UNITEDHEALTH GROUP REPORTS THIRD QUARTER PERFORMANCE

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N E W S R E L E A S E
(For Immediate Release)
UNITEDHEALTH GROUP REPORTS THIRD QUARTER PERFORMANCE
 Revenues of $65.1 Billion Grew 8%, led by 21% Growth at Optum
 Net Earnings of $3.30 Per Share and Adjusted Earnings of $3.51 Per Share
 Results Reflect Extensive Consumer, Customer, Care Provider and Community Assistance Initiatives
and Other COVID-19 Related Impacts
 Underlying Performance Remains Strong
MINNETONKA, Minn. (October 14, 2020) – During the third quarter of 2020, UnitedHealth Group (NYSE: UNH) saw
continued growth, led by Optum and the UnitedHealthcare public-sector and senior benefits businesses, even as the Company
continued its expansive COVID-19 response efforts supporting patients, care providers, customers and communities.
“The people of UnitedHealth Group continue to deliver more innovative and modern solutions for customers, physicians and
consumers, while responding to the needs of the people and communities affected by the pandemic,” said David S. Wichmann,
chief executive officer of UnitedHealth Group. “We’re encouraged to see those we serve respond to the incentives we offered
to safely seek care as the health system continued to recover in the quarter.”
As expected, strong underlying performance across business segments continued to be impacted by the voluntary consumer and
customer assistance initiatives undertaken by the Company. Net earnings of $3.30 per share and adjusted earnings of $3.51 per
share declined 10%, while care patterns disrupted by the pandemic moved closer to normal levels. The Company is updating its
full year earnings per share outlook for 2020 to net earnings of $15.65 to $15.90 per share and adjusted net earnings of $16.50
to $16.75 per share.
The Company’s efforts to proactively help patients obtain the care they need continues, along with additional investments to
support those affected by COVID-19. Since the crisis onset, the enterprise has been mobilized to maintain comprehensive
front-line care; develop innovative methods and protocols for detection, testing, treatment and vaccine discovery; and support
the broader health system and communities in need. During the third quarter, the Company continued to work with local and
state leaders across the country to expand testing; contact tracing; and education, medical and mental health support, especially
in under-resourced communities. The Company continues to invest and partner with premier research institutions to improve
outcomes for minority populations affected during the crisis.
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Quarterly Financial Performance
Three Months Ended
September 30,
2020
September 30,
2019
June 30,
2020
Revenues $65.1 billion $60.4 billion $62.1 billion
Earnings from Operations $4.7 billion $5.0 billion $9.2 billion
Net Margin 4.9% 5.9% 10.7%
 UnitedHealth Group’s third quarter 2020 revenues of $65.1 billion compare to $60.4 billion a year ago, driven by
growth at Optum and in UnitedHealthcare’s public-sector and senior businesses.
 Third quarter earnings from operations of $4.7 billion compared to $5.0 billion last year. The decline reflects the
extensive consumer and customer financial assistance measures undertaken by the Company, as well as direct
COVID-19 care and testing costs and broader economic effects, partially offset by reduced overall care demand.
 Cash flows from operations were $3.1 billion or 1x net income in the third quarter and $16.1 billion or 1.2x net
income year-to-date. Cash flows for the third quarter were impacted by U.S. Treasury’s deferral of federal tax
payments from the second quarter to the third quarter.
 The third quarter medical care ratio of 81.9% compared to 82.4% last year, impacted by modestly lower care patterns
and the return of the health insurance tax, offset by the Company’s COVID-19 assistance measures. Favorable reserve
development was $380 million in the third quarter, with $240 million related to 2020 and $140 million to prior year
periods. Days claims payable were 46.8 days compared to 49.3 in the third quarter 2019 and 50.4 in the second quarter
2020. The year-over-year comparison was impacted by the Company’s acceleration of payments to care providers for
needed health system liquidity, while the sequential comparison reflects increased care utilization from highly
constrained second quarter levels.
 The operating cost ratio of 15.6% in the third quarter of 2020 increased from 14.8% in the same period last year, due
to the health insurance tax, COVID-19 response efforts and business mix.
