UnitedHealth's Optum Issues Drove More than Half of Outlook Cut -- Market Talk

Dow Jones
04-17

1026 ET - An estimated 55% of UnitedHealth Group's guidance cut was driven by margin pressure in the company's OptumHealth business, Mizuho analysts say in a research note. That pressure is coming from changes in patient profiles and probably challenges to coding that stem from the second year of phasing in for a Medicare V28 risk adjuster model, the analysts say. OptumHealth's operating profit declined 15% while revenue came down 5%, driven by revisions to legacy customer contracts and member profile factors, they say. UnitedHealth reports that unexpected profile changes for OptumHealth members weighed on planned 2025 reimbursements. UnitedHealth tumbles 20%. (dean.seal@wsj.com)

(END) Dow Jones Newswires

April 17, 2025 10:27 ET (14:27 GMT)

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