Health insurance stocks have been on a tear since managed care company UnitedHealth Group last reported earnings in mid-July.
When the company reports third-quarter earnings on Friday, investors will see whether UnitedHealth, and the managed care subsector at large, can keep that run going. UnitedHealth is among the first major healthcare companies to report earnings each quarter, and its results and guidance often serve as a bellwether for the industry.
The second quarter medical loss ratio was 83.2%, higher than the 81.% in the same quarter last year, but not as high as investors had feared. Analysts expect the medical loss ratio to drop to 82.8% in the third quarter, according to FactSet. The earnings come amid an investor frenzy over the potential impact of the new GLP-1 obesity drugs, with each day bringing a surge of worries about the drugs’ impact on some particular sector that drives a round of selloffs. UnitedHealth executives will more than likely face questions about their thinking on the GLP-1s, and how their plans will handle paying for the drugs.
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