UnitedHealth Projects Growth Despite COVID Costs, Plus Tech Investment in 2021

At its annual investor day on Dec. 1, UnitedHealth Group predicted that it will incur $2 billion in extra, incidental expenditures in 2021 caused by the ongoing COVID-19 pandemic. Still, Wall Street analysts agreed with UnitedHealth executives’ overall bullish outlook, citing the payer-provider giant’s projected growth in Medicare Advantage (MA) enrollment and ongoing strong returns from its OptumHealth provider segment.

Citi analyst Ralph Giacobbe wrote in a Dec. 2 investor note that he was convinced by UnitedHealth executives’ assertions that COVID-19 held back projected 2021 revenue growth, and he anticipated “a higher baseline to consider when contemplating future years.”

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