UnitedHealthcare’s Medicare and Retirement business
UnitedHealthcare’s Medicare and Retirement business reported revenues of $21.10 billion in the first quarter—a rise of $2.2 billion YoY (year-over-year). According to UnitedHealth Group’s (UNH) first-quarter earnings press release, the performance was driven by a strong YoY rise of 405,000 members served by the company’s MA (Medicare Advantage) products.
According to the company’s first-quarter earnings conference call, UnitedHealth Group’s spending on MA members is ~30% lower than the spending reported for original Medicare and 10%–15% lower than the spending reported by most MA plans.
Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
In the first quarter, UnitedHealth Group reported MA membership of 5.16 million—a rise of 8.5% YoY and 4.45% sequentially.
In the first-quarter earnings conference call, UnitedHealth Group listed the various benefits derived by its MA members from its personalized holistic care service, Navigate4Me. The service is designed to cater mainly to the senior population. The service involves ~1,000 experts who are a single point of contact for MA members. The experts address MA members’ administrative and clinical queries, help them follow their personalized care plans, and coordinate overall care. The experts are supported by UnitedHealth Group’s strong technology and data analytic capabilities.
UnitedHealth Group has managed to reduce hospitalizations for its MA members with congestive heart failure by 14%. The company has also managed to significantly reduce the number of doctor visits for its MA members compared to original Medicare members.
Medicare Part D members
In the first quarter, UnitedHealth Group served 4.48 million members through its Medicare Part D standalone programs—a decline of 6.08% YoY.
In its first quarter earnings conference call, UnitedHealth Group confirmed its participation in the Part D Payment Modernization Model announced by CMS (Centers for Medicare & Medicaid Services), which will be effective from January 1, 2020. In January, CMS issued a press release announcing the Part D Payment Modernization Model, which aims to reduce Medicare spending and improve the overall quality of care.
UnitedHealthcare's Employer and Individual business reported revenues of $14.08 billion in the first quarter—a rise of $670 million YoY.
In the last month the CSI 300 is down 11.5%, much more than US indices.
JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.
The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.
On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.
Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.
Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.