UnitedHealth Group’s profits exceeded $5 billion in the second quarter thanks to a strong performance by its Optum health services and its UnitedHealthcare health insurance plans.
UnitedHealth said net income increased to $5.2 billion compared to $4.27 billion in the second quarter of 2021 as the healthcare giant’s diverse portfolio of health insurance plans and its Optum medical care services delivered a strong performance. Revenues rose 13% to $80.3 billion in the quarter compared to $71.3 billion a year-ago.
Friday’s earnings report signaled a robust performance for the rest of the year given UnitedHealth’s management decided to raise its earnings forecast for 2022.
“Based upon the first half performance and growth expectations, the company increased its full year net earnings outlook to $20.45 to $20.95 per share and adjusted net earnings to $21.40 to $21.90 per share,” the company said. “Growth in the second quarter was balanced across the company’s businesses, driven especially by continued strong expansion in people served at UnitedHealthcare and in value-based arrangements at Optum Health.”
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.
“Total people served by UnitedHealthcare has grown by over 600,000 in 2022, including 280,000 in the second quarter,” the company said. “Growth was led by UnitedHealthcare’s community-based and senior offerings.”
The additional health plan enrollees helped the UnitedHealthcare health insurance business revenues grow 12% to $62.1 billion in the second quarter.
Meanwhile, Optum’s second quarter revenues soared 18% to $45.1 billion “with double-digit growth at each business, led by Optum Health,” the company said. 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, which reported a 10% increase in revenue in the second quarter to $24.8 billion.