 Year-to-date return on equity of 28.9% reflects continued strong operating performance and the temporary impact of
care deferrals earlier in the year.
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UnitedHealthcare provides health care benefits globally, serving individuals and employers, and Medicare and Medicaid
beneficiaries. UnitedHealthcare is dedicated to improving the value consumers receive by reducing the total cost of care,
enhancing the quality of care received, improving health and wellness and simplifying the health care experience.
Quarterly Financial Performance
Three Months Ended
September 30,
2020
September 30,
2019
June 30,
2020
Revenues
$50.4 billion
$48.1 billion
$49.1 billion
Earnings from Operations $2.1 billion $2.7 billion $7.0 billion
Operating Margin 4.1% 5.5% 14.3%
 UnitedHealthcare third quarter revenues of $50.4 billion compare to $48.1 billion in the year ago quarter, as growth in
serving public-sector and senior programs was partially offset by commercial enrollment declines. UnitedHealthcare
public-sector and senior program revenues, grew by 9.7% year-over-year in the quarter, with 935,000 additional
people served year to date in Medicaid and Medicare Advantage, while commercial revenue was impacted by member
attrition due to economic factors.
 Operating earnings of $2.1 billion in the third quarter compare to $2.7 billion last year, with the expected decline due
to the impact of the Company’s consumer and customer assistance measures and COVID-19 related costs, partially
offset by still modestly lower care patterns which were significantly above second quarter levels. The Company
expects future periods will reflect the resumption of more typical care patterns and continued COVID-19 treatment
and testing costs, against the continued backdrop of an uncertain economic recovery.
 UnitedHealthcare growth highlights include strong positioning in Medicare Advantage in 2021; expected Medicaid
membership gains in 2021 through entry into Kentucky, Indiana and North Carolina and expansion in Nebraska, along
with a strong proposal pipeline for existing and new states; continued growth in dual special needs plans; commercial
market expansion in specialty benefits and new provider-led benefit plans.
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Optum is a health services business serving the global health care marketplace, including payers, care providers, employers,
governments, life sciences companies and consumers. Using market-leading information, data analytics, technology and
clinical insights, Optum helps improve overall health system performance: optimizing care quality, reducing health care costs
and improving the consumer experience.
Quarterly Financial Performance
Three Months Ended
September 30,
2020
September 30,
2019
June 30,
2020
Revenues
$34.9 billion
$28.8 billion
$32.7 billion
Earnings from Operations $2.6 billion $2.4 billion $2.2 billion
Operating Margin 7.4% 8.2% 6.8%
 Optum third quarter revenues and operating earnings of $34.9 billion and $2.6 billion respectively advanced from
$28.8 billion and $2.4 billion a year ago.
 OptumHealth served 98 million people in the third quarter, compared to 95 million a year ago, while revenue per
consumer served increased 25% year-over-year, continuing its strong growth, driven by further expansion of people
served in value-based care arrangements. OptumHealth’s care delivery practices were impacted by modestly lower
care patterns that were significantly closer to normal levels than the second quarter.
 The OptumInsight revenue backlog increased by $500 million in the quarter to nearly $20 billion, driven by growth in
managed services. Activity levels were affected by care deferrals in volume-based services.
 OptumRx continued to invest in building its growing pharmacy services offerings, including areas such as
community-based behavioral health pharmacies, e-commerce services, home infusion services and specialty pharmacy
expansion. Overall script volumes continued to approach more normal levels, rising 9 million sequentially to 325
million.
 Optum growth highlights include continued strong growth in payer relationships serving seniors at OptumCare
through senior clinics, in the home services and through more than 1 million virtual visits this year. The Company
continues to drive its expansion of integrated specialty medical and pharmacy management services across OptumRx
and OptumCare. OptumInsight’s pipeline is expanding for comprehensive managed services, including revenue
management, information technology, payment integrity and data analytics outsourcing.
