UnitedHealth says 2025 earnings will be worse than expected as high medical costs dog insurers
The company anticipates it will post 2025 adjusted earnings of at least $16 per share, with revenue of $445.5 billion to $448 billion. Wall Street analysts had expected 2025 adjusted profit of $20.91 per share, and full-year revenue of $449.16 billion, according to consensus estimates from LSEG.
Shares of UnitedHealth Group fell more than 3% in premarket trading on Tuesday.
The report adds to a growing string of setbacks for the company, which owns the nation's largest and most powerful insurer, UnitedHealthcare, and is often viewed as the industry's bellwether. The stock tumbled in May after the company suspended its 2025 guidance due to higher medical costs and announced the abrupt departure of former CEO Andrew Witty.
UnitedHealth Group's report signals that elevated medical costs in Medicare Advantage plans may not ease anytime soon for the broader health insurance industry. UnitedHealthcare, the insurance arm of UnitedHealth Group, is the nation's largest provider of those privately run Medicare plans.
Higher expenses in Medicare Advantage plans have dogged insurers over the past year as more seniors return to hospitals to undergo procedures they had delayed during the Covid-19 pandemic, such as joint and hip replacements.
Here's what UnitedHealth Group reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Notably, the report comes just days after UnitedHealth revealed it is complying with Department of Justice investigations into its Medicare billing practices.
It marks UnitedHealth's first earnings report under new CEO, Stephen Hemsley, who is tasked with restoring investor confidence and turning around a struggling company that has continued to draw heavy public scrutiny in recent months. Shares of UnitedHealth Group are down more than 44% for the year, fueled in part by the DOJ's investigations and its suspended outlook.
The company's 2024 wasn't any better. It grappled with the murder of UnitedHealthcare's CEO, Brian Thompson, the torrent of public blowback that followed and a historic cyberattack that affected millions of Americans.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 hours ago
- Yahoo
Trump to blame for high cost of living, Americans say in new poll
Americans are struggling financially, grappling with debt and the rising cost of living, and are blaming the Trump administration and corporate interests for worsening economic outlooks for working families, according to a new poll. Six out of 10 Americans place blame on the Trump administration for driving up their cost of living, according to a poll conducted by Morning Consult for the Century Foundation, which asked 2,007 Americans how they are managing the high cost of living in the US economy, who they think is to blame and what are the solutions. Sixty three per cent said Trump had had a negative impact on grocery prices, and 61% said he had had a negative impact on the cost of living. Nearly half, 49%, said the Trump administration had had a negative impact on their finances. Nearly eight out of 10 Americans, including 70% of Republicans, fear that Trump's tariffs will increase the price of everyday goods. 'Donald Trump has simultaneously raised prices on everyday goods through a reckless approach to tariffs, a decimation of programs that help Americans afford healthcare, education, food and childcare, and then kneecapping federal regulators who keep banks and other big businesses from swindling consumers,' said Julie Margetta Morgan, president of the Century Foundation. 'This has created an alarming set of market conditions. Americans are left on their own to face high prices and low earnings, are building their own safety nets from a web of financial products, credit cards, buy now, pay later loans, payday loans and student debt, and companies have been given the green light to manipulate these products to boost their own profits without having to worry about following the law.' According to the poll, more than six out of 10 Americans said it had become more difficult to find a good paying job, buy a home and afford childcare. More than four out of five Americans, 83%, said they were concerned about the cost of groceries, with 46% saying they were very concerned. Some 47% said they were worried about being able to pay their rent or mortgage, 64% said they were worried about affording an unexpected medical expense. About 48% said they believed they would have trouble affording an unexpected $500 bill without borrowing. One in four said it would be 'very difficult'. A quarter of those surveyed said they spent at least three hours a day worrying about their finances and ability to afford basic necessities. Another 25% of respondents said they or someone in their household had skipped meals in the past year in order to make ends meet, and 26% said they had fallen behind on their monthly bills over the past year. Americans also fear things are getting worse economically, with 76% of those polled saying they fear a looming economic recession. Corporations and billionaires were seen as a big factor behind this financial anxiety, with 51% saying they believe corporations have had an active role in making life more difficult for average people over the past 25 years, and 52% saying billionaires have made life tougher. Half of those polled also believe congressional Republicans have made life more difficult, with 41% believing Democrats have made life more difficult. 'Millions of Americans, across parties, across backgrounds, are deeply anxious, and they're struggling to afford basics like housing and health care. Donald Trump is making these struggles worse,' said Rachel West, senior fellow at the Century Foundation. 'Americans believe the outsized influence of corporations and the wealthy has made their lives harder, and the risks they're taking to cope with high costs like taking on debt and tapping into their savings should sound an alarm for policymakers.'
