Health insurers — companies that run health plans and pay for members' medical bills in exchange for monthly premiums, like large HMOs.
Contains
News movingManaged Health Care
United States
Managed Health Care▲
UnitedHealth Group Shares Rise 2.12% as Earnings Preview Points to EPS Growth
UnitedHealth Group closed at $378.81, up 2.12% and ahead of the S&P 500's 0.6% gain, with the Dow adding 0.83% and the Nasdaq up 0.64%. The largest U.S. health insurer is scheduled to report earnings on October 13, 2026, with analysts projecting EPS of $4.12, a 41.1% increase from the year-ago quarter, and revenue of $111.38 billion, down 1.57%. Full-year Zacks Consensus Estimates call for earnings of $19.85 per share and revenue of $446.78 billion, representing year-over-year changes of +21.41% and -0.18%. Over the past 30 days the Zacks Consensus EPS estimate has risen 0.15%, and UnitedHealth Group holds a Zacks Rank of #2 (Buy). The stock trades at a Forward P/E of 18.69 versus an industry average of 20.83, with a PEG ratio of 1.39.
UNH · Capital · Positive Analysts project 41.1% EPS growth for the upcoming earnings report and the Zacks Consensus EPS estimate has risen over the past 30 days, with a #2 (Buy) rank.
UnitedHealth Sells Florida WellMed Clinic Stake to TPG in Margin-Repair Push
UnitedHealth Group has sold an ownership interest in some of its Florida WellMed clinics to private equity firm TPG while retaining an interest in the operations, part of a broader portfolio consolidation aimed at restoring profitability margins. The move is meant to support a turnaround at Optum Health, where management is targeting margins of around 2%, 4% and 6% for 2026 through 2028. The health insurer's shares traded at $378.58 at the October 5 close, giving it a market capitalization of $334.76 billion, and its 4.10% gain over the last 52 weeks lags the S&P 500's 15.78%. Trailing twelve-month revenue reached $450.53 billion, but topline growth was just 0.40% in the second quarter of fiscal 2026, with a 5.35% operating margin and a 3.14% net margin. Operating cash flow came to $27 billion and levered free cash flow to $24.3 billion over the trailing twelve months, while 143 hedge funds held positions at the end of Q2 2026, up from 130 in Q1 2026, with BlackRock the largest institutional stakeholder at 76.86 million shares, or 8.56% of outstanding shares.
Delta Cuts Full-Year Outlook on Fuel Costs; Humana Jumps on Medicare Ratings
Delta Air Lines reduced its full-year earnings outlook, sending its shares down 2.6% in premarket trading, after persistently high jet fuel prices tied to the war in the Middle East pushed fuel costs $500 million higher in its most recent quarter. The carrier said strong travel demand was not enough to offset the higher fuel expense, and unlike European airlines, U.S. carriers do not hedge jet fuel, leaving them more exposed to spot prices. Humana surged after 18 of its Medicare Advantage contracts received ratings of at least four stars, up from seven a year earlier, a jump that can translate into bonuses worth billions of dollars and boost future revenue. CVS shares fell as ratings for some of its largest plans deteriorated, while UnitedHealth shares were little changed in premarket trading. Apple shares slipped after a report that the company cut component orders for the iPhone 18 Pro and iPhone 18 Pro Max following weaker-than-expected demand.
Humana Jumps 13% on Medicare Star Upgrade; Delta Falls on Q3 Miss
Humana shares surged 13% after the Centers for Medicare & Medicaid Services upgraded its primary Medicare Advantage contract, designated H5216, to four stars for 2027, restoring eligibility for quality bonus payments across roughly 2.4 million members. Kopin rose 4% on an $18.6 million sole-source U.S. Army contract for MicroLED microdisplay work, bringing total program funding to $34 million. SpaceX gained 2% after an $8 billion cash deal with Grain Management for up to 14 MHz of nationwide 800 MHz low-band spectrum, a move that sent T-Mobile US, Verizon Communications and AT&T each down more than 6%. On the losing side, Alignment Healthcare tumbled 18% after its primary California contract fell to 3.5 stars, while Delta Air Lines fell 2% on September-quarter adjusted EPS of $1.72 versus the $1.82 consensus and a lowered full-year outlook, with adjusted fuel expense up 62% to $4.14 billion. Apple slipped 2% after Nikkei Asia reported it cut October component orders for the iPhone 18 Pro and iPhone 18 Pro Max by 15% to 20%.
AAPL · Demand · Negative Apple cut October component orders for iPhone 18 Pro/Pro Max by 15-20%, signaling weaker product demand.
ALHC · Regulation · Negative Its primary California Medicare contract fell to 3.5 stars, losing quality bonus eligibility.
DAL · Capital · Negative Delta missed Q3 EPS consensus ($1.72 vs $1.82) and lowered its full-year outlook.
HUM · Regulation · Positive CMS upgraded Humana's primary Medicare Advantage contract H5216 to four stars for 2027, restoring bonus payments.
KOPN · Demand · Positive Kopin won an $18.6M sole-source U.S. Army contract for MicroLED microdisplay work.
SPCX · Capital · Positive SpaceX gained 2% after an $8 billion cash deal with Grain Management for up to 14 MHz of nationwide 800 MHz low-band spectrum.
Delta Cuts Full-Year Outlook as SpaceX Spectrum Deal Rattles Telecoms
Delta Air Lines reported weaker-than-expected third-quarter results and cut its full-year earnings outlook, sending its shares down 4% premarket. The airline earned an adjusted $1.72 per share on revenue of $17.59 billion, below the $1.75 per share and $17.67 billion analysts polled by LSEG had expected, with the company citing higher fuel costs. SpaceX shares rose 4% after Grain Management announced an agreement to sell its nationwide 800 megahertz spectrum portfolio to SpaceX, a move expected to bolster Starlink Mobile's capabilities. The spectrum announcement sent telecom providers lower, with T-Mobile down 7%, AT&T nearly 6% lower and Verizon off more than 5%, while tower stocks American Tower and Crown Castle gained 6% and almost 8% respectively. Humana surged 14% after its largest Medicare Advantage contract saw its rating improve under the Centers for Medicare & Medicaid Services' 2027 Star Ratings, while Alignment Healthcare cratered 23%. Apple fell more than 2% after Nikkei Asia reported the company was cutting component orders for its iPhone 18 Pro, with October production orders for that device and the iPhone 18 Pro Max cut by 15% from original plans.