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About UnitedHealth Group
UnitedHealth Group (NYSE: UNH) is a diversified health care company dedicated to helping people live healthier lives
and helping make the health system work better for everyone. UnitedHealth Group offers a broad spectrum of products
and services through two distinct platforms: UnitedHealthcare, which provides health care coverage and benefits
services; and Optum, which provides information and technology-enabled health services. For more information, visit
UnitedHealth Group at www.unitedhealthgroup.com or follow @UnitedHealthGrp on Twitter.
Earnings Conference Call
As previously announced, UnitedHealth Group will discuss the company’s results, strategy and future outlook on a
conference call with investors at 8:45 a.m. Eastern Time today. UnitedHealth Group will host a live webcast of this
conference call from the Investor Relations page of the company’s website (www.unitedhealthgroup.com). Following
the call, a webcast replay will be available on the same site through October 28, 2020. The conference call replay can
also be accessed by dialing 1-800-839-5493. This earnings release and the Form 8-K dated October 14, 2020, can also
be accessed from the Investor Relations page of the company’s website.
Non-GAAP Financial Information
This news release presents non-GAAP financial information provided as a complement to the results provided in
accordance with accounting principles generally accepted in the United States of America (“GAAP”). A reconciliation
of the non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the
accompanying tables found at the end of this release.
Forward-Looking Statements
The statements, estimates, projections, guidance or outlook contained in this document include “forward-looking”
statements which are intended to take advantage of the “safe harbor” provisions of the federal securities law. The words
“believe,” “expect,” “intend,” “estimate,” “anticipate,” “forecast,” “outlook,” “plan,” “project,” “should” and similar
expressions identify forward-looking statements. These statements may contain information about financial prospects,
economic conditions and trends and involve risks and uncertainties. Actual results could differ materially from those that
management expects, depending on the outcome of certain factors including: risks associated with public health crises,
large-scale medical emergencies and pandemics, such as the COVID-19 pandemic; our ability to effectively estimate,
price for and manage medical costs; new or changes in existing health care laws or regulations, or their enforcement or
application; the DOJ’s legal action relating to the risk adjustment submission matter; our ability to maintain and achieve
improvement in quality scores impacting revenue; reductions in revenue or delays to cash flows received under
government programs; changes in Medicare, the CMS star ratings program or the application of risk adjustment data
validation audits; failure to maintain effective and efficient information systems or if our technology products do not
operate as intended; cyberattacks, other privacy/data security incidents, or our failure to comply with related regulations;
risks and uncertainties associated with the pharmacy benefits management industry; competitive pressures; changes in or
challenges to our public sector contract awards; our ability to contract on competitive terms with physicians, hospitals
and other service providers; failure to achieve targeted operating cost productivity improvements; increases in costs and
other liabilities associated with litigation, government investigations, audits or reviews; failure to manage successfully
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our strategic alliances or complete or receive anticipated benefits of strategic transactions; fluctuations in foreign
currency exchange rates; downgrades in our credit ratings; our investment portfolio performance; impairment of our
goodwill and intangible assets; and our ability to obtain sufficient funds from our regulated subsidiaries or from external
financings to fund our obligations, maintain our debt to total capital ratio at targeted levels, maintain our quarterly
dividend payment cycle, or continue repurchasing shares of our common stock. This above list is not exhaustive. We
discuss these matters, and certain risks that may affect our business operations, financial condition and results of
operations more fully in our filings with the SEC, including our reports on Forms 10-K, 10-Q and 8-K. By their nature,
forward-looking statements are not guarantees of future performance or results and are subject to risks, uncertainties and
assumptions that are difficult to predict or quantify. Actual results may vary materially from expectations expressed or
implied in this document or any of our prior communications. You should not place undue reliance on forward-looking
statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking
statements, except as required by law.
