UnitedHealth (NYSE:UNH) stock is falling alongside other health insurance companies on Wednesday as concerns about costs increase.
The big worry that health insurance companies have is an increase in customers making use of their services. These companies, UnitedHealth included, are worried that more seniors are going to start making use of their benefits.
Health insurance companies saw seniors put off getting certain issues, such as knee and hip replacements, taken care of during the Covid-19 pandemic. The lockdowns kept many from using their health insurance as they elected to delay their plans. However, with the pandemic over, insurance companies are predicting an increase in use.
Tim Noel, the chief executive of Medicare and retirement at UnitedHealth, said the following in a statement collected by Barron’s.
“More seniors are just more comfortable accessing services for things that they might have pushed off a bit like knees and hips. We’re just seeing more services which, again, we’re really happy to see that our seniors are accessing the care that they need.”
What This Means For UNH Stock
With increasing costs for medical services, UnitedHealth, and other health insurance companies, may not do as well during earnings reports. UNH noted that it could see its medical cost ratio in the second quarter of 2023 come in near or above its outlook for the full year.
Today’s news brings heavy trading to UNH stock with some 3.5 million shares changing hands. That’s already above its daily average trading volume of about 3 million shares. This also has UNH falling 6.7% as of Wednesday morning.
Investors looking for more of the most recent stock market news will want to keep reading!
We have all of the hottest stock market coverage traders need to know about on Wednesday. Among that is what has shares of MicroVision (NASDAQ:MVIS), Plug Power (NASDAQ:PLUG), and Cineverse (NASDAQ:CNVS) stock moving today. You can find all of that news at the following links!
More Wednesday Stock Market News
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
