April 17 (Bloomberg) — UnitedHealth Group Inc., the biggest U.S. health insurer, said first-quarter profit fell 7.8 percent, hurt by cuts to its Medicare Advantage program for elderly and disabled Americans. The shares declined the most in six months.
Net income decreased to $1.1 billion, or $1.10 a share, from $1.19 billion, or $1.16, a year earlier, the Minnetonka, Minnesota-based company said today in a statement. Earnings beat by 1 cent the $1.09 per share average of 22 analyst estimates compiled by Bloomberg.
UnitedHealth has derived growth from Medicare and has the biggest program among publicly traded insurers, with 3 million enrollees. In April, the government implemented a second round of cuts to Medicare Advantage, insurers' private version of the program, as required under the Patient Protection and Affordable Care Act.
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