# # #
Investors: Brett Manderfeld Media: Matt Stearns
Senior Vice President Senior Vice President
952-936-7216 202-276-0085
UNITEDHEALTH GROUP
Earnings Release Schedules and Supplementary Information
Quarter Ended September 30, 2020
• Condensed Consolidated Statements of Operations
• Condensed Consolidated Balance Sheets
• Condensed Consolidated Statements of Cash Flows
• Supplemental Financial Information – es
• Supplemental Financial Information – Metrics
• Reconciliation of Non-GAAP Financial Measure
UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020 2019 2020 2019
Revenues
Premiums……………………………………………………………………………………………………………………………… $50,863 $47,397 $150,897 $142,074
Products……………………………………………………………………………………………………………………………….. 8,777 7,546 25,455 23,971
Services……………………………………………………………………………………………………………………………….. 5,124 4,942 14,265 13,756
Investment and other income…………………………………………………………………………………………………… 351 466 1,057 1,453
Total revenues…………………………………………………………………………………………………………………… 65,115 60,351 191,674 181,254
Operating costs
Medical costs………………………………………………………………………………………………………………………… 41,636 39,041 117,314 117,164
Operating costs……………………………………………………………………………………………………………………… 10,174 8,960 30,190 25,892
Cost of products sold……………………………………………………………………………………………………………… 7,935 6,627 23,123 21,606
Depreciation and amortization…………………………………………………………………………………………………. 719 709 2,159 2,002
Total operating costs………………………………………………………………………………………………………….. 60,464 55,337 172,786 166,664
Earnings from operations…………………………………………………………………………………………………….. 4,651 5,014 18,888 14,590
Interest expense……………………………………………………………………………………………………………………. (395) (449) (1,262) (1,267)
Earnings before income taxes………………………………………………………………………………………………. 4,256 4,565 17,626 13,323
Provision for income taxes………………………………………………………………………………………………………. (1,000) (936) (4,209) (2,752)
Net earnings ……………………………………………………………………………………………………………………….. 3,256 3,629 13,417 10,571
Earnings attributable to noncontrolling interests…………………………………………………………………………. (84) (91) (226) (273)
Net earnings attributable to UnitedHealth Group common shareholders……………………………….. $3,172 $3,538 $13,191 $10,298
Diluted earnings per share attributable to UnitedHealth Group common shareholders ………….. $3.30 $3.67 $13.73 $10.65
Adjusted earnings per share attributable to UnitedHealth Group common shareholders (a)…… $3.51 $3.88 $14.36 $11.22
Diluted weighted-average common shares outstanding………………………………………………………………. 962 963 961 967
(a) See page 6 for a reconciliation of the non-GAAP measure
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UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)
September 30,
2020
December 31,
2019
Assets
Cash and short-term investments…………………………………………………………………………………………………….. $20,809 $14,245
Accounts receivable, net………………………………………………………………………………………………………………… 12,171 11,822
Other current assets………………………………………………………………………………………………………………………. 21,841 16,567
Total current assets………………………………………………………………………………………………………………… 54,821 42,634
Long-term investments…………………………………………………………………………………………………………………… 39,184 37,209
Other long-term assets…………………………………………………………………………………………………………………… 96,964 94,046
Total assets……………………………………………………………………………………………………………………………… $190,969 $173,889
Liabilities, redeemable noncontrolling interests and equity
Medical costs payable……………………………………………………………………………………………………………………. $21,167 $21,690
Short-term borrowings and current maturities of long-term debt…………………………………………………………… 3,899 3,870
Other current liabilities……………………………………………………………………………………………………………………. 41,531 36,222
Total current liabilities…………………………………………………………………………………………………………….. 66,597 61,782
Long-term debt, less current maturities…………………………………………………………………………………………….. 39,895 36,808
Other long-term liabilities………………………………………………………………………………………………………………… 14,526 13,137
Redeemable noncontrolling interests……………………………………………………………………………………………….. 1,847 1,726
Equity…………………………………………………………………………………………………………………………………………… 68,104 60,436
Total liabilities, redeemable noncontrolling interests and equity………………………………………………………. $190,969 $173,889
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UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
