UnitedHealth expects about 78% 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.
Shares of the company were up 3.21% at $330.52, 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 estimate of memberships in 4-star or higher-rated Medicare Advantage plans, which cover Americans aged 65 years or older, is consistent with the company’s expectations and in line with historical performance, UnitedHealth said.
The company’s projection, which is based on a preliminary review, is better than what some investors had feared, at least three analysts 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. The company is 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.