UnitedHealth Group Inc (NYSE:UNH, ETR:UNH) shares moved up 4% to about $333 in late-morning trading on Tuesday after the health insurer reaffirmed its full-year 2025 financial guidance.
The company confirmed its 2025 forecast of adjusted earnings of at least $16 per share with revenue in the range of $445.5 billion to $448 billion.
The current analyst consensus estimate is for full-year earnings of $16.24 per share on revenue of about $448.2 billion.
UnitedHealth also stated in a filing that it expects about 78% of its members to be enrolled in top-rated Medicare insurance plans next year.
Medicare membership for plans with higher star ratings would mean larger payments to the company from the government, with bonus payments that can be worth hundreds of millions or billions of dollars, CNBC reported.
The media outlet noted that Medicare Advantage has been a growth driver for health insurers, but rising medical costs and tighter government reimbursements have weighed on profits.
Memberships in four-star or higher-rated Medicare Advantage plans cover Americans aged 65 years or older.
In July, UnitedHealth cautioned that its 2025 outlook would be impacted by rising medical expenses that are hurting its margins.