UnitedHealth Group Saw Revenue and Enrollment Growth in 2023

January 24, 2024 - UnitedHealth Group saw revenue growth of over 14 percent in 2023, while adding 1.7 million new consumers to its Medicare and commercial offerings, executives shared during the UnitedHealth Group Fourth Quarter and Full Year 2023 Earnings Conference Call.

Last year was a “year of balanced, sustainable growth for UnitedHealth Group,” according to Andrew Witty, CEO of UnitedHealth Group.

Optum Health, the company’s healthcare services subsidiary, served more than 4 million patients in value-based arrangements in 2023. UnitedHealth Group expects that number to grow by 750,000 in 2024. Optum Health’s revenues grew by 34 percent to $47 billion.

Optum Rx managed an additional 100 million prescriptions in 2023, with revenues increasing by 16 percent to over $116 billion. Digital investments in Optum Rx helped add 3 million consumers and reduce costs by 8 percent compared to 2022.

Optum Insight’s revenue rose 30 percent to $18.9 billion and facilitated more than 23 billion electronic transactions in 2023. Additionally, Optum Financial handled more than $500 billion in consumer, payer, and provider payments.

UnitedHealthcare’s revenues of over $281 billion grew by nearly 13 percent. The payer expanded access to 24/7 virtual visits and eliminated almost 20 percent of prior authorizations, according to executives.

UnitedHealth Group’s revenue increased by over $47 billion, fourth quarter adjusted earnings per share grew 15 percent to $6.16, and full year adjusted earnings per share increased 13 percent to $25.12.

The company’s Medicare Advantage plans saw 100,000 new beneficiaries during the most recent annual enrollment period. The payer aims to reach its goal of 450,000 to 550,000 new enrollees in 2024.

In the last quarter of 2023, outpatient care for seniors, specifically orthopedic and cardiac procedures, was common. There was also an increase in seniors scheduling physician visits to receive RSV vaccinations.

Although the payer saw a shift in care activity among seniors and a reduced Medicare Advantage funding outlook in 2023, executives are hopeful about 2024.

UnitedHealth Group plans to continue investing in artificial intelligence (AI) and other technologies to improve member experiences and engagement, reduce administrative costs, and improve productivity. The company has used AI to assist with responses to consumer inquiries, updating provider directories, and summarizing interactions with members.

Regarding Medicaid enrollment, the company expects state redeterminations to be completed by mid-year and enrollment growth within states to offset these losses. Executives plan to serve around 1.5 million additional Medicaid beneficiaries in 2024.

UnitedHealth Group announced in December 2023 that it would sell its Brazil operations. The company expects the transaction—valued at around $7 billion—to close in the first half of 2024.