By Michael Calia
UnitedHealth Group Inc. said results in its December quarter
topped expectations as revenue from premiums surged.
Like its fellow health insurers, UnitedHealth has sought to
contain costs related to medical care, particularly as expensive,
high-profile treatments for hepatitis C and cancer enter the
market. Last month, in a bid to explore expense-controlling
options, the company unveiled a test program in which it will pay
MD Anderson Cancer Center a flat rate for a year's worth of
treatment for certain patients.
In the quarter ended Dec. 31, operating costs increased 7% to
$30.67 billion.
The company said it served 88.5 million individuals across all
of its businesses as of Dec. 31, up from 88.2 million a year
ago.
Overall, UnitedHealth posted earnings of $1.51 billion, or $1.55
a share, up from $1.43 billion, or $1.41 a share, a year
earlier.
Revenue improved 7.4% to $33.43 billion.
Analysts had projected a per-share profit of $1.50 and revenue
of $33.1 billion.
Revenue from services increased 17%, while revenue from premiums
increased 6%.
For the new year, UnitedHealth forecast per-share earnings of
$6.00 to $6.25 and revenue of $140.5 billion to $141.5 billion.
Analysts polled by Thomson Reuters had been expecting earnings of
$6.17 a share and revenue of $140.9 billion.
Write to Michael Calia at michael.calia@wsj.com
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