UnitedHealth Shares Plunge as Medical Costs Spiral Out of Control

The investment case for UnitedHealth Group is facing its most severe test in recent memory. Despite posting quarterly revenue that surpassed market expectations, the healthcare behemoth has recorded seven consecutive sessions of declining share prices—a pattern that would trigger alarm bells for most equities but has become routine for this industry leader. The contradiction between operational performance and market sentiment stems from a fundamental imbalance: the company’s medical expenses are rising at a pace that dramatically outpaces revenue growth.

At the heart of UnitedHealth’s challenges lies a critical insurance industry metric that presents a concerning trajectory. The Medical Care Ratio (MCR), which measures the percentage of premium revenues Read more...