DAL · Capital · Negative Delta reported weaker-than-expected Q3 results and cut its full-year earnings outlook, citing higher fuel costs.
HUM · Regulation · Positive Humana surged 14% after its largest Medicare Advantage contract's rating improved under CMS' 2027 Star Ratings.
AAPL · Demand · Negative Nikkei Asia reports Apple cut iPhone 18 Pro component orders, with October production orders down 15% from original plans.
ALHC · Regulation · Negative Alignment Healthcare cratered 23% after its largest Medicare Advantage contract's Star Rating was not improved under CMS' 2027 ratings.
SPCX · Capital · Positive SpaceX shares rose 4% after Grain Management agreed to sell its nationwide 800 MHz spectrum portfolio to SpaceX, bolstering Starlink Mobile.
T · Competition · Negative AT&T fell nearly 6% as SpaceX's spectrum deal is expected to strengthen Starlink Mobile's competitive position.
Humana Jumps 15% on Medicare Ratings; SpaceX Spectrum Deal Sinks Telecom Stocks
Humana shares surged 15% in premarket trading after the health insurer said 95% of its Medicare Advantage members would be enrolled in plans rated four stars or higher in 2027, up sharply from 20% in 2026, well above J.P. Morgan's expected 60% to 70%. Delta Air Lines fell around 3.3% after cutting its annual profit forecast by nearly a quarter at the midpoint as surging fuel costs outweighed strong travel demand. Lumentum rose 3.8% after Chief Executive Michael Hurlston told Bloomberg Television in Tokyo that demand for its optoelectronic components had effectively booked out manufacturing capacity through early 2029, saying the company could not meet approximately 70% of demand for some products through next year and roughly 30% for certain others through 2028; Coherent gained 3.5% in sympathy. American Express fell almost 2% in after-hours trading after the Office of the Comptroller of the Currency imposed a $350 million penalty over compliance failures that let approximately $13 billion of suspected money laundering go undetected between 2014 and 2025. SpaceX gained 3.7% on a deal to acquire a nationwide low-band spectrum portfolio, sending T-Mobile US, Verizon Communications and AT&T down between 5% and 6%, while tower operators American Tower, Crown Castle and SBA Communications advanced between 6% and 10%.
AXP · Regulation · Negative OCC imposed a $350 million penalty on American Express over compliance failures that let suspected money laundering go undetected.
DAL · Capital · Negative Delta cut its annual profit forecast by nearly a quarter at the midpoint as surging fuel costs outweighed strong travel demand.
HUM · Regulation · Positive 95% of Medicare Advantage members to be in 4-star-plus plans in 2027, up from 20%, far above JPM's 60-70% estimate.
LITE · Demand · Positive CEO says optoelectronic component demand has booked out capacity through early 2029, unable to meet ~70% of demand for some products.
SPCX · Capital · Positive SpaceX gained 3.7% on a deal to acquire a nationwide low-band spectrum portfolio.
TMUS · Competition · Negative SpaceX's spectrum acquisition deal threatens T-Mobile's wireless competitive position, sending its shares down 5-6%.
Humana Says 95 Percent of Medicare Advantage Members in 4-Star or Above Plans for 2027
Humana announced improved CMS Star Ratings for 2027, with 95 percent of its Medicare Advantage members enrolled in plans rated 4.0 stars or above and 42 percent in 4.5-star plans. For 2027, Humana has six Medicare Advantage contracts rated 4.5 stars and 12 rated 4.0 stars, an increase of 11 contracts rated 4.0 stars or above compared with the prior year, while its stand-alone prescription drug plan contract earned a 4.5-star rating. The company said performance improved across all measure categories, with 663,000 more care opportunities met and 534,000 additional members completing an annual preventive visit versus the prior year. Those engagement efforts produced 28,000 overdue mammograms that identified 600 previously undetected breast cancers, 93,000 overdue colorectal cancer screenings that identified 100 previously undetected precancers and cancers, and 73,000 overdue eye exams for members with diabetes that identified 17,000 previously undetected diagnoses of diabetes-related eye disease. CEO Jim Rechtin said the ratings reflect the work of thousands of Humana employees, and Chief Medical Officer Shantanu Nundy said earlier detection gives members more treatment options and better outcomes.
HUM · Regulation · Positive Humana's CMS Star Ratings improved for 2027, with 95% of Medicare Advantage members in 4-star or above plans, boosting quality bonus eligibility.
Humana Jumps 16.5%, Alignment Healthcare Falls Over 20% on Medicare Star Rating Reversals
Humana's largest Medicare Advantage contract recovered to 4 stars from 3.5 stars in the 2027 ratings published by the Centers for Medicare & Medicaid Services on October 8, sending its shares up 16.5% on Thursday while rival Alignment Healthcare tumbled more than 20% after its largest California contract was downgraded to 3.5 stars from 4. The improvement restores Humana's eligibility for federal quality bonus payments, potentially providing a significant boost to the insurer's earnings in 2028. Alignment's downgraded contract accounted for approximately 81% of the company's membership as of September 2025. The developments mark a reversal of fortunes for the two insurers: Humana suffered a major ratings collapse in 2024, when the proportion of members enrolled in plans rated at least 4 stars plunged from 94% to 25% for the following year, while Alignment had emerged as an industry outperformer with 100% of its membership in plans rated at least 4 stars for 2026. CMS assigns Medicare Advantage plans ratings ranging from 1 to 5 stars based on measures including clinical outcomes, customer experience and plan performance, and contracts achieving at least 4 stars qualify for quality bonus payments that increase federal funding available to insurers; the newly published ratings will primarily affect payments and company revenues in 2028.
ALHC · Regulation · Negative CMS downgraded Alignment's largest California contract to 3.5 stars from 4, covering ~81% of membership, cutting quality bonus payments.
HUM · Regulation · Positive CMS restored Humana's largest Medicare Advantage contract to 4 stars, regaining eligibility for federal quality bonus payments.
