UnitedHealth Reports Soaring Medical Costs Despite Profit Increase

Shares tumble as healthcare giant's medical costs jump 16% in Q4, overshadowing nearly 15% rise in profits.

UnitedHealth Group reported a 16% increase in medical costs for Q4, causing shares to tumble in early trading.
The company's profit climbed nearly 15% to about $5.5 billion in Q4, and the company earned more than $22 billion on the year.
UnitedHealth provides health insurance for more than 47 million people in the United States and also provides care, pharmacy benefits management and technology services through its Optum segment.
The company reaffirmed its expectations for 2024, expecting adjusted earnings ranging between $27.50 and $28 per share.
UnitedHealth's medical cost ratio, the percentage of premiums spent to cover members' health needs, jumped to 85 in Q4.