In This Article:
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2024 Revenue: Over $400 billion.
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Adjusted Earnings Per Share (EPS) 2024: $27.66.
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Medical Care Ratio 2024: 150 basis points above original outlook.
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Operating Cost Ratio 2024: Improved by about 150 basis points over the prior year.
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Optum Health Revenue 2024: Approximately $105 billion.
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Optum Rx Revenue 2024: Over $130 billion.
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Optum Insight Revenue 2024: $19 billion.
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UnitedHealthcare Revenue 2024: Approached $300 billion.
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Cash Flow from Operations 2025: Expected to approach $33 billion.
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Growth Capital Deployment 2024: Nearly $17 billion.
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Shareholder Returns 2024: Over $16 billion through dividends and share repurchase.
Release Date: January 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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UnitedHealth Group Inc (NYSE:UNH) reported 2024 revenues of over $400 billion and adjusted earnings per share of $27.66, meeting their outlook ranges despite unforeseen challenges.
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The company is making significant investments in digital tools and AI to enhance consumer experience and streamline healthcare processes.
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Optum Health is expected to serve about 5.4 million value-based care patients in 2025, reflecting a growth of 650,000 over 2024.
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Optum Rx achieved customer retention exceeding 98% and welcomed a record 750 new clients, demonstrating strong market confidence in their services.
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UnitedHealth Group Inc (NYSE:UNH) is committed to full transparency and plans to pass 100% of PBM rebates to clients by 2028, enhancing trust and accountability in drug pricing.
Negative Points
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The 2024 medical care ratio was 150 basis points above the original outlook, creating a nearly $5 billion gap due to unexpected challenges.
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The company faced significant impacts from the Change Healthcare cyberattack and South America business disruptions, contributing to financial strain.
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There was a notable drop in consumer count within the Optum Health segment, attributed to strategic shifts such as deemphasizing urgent care.
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The persistently high cost of drugs in the US remains a challenge, with prices significantly higher than in other countries, impacting overall healthcare costs.
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Medicare Advantage growth was impacted by unusual benefit designs in the market, affecting the expected growth trajectory for 2024.
Q & A Highlights
Q: There was a variance in the fourth-quarter cost trends and MLR relative to consensus expectations. Were there any unusual items impacting the results, and does this affect your 2025 MLR outlook? A: We didn't see anything in Q4 that changes our view of 2025. The cost items were consistent with what we saw throughout the year, such as hospital coding intensity and specialty prescribing trends. We are confident in our 2025 MLR outlook, as these trends were anticipated in our planning.