UnitedHealth Group Falls 1.42% as Earnings Preview Points to $4.12 EPS
UnitedHealth Group closed at $370.63, down 1.42% from the previous session, a bigger decline than the S&P 500's 0.47% loss. The largest U.S. health insurer is expected to report earnings on October 13, 2026, with analysts predicting EPS of $4.12, a 41.1% increase from the year-earlier quarter, and revenue of $111.38 billion, down 1.57% year over year. For the full year, the Zacks Consensus Estimates call for earnings of $19.85 per share and revenue of $446.78 billion, changes of +21.41% and -0.18% respectively from last year. Over the past 30 days the consensus EPS estimate has risen 0.15%, and UnitedHealth Group currently holds a Zacks Rank of #2 (Buy). The stock trades at a forward P/E of 18.94, a discount to its industry average of 21.09, with a PEG ratio of 1.41.
UnitedHealth Set to Report Q3 2026 Results on Oct. 13
UnitedHealth Group is scheduled to report third-quarter 2026 results on Oct. 13, 2026, before the opening bell, with the Zacks Consensus Estimate pegged at $4.12 per share on revenues of $111.38 billion. The bottom-line projection indicates an improvement of 41.1% from the year-ago reported number, while the consensus estimate for quarterly revenues suggests a year-over-year decline of 1.6%. For the current year, the consensus estimate for UnitedHealth's revenues is pegged at $446.78 billion, implying a decline of 0.2% year over year, while the consensus mark for current-year earnings per share is pegged at $19.85, implying an improvement of 21.4% on a year-over-year basis. The company beat the consensus estimate for earnings in each of the last four quarters, with the average surprise being 12.1%. The consensus estimate for premium revenues for the third quarter indicates a 3.3% year-over-year decline, with reduced contributions from both the UnitedHealthcare division and Optum Health expected to have led to the decrease, while the consensus mark for UnitedHealthcare's operating income signals a 26.8% year-over-year jump and the consensus estimate for operating income from the total Optum business segment suggests a 26.7% year-over-year increase.
UnitedHealth Q3 Earnings Preview: Analysts See $4.12 EPS, Revenue Down 1.6%
Wall Street analysts expect UnitedHealth Group to report third-quarter earnings of $4.12 per share, up 41.1% from a year earlier, on revenues of $111.38 billion, a year-over-year decrease of 1.6%. The consensus EPS estimate has held steady over the past 30 days. Within the revenue breakdown, analysts project premiums of $86.04 billion, down 3.3%, products revenue of $14.21 billion, up 6.9%, services revenue of $10.22 billion, up 4.8%, and investment and other income of $1.01 billion, down 10.8%. The medical care ratio is expected to reach 90.1%, compared with 89.9% in the year-ago quarter. On membership, analysts forecast total commercial domestic people served of 29.53 million, total community and senior people served of 18.52 million, and Medicare Part D stand-alone enrollment of 2.67 million.
UNH · Capital · Neutral Analysts expect Q3 EPS of $4.12 (up 41.1% YoY) but revenue down 1.6% to $111.38B, with medical care ratio rising to 90.1% — mixed earnings preview.
UnitedHealth Draws Investor Attention as Zacks Rates Stock a Buy
UnitedHealth Group has become one of the most searched-for stocks on Zacks.com, with the health insurer's shares down 4.4% over the past month against a 1.4% gain for the Zacks S&P 500 composite. For the current quarter, UnitedHealth is expected to post earnings of $4.12 per share, a change of 41.1% from the year-ago quarter, while the consensus estimate for the current fiscal year stands at $19.85, up 21.4% from the prior year. The consensus sales estimate for the current quarter is $111.38 billion, a year-over-year change of -1.6%, with current and next fiscal year estimates of $446.78 billion and $458.33 billion. In its last reported quarter, UnitedHealth posted revenues of $112.03 billion, up 0.4% year over year, and earnings per share of $6.38 versus $4.08 a year earlier, beating the consensus revenue estimate of $110.12 billion by 1.74% and the EPS estimate by 29.15%. Based on the recent change in the consensus estimate and three other earnings-related factors, UnitedHealth carries a Zacks Rank #2 (Buy), and it is graded A on the Zacks Value Style Score, indicating it trades at a discount to its peers.
UnitedHealth Q3 Preview: Can the Medical Cost Rebound Hold?
UnitedHealth Group heads into third-quarter earnings on Oct. 13 with investors focused on whether the second-quarter rebound in medical costs can hold. UnitedHealthcare's medical care ratio improved to 86.7% in the second quarter from 89.4% a year earlier, operating earnings rose to $3.9 billion from $2.1 billion, and operating margin climbed to 4.6% from 2.4%, though the quarter included $860 million of favorable medical reserve development. Management's 88.1% full-year MCR outlook will be closely watched, along with underlying medical costs, Medicare inpatient and outpatient utilization, commercial cost trends, specialty-drug inflation and provider coding intensity. On Medicare Advantage, membership stood at 7.565 million at June 30, down 785,000 from a year earlier, and management expects the full-year MA decline to reach roughly 1.1 million members, while still expecting Medicare margins to finish 2026 above 3%. Peers Humana and Elevance Health also face rising medical cost trends, with Humana's insurance benefit ratio up 130 basis points to 91.2% and Elevance's benefit expense ratio up 80 basis points to 89.7%. The Zacks Consensus Estimate for UnitedHealth's 2026 earnings is $19.85 per share, implying a 21.4% improvement from the year-ago period.
UNH · Capital · Neutral Q3 preview centers on whether UnitedHealth's Q2 medical cost rebound (MCR 86.7%, operating earnings $3.9B) can hold, with the 88.1% full-year MCR outlook and 2026 EPS estimate of $19.85 in focus.
ELV · Supply · Negative Elevance's benefit expense ratio rose 80 basis points to 89.7% amid rising medical cost trends, pressuring margins.
HUM · Supply · Negative Humana's insurance benefit ratio climbed 130 basis points to 91.2% as medical cost trends rise.
