UnitedHealth Beats Estimates on Optum as ACA Losses Mount
- Insurer added $200 million in Affordable Care Act plan losses
- Medical loss ratio climbs to 82 percent during the period
This article is for subscribers only.
UnitedHealth Group Inc., the largest U.S. health insurer, reported second-quarter profit that beat analysts’ estimates, driven by growth at its Optum technology and consulting unit.
Optum, whose businesses range from data analysis to running clinics, has accounted for an increasing chunk of UnitedHealth’s profit. That helped cushion an additional $200 million loss from sales of Affordable Care Act health plans during the period. Including the fresh losses disclosed Tuesday, 2016 ACA plans will cut into UnitedHealth’s earnings by about $850 million. The company has already said it’s broadly retreating from the market, after offering plans in 34 states for this year.