UnitedHealth, which was pulled out of nearly all individual markets under Obamacare, is the first company to post results after Republicans failed to pass new healthcare legislation. President Trump and Republicans have pledged to repeal and replace the law.
The company said net earnings attributable to shareholders increased to $2.17 billion, or $2.23 per share, in the first quarter. Net earnings came in at $1.61 billion, or $1.67 per share, in the same period the previous year.
Revenue in the first quarter came in at $48.73 billion, up 9.4% and beating estimates of $48.35 billion.
Optum Increases Revenues
Optum, which manages healthcare data analytics and drug benefits, saw its revenue increase by 7.9% to $21.2 billion in the quarter.
The health insurance tax deferral and withdrawal from Obamacare markets consolidated the company’s first-quarter revenue by $1.6 billion, UnitedHealth said,
Year-over-year, the insurer served 2.5 million people across its insurance plans. This is partially offset by the loss of 900,000 customers after the company withdrew from Obamacare markets.
Along with the upbeat results, UnitedHealth also raised its forecast for the year. The company expects revenue to come in at $200 billion for the year, and adjusted net earnings to come in between $9.65 and $9.85 per share.
UnitedHealth previously forecasted revenue of $197 billion to $199 billion with earnings per share of $9.30-$9.60.
UnitedHealth’s results come as Interspace Diagnostics Group, Inc. (IDXG) announced that the insurer will now cover their ThyraMIR test, which assesses indeterminate thyroid nodule FNA (fine needle aspirate) biopsies.