Miami Herald
5 hours ago
- Miami Herald
Federal Reserve governor Kugler resigns, creating vacancy for Trump
Aug. 2 (UPI) -- One of the seven members of the Federal Reserve Board of Governors, Adriana Kugler, announced she is stepping down next week, creating an opening for President Donald Trump to fill. Her term was set to expire in January but Kugler said Friday she will depart in seven days. President Joe Biden appointed Kugler, a 55-year-old labor economist, in September 2023. Governors' terms are for 14 years, and Kugler filled an opening. 'The Federal Reserve does important work to help foster a healthy economy and it has been a privilege to work towards that goal on behalf of all Americans for nearly two years,' Kugler said in her resignation letter to Trump. 'I am proud to have tackled this role with integrity, a strong commitment to serving the public, and with a data-driven approach strongly based on my expertise in labor markets and inflation.' Kugler said she plans to return to teaching public policy at Georgetown University in the fall. She was a vice provost for faculty at Georgetown and earned her Ph.D. in economics at the University of California at Berkeley. 'I am especially honored to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labor market,' she wrote in the letter. Kugler did not vote on Wednesday when the central bank's Federal Open Market Committee kept the benchmark interest rate unchanged at a range of 4.25% to 4.5% for a fifth consecutive meeting. Two of the 11 committee members who did vote dissented, backing Trump's desire to lower rates. The 12-member committee includes the seven governors, the president of the Federal Reserve Bank of New York and four remaining 11 Reserve Bank presidents who serve one-year terms on a rotating basis. 'We just found out that I have an open spot on the Federal Reserve Board. I'm very happy about that,' Trump said late Friday before boarding Marine One. He later posted on Truth Social that Fed Chairman Jerome Powell 'should resign, just like Adriana Kugler, a Biden Appointee, resigned. She knew he was doing the wrong thing on Interest Rates. He should resign, also!' The replacement may ultimately replace Powell, whose term ends in May, though he can remain as a governor until 2028. The president appoints each of the board members and designates one to serve as chair for four years. Trump appointed Powell during his first presidency in 2018. Biden appointed him to another term as chairman. 'Trump's influence on interest rates will now be felt earlier and more strongly,' Derek Tang, an economist at LHMeyer, an economic consulting firm, told The Washington Post. Contenders to lead the Fed are National Economic Council Director Kevin Hassett, former Fed governor Kevin Warsh and Fed governor Christopher Waller, each with distinct strengths, The Washington Post reported. Trump has said he wants Scott Bessent to remain as Treasury secretary. Trump has sought to replace Powell, calling him on Truth Social 'a stubborn MORON' and 'too late' on lowering interest rates. But he can only be fired 'for cause,' such as malfeasance, neglect of duty or inefficiency, rather than disagreeing with policies. Experts say his removal could disrupt the financial markets. Copyright 2025 UPI News Corporation. All Rights Reserved.
Yahoo
5 hours ago
- Yahoo
The Impact Of 'Grey Divorce': 40% Of Americans Say Later-In-Life Splits Derailed Their Retirement Plans
This "grey divorce" trend has far-reaching implications, including impacts on retirement plans, a new survey by Allianz Life Insurance Company finds. Divorce rates among middle-aged and older Americans are on the rise, according to a 2022 academic study. The study, published in "The Journals of Gerontology," found that between 1970 and 2019, the "grey divorce" rate more than doubled among those 50 and up, from five divorcing persons per 1,000 to ten divorcing persons per 1,000. Don't Miss: Accredited Investors: Grab Pre-IPO Shares of the AI Company Powering Hasbro, Sephora & MGM— 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can According to Allianz, 56% of married Americans say that a divorce would derail their retirement strategy. Millennials, in particular, are worried about the ways a divorce could impact their savings goals, with 63% saying it would affect their ability to retire. This is compared with 52% of Gen Xers who report that a grey divorce would impact their retirement plans, and just 35% of boomers. "No one wants to prepare for a divorce," Allianz Life Vice President of Consumer Insights Kelly LaVigne said in the report. "But divorce later in life – especially after retiring – is increasingly common. If you have been planning for retirement as a couple, then splitting up your assets to fund separate retirements can leave you short of achieving your retirement goals." Among those who have already gone through a divorce, 40% of Americans say it derailed their retirement plans entirely, and 34% say it set them back significantly. Trending: $100k+ in investable assets? – no cost, no obligation. "It may sound cold hearted, but it's important to consider how a divorce would affect your financial future," LaVigne says. "Those going through 'gray divorce' don't have the time to rebuild retirement savings on their own. Trying to fund two separate lives, instead of a joint one, can deplete retirement accounts faster than anticipated. They may need to delay their retirement to accumulate more savings and consider additional risk management strategies to ensure their funds can last their lifetime." One in three respondents told Allianz that they don't have a financial plan if they were to get divorced. This is creating a lot of worry, especially for millennials and Gen Xers. There is certainly some basis for that worry. About 54% of Americans say that they'd have substantially more financial responsibility if they were to get divorced than they do currently. How to split bills and financial obligations as a couple has long been a hot-button issue, and one that many people approach differently. Among already divorced respondents, 41% say they feel more stressed about their financial situation post-divorce, both as it relates to retirement and otherwise, than they did previously. Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." The average American couple has saved this much money for retirement —? Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article The Impact Of 'Grey Divorce': 40% Of Americans Say Later-In-Life Splits Derailed Their Retirement Plans originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
