Here is what you’ll find in this week’s newsletter!
Important links 🔗 - the best articles we found this week about the Medicare Market along with links to Jared’s recent LinkedIn posts.
Deep Dive 📚 - UnitedHealth Group Q1 2026 Results 📊
Sponsor Snapshot 🚀 - brought to you by EnrollHere
It’s only a 5 minute read, but it will make you 10x smarter.
Here are IMPORTANT LINKS 🔗 for the week:
Medigap premiums leap, and consumers have few alternatives - (link)
Oregon takes control of Medicare Advantage insurer over mounting losses - (link)
EnrollHere Inc. Announces Investment from Aquiline to Advance Technology for Medicare Advantage Distribution - (link)
CMS contractor targets Medicare home health length of stay in new audit - (link)
How Alaska Became the Only State With No Medicare Advantage - (link)
Trump admin shifts course on Medicare GLP-1 coverage - (link)
Medicare Supplement Market Nears $40 Billion - (link)
Jared’s recent LinkedIn posts:
DEEP DIVE 📚
UnitedHealth Group - Q1 Results
After an uncharacteristically tough year, UnitedHealth Groups Q1 2026 results are a step in the right direction.
The 0.9% compared to Q1 2025.
In this week’s Deep Dive, we look at membership, revenue, and profitability trends across UnitedHealthcare and Optum, and what they tell us about where UnitedHealth is heading next.
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Membership Trends
Membership growth has been lead by Medicare Advantage in recent years. But, after 6 straight years of growth, Medicare Advantage membership decreased 8.4%.
The membership decline was a strategic move driven by plan terminations and benefit reductions with 2026 products.
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Revenue Trends
UNH reports revenue in two major verticals: UnitedHealthcare (insurance) and Optum (services), with eliminations between the two.
Revenues grew, but at a much slower pace than is typical.
The 0.9% Medicare & Retirement revenue growth is notable in light of the large membership decrease.
Optum Revenues (the healthcare provider segment) have grown 2.4x over the past 7 years.
Note: Optum Bank results moved from Optum Health to Optum Insight this quarter
Total Q1 Revenues for Optum decreased for the first time in the past 7 years.
Combining UnitedHealthcare, Optum, and including eliminations, results in the company’s Total Consolidated Revenues.
Total combined Q1 revenue up 2%, far below the historical average.
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Operating Income Trends
Total Q1 operating income was down slightly. UHC (the Insurance business) operating income increased 9%, Optum saw a meaningful degradation across the board.
Note: Optum Bank results moved from Optum Health to Optum Insight this quarter
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Medical Loss Ratio and Profitability Trends
The Medical Loss Ratio has been a major topic point in the Medicare industry over the past three years with most companies reporting higher utilization in Medicare products resulting in higher loss ratios.
[Note: elevated loss ratios in other product lines are also contributing]
The headline news of this quarter is that the Loss Ratio declined. Down significantly from Q4 2025 and also down 9 basis points from Q1 2024. From 84.8% down to 83.9%. This is likely driven by the strategic decline in unprofitable membership.
The result of the improved MLR is an improved profit margin.
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Bottom Line
After a tough 2025, UnitedHealth Group strategically shaved off Medicare Advantage membership through plan terminations and benefit softening, resulting in an 8.9% drop in MA membership.
As a result, revenue increased only slightly
But, profit margin looks to be back on track at 8%
Will these results be sustainable during the rest of 2026?
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What MMI + Subscribers read this week…
Insurance Regulatory Insights April 2026 - 🎂Birthday Rules coming to NM and WV. (link)
April ‘26 MA/MAPD and PDP enrollment data - April enrollment data has been loaded. Here are a few observations. (link)
Broker/Agent MA Commissions Increasing in 2027 - A look at historical MA/MAPD agent comp., and what to expect in 2027. (link)
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