![]() UnitedHealth Group expects its medical cost ratio to "be a little bit lower" in the third quarter compared with the second quarter, Rex said during the call. Rex noted that much of that care has come from seniors who are getting heart procedures and hip and knee replacements at outpatient clinics, reiterating his previous remarks at the Goldman Sachs health-care conference last month. "To illustrate, in the second quarter, outpatient care activity among seniors was a few hundred basis points above our expectations," UnitedHealth Group CFO John Rex said during an earnings call. ![]() UnitedHealth Care said that was driven by the previously noted uptick in elective surgeries and outpatient care activity, primarily among seniors. The medical cost ratio is up almost 2% from the same period a year ago. Analysts had estimated that ratio would be 83.3% for the quarter, according to FactSet. ![]() The company's medical cost ratio – the percentage of payout on claims compared with premiums – came in at 83.2%. UnitedHealth Group raised the low end of its full-year adjusted earnings outlook to $24.70 to $25.00 per share, from a previous forecast of $24.50 to $25.00 per share. It was also driven by a more than 900,000 year-over-year increase in the number of patients served by Optum's health services business under value-based care arrangements. Optum's growth was helped in part by UnitedHealth Group's roughly $8 billion acquisition of the health care technology company Change Healthcare. Optum offers health services and runs one of the largest pharmacy benefit managers, or middlemen who negotiate drug discounts with drug manufacturers on behalf of health insurers and large employers. The company's other platform, Optum, saw revenue increase nearly 25% from a year ago to $56.3 billion. UnitedHealthcare, which provides insurance coverage and benefits services to more than 50 million people, saw second-quarter revenue grow 13% from a year ago to $70.2 billion. UnitedHealth Group can't record those transactions as revenue because it is paying itself. That excludes $33.6 billion in "eliminations," which are payments from the company's UnitedHealthcare business to its other division, Optum. The company reported total revenue of $92.9 billion for the quarter, up 16% from the same period a year ago. That compares with $5.07 billion, or $5.34 per share, for the same period a year ago. Excluding certain items, the company's adjusted earnings per share were $6.14 for the period. UnitedHealth Group reported a net income of $5.47 billion, or $5.82 per share, for the quarter.
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