Scott Becker - UnitedHealthcare Gets Crushed 1-28-26

Summary

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Episode Overview

Episode Title: UnitedHealthcare Gets Crushed
Host: Scott Becker (with Podcast Co-host)
Podcast: Becker’s Healthcare Podcast
Date: January 28, 2026

This special episode provides urgent analysis on the dramatic drop in UnitedHealthcare’s stock price and the deeper issues driving major losses among health insurance giants. Host Scott Becker and his co-host quickly break down financial results, market reactions, and industry-wide challenges, highlighting why this is a historic moment for U.S. healthcare insurers.

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Key Discussion Points & Insights

1. Sudden Market Downturn for UnitedHealthcare

• [00:48] The stock of UnitedHealthcare saw a tremendous drop, “about 20% for the day” just before market close on Tuesday, January 27.
• [00:57] Over the last year, UnitedHealthcare’s share price has plummeted “about 48% over the last 52 weeks.”

"On Tuesday the 27th, the stock of UnitedHealthcare towards the very end of the day now dropped by about 20% for the day."
— Podcast Co-host [00:48]

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2. The Good: Solid Financial Performance in Past Year

• [01:08] Final numbers for 2025 looked strong despite the market reaction:
  • Earnings per share for Q4 “ended up above expectations.”
  • Annual revenue hit $448 billion, ranking UnitedHealthcare as “about the third or fourth largest company by revenues in the United States.”

“Earnings per share for the fourth quarter ended up above expectations… they end up in revenues for the year at 448 billion.”
— Scott Becker & Co-host [01:10–01:14]

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3. The Bad: First Projected Revenue Decline in 40 Years

• [01:22–01:30] For the first time in decades, management is forecasting lower revenue for the next year.
• This is “about the first time in about 40 years, four decades, that they've projected reduced revenues versus growth.”

“So that's bad news. The Optum health business also struggled.”
— Podcast Co-host [01:32]

• Optum struggles: The company’s high-profile Optum division also failed to meet expectations.

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4. The Ugly: Rising Medical Loss Ratios & Membership Losses

• [01:40] United projects contractions in both Medicare and Medicaid enrollment.
• [01:46] Medical Loss Ratio (MLR) “has skied to about 89%.” This ratio represents the percentage of premiums spent on medical care versus administrative costs—a sharp rise from historical norms:
  • “During COVID and before that, [MLRs were] in the 82, 85% range. When they got to 85, 86%, the health insurers started to have more trouble.”
  • United’s current 89.1% MLR is “really challenging numbers for insurers.”

“Now when you see United last year at 89.1%, those are really challenging numbers for insurers.”
— Scott Becker [02:09]

• Consumer Perspective: Becker notes that high MLRs—from a patient or provider viewpoint—can be positive, since more dollars go toward care versus admin. From a profitability perspective, however, the numbers are concerning.

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5. Industry-Wide Impact

• [02:33–02:35] UnitedHealthcare’s troubles are not isolated. Other insurers—including Medicaid, Medicare, and commercial health plans—also “are taking it on the chin today.”
• [02:38] Notably, Humana’s stock is also “down about 19% today.”

“The other big insurers are also taking it on the chin today... Humana is also down about 19% today.”
— Scott Becker [02:33–02:38]

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Notable Quotes & Moments

• Market Shock:
  “On Tuesday the 27th, the stock of UnitedHealthcare towards the very end of the day now dropped by about 20% for the day.”
  — Podcast Co-host [00:48]
• Historic Revenue Contraction:
  “About the first time in about 40 years, four decades, that they've projected reduced revenues versus growth in revenues.”
  — Podcast Co-host [01:30]
• Red-Alert Medical Loss Ratio:
  “Now when you see United last year at 89.1%, those are really challenging numbers for insurers.”
  — Scott Becker [02:09]
• Industry Shake-Up:
  “The other big insurers are also taking it on the chin today… Humana is also down about 19% today.”
  — Scott Becker [02:33]

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Timestamps for Key Segments

• 00:48: UnitedHealthcare’s historic single-day and annual share price decline
• 01:08–01:14: 2025 positive earnings and massive revenues
• 01:22–01:30: First revenue contraction forecast in four decades
• 01:40–02:09: MLR spikes and why they matter for profits and consumers
• 02:33–02:38: Broader industry crash and competitor impacts

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Summary Takeaway

This short, urgent Becker’s Healthcare Podcast episode highlights a seismic moment for U.S. health insurers, centered on UnitedHealthcare’s deepest stock plunge in years, first revenue drop in decades, and the explosive rise in medical loss ratios. Scott Becker frames United’s plight as part of wider turbulence shaking the insurance sector, signaling a possible end to a long era of relentless growth and profit stability for the industry’s giants.

Transcript

[Event Announcer]

This is where healthcare leadership comes together. Becker's 16th annual meeting brings more than 3,500 hospital and health system executives and nearly 800 speakers to Chicago, April 13th through the 16th. This year's event includes keynote conversations with Dallas Cowboys legend Troy Aikman and former President George W. Bush. For the agenda and event details, visit Beckershospitalreview.com and click on the Events tab in the upper right. We're looking forward to hosting you in Chicago.

[Scott Becker]

This is Scott Becker with the Becker's Healthcare Podcast. This is a short episode about UnitedHealthcare, and the title of this will be UnitedHealthcare Gets Crushed. And we're just going to go through.

[Podcast Co-host]

Seven or eight quick points related to United Healthcare.

[Scott Becker]

So On Tuesday the 27th, the stock.

[Podcast Co-host]

Of UnitedHealthcare towards the very end of the day now dropped by about 20% for the day.

[Scott Becker]

It's also down about 48% over the last 52 weeks.

[Podcast Co-host]

So really there's a a good, bad and ugly here story. First, earnings for last year and revenues.

[Scott Becker]

For last year came out pretty well.

[Podcast Co-host]

Earnings per share for the fourth quarter.

[Scott Becker]

Ended up above expectations.

[Podcast Co-host]

They end up in revenues for the year at 448 billion, making United about the third or fourth largest company by.

[Scott Becker]

Revenues in the United States.

[Podcast Co-host]

So that's all good news. The bad news is they're projecting lower revenues next year.

[Scott Becker]

This is about the first time in.

[Podcast Co-host]

About 40 years, four decades, that they've projected reduced revenues versus growth in revenues. So that's bad news. The Optum health business also struggled.

[Scott Becker]

They're also expecting a contraction in Medicare and Medicaid membership enrollment. And finally, the medical loss ratio has skied to about 89%. I've been watching medical loss ratios for the last 10 years or so, not before that. I don't remember really it being top of mind. Remember during COVID and before that, medical loss ratios being in the 82, 85% range. When they got to 85, 86%, the health insurers started to have more trouble. Now when you see United last year.

[Podcast Co-host]

At 89.1%, those are really challenging numbers for insurers. Now, as a health care consumer, as.

[Scott Becker]

Health care operator, we think medical loss ratio should be pretty high because more dollars should be devoted towards health care than administrative cost. But either way, from a health insurance perspective, these are challenging numbers. Now the thing I'll also point out about today's earnings release and what's happening with United is it's not unique to United.

[Podcast Co-host]

The other big insurers are also taking.

[Scott Becker]

It on the chin today. Both the Medicaid insurers and the Medicare insurers and the commercial insurers, everybody's taking it on the chin. Humana is also down about 19% today. Thank you for listening to this episode of the Beckers Healthcare Podcast. Thank you very much for joining us.