[July 17, 2014] |
|
UnitedHealth Group Reports Second Quarter Results
MINNETONKA, Minn. --(Business Wire)--
UnitedHealth Group (NYSE: UNH) today reported second quarter results
that included year-over-year growth in revenues, revenue backlog,
earnings from operations, and net earnings per share.
"Our focus on executing on fundamental details, delivering innovative
and responsive services that consumers value and building deeper
relationships is creating stronger momentum and improving our outlook,"
said Stephen J. Hemsley, president and chief executive officer of
UnitedHealth Group.
UnitedHealth Group expects 2014 revenues in the area of $130 billion, up
from the previous estimate of $128 billion to $129 billion. Management
tightened its forecast for net earnings to a range of $5.50 to $5.60 per
share, from $5.40 to $5.60 per share, driven by strong second quarter
results and improving business trends.
|
Quarterly Financial Performance
|
|
|
|
Three Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
Revenues
|
|
|
$32.6 billion
|
|
|
$30.4 billion
|
|
|
$31.7 billion
|
Earnings From Operations
|
|
|
$2.6 billion
|
|
|
$2.4 billion
|
|
|
$2.1 billion
|
Net Margin
|
|
|
4.3%
|
|
|
4.7%
|
|
|
3.5%
|
|
-
UnitedHealth Group's consolidated second quarter 2014 revenues of
$32.6 billion grew $2.2 billion or 7 percent year-over-year. Revenue
growth was led by growth in people served in public and senior markets
at UnitedHealthcare and strong pharmacy services growth at Optum.
-
Second quarter revenues included net capital gains of $107 million,
compared to $49 million in second quarter 2013, driven by the sale of
a venture portfolio investment. Consistent with past practice,
UnitedHealth Group donated the majority of the gain ($80 million) to
the United Health Foundation, keeping the Foundation strongly funded
for the future.
-
Second quarter earnings from operations were $2.6 billion and net
earnings were $1.4 billion or $1.42 per share, compared to $1.40 per
share in second quarter 2013. The effects of the Affordable Care Act
(ACA) reduced the second quarter 2014 after tax margin of 4.3 percent
by about 90 basis points.
-
Second quarter 2014 cash flows from operations of $1.0 billion decreased
from $1.5 billion in the second quarter of 2013 due to the timing of
cash receipts. The Company continues to project full year 2014 cash
flows from operations in the range of $7.8 billion to $8.2 billion.
-
The consolidated medical care ratio increased 10 basis points
year-over-year to 81.6 percent in the second quarter of 2014. Medical
reserves developed favorably by $130 million, including $40 million
related to 2013 medical costs, compared to $310 million in the second
quarter of 2013, which included $120 million related to the previous
year's costs.
-
The second quarter 2014 operating cost ratio of 16.0 percent increased
10 basis points year-over-year. The impact of ACA reinsurance fees and
nondeductible health insurance taxes, the $80 million charitable
donation to the United Health Foundation and specific investments in
Optum growth platforms were offset by productivity and scale advances
enterprisewide.
-
The second quarter 2014 income tax rate of 41.3 percent increased
nearly 6 percentage points year-over-year due to provisions in the ACA.
-
Second quarter 2014 days sales outstanding of 15 days increased 4 days
year-over-year, due to the impact of accelerated growth in product
revenues, the timing of federal government receipts and strong growth
in Medicaid, which carries longer payment terms. Days claims payable
decreased by one day year-over-year to 48 days at June 30, 2014.
-
The Company's balance sheet remained strong, with cash available for
corporate use exceeding $1 billion and the debt to total capital ratio
at 33.7 percent at June 30, 2014, a decrease of 90 basis points
year-over-year.
-
During the quarter, UnitedHealth Group increased the annual dividend
payment rate 34 percent to $1.50 per share and renewed the share
repurchase program for 100 million shares or roughly 10 percent of the
Company's outstanding shares. Through June 30, 2014, dividend
distributions to shareholders grew 29 percent year-over-year to $642
million. Year-to-date more than 25 million shares have been
repurchased for just under $2 billion, at an average price of less
than $77 per share.
