UnitedHealth Group reported a fourth-quarter 2024 adjusted profit of $6.81 per share, surpassing analysts' estimates of $6.73 per share. However, the company's revenue of $100.8 billion, a 7% increase year-over-year, fell short of the $101.6 billion forecast.
The Medical Care Ratio (MCR) for the quarter exceeded expectations, rising to over 87%, indicating a persistent increase in medical costs. This was attributed to higher prescriptions for expensive specialty drugs and rate cuts in its federally funded Medicare business.
For the full year 2024, UnitedHealth's profit declined by 36% to $14.4 billion, partly due to costs associated with the Change Healthcare cyberattack. CEO Andrew Witty acknowledged the healthcare system's flaws, stating it needs to be 'less confusing, less complex and less costly.'
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