UnitedHealth Group, the largest U.S. health insurer and parent of UnitedHealthcare, said its per-share profit and revenue in 2014 will be lower than what financial analysts expect, according to a Wall Street Journal report.
Thomson Reuters recently polled analysts, who said they expect UnitedHealth to post per-share earnings of $5.67 and $132.3 billion in revenue next year. However, the Minnetonka, Minn.-based health insurer predicted its earnings will be $5.40 to $5.60 per share, while revenue will be between $128 billion and $129 billion, according to the report.
UnitedHealth CEO Stephen Hemsley said reduced government payments to Medicare Advantage and the general rollout of the Patient Protection and Affordable Care Act will affect next year's financials the most.
In October, UnitedHealth posted a meager increase in third-quarter profit to $1.57 billion. Through the first nine months of fiscal year 2013, UnitedHealth's net earnings were down almost 1 percent, although total revenue increased 11.6 percent to $91.4 billion.
UnitedHealthcare has been a major force behind the company's growing revenue, as it added 275,000 people in the third quarter alone, bringing its total covered member based to 4.35 million people. UnitedHealthcare, which has increased its narrow provider networks, also reported a 7.1 percent operating margin.
More Articles on UnitedHealth Group:
The Least Surprising Impact of the Affordable Care Act: Lower Pay For Physicians
11 Observations on the Affordable Care Act So Far
Memorial Hospital Reaches Deal With UnitedHealthcare After Dispute