Centene to Exit 344 Counties and Three States in 2027 Medicare Advantage Pullback
Centene Corporation is pulling its standard Medicare Advantage plans from 344 counties for 2027 and exiting Hawaii, Oklahoma and Tennessee, as its Wellcare unit narrows its plan lineup and reduces its presence in several counties. Wellcare will retain a stronger presence in Special Needs Plans, with D-SNP products representing nearly half of its 2027 Medicare Advantage offerings, while dual-eligible members account for roughly 40% of its Medicare Advantage membership. The retrenchment comes as the Centers for Medicare & Medicaid Services expects weighted average monthly Medicare Advantage premiums to decline 16.5% in 2027, with projected enrollment of 34 million. Competitors are making similar moves: UnitedHealth Group is pulling standard plans from 140 counties while adding more Special Needs Plans, and Humana plans to exit 57 counties and Minnesota for 2027 while reducing certain PPO offerings. Centene shares have surged 56.3% year to date, and the Zacks Consensus Estimate for its 2026 earnings stands at $4.89 per share, implying 135.1% growth from the year-ago period.
CNC · Regulation · Negative Centene is pulling standard Medicare Advantage plans from 344 counties and exiting Hawaii, Oklahoma and Tennessee for 2027 amid CMS premium pressure.
HUM · Regulation · Negative Humana plans to exit 57 counties and Minnesota for 2027 while reducing certain PPO offerings, mirroring the Medicare Advantage retrenchment.
UNH · Regulation · Negative UnitedHealth is pulling standard Medicare Advantage plans from 140 counties while adding more Special Needs Plans for 2027.
UnitedHealth to Drop 390,000 Medicare Advantage Members in 2027
UnitedHealth Group is scaling back parts of its Medicare Advantage business for 2027, with UnitedHealthcare discontinuing plans covering about 390,000 members next year as elevated medical costs and utilization pressure profitability. Reuters reported that UnitedHealthcare plans to exit locations where it has a higher concentration of preferred provider organization plans, which offer broader out-of-network access but can carry higher costs. UnitedHealthcare said 66% of members will have access to both health maintenance organization and PPO plans in 2027, compared with 70% in 2026. Beyond portfolio changes, UnitedHealth plans to invest nearly $1.5 billion in AI-related initiatives in 2026 to improve productivity and reduce administrative burden. Competitors are making similar moves: Humana is pruning its Medicare Advantage portfolio for 2027 with exits expected to affect roughly 600,000 members, while Centene's Wellcare is reducing its plan lineup and exiting Hawaii, Oklahoma and Tennessee.
UNH · Regulation · Negative UnitedHealthcare is discontinuing Medicare Advantage plans covering about 390,000 members for 2027 amid elevated medical costs.
UNH · Technology · Positive UnitedHealth plans to invest nearly $1.5 billion in AI-related initiatives in 2026 to improve productivity and reduce administrative burden.
HUM · Regulation · Negative Humana is pruning its Medicare Advantage portfolio for 2027, with exits expected to affect roughly 600,000 members.
CNC · Regulation · Negative Centene's Wellcare is reducing its Medicare Advantage plan lineup and exiting Hawaii, Oklahoma and Tennessee, mirroring the industry pullback.
UnitedHealth Group Shares Gain 1.83% Ahead of October 13 Earnings Report
UnitedHealth Group closed at $371.90, up 1.83% and ahead of the S&P 500's 0.73% gain, as investors look toward the insurer's October 13, 2026 earnings disclosure. Analysts expect earnings per share of $4.12, a 41.1% rise from the same quarter a year earlier, while revenue is projected at $111.38 billion, down 1.57% year over year. For the full year, the Zacks Consensus Estimates forecast earnings of $19.85 per share and revenue of $446.78 billion, changes of +21.41% and -0.18% respectively. The stock carries a Zacks Rank of #2 (Buy) and trades at a forward P/E of 18.4, a discount to the industry average of 21.25, with a PEG ratio of 1.37. The Medical - HMOs industry holds a Zacks Industry Rank of 21, placing it in the top 9% of more than 250 industries.
UNH · Capital · Neutral Shares rose ahead of the Oct 13 earnings report, with analysts expecting EPS of $4.12 (+41.1% YoY) but revenue down 1.57%; Zacks Rank #2 and forward P/E discount are valuation context.
Humana Shrinks Medicare Advantage Footprint for 2027
Humana will offer Medicare Advantage plans in nearly 2,600 counties across 45 states and Washington, D.C. for the 2027 plan year, a sharp reduction from the 46 states and Washington, D.C. it covered for 2026, when its plans reached 85% of U.S. counties. The Louisville, Kentucky-based insurer, the second-largest MA player behind UnitedHealth, said the new footprint represents more than 80% of U.S. counties, and it has announced plans to discontinue offerings affecting 600,000 enrollees. UnitedHealth said its UnitedHealthcare MA plans will remain accessible to 94% of Medicare-eligible individuals next year, unchanged from 2026, though Bloomberg reported that roughly 390,000 people will be part of plans being shut down. CVS Health's Aetna unit and Centene are also pulling back their MA offerings, according to CMS data reviewed by Wall Street analysts, while Alignment Healthcare is expanding to 55 counties and Clover Health said its plans will reach 5.2M Medicare-eligible individuals across 203 counties in five states. The moves come as the MA market contends with rising medical costs and intense government scrutiny, and after CMS said 2027 MA enrollment is expected to reach 34M, a 6% decline, despite a more than 16% drop in MA premiums versus 2026 on a weighted average basis.
HUM · Regulation · Negative Humana is sharply shrinking its 2027 Medicare Advantage footprint and discontinuing plans affecting 600,000 enrollees amid rising costs and government scrutiny.
ALHC · Demand · Positive Alignment Healthcare is expanding its Medicare Advantage footprint to 55 counties, a growth move against peers' pullbacks.
CLOV · Demand · Positive Clover Health said its plans will reach 5.2M Medicare-eligible individuals across 203 counties in five states, an expansion.
CNC · Regulation · Negative Centene is pulling back its Medicare Advantage offerings amid rising medical costs and intense government scrutiny.
CVS · Regulation · Negative CVS Health's Aetna unit is pulling back its Medicare Advantage offerings amid rising medical costs and government scrutiny.
UNH · Regulation · Neutral UnitedHealth's MA plans stay at 94% coverage unchanged, but ~390,000 enrollees are in plans being shut down amid MA market scrutiny and rising costs.