UnitedHealthcare provides health care benefits for a full spectrum of
customers and markets. UnitedHealthcare serves individuals and employers
ranging from sole proprietorships to large, multi-site and national and
international organizations; delivers health and well-being benefits to
Medicare beneficiaries and retirees; manages health care benefit
programs on behalf of state Medicaid and community programs and serves
the nation's active and retired military and their families through the
TRICARE program.
|
Quarterly Financial Performance
|
|
|
|
Three Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
Revenues
|
|
|
$30.1 billion
|
|
|
$28.3 billion
|
|
|
$29.3 billion
|
Earnings From Operations
|
|
|
$1.8 billion
|
|
|
$1.8 billion
|
|
|
$1.4 billion
|
Operating Margin
|
|
|
6.1%
|
|
|
6.4%
|
|
|
4.8%
|
|
|
|
|
|
|
|
|
|
|
-
UnitedHealthcare's second quarter 2014 revenues of $30.1 billion grew
$1.8 billion or 6 percent year-over-year, primarily due to strong
growth in people served in the public and senior sector, price
increases reflecting underlying medical cost trends and ACA reform
impacts, and favorable revenue development related to federal and
state-based benefit programs. The number of people served across all
medical benefit markets increased by 270,000 in the second quarter.
Year-over-year, strong growth in people served in public and senior
markets and through international expansion was offset by a decrease
in domestic commercial benefits.
-
Earnings from operations for UnitedHealthcare for second quarter 2014
of $1.8 billion grew $15 million year-over-year. The operating margin
of 6.1 percent decreased 30 basis points year-over-year due to ACA
effects.
UnitedHealthcare Employer & Individual
-
UnitedHealthcare Employer & Individual second quarter 2014 revenues of
$10.7 billion decreased $405 million year-over-year, due to the
decrease in people served with risk-based products. The Company served
520,000 fewer people through risk-based products year-over-year,
including 230,000 fewer in second quarter 2014. Employer-sponsored
fee-based business decreased by 20,000 people in the quarter.
-
UnitedHealthcare's second quarter 2014 commercial medical care ratio
of 80.2 percent decreased 50 basis points year-over-year, reflecting
the impact of ACA fees for fully insured customers on revenues,
partially offset by lower levels of reserve development. Medical cost
trends remained moderate and consistent with expectations.
UnitedHealthcare Medicare & Retirement
-
Second quarter 2014 UnitedHealthcare Medicare & Retirement revenues of
$11.8 billion grew $732 million or 7 percent year-over-year.
-
In Medicare Advantage, UnitedHealthcare grew year-over-year to
serve 65,000 more seniors.
-
Medicare Supplement products continue to grow, and serve 300,000
more people year-over-year, including growth of 40,000 people in
the second quarter.
-
UnitedHealthcare's stand-alone Medicare Part D drug plans
delivered strong year-over-year growth of 350,000 people,
including 5,000 people in the second quarter.
UnitedHealthcare Community & State
-
Second quarter 2014 UnitedHealthcare Community & State revenues of
$5.8 billion grew 29 percent year-over-year, due to strong growth in
people served through state sponsored benefit programs and an
increasing mix of people enrolling in higher acuity services, such as
state long-term care programs.
-
UnitedHealthcare grew its Medicaid services by 19 percent or 730,000
more people in the past year, including 380,000 people in the second
quarter and 635,000 year-to-date.
UnitedHealthcare International
-
UnitedHealthcare International second quarter 2014 revenues of $1.8
billion grew 10 percent or $157 million year-over-year.
Optum is a health services business serving the broad health care
marketplace, including payers, care providers, employers, governments,
life sciences companies and consumers. Using advanced data analytics and
technology, Optum helps improve overall health system performance:
optimizing care quality, reducing costs and improving the consumer
experience and care provider performance.
|
Quarterly Financial Performance
|
|
|
|
Three Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
Revenues
|
|
|
$11.7 billion
|
|
|
$9.1 billion
|
|
|
$11.2 billion
|
Earnings From Operations
|
|
|
$728 million
|
|
|
$592 million
|
|
|
$650 million
|
Operating Margin
|
|
|
6.2%
|
|
|
6.5%
|
|
|
5.8%
|
|
|
|
|
|
|
|
|
|
|
-
Optum revenues for the second quarter of 2014 grew 28 percent or $2.6
billion year-over-year to $11.7 billion, and Optum's second quarter
2014 earnings from operations grew 23 percent or $136 million
year-over-year to $728 million.
