UnitedHealth Revenue Grows by $14 billion in 2024

For the second quarter of 2024, UnitedHealth’s earnings reached $98.9 billion, up almost $6 billion from the same quarter last year. The increase, company executives said, reflect growth at Optum and UnitedHealthcare. Second quarter adjusted earnings from operations were $8.7 billion and include business disruption from the Change Healthcare cyberattack.

The second quarter 2024 reported medical care ratio of 85.1%, which is an increase from the second quarter 2023 medical care ratio 83.2%. Executives said this was to accommodate support of providers after the cyberattack and for South America. UnitedHealth completed the sale its Brazil-based health insurance company and it plans to sell the remaining South American operations.

UnitedHealthcare saw second quarter revenue of $73.9 billion, which increased $3.6 billion over last year. UnitedHealthcare provides commercial healthcare insurance to 29.6 million, 9.4 million people through Medicare and 7.4 million through Medicaid.

John Rex

Within Optum Health’s revenue grew 13% to $27 billion and the operating margin expanded over last year. “We are on track to approach 5 million patients in value-based care by the end of this year and are progressing strongly on our earlier and deeper engagement with patients, with purposeful focus on our newer regions to more rapidly improve health outcomes and experiences,” president and chief financial officer, John Rex, said in an investor call this morning.

Optum Rx, which provides pharmacy benefit services, saw revenue increase 13% in the second quarter compared with last year to more than $32 billion. This was the result of expanded relationships with existing clients and advancement in the scope of pharmacy services offered. Adjusted scripts grew to nearly 400 million, compared with 380 million last year.

Change Healthcare

Company officials also provided an update on the Change Healthcare cyberattack, saying the company has restored the majority of services. The business disruption impact from the cyberattack impacted the company’s share price by $0.28 per share in the second quarter. UnitedHealth officials said its current estimate for the total full year 2024 impact will be $1.90 to $2.05 per share.

As of April 2024, UnitedHealth said they had restored almost pharmacies to process claims, and medical claims were at near normal levels. To date, the company has provided more than $9 billion in advance funding and interest-free loans to support care providers.

“Payment and claims flows for most care providers are back to normal. But we know, that is not the case for some, so we continue to work with those who are not there yet,” Rex said.

Rex said in April, the company established an additional $800 million in medical reserves in the first quarter to reflect the potential for the cyberattack to have affected claims receipt timing.