UnitedHealth Group faces outrage and stock fall due to high medical costs

From Nasdaq: 2024-12-11 21:27:44

The shooting of UnitedHealth Group’s medical insurance segment CEO has sparked outrage on social media, leading to an 8% stock hit. Medical expenses cause most bankruptcies in the U.S. With 15% of claims denied, consumers face rising costs. UnitedHealth’s profit rose 38% to $25.1 billion, but medical costs and inflation are impacting profitability.

Lawmakers may introduce legislation to force health insurance companies to divest their pharmacy businesses, impacting UnitedHealth’s revenue. Rising medical costs and cyberattacks have affected bottom-line growth. UNH stock has increased in value in the past three years but may face challenges ahead. The stock may be fully valued with limited growth potential.

UnitedHealth Group’s stock is fully valued, with a forecasted valuation of $606 per share. Peers in the industry have shown different returns over the years. Trefis’ High Quality Portfolio has consistently outperformed the S&P 500. Investors can explore market-beating portfolios with Trefis for better investment opportunities.



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