UnitedHealth Announces Strong Q2 Earnings as New COVID-19 Wave Hits

What You Need to Know

UnitedHealth is the first life, health or annuity issuer to report earnings for the second quarter.
Revenue, operating earnings and net earnings were all up.
COVID-19 hospitalizations have been increasing, but patients have still been getting ordinary care.

A big health insurer sees early signs that, even if COVID-19 is causing an increase in hospitalizations this summer, the impact of that surge might be relatively mild.

Executives at UnitedHealth Group —  a major Medicare plan provider — talked about the surge Friday, during a conference call the company held to go over earnings for the second quarter with securities analysts.

COVID-19 case counts and hospital admissions fell sharply in the middle of the first quarter and stayed low early in the second quarter.

Chief financial officer John Rex told analysts that UnitedHealth has seen rising pandemic-related hospital admissions in recent weeks.

“But we’re seeing a lower average length of stay compared with earlier periods,” Rex said.

In the past, UnitedHealth saw any increases in pandemic-related care crowding out ordinary types of preventive and routine care and, possibly, endangering patients’ health.

Now, older patients still seem to be getting important preventive care, Rex said.

But Rex noted that UnitedHealth recognizes that medical cost trends could change quickly.

“We will continue to position our offerings accordingly,” Rex aid. “Our primary intent is to ensure people are getting care they need and to help in that process as much as we can.”