The nation’s largest health insurer more than doubled its second-quarter profit, as COVID-19 shutdowns kept patients out of doctor’s offices and off operating tables.
UnitedHealth’s medical costs tumbled 11% to
UnitedHealth's better-than-expected performance “punctuates just how much it benefited from COVID-19 induced low utilization,” Jefferies analyst
Total revenue climbed about 3% to
The insurer’s commercial enrollment, which includes coverage offered by employers, slipped about 2% in the quarter to 26.8 million people.
Researchers estimate that millions of people lost health coverage in the quarter as companies trimmed staff to adjust for the shutdowns.
UnitedHealth said Wednesday that the enrollment decline lagged soaring unemployment brought on by the pandemic because companies continued to provide benefits to furloughed employees.
UnitedHealth runs UnitedHealthcare, a health insurance business that covers about 48 million people, mostly in
Surgical procedures and other medical visits are expected to ramp up in the year’s second half in markets where the pandemic is brought under control. Company officials also said Wednesday they expect to incure more costs from COVID-19 cases.
UnitedHealth and several other insurers have waived costs tied to COVID-19 diagnosis and treatment in order to encourage patients to seek care.
Uncertainty about how the virus will ultimately affect their business has led most health insurers to speak cautiously of their expectations for the year.
UnitedHealth on Wednesday stuck to annual per-share adjusted earnings projections it provided late last year of between
The lack of claims during the quarter has pushed insurance providers like UnitedHealth to offer premium credits to some customers and to waive costs tied to doctor visits and other care outside COVID-19 cases.
UnitedHealth also is offering free telehealth services and has provided
Shares of UnitedHealth, a Dow Jones industrial average component, rose less than 1% in mid-morning trading. The Dow was up about 1.4%.
UnitedHealth's stock hit an all-time high in February before the pandemic tossed
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