-
OptumHealth revenues of $2.6 billion
grew 7 percent year-over-year, due principally to expansion and
growth in integrated care delivery services and in health care
distribution services.
-
OptumInsight revenues grew to $1.2
billion in the second quarter of 2014, advancing 5 percent
year-over-year. Revenue backlog grew to $7.5 billion at June 30,
2014, with external business up approximately 20 percent
year-over-year, driven by strength in Optum360 revenue management
and growth in payer services, partially offset by a reduction in
compliance services. The growing backlog is a key indicator of
Optum's overall success in growing services to customers and
provides a measure of visibility on future revenue growth.
-
OptumRx revenues grew 42 percent
year-over-year as second quarter script volumes increased 30
percent year-over-year to more than 140 million adjusted scripts.
-
Optum's second quarter operating margin was 6.2 percent and reflected
the increased mix of pharmacy service revenues in Optum's overall
business, as expected. Second quarter 2014 results continued to
include meaningful investments to develop future growth opportunities,
particularly at OptumHealth and OptumInsight.
About UnitedHealth Group
UnitedHealth Group (NYSE: UNH) is a diversified health and well-being
company dedicated to helping people live healthier lives and making
health care work better. With headquarters in Minnetonka, Minn.,
UnitedHealth Group offers a broad spectrum of products and services
through two distinct platforms: UnitedHealthcare, which provides health
care coverage and benefits services; and Optum, which provides
information and technology-enabled health services. Through its
businesses, UnitedHealth Group serves more than 85 million people
worldwide. For more information, visit UnitedHealth Group at www.unitedhealthgroup.com.
Earnings Conference Call
As previously announced, UnitedHealth Group will discuss the Company's
results, strategy and future outlook on a conference call with investors
at 8:45 a.m. Eastern time today. UnitedHealth Group will host a live
webcast of this conference call from the Investors page of the Company's
website (www.unitedhealthgroup.com).
The webcast replay of the call will be available on the same site
through July 31, 2014, following the live call. The conference call
replay can also be accessed by dialing 1-800-723-0394. This earnings
release and the Form 8-K dated July 17, 2014 may also be accessed from
the Investors page of the Company's website.
Forward-Looking Statements
The statements, estimates, projections, guidance or outlook contained in
this press release include "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA).
These statements are intended to take advantage of the "safe harbor"
provisions of the PSLRA. Generally the words "believe," "expect,"
"intend," "estimate," "anticipate," "forecast," "plan," "project,"
"should" and similar expressions identify forward-looking statements,
which generally are not historical in nature. These statements may
contain information about financial prospects, economic conditions and
trends and involve risks and uncertainties. We caution that actual
results could differ materially from those that management expects,
depending on the outcome of certain factors.
