Optum Rx Revenue Grew 16% in 2023

In 2023, the pharmacy benefit manager Optum Rx, part of UnitedHealth Group, saw its revenue increase to $116.09 billion, an increase over 16.4% over 2022. Optum Rx officials indicate this growth is a result of new clients, expanded relationships with existing clients, and advancements in services. Adjusted scripts grew to 1.54 billion compared with 1.44 billion last year.

For the full Optum segment — which provides payers, providers, employers, governments, life-sciences companies and consumers with information and healthcare technology services — 2023 revenue was $226.6 billion, an 24% increase over 2022.

UnitedHealth Group saw 2023 revenue grow to $371.6 billion, an increase of 14.6% from 2022, the company announced today. Full year 2023 earnings from operations were $32.4 billion, an increase of 13.8%. Net earnings in 2023 increased to $22.3 billion, compared with $22.1 billion in 2022.

The company attributes the increases to double-digit growth at both its Optum and UnitedHealthcare divisions. The UnitedHealthcare division provides healthcare benefits to individuals and employers, as well as Medicare and Medicaid beneficiaries. In 2023, UnitedHealthcare saw revenue increase from $249.7 billion in 2022 to $281.4 billion in 2023, an increase of 12.7%. The company indicated that the number of people it insured commercially grew by more than 800,000. In Medicare and those in Medicaid with complex needs, the number of beneficiaries increased by 950,000.

But the company indicated that the number of people in its state-based Medicaid programs declined by 700,000 because of the Medicaid eligibility redetermination process. Nationwide, more than 14 million people have lost Medicaid coverage, according to data from KFF.

Medicaid’s enrollment provisions had been halted during the COVID-19 pandemic. That ended in April 2023 when the pandemic public health emergency ended. Since then, states have been redetermining eligibility and disenrolling those no longer eligible. KFF data indicates that 71% of people who lost Medicaid coverage did so because they either did not complete the renewal process within a specific time frame or the state had outdated contact information.

The full year medical care ratio was 83.2% compared with 82% in 2022. The Affordable Care Act requires health insurance companies to spend at least 80% or 85% of premium dollars on medical care.

This story first appeared on Managed Healthcare Executive and has been edited.