United Health's 2Q profit rises 5.5
percent
UnitedHealth Group says its
second-quarter net income rose 5.5 percent, trumping Wall Street
expectations, as the health insurer reported double-digit enrollment
growth in its Medicare plan offerings.
The Minnetonka, Minnesota, insurer says
it earned $1.34 billion, or $1.27 per share, in the three months that
ended June 30. That's up from $1.27 billion, or $1.16 per share, in
the same quarter last year.
Revenue rose 8.3 percent to $27.3
billion.
Analysts forecast earnings of $1.18 per
share on $27.34 billion in revenue.
The company raised its full-year
earnings estimate to between $4.90 and $5.00 per share.
UnitedHealth is the largest health
insurer based on revenue and the first to report earnings every
quarter. Many see the company as a bellwether for managed care
companies.
Health care spending slows in Minnesota
The state Health Department says the
rate of health care spending in Minnesota has slowed to its lowest
point since 1997, and the recession is a big reason why.
The department says health care costs
are still rising, but at a much slower pace _ 2.2 percent between
2009 and 2010.
State Health Economist Stefan
Gildemeister tells Minnesota Public Radio News (http://bit.ly/NzWO69)
the recession was a major reason why Minnesotans spent less on health
care. He said many lost their insurance when they lost their jobs and
others who kept their jobs were more cautious.
Gildemeister said another reason why
health care spending may be slowing is that consumers are
increasingly paying more of out-of-pocket costs.
Health care spending accounts for
nearly 14 percent of Minnesota's economy at $37.7 billion.