Some factors that could cause results to differ materially from results
discussed or implied in the forward-looking statements include: our
ability to effectively estimate, price for and manage our medical costs,
including the impact of any new coverage requirements; the potential
impact that new laws or regulations, or changes in existing laws or
regulations, or their enforcement or application could have on our
results of operations, financial position and cash flows, including as a
result of increases in medical, administrative, technology or other
costs or decreases in enrollment resulting from U.S., Brazilian and
other jurisdictions' regulations affecting the health care industry; the
impact of any potential assessments for insolvent payers under state
guaranty fund laws; the impact of the Patient Protection and Affordable
Care Act, which could materially and adversely affect our results of
operations, financial position and cash flows through reduced revenues,
increased costs, new taxes and expanded liability, or require changes to
the ways in which we conduct business or put us at risk for loss of
business; potential reductions in revenue or delays to cash flows
received under Medicare, Medicaid and TRICARE programs, including
sequestration and potential effects of a prolonged U.S. government
shutdown or debt ceiling constraints; uncertainties regarding changes in
Medicare, including potential changes in risk adjustment data validation
audit and payment adjustment methodology; failure to comply with privacy
and data security regulations; regulatory and other risks and
uncertainties associated with the pharmacy benefits management industry;
competitive pressures, which could affect our ability to maintain or
increase our market share; the impact of challenges to our public sector
contract awards; our ability to execute contracts on competitive terms
with physicians, hospitals and other service professionals; increases in
costs and other liabilities associated with increased litigation,
government investigations, audits or reviews; failure to manage
successfully our strategic alliances or complete or receive anticipated
benefits of acquisitions and other strategic transactions, including the
Amil acquisition; the impact of fluctuations in foreign currency
exchange rates on our reported shareholders' equity and results of
operations; potential downgrades in our credit ratings; our ability to
attract, retain and provide support to a network of independent
producers (i.e., brokers and agents) and consultants; the potential
impact of adverse economic conditions on our revenues (including
decreases in enrollment resulting from increases in the unemployment
rate and commercial attrition) and results of operations; the
performance of our investment portfolio; possible impairment of the
value of our goodwill and intangible assets in connection with
dispositions or if estimated future results do not adequately support
goodwill and intangible assets recorded for our existing businesses or
the businesses that we acquire; increases in health care costs resulting
from large-scale medical emergencies; failure to maintain effective and
efficient information systems or if our technology products otherwise do
not operate as intended; misappropriation of our proprietary technology;
failure to protect against cyber-attacks or other privacy or data
security incidents; our ability to obtain sufficient funds from our
regulated subsidiaries or the debt or capital markets to fund our
obligations, to maintain our debt to total capital ratio at targeted
levels, to maintain our quarterly dividend payment cycle or to continue
repurchasing shares of our common stock; and failure to achieve targeted
