UnitedHealth’s Profit Jumps 23 Percent In Third Quarter
The raised profit forecast for the nation's largest insurer was attributed to big enrollment boosts in the company's Medicare and Medicaid plans, even as medical costs remained stable despite an improved economy.
The Associated Press/Washington Post: Insurer UnitedHealth's 3rd-Quarter Profit Jumps 23 Percent, 2012 Outlook Climbs
UnitedHealth Group says its third-quarter earnings jumped 23 percent, thanks in part to growth in Medicare and Medicaid business for the nation's largest health insurer. The Minnetonka, Minn., company also raised its 2012 earnings forecast. It now expects earnings of $5.20 to $5.25 per share, up from a previous forecast for $4.90 to $5 per share. Analysts had expected $5.13 per share (10/16).
Bloomberg: UnitedHealth Raises Forecast On Contained Medical Costs
UnitedHealth Group Inc. (UNH), the biggest U.S. health insurer, raised its 2012 profit forecast as enrollment in its Medicare and Medicaid plans surged and medical costs stayed stable ... UnitedHealth added 2.1 million customers to its medical plans from a year earlier, with the biggest increase coming in government-funded Medicare plans for the elderly and Medicaid coverage for the poor. The share of customer premiums spent on health care decreased even as rising employment figures in the U.S. suggested an improved economy (Nussbaum, 10/16).
In other news -
The Associated Press/Los Angeles Times: CVS Unit To Pay $5.25 Million To Settle Drug Pricing Allegations
The Justice Department said Monday that a unit of CVS Caremark Corp. has agreed to pay $5.25 million to settle allegations that it reported false information on prescription drug prices to the government's Medicare program. Federal investigators said CVS' RxAmerica subsidiary reported false information about the prices of generic prescription drugs in 2007 and 2008. The Centers for Medicare and Medicaid Services used this information in a website called Plan Finder, which seniors could use to estimate their out-of-pocket drug expenses. But Justice Department officials said the actual drug prices offered by the company were "in some cases significantly higher" than those submitted for use on the website (10/15).