3 Must Read Quotes From UnitedHealth Group's CEO


Published on

UnitedHealth Group (NYSE: UNH) is the nation's largest insurer and the company just put up solid second quarter results that may suggest good news is coming from competitors, including WellPoint (NYSE: WLP). The second quarter was particularly important to the industry given it marked the first full quarter following the close of Obamacare's first open enrollment period. In the following slideshow, I highlight three important quotes from UnitedHealth's CEO that offer insight into the impact of healthcare exchanges and Medicaid expansion.

Published in: Health & Medicine
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

3 Must Read Quotes From UnitedHealth Group's CEO

  1. 1. 3 Can’t-Miss Quotes From UnitedHealth Group’s CEO
  2. 2. UnitedHealth Group “We continue to execute steadily on that change agenda and we believe an improving environment in 2016 and beyond will support acceleration on our earnings growth rate.” -CEO Stephen Hemsley
  3. 3. UnitedHealth Group •UnitedHealth is the largest national insurer. •Guiding for $130 billion in revenue in 2014. •Provides insurance to 45 million people.
  4. 4. 3 Can’t-miss quotes from Q2 No. 1: “We are raising our 2014 revenue outlook to $130 billion from the previous forecasts of $128 billion to $129 billion. We are strengthening our 2014 earnings projection to a tighter range of $5.50 to $5.60 per share. The increasing earnings momentum we expect in the second half of 2014 should position us to grow both revenues and earnings per share in 2015,” said Hemsley. •UnitedHealth has been very conservative in projecting growth tied to the ACA (until now).
  5. 5. 3 Can’t-miss quotes from Q2 No. 2: “UnitedHealthcare is seeing significant and accelerating growth in Medicaid. 380,000 more people in the quarter and 635,000 through the first half of the year. Coming from expanded access to Medicaid in about half the states we serve,” said Hemsley. •UnitedHealth is a major player in private Medicaid. •6 million new Medicaid members nationwide since last summer.
  6. 6. 3 Can’t-miss quotes from Q2 No. 3: “In the individual market, we plan to grow next year as we expand our offerings to as many two dozen state exchanges,” said CEO Hemsley. •UnitedHealth participated in exchanges in 4 states. •Far fewer than WellPoint, which participated in 14. •UnitedHealth plans to quadruple participation in 2015. •May reverse member decline in the individual market.
  7. 7. Fool-worthy thoughts UnitedHealth’s Medicaid growth is held back by conservative pricing and ACA exchange participation. It’s medical care ratio, or the amount of premiums spent on care, is 81.6%. Below WellPoint’s 82.7% first quarter ratio. Earnings should accelerate next year as individual market headwinds disappear. Results suggest WellPoint will put up similarly strong results when it reports Q2 on 7/30/2014.
  8. 8. Six stock picks poised for incredible growthSix stock picks poised for incredible growthSix stock picks poised for incredible growth United’s growth is good for dividend investors, but even United will have trouble keeping pace with these top dividend stocks.