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UnitedHealth raises outlook after medical cost ratio improves in Q3
The insurer said its medical cost ratio fell to 88.4% in Q3, and it reported $610 million of net favorable prior period reserve development tied to 2026 dates of service.
UnitedHealth Group raised its full-year adjusted earnings outlook for the third time in 2026 after reporting improved medical costs in its third quarter results, even as it shed employer-sponsored members during the period, Insurance Business reports.
The company said its medical cost ratio declined to 88.4% in Q3 from 89.9% in Q3 2025, and it attributed the improvement to benefit design changes, pricing discipline, and medical cost management, while not citing lower utilization as a driver.
UnitedHealthcare served 48.3 million people in Q3, down from 49.8 million at year-end 2025, and the insurer lost 165,000 employer-sponsored members in the quarter.
UnitedHealth also recorded $610 million of net favorable prior period reserve development related to 2026 dates of service, and it attributed the decline in employer-sponsored members during Q3 to employer attrition.