Key Points
- UnitedHealth warned that more seniors are choosing elective surgeries, driving up costs.
- The end of mask mandates and COVID-19 restrictions have pushed many seniors to undergo procedures they could have delayed.
- UnitedHealth shares fell more than 6% on Wednesday following the news. Shares of other health insurance companies also fell.
UnitedHealth Group (UNH) was the worst performing stock in the Dow on Wednesday after the health insurance provider warned of rising costs due to a bigger than expected jump in stocks. surgeries for people aged 65 and over.
The company told a Goldman Sachs healthcare conference that demand for surgeries has increased from patients in Medicare health plans, particularly knee and hip procedures.
Tim Noel, CEO of & #39;Medicare and UnitedHealth Retirement Business, reported that now that mask mandates and other COVID-19 restrictions have been lifted, more seniors are comfortable accessing medical services. services for treatments they might have previously delayed.
CFO John Rex said the trend toward more elective surgeries could push the company's claims cost-to-premium ratio toward the upper range of its full-year outlook in the second quarter.
UnitedHealth Group shares have fell more than 6% on Wednesday to around their lowest levels in a year following the comments. Shares of other health insurance providers were also dragged down.
YCharts
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Source: investopedia.com