HealthEquity Appoints Moody's CFO Noémie Heuland to Board
HealthEquity, Inc. announced that Noémie Heuland, Chief Financial Officer of Moody's Corporation, has been elected to its board of directors effective Sept. 24, 2026. Heuland will also serve on the Board's Audit and Risk Committee and Cybersecurity and Technology Committee. Her appointment expands the Board to 11 directors, nine of whom are independent. Heuland has served as CFO of Moody's since April 2024, and previously was CFO at Dayforce, Inc. from October 2020 to February 2024, after 12 years in finance leadership roles at SAP. HealthEquity, the largest independent health savings account custodian by account volume, administers HSAs and other consumer-directed benefits for nearly 18 million accounts.
UnitedHealth Group Names Robert Hunter President of UnitedHealthcare
UnitedHealth Group has appointed Robert Hunter as president of UnitedHealthcare as part of a leadership realignment. The new UnitedHealthcare chief is expected to help advance a multi-year plan focused on margin recovery and modernization of operations, with a remit that includes restoring confidence among regulators and customers while sharpening the business's digital experience across key insurance offerings. The company also added Jodee Kozlak as chief administrative officer, moves that point to execution on margin recovery while technology and AI programs target G&A savings. UnitedHealth Group, a US-based healthcare operator with a market value of about $339.1 billion, runs insurance and health-benefits operations in the United States and internationally. The cleanest check on whether the leadership reset is working will be how reported segment margins and medical cost trends at UnitedHealthcare and Optum move through 2027, especially in Medicare and Medicaid where management already flagged pressure on profitability.
UNH · Capital · Neutral UnitedHealth names Robert Hunter president of UnitedHealthcare as part of a leadership realignment aimed at margin recovery and operational modernization.
Robert Hunter Named President of UnitedHealth Insurance Arm UnitedHealthcare
Robert Hunter will take over as president of UnitedHealthcare, the insurance division of UnitedHealth Group, disclosing the move himself on September 28 in a LinkedIn post. The company has issued no comment on the reasoning behind the appointment, which places Hunter in charge of the unit where the medical cost pressure that reset UnitedHealth's earnings was concentrated. UnitedHealth generates roughly $450 billion of revenue a year, and the insurance business is the largest part of it, so a single percentage point on the medical loss ratio moves billions of dollars of profit at that revenue base. Hunter arrives from inside the company rather than outside it, which more often signals continuity of strategy than a change of direction. The division's recovery so far has come from cost control rather than growth: quarterly earnings grew 61% against the same period a year earlier, annual free cash flow runs near $24.27 billion, but revenue rose just 0.4% in the latest quarter, while operating margin sits at 7.13% and the company carries $73.33 billion of debt.
UnitedHealth Group announced that Jodee Kozlak has joined the company as chief administrative officer, a newly created role overseeing People, Real Estate, Procurement and Corporate Security to support enterprise modernization and alignment across the business. Kozlak previously led global expansion at Alibaba and human resources at Target, and has served on the boards of C.H. Robinson Worldwide and KB Home. The appointment signals a greater emphasis on organizational efficiency and large-scale transformation as UnitedHealth works to restore margins through plan exits and pricing resets. The hire follows the company's Q2 2026 earnings, which showed improved operating earnings even as revenue growth stayed muted. UnitedHealth's narrative projects $498.6 billion in revenue and $23.5 billion in earnings by 2029, requiring 3.5% yearly revenue growth and about a $9.4 billion earnings increase from $14.1 billion today.
UNH · Capital · Neutral UnitedHealth creates a new chief administrative officer role to support enterprise modernization and margin restoration, a leadership/organizational change with no clear directional impact.
UnitedHealth Group Names Jodee Kozlak Chief Administrative Officer
UnitedHealth Group announced that Jodee Kozlak will join the company as chief administrative officer, a newly created role, effective Sept. 28, 2026. In the position, Kozlak will help drive enterprise modernization and alignment efforts supporting the company's businesses, people and partners, leading a portfolio that initially includes People, Real Estate, Procurement and Corporate Security. Chief executive officer Stephen Hemsley said Kozlak brings exceptional experience across business strategy, organizational development and governance, and that her record of leading through periods of growth and transformation will accelerate the company's efforts to improve how it operates, collaborates and serves its stakeholders. Kozlak served as global senior vice president of Alibaba Group from 2016 to 2017, helping lead the company's expansion outside China, and held several human resources and legal leadership roles at Target Corp., including executive vice president and chief human resources officer from 2004 to 2015. She also serves as chair of the board for C.H. Robinson Worldwide and as lead independent director for KB Home.
Oscar Health Upgraded to Zacks Rank #1 Strong Buy on Surging Estimates
Oscar Health, Inc. has been upgraded to a Zacks Rank #1 (Strong Buy), a rating reserved for the top 5% of the more than 4,000 stocks covered by the Zacks system. The upgrade reflects a sharp upward trend in earnings estimates, with the Zacks Consensus Estimate for the company climbing 290.1% over the past three months. Oscar Health is expected to earn $1.83 per share for the fiscal year ending December 2026, which represents no year-over-year change. The Zacks Rank is determined solely by a company's changing earnings picture, and Zacks Rank #1 stocks have generated an average annual return of +25% since 1988. The upgrade implies that the stock could move higher in the near term as institutional investors adjust valuations to the improved earnings outlook.
Molina to End Traditional Medicare Advantage Drug Plans After December 31, 2026
Molina Healthcare will exit its traditional, non-dual Medicare Advantage prescription drug plans after December 31, 2026, a decision CEO Joe Zubretsky announced on the company's February 5, 2026 fourth-quarter earnings call as a shift to focus exclusively on dual eligible members in Medicare. The exiting MAPD contracts covered approximately 117,000 members in 2025, with enrollment expected to fall to about 80,000 during 2026, and the product was expected to produce approximately $1 billion in 2026 premium revenue. Molina is staying in Medicare and keeping its $5 billion dual-eligible Medicare business, and continues to pursue new Duals contracts in Idaho, Illinois, Massachusetts, Michigan, and Ohio. The formal member nonrenewal letter, governed by the CMS calendar, does not go out until early October, leaving affected members roughly eight weeks to act before the December 7 end of the Annual Enrollment Period. Members who do nothing risk returning to Original Medicare on January 1 without prescription coverage, and going 63 straight days without Part D or other creditable drug coverage can trigger a late-enrollment penalty starting January 1, 2027.