operating cost productivity improvements, including savings resulting
from technology enhancement and administrative modernization.
This list of important factors is not intended to be exhaustive. We
discuss certain of these matters more fully, as well as certain risk
factors that may affect our business operations, financial condition and
results of operations, in our periodic and current filings with the
Securities and Exchange Commission, including our annual reports on Form
10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Any or all forward-looking statements we make may turn out to be wrong,
and can be affected by inaccurate assumptions we might make or by known
or unknown risks and uncertainties. By their nature, forward-looking
statements are not guarantees of future performance or results and are
subject to risks, uncertainties and assumptions that are difficult to
predict or quantify. Actual future results may vary materially from
expectations expressed or implied in this press release or any of our
prior communications. You should not place undue reliance on
forward-looking statements, which speak only as of the date they are
made. We do not undertake to update or revise any forward-looking
statements, except as required by applicable securities laws.
|
UNITEDHEALTH GROUP
|
|
Earnings Release Schedules and Supplementary Information
|
Three and Six Months Ended June 30, 2014
|
|
- Condensed Consolidated Statements of Operations
|
|
- Condensed Consolidated Balance Sheets
|
|
- Condensed Consolidated Statements of Cash Flows
|
|
- Supplemental Financial Information
|
|
- UnitedHealthcare Customer Profile
|
|
|
UNITEDHEALTH GROUP
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in millions, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums
|
|
|
$
|
28,840
|
|
|
|
$
|
27,220
|
|
|
|
$
|
56,955
|
|
|
|
$
|
54,494
|
|
Services
|
|
|
|
2,447
|
|
|
|
|
2,244
|
|
|
|
|
4,851
|
|
|
|
|
4,356
|
|
Products
|
|
|
|
1,037
|
|
|
|
|
749
|
|
|
|
|
2,035
|
|
|
|
|
1,500
|
|
Investment and other income
|
|
|
|
250
|
|
|
|
|
195
|
|
|
|
|
441
|
|
|
|
|
398
|
|
Total revenues
|
|
|
|
32,574
|
|
|
|
|
30,408
|
|
|
|
|
64,282
|
|
|
|
|
60,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical costs
|
|
|
|
23,523
|
|
|
|
|
22,173
|
|
|
|
|
46,731
|
|
|
|
|
44,742
|
|
Operating costs
|
|
|
|
5,206
|
|
|
|
|
4,825
|
|
|
|
|
10,400
|
|
|
|
|
9,439
|
|
Cost of products sold
|
|
|
|
929
|
|
|
|
|
669
|
|
|
|
|
1,821
|
|
|
|
|
1,351
|
|
Depreciation and amortization
|
|
|
|
364
|
|
|
|
|
340
|
|
|
|
|
724
|
|
|
|
|
676
|
|
Total operating costs
|
|
|
|
30,022
|
|
|
|
|
28,007
|
|
|
|
|
59,676
|
|
|
|
|
56,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from Operations
|
|
|
|
2,552
|
|
|
|
|
2,401
|
|
|
|
|
4,606
|
|
|
|
|
4,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(155
|
)
|
|
|
|
(176
|
)
|
|
|
|
(315
|
)
|
|
|
|
(354
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Income Taxes
|
|
|
|
2,397
|
|
|
|
|
2,225
|
|
|
|
|
4,291
|
|
|
|
|
4,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
(989
|
)
|
|
|
|
(789
|
)
|
|
|
|
(1,784
|
)
|
|
|
|
(1,510
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings
|
|
|
|
1,408
|
|
|
|
|
1,436
|
|
|
|
|
2,507
|
|
|
|
|
2,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings attributable to noncontrolling interests
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(48
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to UnitedHealth Group common
shareholders
|
|
|
$
|
1,408
|
|
|
|
$
|
1,436
|
|
|
|
$
|
2,507
|
|
|
|
$
|
2,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to UnitedHealth Group
common shareholders
|
|
|
$
|
1.42
|
|
|
|
$
