UnitedHealth Group’s third-quarter net income jumped 23 percent to trump expectations, as preparations for retiring Baby Boomers started to pay off for the nation’s largest health insurer, The Associated Press reports.
UnitedHealth also raised its 2012 earnings forecast.
The Minnetonka, Minn., company, which has major operations in Hartford, said Tuesday its Medicare and retirement revenue swelled by $1.2 billion, as Medicare Advantage enrollment grew by 400,000 people compared to last year.
Medicare Advantage plans are privately run, subsidized versions of the government’s Medicare program for the elderly and disabled people. UnitedHealth is the largest provider of these plans, and it made a couple acquisitions within the past year to help spur growth.
Overall, UnitedHealth Group Inc. earned $1.56 billion, or $1.50 per share, in the three months that ended Sept. 30. That compares with $1.27 billion, or $1.17 per share, in last year’s third quarter.
Analysts had forecast earnings of $1.34 per share, and UnitedHealth said earlier this month its net income would be at least $1.45 per share.
Revenue rose 8 percent to $27.3 billion. That fell short of average analyst expectations of $27.58 billion, according to FactSet.
The insurer now expects 2012 earnings of $5.20 to $5.25 per share, up from a previous forecast for $4.90 to $5 per share. Analysts expected $5.13 per share.
UnitedHealth also said revenue from its community and state business, which includes Medicaid coverage for the poor and disabled, climbed 12 percent to $420 million in the third quarter.
The insurer also recorded a $390 million benefit in the quarter because claims leftover from prior periods came in lower than expected, which freed up money held in reserve.