MOH · Regulation · Negative Molina will exit its traditional non-dual Medicare Advantage prescription drug plans after 2026, dropping ~117,000 members and ~$1B in 2026 premium revenue under the CMS-governed nonrenewal process.
Oscar Health Targets Doubling EPS by 2027, Unveils Lucy AI Marketplace
Oscar Health used its Investor Day to unveil the Lucy Healthcare Marketplace, an AI-driven platform for carriers, brokers, and consumers, and said it aims to double earnings per share by 2027. Management described the EPS target as a core pillar of the company's next phase. CEO statements at the event argued that traditional employer-sponsored health insurance is ending, and Oscar Health intends to focus on individual coverage. The company operates as a US-based healthcare technology firm that pairs insurance products with its own digital infrastructure. The clearest test of whether the update lifts the bull case will be Oscar Health's reported medical loss ratio and operating margin through the 2026 guidance window.
Oscar Health Targets $4 EPS by 2027, Raises 2026 Guidance by $100 Million
Oscar Health said at its investor day that it is on pace to deliver $4 of EPS by 2027, nearly doubling its current earnings per share, and that it can grow revenue at an average of 20% per year through 2029. The company, which now serves more than 3 million members across 20 states, also launched a new business called the Lucy Healthcare Marketplace, which connects about 70 carriers with consumers and brokers for ACA and supplemental products. CFO Scott Blackley said Oscar recently increased its 2026 earnings guidance by $100 million and has doubled its earnings expectation for this year, citing favorable utilization trends, and that it improved its medical loss ratio guidance, with 50 basis points equal to about $100 million. He said 60% of the company's coding is now done using AI agents, up from about 15% earlier this year. Blackley said Oscar sees a large opportunity in transitioning employer-sponsored healthcare into the ACA through a product called Choice on the Lucy marketplace, and expects $4 or greater EPS in 2029.
OSCR · Capital · Positive Oscar Health raised its 2026 earnings guidance by $100 million, doubled this year's EPS expectation, and targets $4 EPS by 2027 on favorable utilization trends.
Centene Corporation reported second-quarter 2026 results showing a profitability recovery, with premium and service revenues up 4.5% year over year and adjusted EPS of $2.51 versus a loss of 16 cents a year ago. The insurer reaffirmed its 2026 adjusted EPS guidance floor above $4.80 and said its consolidated health benefits ratio improved to 89.6% from 93%. Centene expects its Marketplace business to generate a 4.5%-5% pretax margin in 2026, while its PDP business should deliver a pretax margin above 3% and Medicare Advantage moves closer to breakeven. Membership remains the main pressure point: Medicaid enrollment ended the second quarter of 2026 at 12.1 million, down 5.5% year over year, and the company projects full-year Medicaid membership to decline 8%-9% from year-end 2025. Centene raised its expected 2026 Medicaid rate increase to about 5%, which could cushion some of the impact as medical-cost trends remain in the mid-4% range.
UnitedHealth Earns Zacks Rank #2 as Earnings Estimates Hold Steady
UnitedHealth Group holds a Zacks Rank #2 (Buy), with consensus estimates pointing to earnings of $4.03 per share for the current quarter, a year-over-year change of +38%. The Zacks Consensus Estimate for the quarter remained unchanged over the last 30 days, while the $19.82 consensus for the current fiscal year, indicating a year-over-year change of +21.2%, has moved +0.6% over the same period. For the next fiscal year, the consensus estimate of $22.54 implies a change of +13.7%, having risen +0.5% over the past month. Revenue consensus stands at $111.38 billion for the current quarter, a year-over-year change of -1.6%, with $446.78 billion and $458.33 billion expected for the current and next fiscal years, changes of -0.2% and +2.6% respectively. In the last reported quarter, UnitedHealth posted revenues of $112.03 billion, up +0.4% year over year, and EPS of $6.38 versus $4.08 a year earlier, beating the consensus revenue estimate of $110.12 billion by +1.74% and the EPS estimate by +29.15%. The stock carries a Zacks Value Style Score of B, indicating it trades at a discount to its peers.
UNH · Capital · Positive UnitedHealth holds a Zacks Rank #2 (Buy) with steady-to-rising consensus EPS estimates and a Value Style Score of B, an analyst-valuation signal.
UnitedHealth's turnaround is proceeding largely on plan, but commercial health plan medical costs are running modestly above the 11% the company had been expecting, while Medicare costs are tracking below its roughly 10% estimate for 2026 and Medicaid trend is broadly in line. Management credits benefit design, care management, network curation and a lighter respiratory season for Medicare landing below plan, and attributes the commercial overrun to the independent resolution process under the No Surprises Act, which it calls ineffective. On its earnings call, management said IDR dispute awards contributed approximately 50 basis points of incremental medical cost trend in 2026 and now account for at least 100 basis points of total cost, with roughly 60% of all arbitration cases brought by just five entities and average payouts to out-of-network providers now 11 times what Medicare would pay. The elevated trend has pushed the timeframe for full commercial margin recovery past 2027, which management calls a delay rather than a setback, and it still expects Medicaid margins to stay pressured for 2026. UnitedHealth lifted 2026 adjusted earnings per share guidance to $19.50 to $20 and reaffirmed its 13%-16% long-term growth rate, though its operating margin over the last twelve months, at 4.8%, remains below its three-year average of 7.1%.
UNH · Capital · Positive UnitedHealth lifted 2026 adjusted EPS guidance to $19.50-$20 and reaffirmed its 13%-16% long-term growth rate.
UNH · Regulation · Negative No Surprises Act IDR arbitration awards added ~50bp to 2026 medical cost trend and pushed full commercial margin recovery past 2027.
