By Matt Grossman

 

UnitedHealth Group Inc. Wednesday posted revenue growth but a slimmer profit year over year in the latest quarter as higher expenses during the Covid-19 pandemic offset growth in some of the company's segments.

The Minnetonka, Minn.-based health insurer logged a third-quarter profit of $3.17 billion, or $3.30 a share, compared with a profit of $3.54 billion, or $3.67 a share, in the same three-month period a year earlier.

On an adjusted basis, UnitedHealth's profit was $3.51 a share. Analysts surveyed by FactSet had forecast an adjusted profit of $3.11 a share.

Revenue was $65.12 billion, up 7.9% from $60.35 billion in last year's third quarter. Analysts were anticipating revenue of $63.79 billion.

The company's revenue was pushed higher by growth in its Optum segment, as well as growth in its public-sector and senior businesses. The company's profit was dented by financial-assistance measures, as well as by treatment and testing costs for Covid-19, UnitedHealth said.

Medical costs rose to $41.64 billion from $39.04 billion in the year-ago quarter. Operating costs rose to $10.17 billion, up from $8.96 billion in last year's third quarter.

Higher Covid-19-related expenses were partially offset by lower overall demand for care as people delayed medical care not related to the pandemic.

Contrary to growth in public-sector and senior programs, commercial enrollment declined for the UnitedHealthcare subsidiary as member attrition due to economic factors ate into the membership base.

 

Write to Matt Grossman at matt.grossman@wsj.com

 

(END) Dow Jones Newswires

October 14, 2020 06:34 ET (10:34 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
UnitedHealth (NYSE:UNH)
Historical Stock Chart
From Nov 2020 to Dec 2020 Click Here for more UnitedHealth Charts.
UnitedHealth (NYSE:UNH)
Historical Stock Chart
From Dec 2019 to Dec 2020 Click Here for more UnitedHealth Charts.