Profits increased 23% as membership gained and the lack of patients going for care added to a lesser payout of benefits.  The actual profit was $1.28 Billion.  The company also has many subsidiaries that contributed to the bottom line and this yimageear United has been on shopping spree too.  The board doesn’t restrict salaries or what is paid to lobbyists. 

UnitedHealth Shareholders Say We Don’t Care What Executives Earn and What Is Spent on Lobbying – Go For It

Algorithms still prove to be profitable means of raising income.  In southern California, several employers were left having to find a new HMO plan for their employees as the old PacifiCare contracts expired and one hospital in Orange, St. Josephs will not honor United-Employer contracts.

Employers in Orange County Looking for New HMO Contracts as St. Josephs and Some Others Begin Cancelling Agreements with Pacificare (UnitedHeatlhCare) – Employer Capitation Contracts

The California situation with the Pacificare situation is not over yet by any means. 

California Regulators Seeking up to 10 Billion in Fines Against United HealthCare With Over 1 Million Violations After The Purchase of Pacificare HMO

One state legislature is getting smart when it comes to algorithms and you can read about their proposed bill below, they want the ability to see the insurance algorithms in the case of disputes and how they created them and with what parameters.  We need a department of algorithms to ensure we get accurate results and not just “desired” results as the 2 are not always the same as we have learned over the last few years. 

New Jersey Legislature Getting Smart– Bill to Modify Claim Procedures to Include Asking For Insurance Company Algorithms-Bill A3334

In some areas peer groups, utilization committees and the doctors can’t understand how to work correctly with their algorithms. 

Hospitalists, Peer Committees and Utilization Struggle to Comprehend United HealthCare Algorithms

So in spite of all this and more regulatory questions and court cases the algorithms still win and provide big profits.  Transaction fees add up to a whole lot of profit.  As being traded on Wall Street, it’s all about those algorithms. BD

UnitedHealth Group Inc.'s (UNH) third-quarter profit jumped 23% as the health insurer reported membership gains and strong revenue growth as it continued to benefit from a recent trend toward a decline in the use of health-care services.

With results topping Wall Street expectations, the largest managed-care company in the U.S. by revenue also raised its forecast for the year a third time. It boosted its per-share earnings target to a range of $3.85 to $3.95 from $3.40 to $3.60 and increased by $1 billion its revenue estimates to $94 billion.

The Minnesota company said key performance measures met or exceeded expectations. President and Chief Executive Stephen J. Hemsley attributed UnitedHealth's growth to the company's increasing business diversity and an increasing number of customers choosing more offerings from its benefits and services segments, which both posted higher revenue.

UPDATE: UnitedHealth 3Q Net Up 23% On Less Health-Care Use -


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