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By Fierce Healthcare [7/29/25]
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UnitedHealthcare CEO Tim Noel offered investors a deeper look at the medical cost spike that’s plaguing the insurance giant’s finances. He said during the company’s earnings call that pricing assumptions set by the company “were well short of actual medical costs” for 2025. UHC’s current outlook, he said, instead reflects an additional $6.5 billion in medical costs, with more than half, or about $3.6 billion, coming from its Medicare plans.
Noel said that in Medicare Advantage specifically, the team is looking to adjust pricing and benefit designs to account for the cost pressures, which they anticipate will stretch into much of 2026.
It has also decided to exit certain markets largely with plans that are more loosely designed, such as PPOs, in a move that will impact 600,000 beneficiaries.
Source: Paige Minemyer, Fierce Healthcare [7/29/25]
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Filed under: "Ask-an-Advisor", Experts Invited, Glossary Terms, Health Economics, Health Insurance | Tagged: david marcinko, Fierce Healthcare, medicare, Medicare Advantage, Medicare Part C, PPO, Tim Noel, UnitedHealthcare |
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