Nine Months Ended
September 30,
2020 2019
Operating Activities
Net earnings………………………………………………………………………………………………………………………………………………… $13,417 $10,571
Noncash items:
Depreciation and amortization……………………………………………………………………………………………………………………… 2,159 2,002
Deferred income taxes and other…………………………………………………………………………………………………………………. 167 (4)
Share-based compensation………………………………………………………………………………………………………………………… 527 525
Net changes in operating assets and liabilities………………………………………………………………………………………………….. (197) (836)
Cash flows from operating activities…………………………………………………………………………………………………………… 16,073 12,258
Investing Activities
Purchases of investments, net of sales and maturities………………………………………………………………………………………. (1,386) (2,028)
Purchases of property, equipment and capitalized software……………………………………………………………………………….. (1,477) (1,421)
Cash paid for acquisitions, net……………………………………………………………………………………………………………………….. (4,326) (8,200)
Other, net…………………………………………………………………………………………………………………………………………………….. (165) 338
Cash flows used for investing activities………………………………………………………………………………………………………. (7,354) (11,311)
Financing Activities
Common share repurchases………………………………………………………………………………………………………………………….. (2,541) (5,101)
Dividends paid……………………………………………………………………………………………………………………………………………… (3,400) (2,908)
Net change in short-term borrowings and long-term debt…………………………………………………………………………………… 2,941 8,192
Other, net…………………………………………………………………………………………………………………………………………………….. 1,006 404
Cash flows (used for) from financing activities…………………………………………………………………………………………….. (1,994) 587
Effect of exchange rate changes on cash and cash equivalents………………………………………………………………………….. (160) (37)
Increase in cash and cash equivalents…………………………………………………………………………………………………………….. 6,565 1,497
Cash and cash equivalents, beginning of period……………………………………………………………………………………………….. 10,985 10,866
Cash and cash equivalents, end of period……………………………………………………………………………………………………….. $17,550 $12,363
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UNITEDHEALTH GROUP
SUPPLEMENTAL FINANCIAL INFORMATION – BUSINESSES
(in millions, except percentages)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020 2019 2020 2019
Revenues
UnitedHealthcare…………………………………………………………………………………………………… $50,373 $48,105 $150,548 $145,595
Optum………………………………………………………………………………………………………………….. 34,923 28,763 100,457 83,152
Eliminations………………………………………………………………………………………………………….. (20,181) (16,517) (59,331) (47,493)
Total consolidated revenues………………………………………………………………………………. $65,115 $60,351 $191,674 $181,254
Earnings from Operations
UnitedHealthcare…………………………………………………………………………………………………… $2,068 $2,655 $11,963 $8,251
Optum (a)……………………………………………………………………………………………………………… 2,583 2,359 6,925 6,339
Total consolidated earnings from operations………………………………………………………… $4,651 $5,014 $18,888 $14,590
Operating Margin
UnitedHealthcare…………………………………………………………………………………………………… 4.1% 5.5% 7.9% 5.7%
Optum………………………………………………………………………………………………………………….. 7.4% 8.2% 6.9% 7.6%
Consolidated operating margin………………………………………………………………………….. 7.1% 8.3% 9.9% 8.0%
Revenues
UnitedHealthcare Employer & Individual…………………………………………………………………… $14,081 $14,291 $41,324 $42,407
UnitedHealthcare Medicare & Retirement…………………………………………………………………. 22,606 20,698 68,613 62,649
UnitedHealthcare Community & State………………………………………………………………………. 11,820 10,670 34,796 33,038
UnitedHealthcare Global…………………………………………………………………………………………. 1,866 2,446 5,815 7,501
OptumHealth…………………………………………………………………………………………………………. $10,499 $8,133 $28,830 $21,994
OptumInsight………………………………………………………………………………………………………… 2,767 2,617 7,893 7,145
OptumRx………………………………………………………………………………………………………………. 22,081 18,454 65,009 55,194
Optum eliminations………………………………………………………………………………………………… (424) (441) (1,275) (1,181)
(a) Earnings from operations for Optum for the three and nine months ended September 30, 2020 included $835 and $2,388 for OptumHealth; $785 and $1,882 for
OptumInsight; and $963 and $2,655 for OptumRx, respectively. Earnings from operations for Optum for the three and nine months ended September 30, 2019
included $748 and $2,062 for OptumHealth; $632 and $1,589 for OptumInsight; and $979 and $2,688 for OptumRx, respectively.
