UnitedHealth lowers annual profit forecast on higher costs
April 17 (Reuters) - UnitedHealth Group (UNH.N), opens new tab lowered its annual profit forecast on Thursday as elevated demand for healthcare-related services from patients is expected to keep medical costs high for the remainder of the year.
Shares of the company tumbled 5% in premarket trading. The forecast cut also dragged down shares of health insurers Elevance (ELV.N), opens new tab, CVS Health (CVS.N), opens new tab and Humana (HUM.N), opens new tab between 2% and 3% before the bell.
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Higher expenses tied to patient claims in government-backed Medicare plans for older individuals and changes in enrollment to Medicaid plans have weighed on the industry for more than a year.
Costs related to the company's Medicare Advantage business were far above the planned 2025 increase and were consistent with the elevated levels in 2024, the company said.
The company now expects 2025 adjusted profit per share to be between $26 and $26.50 per share, compared with its prior forecast of $29.50 to $30 per share. Analysts were expecting a profit of $29.73 per share for 2025, according to data compiled by LSEG.
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