UnitedHealth Group raised its full-year 2026 adjusted earnings outlook to at least $20. 50 per share after reporting third-quarter results that exceeded analysts’ expectations.
The improvement helped profitability, but CFO Wayne DeVeydt said medical costs remained above historical norms, particularly for inpatient care and specialty medicines used to treat cancer and rare diseases.
DeVeydt said the independent dispute-resolution process created by the No Surprises Act is adding at least one percentage point to total medical costs. The process allows insurers and out-of-network providers to settle payment disputes, and higher claims costs can ultimately affect premiums.
The company is responding by reducing membership in unprofitable areas, leaving certain contracts and emphasizing value-based care, in which payments are tied more closely to health outcomes, quality and cost control. UnitedHealth said acute hospital admissions among its members fell 15% year over year through the third quarter, while home-health admissions increased 10%.
UnitedHealth also continues to expand artificial-intelligence tools, including ambient listening systems designed to reduce physicians’ administrative work. DeVeydt said the share of appointment scheduling completed directly by patients rose 27% from a year earlier.
UnitedHealth’s latest guidance reflects stronger performance through the third quarter, although the company continues to flag elevated medical-cost pressure as it enters the final quarter of the year.