US health insurer UnitedHealth has forecast medical costs for 2025 to be above Wall Street expectations, driven by high demand for healthcare services in its government-backed insurance businesses. The company expects the percentage of premiums spent on medical care to range from 86% to 87%, surpassing analysts’ estimates of 84.77%. This increase is attributed to older adults seeking non-urgent medical care they had postponed during the pandemic, as well as changes in Medicaid enrollment norms and lower payment rates by government.
Source: https://www.reuters.com/business/healthcare-pharmaceuticals/unitedhealth-forecasts-2025-medical-costs-above-expectations-2024-12-04