UnitedHealth is bracing for a struggle next year with the financial effects of shifting Medicare Advantage payment rates.
The health insurance giant released 2024 guidance on Tuesday that included a number of less favorable metrics than analysts expected.
During the company’s investor day in New York City on Wednesday, UnitedHealth executives blamed the outlook on an MA rate change issued by regulators earlier this year that insurers slam as a payment cut.
Pressured metrics include slower MA membership growth, lower margins at UnitedHealthcare and a higher medical loss ratio. UnitedHealth forecast a 2024 MLR of 84%, a full percentage point higher than analysts’ consensus expectation.