Sept 9 (Reuters) - UnitedHealth ( UNH ) expects most of
its members to be enrolled in top-rated Medicare insurance plans
next year, in line with its expectations, the top U.S. health
insurer said in a filing on Tuesday.
Shares of the company rose nearly 4% to $332.80 in premarket
trading on the news, as strong membership for plans with higher
star ratings would mean bigger payments from the government to
the insurer, and the bonus payments can be worth hundreds of
millions or billions of dollars.
The company expects to have about 78% of its membership in
4-star or higher-rated Medicare plans, meant for Americans aged
65 years or older, based on its preliminary review.
This is consistent with its expectations and in line with
historical performance, the company said.
The forecast, however, comes ahead of the Centers for
Medicare and Medicaid Services' 2026 star ratings data, which
can sway enrollees' choice of plan and determine the
government's reimbursement levels.
Medicare Advantage has been a growth driver for health
insurers, but rising medical costs and tighter government
reimbursements have been pressuring profits.
Senior leaders of UnitedHealth ( UNH ) will be meeting investors and
analysts this week, the company filing showed.
The company is also expected to reaffirm its 2025 adjusted
profit forecast. In July, it projected full-year adjusted
earnings per share of at least $16 after suspending its prior
outlook in May.
Like other insurers, UnitedHealth ( UNH ) has been hit with higher
costs. Stephen Hemsley, who returned as chief executive, is
under pressure to regain investor trust as the company faces
financial struggles and reputation damage that surfaced after
the then-CEO of its health insurance unit was gunned down on a
New York City street in December.
(Reporting by Sriparna Roy in Bengaluru; Editing by Shinjini
Ganguli)