UnitedHealth Group Inc.

We believe the UHC-Optum combination provides UNH with unique medical and operating cost and technology advantages over its peers. UNH's complementary business lines support the group's goals of improving health quality outcomes and access to health care while also lowering the cost of care. Additionally, in 2024, UNH will need to contend with weaker MA rates, which will likely lead to some alterations to benefit design and product offerings. We think UNH--as a market leader within MA, with nearly 30% market share--is well positioned to provide benefit stability to its members because of its high MA Star quality ratings, with approximately 80% of its members in 4-Star plans or better in 2023. We expect its MA membership growth will be

...Of all the U.S. managed-care organizations we rate, UnitedHealth Group Inc. (UNH) has the strongest competitive position and highest ratings. UNH's credit profile reflects its industry-leading scale in the U.S. health insurance market (47.45 million U.S. members and $184.8 billion in year-to-date revenue as of June 30, 2023), as well as the unique competitive advantages stemming from the combination of the health insurance segment UnitedHealthcare (UHC) and the health care services segment Optum (with each accounting for roughly 50% of operating earnings). The credit profile also reflects earnings that have stayed above the industry average, with adjusted EBIT return on revenue (ROR) of nearly 9%. We believe the UHC-Optum combination provides UNH with unique medical and operating cost and technology advantages over its peers. UNH's complementary business lines support the group's goals of improving health quality outcomes and access to health care while also lowering the cost of care....

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