Home / Business and Economy / UnitedHealth Group's Turnaround Plan: Shrinking Membership, Raising Prices
UnitedHealth Group's Turnaround Plan: Shrinking Membership, Raising Prices
27 Jan
Summary
- UnitedHealth forecasts a 2% revenue decline for 2026.
- Company plans to shrink membership and raise prices.
- Medicare's new coding system will reduce payments by $6 billion.
UnitedHealth Group has announced a projected 2% year-over-year revenue decline for 2026, a first in a decade. This forecast stems from a strategic decision to "right-size" the enterprise, including divestitures of international operations and a significant decrease in U.S. membership.
The company's turnaround plan is focused on restoring profitability through measures such as shrinking membership, increasing prices, and reducing benefits. These actions are being taken as UnitedHealth navigates persistent medical cost pressures.
A substantial $6 billion reduction in payments is anticipated due to Medicare's transition to a new coding system, known as V28. This change will impact both UnitedHealthcare and the Optum health-care unit.
Furthermore, recent proposals for Medicare Advantage payment rates have created market uncertainty. UnitedHealth aims for an improved medical benefit ratio in 2026, indicating a move towards greater profitability despite these headwinds.
