Seeking Alpha

UnitedHealth Group Inc. (UNH)

  • Yesterday, 6:45 AM
    • UnitedHealth (NYSE:UNH) has agreed to acquire Catamaran (NASDAQ:CTRX) for about $12.8B in cash, planning to merge the pharmacy-benefit manager into its OptumRx unit.
    • UnitedHealth will pay $61.50 per share of Catamaran, a 27% premium over Friday’s closing price of $48.32.
    • The deal is expected to close in the fourth quarter and will be accretive to UnitedHealth's 2016 net earnings by about $0.30 a share.
    • UNH +2.7%; CTRX +26.2% premarket
    | Comment!
  • Thu, Mar. 19, 10:34 AM
    • According to Bloomberg, major providers of Medicare coverage like Humana (HUM +0.9%), WellCare (WCG +0.6%) and Centene (CNC +1.4%) are high on the acquisition radar of large insurers who have relatively modest exposure to the rapidly growing Obamacare-stoked space. Likely suitors would be Aetna (AET +1.3%) and Anthem (ANTM +0.3%).
    • There hasn't been much M&A activity among health insurers due to the uncertainties surrounding the implementation of the Patient Protection and Affordable Care Act. Now that its implications are better understood, the number of deals should perk up.
    • No bargains are out there, though. S&P's index of health insurers galloped 57% last year. The current valuations for Humana, WellCare and Centene are $26.9B, $4.1B and $8.3B, respectively, all at record levels since at least 2007.
    • Anthem CFO Wayne DeVeydt says his firm will continue to make smaller deals although a larger purchase is not out of the question. Other firms declined to comment.
    • Leerink Partners analyst Ana Gupte says a likely scenario is consolidation among the five largest health insurers: UnitedHealth Group (UNH +0.8%), Anthem, Aetna, Cigna (CI +0.6%) and Humana.
    • Aging baby boomers, born between 1946 and 1964, are driving the increase in Medicare enrollment. Membership is expected to rise to 68.4M in 2023, up more than 25% from this year's 54.4M. Medicaid is projected to add 9.3M people over the same time frame.
    | 1 Comment
  • Wed, Mar. 4, 12:11 PM
    • Hospitals rally on comments from Supreme Court Justice Anthony Kennedy, often a swing vote in important cases. He says there is a powerful point to the Obama administration's argument that the Affordable Care Act would fall apart if the subsidies were ruled invalid.
    • The Court is currently hearing arguments in the case King v. Burwell, which challenges federal subsidies in states that did not create their own health insurance exchanges. Its final decision will not be announced until June, though.
    • Hospitals and health insurers have the most at stake. They have benefited greatly since the law was signed in 2010. To date, 11.4M Americans have signed up for coverage in 2015, giving both groups more paying customers and potentially cutting the number of non-paying emergency room visits. If the subsidies were ruled invalid then many people would drop coverage due to the higher cost.
    • Related tickers: (HCA +6.2%)(THC +5.4%)(UHS +2.6%)(CYH +5.4%)(LPNT +3.3%)(SEM -0.9%)(SSY)(HUM +0.1%)(CI -0.4%)(CNC)(MOH +0.3%)(ANTM +0.5%)(UNH +0.3%)(MGLN +0.3%)(WCG +0.3%)
  • Thu, Feb. 26, 6:15 PM
    • UnitedHealth (NYSE:UNH) has tightened its controls on hysterectomy coverage -- requiring doctors to get pre-approval from the insurer before performing most types of the procedure.
    • Only outpatient vaginal hysterectomies (a small minority) won't require approval -- but the overall insurance trend is for more pre-authorizations for care, and hysterectomies are one of the most common surgeries for American women.
    • It's also another hit to the laparoscopic power morcellator -- which uses spinning blades to break up tissue through small incisions. The FDA started warning against using the devices last year, and many hospitals have banned them, as they can spread a dangerous uterine cancer.
    • Johnson & Johnson (NYSE:JNJ) started removing its morcellators from the market last summer.
  • Wed, Feb. 11, 7:13 AM
    • UnitedHealth Group (NYSE:UNH) declares $0.38/share quarterly dividend, in line with previous.
    • Forward yield 1.38%
    • Payable March 24; for shareholders of record March 13; ex-div March 11.
    | Comment!
  • Wed, Jan. 28, 4:03 PM
    • A study done by researchers from New York and Columbia Universities found that premiums were slightly higher for policies offered on state-run health exchanges where there were higher numbers of competitors, precisely the opposite effect that supposedly characterizes more intense competition.
    • Overall, average monthly premiums were $5.71 higher per additional insurer (p<0.001). In addition, average monthly premiums were $3.18 higher per additional insurer for identical plans offered.
    • The analysis focused on the prices for each unique insurance plan offered on the exchanges in each geographic rating area. The number of rating areas varied widely in the 34 states examined, from only one in NJ, NH and DE to 67 in FL.
    • The authors acknowledge that the higher premiums may be due to higher cost areas (urban vs rural) where more insurers are located rather than a lack of competition.
  • Wed, Jan. 21, 7:21 AM
    • UnitedHealth Group (NYSE:UNH) Q4 results ($M): Total Revenues: 33,433 (+7.4%), Premiums: 29,375 (+6.0%), Services: 2,765 (17.1%), Products: 1,127 (+30.3%), Investment & Other: 166 (-9.8%).
