UnitedHealth Lifts 2026 Outlook but Warns of Deepening ACA and Medicare Membership Losses

UnitedHealth Group reported second-quarter net income of about $5.48 billion and adjusted earnings of $6.38 per share, well ahead of the roughly $4.90 analysts had expected, prompting the insurer to raise its full-year adjusted earnings forecast to a range of $19.50 to $20.00 per share. Total revenues edged up to about $112 billion, and the company's medical care ratio improved to 86.7% from 89.4% a year earlier, the second consecutive quarter below 90%. Executives attributed the improvement to pricing discipline, benefit redesign and decisions to exit unprofitable Affordable Care Act markets and Medicare Advantage counties. The chief financial officer cautioned that medical costs remain elevated relative to historical levels and that the results reflect efforts to push down an already high number rather than a broad reversal of the trend. UnitedHealthcare served 48.5 million people in the quarter, down 525,000 from the prior period, and the company forecast full-year losses of roughly 500,000 ACA exchange members and 1.1 million Medicare Advantage members, driven largely by affordability pressures and rising premiums.