UnitedHealth shares tumble after health care giant reports soaring medical costs in 4Q

UnitedHealth Group turned in a better-than-expected fourth quarter even as medical costs soared 16% for the health care giant.

Shares of UnitedHealth and other major health care and insurance providers slipped in early trading Friday after the company announced results. UnitedHealth is the first to report earnings every quarter, and many analysts see it as a bellwether for rivals.

UnitedHealth said medical costs, its largest expense, jumped to $62.23 billion in the quarter from $53.6 billion at the end of 2022. The company has dealt with rising costs in recent quarters, particularly in its Medicare Advantage business.

Overall, UnitedHealth’s profit climbed nearly 15% to about $5.5 billion in the quarter, and the company earned more than $22 billion on the year.