UnitedHealth CFO Confirms Cost Trend Improvement Continues into Q3
UnitedHealth Group's CFO, Wayne DeVeydt, recently stated that the cost trend improvement seen in the second quarter has not faded into the third quarter. The company's shares closed at $379.09 on September 11, down 2.37% from the previous day. Despite this decline, the stock is still up for the year.
DeVeydt emphasized that the favorable first-half cost trends were intact in the third quarter, saying 'that durability has not dissipated.' He also mentioned that the company continues to see momentum from the second quarter running into the last two months. This statement comes as a relief to investors who were concerned about the company's ability to sustain its cost trend improvement.
The company's focus on cost discipline and administrative expense reduction is paying off, with Medicare Advantage margins running toward the upper half of the 2% to 4% margin range set for the year. Medicaid is also stabilizing, with blended rate increases of 6% to 7% coming through as expected.