As UnitedHealth Group released disappointing second-quarter results on July 29, the health care giant indicated rising consumer costs may be in the mix for 2026.
The company’s revenue for the quarter totaled $111.6 billion—$2 billion more than the first quarter’s $109.6 billion and $12.8 billion higher than the $98.9 billion reported in the same period in 2024. However, it reported earnings per share of $4.08, falling short of the $4.45 expected by Wall Street analysts.
As a result, the firm is targeting $1 billion in cost reductions by 2026, and Tim Noel—CEO of United Healthcare, the insurance division of UnitedHealth Group—warned that medical costs are likely to rise next year. He noted that UnitedHealth had initially assumed a Medicare Advantage medical cost trend of just over 5 percent when preparing its 2025 bids, but now expects the trend to reach around 7.5 percent in 2025 and 10 percent next year, indicating a double-digit premium hike for 2026….