Source: [https://finance.yahoo.com/news/unitedhealth-forecasts-2026-profit-slightly-105714467.html](https://finance.yahoo.com/news/unitedhealth-forecasts-2026-profit-slightly-105714467.html)
>UnitedHealth on Tuesday forecast 2026 adjusted profit slightly above analysts' estimates, in a sign that medical cost-control measures under CEO Stephen Hemsley were beginning to reap results.
>Hemsley, who returned as CEO in May to restore investor and consumer trust in the healthcare behemoth, has been working to steer the company out of a difficult period that included the murder of a top executive, a surge in medical costs, a federal probe, and Americans' anger at insurance industry practices.
>The company has been aiming for a return to growth in 2026, but expects a challenging recovery in its Medicaid business for lower-income Americans due to a mismatch between payment rates and costs for medical services. It has also pulled back on Medicare Advantage offerings for older adults.
>The U.S. on Monday proposed an average rate increase of 0.09% in payments to private insurers next year for the Medicare Advantage plans they manage, far below Wall Street's expectations.
>This sent shares of top insurers Humana, CVS Health and UnitedHealth down more than 12% before the bell.
>CMS typically finalizes Medicare Advantage rates in early April. If the current proposal holds, the rate increase would result in more than $700 million in payments to Medicare Advantage plans in 2027.
>UnitedHealth sees annual profit per share of greater than $17.75, compared with analysts' average estimate of $17.74, according to data compiled by LSEG.
>The company has struggled with higher costs across government-backed plans for over two years, driven by increased utilization of behavioral health services, specialty drugs and home-health services.
>For the year, adjusted medical care ratio - the percentage of premiums spent on medical care - was 88.9% compared with 85.5% in 2024. Analysts on average had expected 89.1% for 2025.
>The increase was driven by a reduction in Medicare funding, changes from the Inflation Reduction Act combined with accelerating medical cost trends, the company said.
>On an adjusted basis, UnitedHealth earned a fourth-quarter profit of $2.11 per share, compared with analysts' average estimate of $2.10, according to data compiled by LSEG.