to deeper going team And OptumInsight, thanks thank the recovery I and for this. so great Roger a leads

-- obviously, to to in terms work find protecting right during we be do, bringing asked the encouraging to alternatives. clients back work We other go system with the did all the people to folks attack. who thing Continues and in the of

we work the to on forward them which bringing That made the new rebuild a speed comments, progress has We've roll back. into introductory now great will platform were that. We're extraordinary. modern And just as in a continue heard but been we able that. at step huge you as year, in

to us reimagine very think that for in terms actually broadly, an we our modernization technical how More going organization. bodes the think be. OptumInsight is future also in of stimulus to think I given well the I of the what as really And it's future about of us speed

I'll recovery to the we where more And more on it a and, detail are to Roger just importantly, aspects. now little on pass on give modernization the non-Change you

and for Thanks, thanks much the question. very Andrew,

going you're the going the to a hopefully, think, move I in confidence get sense Change of XXXX we feel into as event. OptumInsight through we

of with well. first of the that's terms From all, the you'll business been recovery that just I disruption if going QX a Maybe progress perspective, start the quarter-on-quarter. reduced see and there, in cyber

where on and focused through year the first the suppose of made good I we've restoration very we're the been really systems, has of the progress. half

over. that of seeing Now into the some our will trend as business really, all customers. of the slightly and carry we higher reconnecting going And it's year, about shared, disruption John are end

Maybe out We're or reasons for volume a happening. And that's coming pre-attack the back. back just of little there customers customers a systems, coming for why deeper is couple From What of good example. that's making vendor software there. bit seeing are are to perspective, looking to they're sources actually back another levels. What a reconnection progress for really as isn't we're redundancy. the coming their X looking is X

and thing But customers become Now go us. We've an new out having think understand also an us got the that's additional but health them. impact on an supplier creates an that. year. and a for for We that we good that is this system, opportunity for get opportunity to ourselves

focus. bit take a implementation time. complex That's little more So to again, that's a a slightly going longer,

that why see So add into those together, X you you impact XXXX. carryover when that's factors

and of just going important the opportunities overall next year if look into through the you vast just that majority got that's of I end the OptumInsight, year. we've feeling at which think is business of Change, it's very where this understand to the of core we're our confident OptumInsight outside around scope because

we're got And see you can We've momentum. performing well. that

can That comes of see in earnings terms operating you that confidence couple our in year-to-year really for of when in terms in You adjust our of Change. growth outperformance areas. a

as where solutions. One, and cost and they opportunity. are really of the The provider in sweet software and and client market provide where their real help payer services see that There's a see markets we needs we bit us. pressure That's significant spot. a base, can our

transform off And we've and to what built then we're do what because currently, where building tech I'm new we're at And to year AI portfolio actually our Insight. like payment only in create of and in going exciting the doing creating this this that most these of excited integrity products, to not environment is revenue AI-driven innovation using that accelerate differentiated modernized we're current cycle, functionality to innovation but we're products innovations.

as news fast. OptumHealth. into us next things And to see about doing test go We to more Insight our those that Now market our that partnerships. us with That UnitedHealthcare. these and partners test going allows big with we test include health to the with and can bring good them is quickly system We you're go we them year.

think underlying -- innovation, AI-fueled and when well into that I we're So performance of our year. acceleration that we've got really set add why for next I that's this going add market up that I opportunity, XXXX

Roger. Thanks, Great.

to next Andrew go with Barclays. We'll Mok

SG&A has year. to been strong contributor earnings this a

XXXX. as Just some of would think call to nature? Is of more in forward there permanency we anything the as curious those changes about out being should we cost you look that temporary how

question. conference is." on be take stood to the CMS what last go essentially, requires I the I so cut. mean year investor you And cut seeing accordingly. change want what to I should VXX first very stage from said, for York. respond principles. is around cost to to you New very, Thanks it you're think management. I'll I and price "Look, a price I Listen, that's rate in And us expect us much to back the the back again, disciplined the

have and the if piece try cost environment we a take down which we protect to is And that of members, company. organization, key waste to response, the do, want the outside in of inside we you MEDEX to eliminate have and

we organization, So we for businesses. can relentless in the both find cost particularly have reductions been how sustainable around

You see has of out. this Optum, taking I'd remarkable particular, cost doing in a been say, job year,

will we very that. be go, I about think there's more to and relentless

an to the as we payer the recognize change pay. price organization, right the want they has And to

for features how of Cost this. We are the is going of to And key future have of X a reduction important respond. terms really other of organization it. robustly management piece and in to the is be MEDEX respond piece, we to key those the all

should the So yes, that, of you more it a of be going piece forward. plan expect and key will

we for time have last last please. if just one take We could one, question, the

last We'll Erin from question Yes. with our take Wright Stanley. Morgan

in of about heading or buybacks just what's I deployment? should around also broader capital guess, into what otherwise? XXXX be some just internal context that's thinking going in mentioned MA priorities into everything initiatives you your AI expectation the on we how So XXXX. and in investments other about in otherwise, But share the the of embedded but and

deployment pillars broadly our much But comment capital our led just be I'll X John is in to And the focus very a growth organization. ask for second. of to speaking, going by

So care, that about course, business, going obviously, financial technology-led opportunities, as about benefits to the our think deployment. those businesses pharmacy and, we our services, UnitedHealthcare, are areas which value-based of be think you in capital

organizing really binds all together. principle, of Value-based the which care is that

So that's of element going that to be also. a to key kind

last I about talked would is that, then consumerization. to X the extensively over add something we And years

able us modernize should consumer offer. that we're can push and how continue expect challenge experience to we constantly on You to to the

want is and biased that being to it in more way of philosophy consumers to Technology life. The continue is a to organization operates. It's is that, facilitator But also a right? We that. much changing. facilitator thinks the to bring of

opportunities, X pillars, gives emphasis company a really then the more from growth shift experience, the us, and XXXXs guide the points. those the are the of a So in technology towards those consumerist

just John, element, broadly if for more could, maybe you summarize then, And capital. beyond that

Yes, Erin.

of past orienting around capital growth capital. generating clearly at So you and expanding many how the our expect for has need years, we very X to should shareholders capabilities we remain much where we look the be -- capabilities, that, it orienting see the like pillars our on deploy to focused strong agenda returns that deployment as adding company,

the shareholders can always will That been that's much strong where priority, next the build putting So how the we will that deliver foremost, for for first should first and new same. and decade the for company be capital. we returns capabilities that continue very

You shouldn't any see shift on that.

repurchase and can And we priority. in shareholders. terms other other elements we -- dividend where elements there then first of look capital to in always and share return That's at those

this steady business. see should you we've ahead decade terms as approached look So very of how be to that you very, always the in

question, for you thank for thank morning. your And Great. all and you the this questions

As look we're further to excited future and XXXX, about this Group. the in year of preparing for UnitedHealth conclude we

doing at of performance have actually, navigate us passion differentiated come. focus, and believe to the to just we but continue set the to in foundations have our mix And remain, continued allow in adaptability right see XXXX, committed the as the Group, discipline people, for we and We capabilities, to the we externally, not XX% we UnitedHealth to grow that long-term -- we compassion years we serve. Despite to environment for have many so, target. believe people the we XX% the challenges always, the to

much our see you. having morning. to conference. you attention in York at in Look forward investor person very appreciate this New your the We Thank to chance

thank This participation. you We your conclude does conference. for today's