UnitedHealth Group’s Revenue Grew Almost 15% in 2023

In 2023, UnitedHealth Group’s revenue grew 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.

In the fourth quarter of 2023, UnitedHealth Group’s revenue grew to $94.4 billion compared with $82.8 billion in the fourth quarter of 2022. Net earnings for the quarter were $5.4 billion compared with $4.7 billion in the fourth quarter of 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coverage did so because they either did not complete the renewal process within a specific time frame or the state had outdated contact information.

United Healthcare's 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.

In the fourth quarter of 2023, UnitedHealthcare’s revenue increased to $70.8 billion to $63.0 billion the fourth quarter of 2022.

Within the Optum segment, full year revenue was $226.6 billion in 2023, a 24% increase over 2022. Optum provides payers, providers, employers, governments, life-sciences companies and consumers with information and healthcare technology services. In the fourth quarter of 2023, revenue within the Optum segment grew to $59.5 billion compared with $47.9 billion in the fourth quarter of 2022.

Optum Rx, the company's pharmacy benefit manager, saw revenue increase 16.4% in 2023 over 2022. The company indicates this is a result of new clients, expanded relationship with existing clients, advancements in services. Adjusted scripts grew to 1.54 billion compared with 1.44 billion last year.