Doc

UnitedHealth sees more revenue, but less profit… and it doesn’t really want to see you

Snacks / Friday, July 16, 2021

iCal it so I know it's real… Your backlog of doc appointments. As patients across the US rekindled their relationships with their doctors, UnitedHealth's quarterly revenue jumped 13% from last year. But profits at America's largest health insurer took a post-pandemic hit.

  • Cancel the checkup: As people avoided waiting rooms and germy hotspots last year, UnitedHealth had its most profitable quarter ever. You didn't use the insurance benefits you pay for monthly — so your canceled visit went straight into United's pocket
  • Fit me in ASAP: Now that people are getting their weird bumps checked out, UnitedHealth has to foot the bill. Profit plunged last quarter thanks to all those expensive doc dates.

Re-United… and it feels so "meh." Most industries are thrilled to see customers return — that’s not necessarily the case for health insurers. Insurers encourage preventive visits, which help avoid expensive – and dangerous – problems like heart disease or cancer. But they might prefer not to see customers go in for non-urgent visits like check-ups, and even pay big bucks to keep them away. That's why...

  • Telehealth: UnitedHealth expanded its telehealth offerings, which are cheaper than IRL appts, to all 50 states during the pandemic. Competing insurers Oscar, Amazon Care, and Kaiser Permanente also expanded virtual-first care plans this year.
  • Wearables: UnitedHealth also offers customers free Apple Watches or Fitbits… if they get their steps in.

Sometimes, not spending is good business… and can help boost the bottom line. The health insurance biz has a classic “do less” model: Just like Olive Garden doesn’t really want you to spend that gift certificate, health insurers often make less money the more their customers use their services. Ditto for car insurance companies.

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