Here is what you’ll find in this week’s newsletter!

1. Important links 🔗 - the best articles we found this week about the Medicare Market along with links to Jared’s recent LinkedIn posts.

2. Deep Dive 📚 - UnitedHealth Group Q2: Growth Under Pressure

3. Sponsor Snapshot 🚀 - brought to you by Modivcare

4. Compliance Chatter 📢 - Check out the latest regulatory changes.

It’s only a 5 minute read, but it will make you 10x smarter.

DEEP DIVE 📚

UnitedHealth Group Q2: Growth Under Pressure

UnitedHealth Group ( $UNH ( ▲ 13.68% ) ), the nation’s largest Medicare focused insurer, is facing one of its most challenging years in a decade.

With profitability squeezed, leadership changing (CEO, CFO), DOJ investigations (link) underway, and plans to cut 600,000 members (link), Q2 results reveal the pressure points - and what might come next.

Let’s dive in.

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Membership Trends

Membership growth has been lead by Medicare Advantage enrollment growth.

• After a slowdown in the prior year, Medicare Advantage membership grew significantly. In fact UNH grew their MA block more than any other Company this past AEP (see more here, and here)

• Membership in Medicare Supplement declined, continuing a longer term trend.

• Medicaid changed course with a small increase, while Commercial growth slowed compared to the prior year.

One additional note on Medicare Advantage growth. United’s growth was primarily driven by C-SNP enrollment. C-SNP growth started this past AEP and has continued throughout 2025.

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Revenue Trends

UNH reports revenues by vertical (UnitedHealthcare and Optum), and provides further details within each vertical. In addition, “eliminations” are reported in order to remove revenues that Optum receives from UnitedHealthcare (can’t count that revenue twice).

UnitedHealthcare Q2 Revenues (the insurance Carrier segment) have grown steadily over the past 7 years.

• Year-over-year quarter 2 revenue grew significantly more (16.6%) than is typical (9.4% CAGR), driven by 20%+ growth in both Medicare & Retirement and Community & State.

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Optum Q2 Revenues (the healthcare provider segment) have grown 2.7x over the past 7 years.

• Overall, Optum Revenues lagged historical growth.

• Optum Health Revenues decreased year-over-year while Optum RX outpaced historical growth.

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Combining UnitedHealthcare, Optum, and including eliminations, results in the company’s Total Consolidated Q2 Revenues.

• Overall Revenue growth (12.9%) outpaced historical growth rates (10.3% CAGR).

• Driven by strong growth in the insurance business.

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Operating Income Trends

The combined UnitedHealth Group’s Q2 Operating Income has grown steadily over the past 7 years until this year!

• Operating Income is down substantially with the largest drop coming from UHC (insurance business) and Optum Health (provider business).

• Optum Insights grew year-over-year, but makes up a small percentage.

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Medical Loss Ratio Trends

The Medical Loss Ratio has been a major topic point in the Medicare industry over the past year 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]

You can see in the chart below that the Q2 2025 loss ratio of 89.4% is the highest it’s been in recent history.

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Profit Margins

The loss ratio chart above, along with the profit margin chart below goes along way in telling the story of why all the recent changes with $UNH ( ▲ 13.68% ) .

The 4.6% profit margin is far below the typical 7-9%.

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Bottom Line

UnitedHealth’s Q2 paints a picture of growth under strain. Membership and revenue are climbing, but elevated utilization is driving the highest loss ratios in years and cutting profit margins nearly in half.

These financial pressures are already reshaping their strategy - from large-scale plan terminations to a sharper focus on C-SNP growth. Expect a tighter product portfolio and more disciplined benefit design heading into AEP 2026.

If you’re ready, here are some ways we can help you:

• Newsletter Sponsorship opportunities: Promote your product or services to leaders in the Medicare space. Let’s discuss. (link)

• Market Research: Reports that help you wrap your arms around the Senior focused insurance markets. (link)

• Consulting: We can help you develop new insurance products for the Medicare market, appraise your books of business, and keep you compliant. Let’s discuss. (link)