UnitedHealth experienced a significant drop in shares, falling 17.4% premarket after revising its profit outlook for the year downwards. The company's full-year adjusted earnings forecast was reduced from $29.50–$30 per share to $26–$26.50, following a disappointing first quarter where adjusted income came in at $7.20 per share, missing analysts' expectations. CEO Andrew Witty highlighted high medical costs in the Medicare division and changes impacting patient engagement as contributing factors. Despite this, upcoming changes in Medicare payment rates may provide relief to the insurer and the industry as a whole.
UnitedHealth's profit forecast for the year was cut significantly, leading to a 17.4% drop in shares ahead of disappointing earnings.
CEO Andrew Witty stated that UnitedHealth 'did not perform up to our expectations' and is working to address challenges for future growth.
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