UnitedHealth Warns Of Ongoing Cost Pressures As Rising Medical Use Cuts Into Profits

About UnitedHealth Warns Of Ongoing Cost Pressures As Rising Medical Use Cuts Into Profits

UnitedHealth Group warned that ongoing cost pressures, driven by rising medical utilization and reduced Medicare funding, will continue to impact profits and delay earnings growth until 2026. The company’s second-quarter medical care ratio increased as patient service use exceeded expectations. Despite efforts such as tighter cost controls, narrower networks, and AI initiatives, profits are expected to fall short of Wall Street estimates. Shares declined over 46% in 2025 amid these challenges.