UnitedHealth Group (UNH) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 14, 2023 8:45 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning and welcome to the UnitedHealth Group First Quarter 2023 Earnings Conference Call. A question-and-answer session will follow UnitedHealth Group’s prepared remarks. As a reminder, this call is being recorded.

Here is some important introductory information. This call contains forward-looking statements under U.S. federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. A description of some of the risks and uncertainties can be found in the reports that we file with the Securities and Exchange Commission, including the cautionary statements included in our current and periodic filings.

This call will also reference non-GAAP amounts. A reconciliation of the non-GAAP to GAAP amounts is available on the financial and earning reports section of the company’s Investor Relations page at www.unitedhealthgroup.com. Information presented on this call is contained in the earnings release we issued this morning and Form 8-K dated April 14, 2023, which maybe accessed from the Investor Relations page of the company’s website.

I will now turn the conference over to the Chief Executive Officer of UnitedHealth Group, Andrew Witty.

Andrew Witty - CEO

Thank you. Good morning and thank you all for joining us today. Growth in the quarter was strong and well balanced across Optum and UnitedHealthcare with revenue increasing 15% to $92 billion. This broad-based growth, combined with the continued focus of our colleagues on tight execution, helped us deliver first quarter adjusted earnings per share of $6.26, up 14% over last year. Year-to-date, UnitedHealthcare increased the number of people served in the U.S. by 1.2 million, about half of this total within our commercial offerings.

At OptumHealth, we are now serving nearly 700,000 more patients under fully accountable value-based arrangements compared to just December 2022. Given the strength in these results, we are increasing our adjusted earnings per share outlook for the full year to a range of $24.50 to $25 per share. I know one topic is front of mind for you this morning. So I will start with Medicare Advantage. With the 2024 Medicare Advantage notice in hand, we now have greater clarity for the short to mid-term evolution of this important program. Our teams are working through the implications of the changes for 2024 and we will be ready to submit bids in just a few weeks.