Higher costs, taxes hit UnitedHealth’s bottom line

Minnesota health insurer UnitedHealth Group, which has significant Hartford operations, reported first-quarter profits of $1.1 billion, a decline of 7.5 percent from the same quarter last year.

Earnings per share were $1.10, down from $1.16 a year ago, when the insurer earned $1.19 billion.

Revenue was $31.71 billion, up 4.5 percent from $30.34 billion. Expenses also increased by nearly 5 percent, to $29.65 billion.

UnitedHealth characterized the results as strong, noting that it was able to fend off much of a 35-cents-per-share impact from newly effective Affordable Care Act taxes and lower Medicare Advantage payments that forced it to exit certain markets.

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