|
1.40
|
|
|
|
$
|
2.52
|
|
|
|
$
|
2.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted-average common shares outstanding
|
|
|
|
991
|
|
|
|
|
1,026
|
|
|
|
|
994
|
|
|
|
|
1,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNITEDHEALTH GROUP
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
Assets
|
|
|
|
|
|
|
Cash and short-term investments
|
|
|
$
|
8,289
|
|
|
$
|
9,213
|
Accounts receivable, net
|
|
|
|
5,383
|
|
|
|
3,052
|
Other current assets
|
|
|
|
9,179
|
|
|
|
8,115
|
Total current assets
|
|
|
|
22,851
|
|
|
|
20,380
|
Long-term investments
|
|
|
|
19,274
|
|
|
|
19,605
|
Other long-term assets
|
|
|
|
43,341
|
|
|
|
41,897
|
Total assets
|
|
|
$
|
85,466
|
|
|
$
|
81,882
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
Medical costs payable
|
|
|
$
|
12,305
|
|
|
$
|
11,575
|
Commercial paper and current maturities of long-term debt
|
|
|
|
2,117
|
|
|
|
1,969
|
Other current liabilities
|
|
|
|
16,354
|
|
|
|
14,337
|
Total current liabilities
|
|
|
|
30,776
|
|
|
|
27,881
|
Long-term debt, less current maturities
|
|
|
|
14,630
|
|
|
|
14,891
|
Future policy benefits
|
|
|
|
2,479
|
|
|
|
2,465
|
Deferred income taxes and other liabilities
|
|
|
|
3,343
|
|
|
|
3,321
|
Redeemable noncontrolling interests
|
|
|
|
1,303
|
|
|
|
1,175
|
Shareholders' equity
|
|
|
|
32,935
|
|
|
|
32,149
|
Total liabilities and shareholders' equity
|
|
|
$
|
85,466
|
|
|
$
|
81,882
|
|
|
|
|
|
|
|
|
|
|
|
UNITEDHEALTH GROUP
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2014
|
|
|
2013
|
Operating Activities
|
|
|
|
|
|
|
Net earnings
|
|
|
$
|
2,507
|
|
|
|
$
|
2,676
|
|
Noncash Items:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
724
|
|
|
|
|
676
|
|
Deferred income taxes and other
|
|
|
|
(164
|
)
|
|
|
|
14
|
|
Share-based compensation
|
|
|
|
188
|
|
|
|
|
176
|
|
Net changes in operating assets and liabilities
|
|
|
|
(833
|
)
|
|
|
|
(1,015
|
)
|
Cash flows from operating activities
|
|
|
|
2,422
|
|
|
|
|
2,527
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
Purchases of investments, net of sales and maturities
|
|
|
|
460
|
|
|
|
|
(300
|
)
|
Purchases of property, equipment and capitalized software, net
|
|
|
|
(716
|
)
|
|
|
|
(479
|
)
|
Cash paid for acquisitions, net
|
|
|
|
(523
|
)
|
|
|
|
(284
|
)
|
Other, net
|
|
|
|
(99
|
)
|
|
|
|
45
|
|
Cash flows used for investing activities
|
|
|
|
(878
|
)
|
|
|
|
(1,018
|
)
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
Acquisition of noncontrolling interest shares
|
|
|
|
-
|
|
|
|
|
(1,474
|
)
|
Common stock repurchases
|
|
|
|
(1,937
|
)
|
|
|
|
(1,334
|
)
|
Customer funds administered
|
|
|
|
333
|
|
|
|
|
855
|
|
Dividends paid
|
|
|
|
(642
|
)
|
|
|
|
(497
|
)
|
Net change in commercial paper and long-term debt
|
|
|
|
(273
|
)
|
|
|
|
(13
|
)
|
Other, net
|
|
|
|
97
|
|
|
|
|
296
|
|
Cash flows used for financing activities
|
|
|
|
(2,422
|
)
|
|
|
|
(2,167
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
14
|
|
|
|
|
(94
|
)
|
Decrease in cash and cash equivalents
|
|
|
|
(864
|
)
|
|
|
|
(752
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
|
7,276
|
|
|
|
|
8,406
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
6,412
|
|
|
|
$
|
7,654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNITEDHEALTH GROUP
|
|
SUPPLEMENTAL FINANCIAL INFORMATION (a)
|
|
(in millions)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UnitedHealthcare
|
|
|
$
|
30,071
|
|
|
|
$
|
28,305
|
|
|
|
$
|
59,325
|
|
|
|
$
|
56,555
|
|
|
Optum
|
|
|
|
11,714
|
|
|
|
|
9,124
|
|
|
|
|
22,884
|
|
|
|
|
17,807
|
|
|
Eliminations
|
|
|
|
(9,211
|
)
|
|
|
|
(7,021
|
)
|
|
|
|
(17,927
|
)
|
|
|
|
(13,614
|
)
|
|
Total consolidated revenues
|
|
|
$
|
32,574
