UnitedHealth Group projects its 2022 revenues will be around $320 billion – that’s equivalent to 7% of total US healthcare spend. (around 80% of UHG revenues flow through as medical expenses.)
UHG is the largest of the health insurers, capturing 14.4% of total premiums – or one of every 7 premium dollars. (thanks to Jeff Kadison for the math correction)
The four largest health insurers capture 4 of every 10 premium dollars.
It also made the most profits through the third quarter of 2021 (most of CVS’ revenue is not from its health insurance business.)
For readers in the workers’ comp business, UHG’s projected 2022 medical spend is about 8 times larger than total US workers’ comp medical spend.
Joe,
Interesting to see the oligopoly in numbers with premiums and prescription drugs costs so high. Also, 14.5% of premium equals 1 in 7 premium dollars, not 1 in 13. Can’t fool an actuary.
thanks for the math check Jeffrey – much appreciated!
be well Joe
“UHG’s spend is 8x times larger…” JUST UHG alone… This is a good illustration of the magnitude of group health spend compared to work comp. When people wonder why businesses that seem monopolistic in our industry go unchecked, it is because the work comp spend is so small it barely registers.
well said Jay.
It’s also why providers don’t negotiate reasonable rates with WC PPOs.
be well – Joe