UnitedHealth Group reported Q2 earnings, beating revenue expectations but missing on EPS. Revenues were $111.6 billion, up nearly $13 billion YoY, but margins shrunk. Stock fell over 3% in premarket trading. Medical expense ratio hit a record 89.4%, highest in company history, due to increased care utilization by seniors.

Insurers, including UnitedHealth, are facing higher costs as more patients seek care. Other insurers reported 90% or more in Q2 due to Medicare/Medicaid programs. CVS, Centene, and Elevance also grappling with higher costs. UnitedHealth’s hit reflects industry trend. CEO Hemsley remains optimistic about company’s future despite challenges.

UnitedHealth has faced internal turmoil with CEO shakeup and cyberattack on subsidiary. Industry backlash led to pledge to fix prior authorization issues. Humana reducing prior authorizations by one-third. UnitedHealth aims for greater transparency under Hemsley’s leadership. Company rebuilding and focusing on operational insight.

Anjalee Khemlani, senior health reporter at Yahoo Finance, covers pharma, insurance, provider services, and health policy. Follow her on social media for updates. For latest earnings reports, analysis, and company news, visit Yahoo Finance. Stay informed with the latest financial and business news.

Read more at Yahoo Finance: UnitedHealth Group reports mixed second quarter earnings; stock down in pre-market trading.