|
|
|
|
$
|
30,408
|
|
|
|
$
|
64,282
|
|
|
|
$
|
60,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UnitedHealthcare
|
|
|
$
|
1,824
|
|
|
|
$
|
1,809
|
|
|
|
$
|
3,228
|
|
|
|
$
|
3,407
|
|
|
Optum (b)
|
|
|
|
728
|
|
|
|
|
592
|
|
|
|
|
1,378
|
|
|
|
|
1,133
|
|
|
Total consolidated earnings from operations
|
|
|
$
|
2,552
|
|
|
|
$
|
2,401
|
|
|
|
$
|
4,606
|
|
|
|
$
|
4,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UnitedHealthcare
|
|
|
|
6.1
|
|
%
|
|
|
6.4
|
|
%
|
|
|
5.4
|
|
%
|
|
|
6.0
|
|
%
|
Optum
|
|
|
|
6.2
|
|
%
|
|
|
6.5
|
|
%
|
|
|
6.0
|
|
%
|
|
|
6.4
|
|
%
|
Consolidated operating margin
|
|
|
|
7.8
|
|
%
|
|
|
7.9
|
|
%
|
|
|
7.2
|
|
%
|
|
|
7.5
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UnitedHealthcare Employer & Individual
|
|
|
$
|
10,729
|
|
|
|
$
|
11,134
|
|
|
|
$
|
21,686
|
|
|
|
$
|
22,194
|
|
|
UnitedHealthcare Medicare & Retirement
|
|
|
|
11,785
|
|
|
|
|
11,053
|
|
|
|
|
23,287
|
|
|
|
|
22,233
|
|
|
UnitedHealthcare Community & State
|
|
|
|
5,764
|
|
|
|
|
4,482
|
|
|
|
|
10,938
|
|
|
|
|
8,920
|
|
|
UnitedHealthcare International
|
|
|
|
1,793
|
|
|
|
|
1,636
|
|
|
|
|
3,414
|
|
|
|
|
3,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OptumHealth
|
|
|
|
2,586
|
|
|
|
|
2,411
|
|
|
|
|
5,166
|
|
|
|
|
4,853
|
|
|
OptumInsight
|
|
|
|
1,243
|
|
|
|
|
1,181
|
|
|
|
|
2,490
|
|
|
|
|
2,334
|
|
|
OptumRx
|
|
|
|
8,000
|
|
|
|
|
5,647
|
|
|
|
|
15,458
|
|
|
|
|
10,843
|
|
|
Optum eliminations
|
|
|
|
(115
|
)
|
|
|
|
(115
|
)
|
|
|
|
(230
|
)
|
|
|
|
(223
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
On January 1, 2014, the Company realigned certain of its businesses
and prior period segment financial information has been recast to
conform to the 2014 presentation.
|
|
|
|
(b)
|
|
Earnings from operations for Optum for the three and six months
ended June 30, 2014 included $224 and $435 for OptumHealth; $213 and
$410 for OptumInsight; and $291 and $533 for OptumRx, respectively.
Earnings from operations for Optum for the three and six months
ended June 30, 2013 included $216 and $436 for OptumHealth; $230 and
$438 for OptumInsight; and $146 and $259 for OptumRx, respectively.
|
|
|
|
|
UNITEDHEALTH GROUP
|
UNITEDHEALTHCARE CUSTOMER PROFILE
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
June 30,
|
|
|
December 31,
|
People Served
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial risk-based
|
|
|
7,610
|
|
|
7,840
|
|
|
8,185
|
|
|
8,130
|
|
|
9,340
|
Commercial fee-based
|
|
|
18,330
|
|
|
18,350
|
|
|
19,055
|
|
|
19,030
|
|
|
17,585
|
Commercial fee-based TRICARE
|
|
|
2,910
|
|
|
2,920
|
|
|
2,920
|
|
|
2,930
|
|
|
-
|
Total Commercial
|
|
|
28,850
|
|
|
29,110
|
|
|
30,160
|
|
|
30,090
|
|
|
26,925
|
Medicare Advantage
|
|
|
2,985
|
|
|
2,985
|
|
|
2,990
|
|
|
2,920
|
|
|
2,565
|
Medicaid
|
|
|
4,670
|
|
|
4,290
|
|
|
4,035
|
|
|
3,940
|
|
|
3,830
|
Medicare Supplement (Standardized)
|
|
|
3,665
|
|
|
3,625
|
|
|
3,455
|
|
|
3,365
|
|
|
3,180
|
Total Public and Senior
|
|
|
11,320
|
|
|
10,900
|
|
|
10,480
|
|
|
10,225
|
|
|
9,575
|
International
|
|
|
4,765
|
|
|
4,655
|
|
|
4,805
|
|
|
4,685
|
|
|
4,425
|
Total UnitedHealthcare - Medical
|
|
|
44,935
|
|
|
44,665
|
|
|
45,445
|
|
|
45,000
|
|
|
40,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare Part D stand-alone
|
|
|
5,150
|
|
|
5,145
|
|
|
4,950
|
|
|
4,800
|
|
|
4,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
UnitedHealth Group served 88.1 million individuals across all
businesses at June 30, 2014, 87.4 million at March 31, 2014, 88.2
million at December 31, 2013, 89.2 million at June 30, 2013, and
83.7 million at December 31, 2012.
|
|
|
|
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