Demand spikes in seniors, behavioral health care challenge UnitedHealth’s provider arm

UnitedHealth Group’s Optum subsidiary saw a lower operating margin in the second quarter due to more seniors getting care, a spike in demand for behavioral health services, and an influx of members with higher health needs.

“Those three elements, the senior trend piece, the behavioral piece, and then the effects of the strong growth is really what explains what’s going on,” UnitedHealth Group CEO Andrew Witty said on the company’s earnings call on Friday. “We’ll continue to lean into that growth very assertively.”

Minnetonka, Minn.-based UnitedHealth Group’s Optum segment, which includes its provider arm, its pharmacy benefit manager, and its data and technology arm, reported an operating margin of 6.6% in the quarter ended June 30, compared with 7.3% in the prior-year period. Leaders said the decline was within its provider arm, Optum Health.

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