United United cut its prognosis of 2025 after being surprised by the use of the attention of its customers of Medicare Advantage in a first quarter worse than expected.
The actions of the medical care giant fell early Thursday, and the report shook insurance actions throughout the sector.
UnitedHealth said that an increase in the use of attention came well above what the company planned by 2025 and became evident when the quarter ended. The jump was particularly remarkable in medical and outpatient services, which do not imply stages in the hospital during the night.
The company’s Insurance business of the company is the largest supplier of Medicare Advantage of the Nation’s plans, which are private versions of the Federal Government program mainly for people over 65.
UnitedHealth “did not play our expectations” in the first quarter, said Andrew Witty CEO in a statement. He added that the company was aggressively addressing its challenges.
UnitedHealth also saw a jump in the use of care last year. Insurers have been dealing with this trend for several quarters now, returning to the end of the COVID-19 pandemic, when patients began returning to regular medical visits and looking for other care.
UnitedHealth Group Inc. operates the largest health insurer in the country, Unitedhealthcare, which covers more than 50 million people. It also has a great pharmacy benefits manager who manages the coverage of prescription drugs and a growing business that provides attention and provides technical support.
In general, UnitedHealth reported adjusted profits of $ 7.20 per share at $ 109.58 billion in revenues in the first quarter.
Analysts expect earnings of $ 7.29 per share at $ 111.53 billion in sales, according to the FACTSET data firm.
By 2025, UnitedHealth now predicts tight profits ranging from $ 26 to $ 26.50 per share. The company of Eden Prairie, Minnesota, had predicted the profits last December from $ 29.50 to $ 30 and then reaffirmed that prognosis in January.
By 2025, analysts forecast profits of $ 29.72 per share.
The company’s shares fell more than 20% to $ 466.44 in trade prior to commercialization.
UnitedHealth is the first insurer to inform the results of each quarter, and many in Wall Street see it as a vulgar for the sector. The actions of several other insurers immersed themselves in the first operations on Thursday.
Human Inc., the second largest supplier of Medicare Advantage plans of the Nation, fell 15%.
The UnitedHealth report will question the 2025 guide of each insurer, said TD Cowen analyst Ryan Langston, in a research note.
