Forecast Is Cut by UnitedHealth

From Reuters:

The UnitedHealth Group cut its 2007 revenue forecast yesterday after determining that membership in its full-service Medicare plans for older patients would probably decline “modestly” this year.
The company lowered its Medicare Advantage projection for the second time in two months, even as a rival health insurer, Humana, said it picked up 100,000 such Medicare members in January alone.
UnitedHealth’s new Medicare Advantage forecast led analysts to speculate that the company’s performance has suffered as it tries to emerge from a stock options scandal.
The insurer, which is based in Minnetonka, Minn., now expects consolidated revenue to exceed $78 billion this year, down from a forecast last month of approximately $79 billion. It maintained its net earnings forecast for the year at $4.7 billion to $4.75 billion.

This is minor, and the market seems to agree. But it will be interesting to keep an eye on.

Posted by on February 5th, 2007 at 10:38 pm


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