UnitedHealth Group Reports $4.7 Billion Profit As Optum And Health Plans Maintain Momentum

UnitedHealth Group’s profits eclipsed $4.7 billion in the fourth quarter as the healthcare giant’s UnitedHealthcare insurance plans and Optum health services maintained growth.

UnitedHealth, a nationwide provider of medical care benefits under the Optum umbrella and a company that pays for benefits through its health insurance plans, Friday said net income increased to $4.76 billion compared to $4.07 billion in the fourth quarter of 2022. The growth came from all of the company’s operations with total revenue rising 12% to $82.8 billion in the quarter compared to $73.7 billion in the year ago period.

For the full year 2022, UnitedHealth’s revenues “grew $36.6 billion or 13% year-over-year to $324.2 billion with double digit growth at both Optum and UnitedHealthcare, driven primarily by serving more people and by serving them more comprehensively,” the company said in its earnings report. Full year profits rose to $20.1 billion compared to $17.2 billion in 2021.

Friday’s fourth quarter and full year 2022 earnings report signaled 2023 may be another good year as the company ads more customers across its vast business portfolio.

“We expect the efforts by the people of our company that led to strong performance in 2022 will define 2023 as well,” UnitedHealth chief executive Andrew Witty said in a statement accompanying the earnings report.

UnitedHealth Group is projecting 2023 annual revenue will surpass $357 billion, with net earnings of “$23.15 to $23.65 per share, and adjusted net earnings of $24.40 to $24.90 per share.”

UnitedHealth’s UnitedHealthcare health insurance plans “grew by over 1.2 million in 2022, led by the company’s community-based and senior offerings,” the company’s earnings report showed. The addition of more customers triggered a 12% increase in revenue for 2022 to $249.7 billion.

UnitedHealth’s UnitedHealthcare health insurance business grew in all areas from commercial to government-subsidized insurance like the increasingly popular Medicare Advantage plans, which contract with the federal government to provide extra benefits and services to seniors, such as disease management and nurse help hotlines with some also offering vision, dental care and wellness programs.

Meanwhile, Optum full year 2022 revenues grew 17%, or $27.2 billion, to $182.8 billion. UnitedHealth’s Optum businesses include an array of healthcare services that include surgery centers, clinics, doctor practices and the pharmacy benefit management (PBM) company, OptumRx.