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UnitedHealth profit slumps as COVID-19 costs mount

UnitedHealth profit slumps as COVID-19 costs mount

FILE PHOTO: The corporate logo of the UnitedHealth Group appears on the side of one of their office buildings in Santa Ana, California, U.S., April 13, 2020. REUTERS/Mike Blake/File Photo GLOBAL BUSINESS WEEK AHEAD

REUTERS: Health insurer UnitedHealth Group Inc said on Wednesday its quarterly profit fell nearly 38per cent, weighed by costs related to its programs to make COVID-19 testing and treatment more accessible for its customers.

For the most part of last year, health insurers gained as patients avoided hospital visits for routine and elective medical procedures during the height of the pandemic, but the benefits were partly offset by COVID-19 testing, treatment and vaccine costs.

Their profits in the fourth quarter was also impacted by a recovery in demand for healthcare services.

For the quarter, UnitedHealth reported a medical loss ratio - the percentage of premiums paid out for medical services - of 79.1per cent, improving from 82.5per cent last year.

Net earnings attributable to shareholders fell to US$2.21 billion, or US$2.30 per share, in the quarter ended Dec. 31, from US$3.54 billion, or US$3.68 per share, a year earlier.

The company reported adjusted earnings of US$2.52 per share.

(Reporting by Manojna Maddipatla in Bengaluru; Editing by Shinjini Ganguli)

Source: Reuters

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