UnitedHealth's Q1 earnings drop leads to lowered guidance due to Medicare Advantage issues

From Yahoo Finance: 2025-04-17 11:54:00

UnitedHealth, America’s largest private health insurer, saw a steep 20% drop in stock after missing Wall Street estimates due to Medicare Advantage misalignment, forcing a cut in 2025 earnings guidance. Healthcare research shows over half of eligible Medicare enrollees now on Advantage plans, impacting insurers like UnitedHealth, Humana, and CVS.

The Medicare Advantage business struggles due to increased utilization and lowered payments, causing uncertainty for insurers like UnitedHealth and Humana. Government cuts and pricing adjustments add further pressure, with relief expected in 2026 rates. CEO Witty acknowledges challenges but remains optimistic about addressing them.

Despite setbacks, UnitedHealth aims to manage expectations and improve predictions for future earnings. Other major players like Humana and CVS are set to report first quarter results, with the sector facing unprecedented pricing adjustments and dynamics. The industry anticipates a challenging but navigable path ahead.

Read more: UnitedHealth Q1 earnings signal trouble for Medicare Advantage players