UnitedHealth chopped its 2025 forecast after being surprised by care use from its Medicare Advantage customers in a worse-than-expected first quarter.
Shares of the health care giant tumbled early Thursday.
UnitedHealth said a rise in care use from its Medicare Advantage customers came in far above what the company planned for 2025 and became apparent as the quarter ended.
The company’s UnitedHealthcare insurance business is the nation’s largest provider of Medicare Advantage plans, which are privately run versions of the federal government program mostly for people ages 65 and older.
Overall, UnitedHealth reported adjusted earnings of $7.20 per share on $109.58 billion in revenue in the first quarter.
Analysts expect earnings of $7.29 per share on $111.53 billion in sales, according to the data firm FactSet.
UnitedHealth Group Inc. operates the nation’s largest health insurer, UnitedHealthcare, which covers more than 50 million people. It also has a large pharmacy benefit manager that runs prescription drug coverage and a growing business that delivers care and provides technical support.
For 2025, UnitedHealth now predicts adjusted earnings ranging from $26 to $26.50 per share. The Eden Prairie, Minnesota, company had reaffirmed in January its previous forecast in a range of $29.50 to $30 per share.
For 2025, FactSet says analysts forecast earnings of $29.72 per share.
Company shares were down 19% to $473.50 in premarket trading.
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