Health insurance company, UnitedHealth Group reported a 31% increase in its second quarter net income according to the article “A Jump in Enrollment Helps UnitedHealth” by The Associated Press on the NY Times website. The increase of enrollment has helped considerably and results are better than Wall Street expected.
Total enrollment for UnitedHealth is up about 1% to 32.5 million compared with last year with increases in Medicare and Medicaid businesses offsetting losses with commercial health insurance costs. Commercial insurance includes employer-based health insurance as well as individual health insurance policies which makes up over 75% of UnitedHealth’s medical enrollment. This segment’s enrollment fell by about 2% from the previous year.
UnitedHealth Group earned $1.2 billion up from $859 million in the period from last year. Overall revenue increased about 7% to $23.26 billion. Thomson Reuters analysts expected earnings of 75 cents a share on approximately $23 billion in overall revenue. Shares of the health insurance company based in Minnetonka, Minnesota, rose 1 cent to $30.83.