UnitedHealth Sees Medicare Payment Cuts Weighing on Profit

[underpants]

Source: Bloomberg Businessweek

UnitedHealth Group Inc. (UNH) , the biggest U.S. health insurer, said government cuts to Medicare may make it harder to increase earnings in 2015, sending shares down the most in three months.

Rate cuts that may reach 7 percent, following a similar reduction for this year, could be “extraordinarily disruptive” to the program, Chief Executive Officer Stephen Hemsley told analysts on a conference call today.

Investors drove the stocks down even after UnitedHealth said fourth-quarter earnings rose 15 percent, boosted by growth in its Optum technology business as well as enrollment gains. The company also reaffirmed its 2014 forecast.

The Affordable Care Act reduced Medicare payments to insurers by an estimated $145 billion over a decade. Democrats led by President Barack Obama said the companies were being overpaid for care that the government provides for lower cost on its own. Insurers said they provide extra benefits, such as lower copays and prescription eye glasses, in their plans.

Read more: http://mobile.businessweek.com/news/2014-01-16/unitedhealth-quarterly-profit-climbs-as-enrollment-increases

[1000words]

1. Interestingly ...

Not a fuck was given that day.

[underpants]

3. Yes!

[tridim]

2. Hey filthy rich insurance companies executives, cut your pay by $145 billion over a decade.

Problem solved.

[underpants]

4. Hey hey hey whoa whoa whoa

Let's stay focused and synergize our core values without an ad hoc paradigm shift

[lostincalifornia]

5. united healthcare also choose NOT to take part in the ACA. This was the company who was paying

their CEO in the millions, and I am supposed to feel something for them?

[HockeyMom]

6. Did not sign up for Medicare Advantage

Greedy Insurance Companies can go suck an egg.

[madrchsod]

8. actually i wish i had signed up for medicare advantage last year

my cardiac arrest and hospitalization cost me a more than the 80% that medicare pays. although most of the 20% was negotiated down i still owe more than the medicare advantage would have cost me. this year i'm gambling that i won't have another near fatal occurrence and two months of rehab.

[passiveporcupine]

7. How about instead of raising shares, just breaking even is OK?

Why does growth need to be so fast that noone can keep up with it in the real world?

[LuckyLib]

9. The CEO made $120 million last year (not counting stock options).

End of story.

[CaliforniaPeggy]

10. Where oh where is my violin???

Ah, here it is!