Oscar Health Raises 2026 Medical Loss Ratio and Operating Earnings Outlook
Oscar Health said it will raise its full-year 2026 outlook for medical costs and operating earnings ahead of its Investor Day on Wednesday. The health insurer now expects its medical loss ratio to range between 81% and 82%, a 50-basis-point improvement from its previous forecast of 81.5% to 82.5%. The company also raised its earnings from operations outlook by $100M to $600M-$800M, from the earlier range of $500M-$700M. Oscar reaffirmed its full-year revenue forecast of $18.7B to $19B and expects its SG&A expense ratio to remain between 15.6% and 16.1%. The company is scheduled to begin its 2026 Investor Day at 9 a.m. ET Wednesday, where it plans to outline its strategy, long-term financial targets, and updated outlook.
Centene and Archer-Daniels-Midland Raise 2026 Guidance on Strong Valuations
Centene Corp. and Archer-Daniels-Midland Co. each raised their 2026 guidance while trading at valuations below their industries and the S&P 500. Centene now expects premium and service revenues of $173-$177 billion for 2026, up from a prior range of $171-$175 billion, and total revenues of $193.5-$197.5 billion, up from $187.5-$191.5 billion, with adjusted EPS expected to exceed $4.80 versus the prior guidance of greater than $3.40, a surge of more than 130.8% from 2025. Archer-Daniels-Midland raised its 2026 adjusted earnings guidance to approximately $5.15-$5.60 per share from a previous range of $4.15-$4.70, citing finalized renewable volume obligations under the U.S. Renewable Fuel Standard, global trade dynamics and higher energy prices, and continues to project 2026 capital expenditures of $1.3-$1.5 billion. Centene shares have jumped 68.7% year to date and carry a forward P/E of 13.58X, below the industry's 22.23X and the S&P 500's 18.03X, while Archer-Daniels-Midland shares have surged 50.4% year to date with a forward P/E of 16.60X. Both stocks hold a Zacks Rank #1 (Strong Buy), and their Zacks Consensus Estimates for current-year earnings have improved 40.9% and 8.5%, respectively, over the last 60 days.
ADM · Capital · Positive ADM raised its 2026 adjusted earnings guidance to ~$5.15-$5.60 per share from $4.15-$4.70, citing finalized renewable volume obligations, trade dynamics and higher energy prices.
CNC · Capital · Positive Centene raised its 2026 revenue and adjusted EPS guidance (EPS to exceed $4.80 vs prior >$3.40).
UnitedHealth Sells TPG Stake in Florida WellMed Clinics to Aid Optum Turnaround
UnitedHealth Group has sold an interest in some of its Optum Health operations in Florida to private-equity firm TPG, specifically involving its WellMed clinics that focus heavily on older patients. The company's CFO said the move is not about raising cash but about bringing in a partner that can provide local operating expertise and help the Florida business grow faster while UnitedHealth concentrates on its broader Optum Health turnaround. The timing is significant because Optum Health posted a negative operating margin in 2025 as medical costs rose and Medicare-related economics weakened, and UnitedHealth is now targeting an Optum Health margin of roughly 2% in 2026, 4% in 2027, and 6% in 2028. Optum says its Florida operations serve more than 240,000 patients across nearly 600 locations, and UnitedHealth is still opening roughly 15 clinics a year in Florida. The partnership does not eliminate the underlying pressures that caused Optum Health's problems: the division generated a $1.1 billion operating loss in 2025, compared with $6.9 billion of operating income the year before.
UNH · Capital · Neutral UnitedHealth sells a WellMed stake to TPG to bring local operating expertise and aid its Optum Health turnaround amid a $1.1B 2025 operating loss
TPG · Capital · Positive TPG acquires a stake in UnitedHealth's WellMed clinics, a private-equity deal for TPG
UnitedHealth sells Optum Florida stake to TPG as CooperCompanies cuts guidance and Amgen slides
UnitedHealth has sold an interest in some of its Optum Health operations in Florida to private equity firm TPG, part of the health conglomerate's effort to recover from a collapse in profits last year. CFO Wayne DeVeydt told Bloomberg News that Optum Health margins will be around 2% this year, above prior expectations, and should rise to around 4% in 2027 and 6% the following year. Amgen fell more than 8%, its worst single-day decline since 2016, after Novartis announced a Phase 3 trial failure for the heart disease therapy pelacarsen, which it is developing with Ionis Pharmaceuticals; BMO Capital Markets downgraded Amgen to Market Perform from Market Outperform with a $450 price target. CooperCompanies dropped 13% after issuing fiscal 2026 guidance below consensus, with revenue of $4.229B-$4.252B versus the prior $4.285B-$4.321B and non-GAAP diluted EPS of $4.51-$4.55 versus $4.58-$4.66 previously, and said its board decided to keep CooperSurgical rather than sell it while raising its share buyback authorization to $3B from $2B. Novo Nordisk fell more than 1% premarket after Morgan Stanley downgraded the stock to Underweight from Equal-weight, citing the semaglutide patent cliff, and the S&P 500 Health Care Sector Index slipped more than 3.5% for the week.
AMGN · Capital · Negative BMO downgraded Amgen to Market Perform with a $450 price target after Novartis's pelacarsen Phase 3 failure.
COO · Capital · Negative CooperCompanies issued fiscal 2026 guidance below consensus and cut its EPS outlook.
UNH · Capital · Positive UnitedHealth sold an Optum Florida stake to TPG and guided Optum Health margins to ~2% this year, rising to ~4% in 2027 and 6% after, aiding its profit recovery.
IONS · Technology · Negative Novartis announced a Phase 3 trial failure for pelacarsen, which it is developing with Ionis Pharmaceuticals.
NVO · Capital · Negative Morgan Stanley downgraded Novo Nordisk to Underweight from Equal-weight, citing the semaglutide patent cliff.
MS · Capital · Negative Morgan Stanley downgraded Novo Nordisk to Underweight from Equal-weight.
UnitedHealth's Optum Sells Florida WellMed Stake to TPG
UnitedHealth Group's Optum has sold an interest in its Florida WellMed clinics to private equity firm TPG and entered a strategic partnership with the firm, according to Bloomberg. The clinics will remain in Optum's network and continue serving patients, while TPG is expected to add local focus, technology investments and operating capabilities to help the Florida business grow faster. CFO Wayne DeVeydt said the goal was not to raise cash but to find a partner that could work with the company locally. Optum acquired WellMed back in 2011, and UnitedHealth opens about 15 clinics in Florida each year. TPG also acquired Optum UK, another UnitedHealth subsidiary, earlier in 2026. Optum Health generated $102 billion of revenue in 2025, down 3% year over year, with operating margins below zero, and management now expects margins of about 2% in 2026, roughly 4% in 2027 and 6% in 2028. UnitedHealth's second-quarter medical care ratio was 86.7%, improving 270 basis points from the year-ago period, while peers Humana and Elevance Health both saw their second-quarter 2026 ratios deteriorate year over year.