    • Employer & Individual: 10,721 (-6.1%); Medicare & Retirement: 11,494 (+5.0%); Community & State: 6,517 (+36.7%); International: 1,702 (+3.4%); Total UNH: 30,434 (+5.7%); Optum: 12,876 (+23.4%); Eliminations: -9,877 (+21.8%).
    • OptumHealth: 3,017 (+20.3%), OptumInsight: 1,487 (+26.2%), OptumRx: 8,507 (+23.9%), Optum Eliminations: -135 (+15.4%).
    • Medical Costs: 23,434 (+4.1%); Operating Costs: 5,845 (+15.7%); COGS: 1,008 (+33.2%); Dep & Amort: 381 (+8.9%); Net Income: 1,510 (+5.8%); CP Ops: 1,021 (-85.4%), Quick Assets: 9,236 (+0.2%).
    • Operating Profit: 2,765 (+12.8%); Operating Earnings Yield: 8.3% (+5.0%); Net Earnings Yield: 4.5% (-1.5%).
    • 2015 Guidance: Revenues: $140.5B - 141.5B; EPS: $6.00 - 6.25; CF Ops: $8.0B - 8.4B.
    | 1 Comment
  • Wed, Jan. 21, 6:04 AM
    • UnitedHealth Group (NYSE:UNH): Q4 EPS of $1.55 beats by $0.05.
    • Revenue of $33.43B (+7.4% Y/Y) beats by $320M.
    • Press Release
    | Comment!
  • Tue, Jan. 20, 5:30 PM
  • Thu, Jan. 1, 2:19 AM
  • Dec. 26, 2014, 12:48 PM
    • UnitedHealth Group (UNH -0.1%) reports Q4 and full-year results on January 21 before the open. The conference call will begin at 8:45 am.
    • Consensus revenue views for Q4 and 2014 are $33.1B and $130B, respectively.
    | Comment!
  • Dec. 3, 2014, 11:50 AM
    • Key data from yesterday's UnitedHealth Group (UNH +0.7%) event:
    • 2015 Guidance ($B): Total Revenues: $140.5 - 141.5, UnitedHealthcare: 127.0 - 128.0, Optum: 52.3 - 53.3; Operating Earnings: 10.8 - 11.2; Operating Cost Ratio: 17.0% +/- 30 bps; Net Income: 5.7 - 6.0; After-tax profit: 3.8 - 4.0; CF Ops: 8.0 - 8.4; EPS: $6.00 - 6.25.
    • Commercial Care Ratio: 80.0% =/- 50bps; UnitedHealth Group Consolidated Medical Care Ratio: 80.8% +/- 50 bps.
    • Total UnitedHealthcare - Medical Enrollment (000s): 45,340 - 46,190 vs. 44,840 in 2014; Medicare Part D Stand-Alone: 5,385 - 5,435 vs. 5,185 in 2014.
    | Comment!
  • Dec. 1, 2014, 4:28 PM
    • UnitedHealth Group (NYSE:UNH) holds its annual Investor Conference tomorrow in New York City beginning at 8:00 am ET. Management will discuss the company's performance and 2015 outlook.
    • The company affirms its previous 2014 EPS guidance of $5.60 - 5.65. Its 2015 outlook includes EPS of $6.00 - 6.25 on revenues of $140.5B - 141.5B.
    • A replay of the conference will be on the company's website through January 2, 2015.
    | Comment!
  • Nov. 12, 2014, 10:22 AM
    • UnitedHealth Group (UNH -0.9%) creates an Office of the Chief Executive comprised of CEO Stephen J. Hemsley, Vice-Chairman of UnitedHealth Group Larry C. Renfro, President, UnitedHealth Group David S. Wichmann, EVP, Chief Legal Officer Marianne Short and EVP, Human Capital Ellen Wilson.
    • Mr. Renfro will remain CEO of Optum and will assume additional UnitedHealth Group oversight responsibilities for all enterprise strategic relationships, key client relationships and company-wide business growth efforts.
    • Optum COO and Optum Rx CEO Dirk McMahon promoted to EVP, Enterprise Operations of UnitedHealth Group reporting to Mr. Wichmann.
    • EVP, UnitedHealth Group and CEO, UnitedHealthcare Gail K. Boudreaux leaves her position.
    | Comment!
  • Nov. 7, 2014, 7:17 AM
    • UnitedHealth Group (NYSE:UNH) declares $0.375/share quarterly dividend, in line with previous.
    • Forward yield 1.56%
    • Payable Dec. 16; for shareholders of record Dec. 5; ex-div Dec. 3.
    | Comment!
  • Oct. 22, 2014, 2:44 PM
    • Crude inventories rose 7.1M barrels for the week ended October 17, according to the EIA, vs. expectations for a 2.7M jump. Helping boost inventories were fewer refinery runs - down 113K barrels per day with utilization rates dropping 140 basis points to 86.7%. In the Midwest, utilization rates are the lowest for this point in the year since 2010.
    • WTI crude oil last week briefly dropped under $80 per barrel for the first time since the summer of 2012, and it's testing that level again today, -2.9% to $80.36. USO -2.4%
    • Gasoline (UGA -2.2%) stockpiles fell 1.3M barrels vs. expectations for a 1M barrel drop, and distillates (UNH -0.8%) rose 1M barrels vs. expectations for a 1.3M barrel decline.
Visit Seeking Alpha's
UNH vs. ETF Alternatives
Company Description
UnitedHealth Group Inc designs products, provides services and applies technologies that improve access to health and well-being services, simplify the health care experience and make health care more affordable.
Sector: Healthcare
Country: United States