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UNITEDHEALTH GROUP
SUPPLEMENTAL FINANCIAL INFORMATION – BUSINESS METRICS
UNITEDHEALTHCARE CUSTOMER PROFILE
(in thousands)
People Served September 30, 2020 June 30, 2020 December 31, 2019 September 30, 2019
Commercial:
Risk-based…………………………………………………………………. 7,950 8,065 8,575 8,605
Fee-based………………………………………………………………….. 18,400 18,705 19,185 19,230
Total Commercial………………………………………………………. 26,350 26,770 27,760 27,835
Medicare Advantage……………………………………………………….. 5,670 5,605 5,270 5,230
Medicaid………………………………………………………………………… 6,435 6,210 5,900 5,965
Medicare Supplement (Standardized)………………………………… 4,450 4,450 4,500 4,510
Total Public and Senior…………………………………………….. 16,555 16,265 15,670 15,705
Total UnitedHealthcare – Domestic Medical……………….. 42,905 43,035 43,430 43,540
Global……………………………………………………………………………. 5,285 5,365 5,720 5,845
Total UnitedHealthcare – Medical……………………………….. 48,190 48,400 49,150 49,385
Supplemental Data
Medicare Part D stand-alone……………………………………….. 4,075 4,120 4,405 4,415
OPTUM PERFORMANCE METRICS
September 30, 2020 June 30, 2020 December 31, 2019 September 30, 2019
OptumHealth Consumers Served (in millions)…………………….. 98 97 96 95
OptumInsight Contract Backlog (in billions)………………………… $19.9 $19.4 $19.3 $19.0
OptumRx Quarterly Adjusted Scripts (in millions)………………… 325 316 333 325
Note: UnitedHealth Group served 140 million unique individuals across all businesses at September 30, 2020.
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UNITEDHEALTH GROUP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
(in millions, except per share data)
(unaudited)
ADJUSTED NET EARNINGS PER SHARE(a)
Three Months Ended
September 30,
Nine Months Ended
September 30,
Projected
Year Ended
December 31,
2020 2019 2020 2019 2020
GAAP net earnings attributable to UnitedHealth Group common shareholders…. $3,172 $3,538 $13,191 $10,298 $15,025 – $15,275
Intangible amortization………………………………………………………………………………. 269 262 801 729 ~1,070
Tax effect of intangible amortization…………………………………………………………….. (64) (64) (194) (180) ~(260)
Adjusted net earnings attributable to UnitedHealth Group common
shareholders………………………………………………………………………………………. $3,377 $3,736 $13,798 $10,847 $15,835 – $16,085
GAAP diluted earnings per share………………………………………………………………… $3.30 $3.67 $13.73 $10.65 $15.65 – $15.90
Intangible amortization per share………………………………………………………………… 0.28 0.27 0.83 0.75 ~1.10
Tax effect per share of intangible amortization………………………………………………. (0.07) (0.06) (0.20) (0.18) ~(0.25)
Adjusted diluted earnings per share………………………………………………………. $3.51 $3.88 $14.36 $11.22 $16.50 – $16.75
(a) Adjusted net earnings per share is a non-GAAP financial measure. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, or
superior to, financial measures prepared in accordance with GAAP.
Adjusted net earnings per share excludes from the relevant GAAP metric, as applicable, intangible amortization and other items, if any, that do not relate to the
Company’s underlying business performance. Management believes that the use of adjusted net earnings per share provides investors and management useful
information about the earnings impact of acquisition-related intangible asset amortization. As amortization fluctuates based on the size and timing of the Company’s
acquisition activity, management believes this exclusion provides a more useful comparison of the Company’s underlying business performance and trends from
period to period. While intangible assets contribute to the Company’s revenue generation, the intangible amortization is not directly related. Therefore, the related
revenues are included in adjusted earnings per share.
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