UNH · Capital · Positive Optum sold a WellMed stake to TPG and partnered with it to accelerate Florida growth, while Optum Health margins are guided to recover from below zero to ~2% in 2026.
TPG · Capital · Positive TPG acquired a stake in Optum's Florida WellMed clinics and formed a strategic partnership, expanding its healthcare investments.
Optum UK · Capital · Neutral Noted that TPG also acquired Optum UK earlier in 2026, a prior transaction rather than the focus of this news.
UnitedHealth Stock Falls After Selling Optum Health Stake to TPG
UnitedHealth Group shares fell about 2.5% after the company sold an interest in part of its Optum Health business in Florida to private equity firm TPG. The transaction involves operations linked to WellMed, which runs senior-focused primary-care clinics, and financial terms were not disclosed. Chief Financial Officer Wayne DeVeydt said the arrangement was intended to bring additional local expertise rather than provide funding, and that working with TPG could allow the clinic network to expand faster. The deal comes as UnitedHealth seeks to improve performance at Optum Health, which contributed to weaker profits last year; DeVeydt said the division is expected to produce a 2% margin this year and a 4% margin next year. TPG had $326.8 billion in assets under management and $76.2 billion in available capital at the end of the second quarter.
UnitedHealth to Invest $1.5B in AI to Boost Optum Insight
UnitedHealth Group is making artificial intelligence a bigger part of its strategy to strengthen Optum Insight's growth, planning to invest nearly $1.5 billion in AI-related initiatives in 2026, with about one-third earmarked for software products and platforms. The strategy is moving beyond experimentation into commercial products, expanding AI capabilities across autonomous coding, digital prior authorization, real-time payer-provider interfaces, and clinical quality and safety tools. Digital prior authorization is showing early traction, with AI achieving a 96% first-pass approval rate while retaining human review for cases not approved. Value Connect, another AI platform, has helped early customers achieve a 17% reduction in pharmacy costs. Optum Insight generated $5.4 billion in second-quarter 2026 revenues, with operating earnings up 13.6% year over year and margin improving to 25.3%. UnitedHealth trades at a forward price-to-earnings ratio of 18.48, above the industry average of 16.02, and carries a Zacks Rank #1 (Strong Buy).
UnitedHealth has sold an interest in its Optum Health operations in Florida to private equity firm TPG, as the health conglomerate works to recover from a collapse in profits last year. CFO Wayne DeVeydt told Bloomberg News that the partnership with TPG will allow the business to grow more quickly while UnitedHealth focuses on a broader turnaround. The company is reorienting after disappointing profit results driven by failures in its Optum Health division, which runs medical clinics, and has replaced its CEO and other leaders. DeVeydt said Optum Health margins will be around 2% this year, higher than previously expected, and should rise to about 4% in 2027 and 6% the following year. UnitedHealth stock has risen 21% year-to-date.
UnitedHealth Sells Florida WellMed Clinics Stake to TPG
UnitedHealth Group Inc. has sold an interest in its Optum Health operations in Florida to private equity firm TPG Inc., as the health conglomerate works to recover from a collapse in profits last year. The Florida clinics are part of Optum's WellMed business, which focuses on healthcare for older people. UnitedHealth CFO Wayne DeVeydt said the company didn't need the money but needed a local partner to help the business grow faster while executing a broader turnaround. Optum Health's operating margins were negative last year due to rising healthcare costs and restricted federal payments, prompting leadership changes. DeVeydt said Optum Health margins will be around 2% this year, rising to about 4% in 2027 and 6% in 2028. TPG also bought Optum UK earlier this year, generating $400 million for the United Health Foundation. UnitedHealth expects to reaffirm its financial guidance on Wednesday at a Wells Fargo investor conference.
UNH · Capital · Neutral UnitedHealth sells a WellMed stake to TPG to gain a local partner for growth amid an Optum Health margin turnaround.
TPG · Capital · Positive TPG bought a stake in UnitedHealth's Florida WellMed clinics and earlier acquired Optum UK, expanding its healthcare portfolio.
Optum UK · Capital · Positive TPG bought Optum UK earlier this year, generating $400 million for the United Health Foundation.
UnitedHealth stock has gained about 41% since early March, trading near $400 a share, but the company's turnaround is incomplete: while Medicare and care-delivery margins improved, its commercial book deteriorated. Management now expects full margin recovery in the commercial segment to extend past 2027, with medical cost trend running above 11% and no signs of moderation. The company's overall operating margin stands at 4.8%, below its three-year average of 7.1%, and adjusted 2026 earnings guidance is $19.50 to $20 per share, with segment operating-earnings outlooks of at least $12 billion for UnitedHealthcare and at least $2.2 billion for Optum Health. Rivals also repriced, with Elevance Health up 41.6% and Cigna up 4.7% over the same period, but UnitedHealth's commercial cost trend has not yet turned.
UNH · Capital · Negative Commercial margin deterioration and delayed recovery past 2027, with medical cost trend above 11% and adjusted 2026 guidance below prior expectations.
UnitedHealth Raises 2026 EPS Outlook as Recovery Gains Traction
UnitedHealth Group is showing signs of recovery after a turbulent 2025, with first-half 2026 revenues up 1.2% year over year and adjusted earnings per share up 20.5%. The company's medical care ratio improved to 86.7% in the second quarter from 89.4% a year earlier, helping UnitedHealthcare's operating margin expand to 4.6% from 2.4%. Optum also contributed, with operating income rising 29% to $4 billion in the quarter. As a result, UnitedHealth raised its 2026 adjusted EPS outlook to $19.50-$20, though risks remain from elevated medical costs and membership declines. The company's shares have gained 28.7% over the past year, and it trades at a forward P/E of 18.46, above the industry average of 15.99.
United States
