Image of building facade of UnitedHealthCare (Photo: Shutterstock)

UnitedHealth Group Inc.'s second-quarter results were lifted by lower costs of care that portend well for other health insurers but may be a warning sign for hospital companies.

Medical-loss ratio, a closely watched measure of the percentage of premium income spent on patient care, came in at 81.5%, down from 82.8% a year ago and roughly a percentage point below the average of analysts' estimates compiled by Bloomberg. A lower number means the company has more money for administrative costs and profit.

That may mean good news for other insurers like Humana Inc. and Cigna Corp. UnitedHealth's results are positive for other managed care companies, "reinforcing expectations for continued favorable utilization trends and beats & raises this quarter," Evercore ISI's Michael Newshel wrote in a research note Friday.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Core and Group Health
Employee-Paid
Employer-Paid

By Lynn Cavanaugh | January 22, 2025

The consolidated whistleblower lawsuit accuses the pharmacy chain of helping to fuel the opioid crisis, by systematically pressuring its pharmacists to fill prescriptions, including controlled substances, without taking time to confirm their validity.

DOJ sues Walgreens for allegedly filling millions of illegal prescriptions, despite ‘clear red flags’

By Allison Bell | January 22, 2025

A think tank analyst who may have Trump's ear says that's an important reason to return to the old, narrower eligibility rules.

Does easy access to 'Obamacare' premium subsidies hurt employer plans?

By ALM Staff | January 22, 2025

Nominate yourself, a peer, or a colleague for BenefitsPRO's 2025 Advisor of the Year Award before the extended deadline on Wednesday, January 29th!

Final Days to Nominate for 2025 Advisor of the Year!
AI in Human Resources: A Strategic Path to Enhanced Efficiency and Engagement link

White Paper

Sponsored by SwellSpace

It’s no secret, Artificial Intelligence (AI) is a transformational force. And it’s already reshaping HR. Explore the ways AI is revolutionizing HR and practical strategies to make your team more strategic and engaging.

A Guide to Transformative Trends Shaping the Employee Benefits Landscape link

Report

Sponsored by ArmadaCare

Are brokers prepared for what’s next? See the 5 hot benefits trends shaping 2025 in this report.

AI-Powered Growth: How Brokers Are Using AI To Increase Profits, Boost Client Satisfaction, and Save Time link

White Paper

Sponsored by SwellSpace

AI isn’t just poised to reshape workflows for benefit brokers - it already is. This paper explores why AI is a force multiplier for benefits advisors, and how it can increase your profits while enabling more personalized outcomes for clients.

BenefitsPRO

BenefitsPRO image

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events

Already have an account?