UNITEDHEALTH GROUP INC
For the period ended Dec 31, 2023. Filed Feb 28, 2024.
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FY2023 · Filed Feb 28, 2024
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7. Medical Costs Payable
- Medical Costs Payable
The following table shows the components of the change in medical costs payable for the years ended December 31:
| (in millions) | 2023 | 2022 | 2021 |
|---|---|---|---|
| Medical costs payable, beginning of period | $29,056 | $24,483 | $21,872 |
| Acquisitions | 1 | 308 | 88 |
| Reported medical costs: | |||
| Current year | 242,734 | 211,252 | 188,631 |
| Prior years | (840) | (410) | (1,720) |
| Total reported medical costs | 241,894 | 210,842 | 186,911 |
| Medical payments: | |||
| Payments for current year | (211,380) | (184,049) | (165,524) |
| Payments for prior years | (27,176) | (22,528) | (18,864) |
| Total medical payments | (238,556) | (206,577) | (184,388) |
| Medical costs payable, end of period | $32,395 | $29,056 | $24,483 |
For the years ended December 31, 2023 and 2022 , prior years’ medical cost reserve development included no individual factors that were significant. For the year ended December 31, 2021, prior years’ medical cost reserve development was primarily driven by lower than expected care activity and care patterns disrupted by COVID-19.
Medical costs payable included IBNR of $22.3 billion and $20.0 billion at December 31, 2023 and 2022, respectively. Substantially all of the IBNR balance as of December 31, 2023 relates to the current year.
The following is information about incurred and paid medical cost development as of December 31, 2023:
| Net Incurred Medical Costs | |||
|---|---|---|---|
| (in millions) · For the Years Ended December 31, | |||
| Year · 2022 · 2023 | |||
| 2022 | $211,252 | $210,476 | |
| 2023 | 242,734 | ||
| Total | $453,210 | ||
| Net Cumulative Medical Payments | |||
| (in millions) | For the Years Ended December 31, | ||
| Year | 2022 | 2023 | |
| 2022 | $(184,049) | $(209,564) | |
| 2023 | (211,380) | ||
| Total | (420,944) | ||
| Net remaining outstanding liabilities prior to 2022 | 129 | ||
| Total medical costs payable | $32,395 | ||
- Short-Term Borrowings and Long-Term Debt
Short-term borrowings and senior unsecured long-term debt consisted of the following:
| Carrying Value as of December 31, | ||
|---|---|---|
| (in millions, except percentages) | 2023 | 2022 |
| Commercial paper | $1,088 | $800 |
| $625 million 2.750% notes due February 2023 | — | 622 |
| $750 million 2.875% notes due March 2023 | — | 746 |
| $750 million 3.500% notes due June 2023 | — | 750 |
| $750 million 3.500% notes due February 2024 | 750 | 749 |
| $1,000 million 0.550% notes due May 2024 | 999 | 998 |
| $750 million 2.375% notes due August 2024 | 750 | 749 |
| $500 million 5.000% notes due October 2024 | 499 | 499 |
| $2,000 million 3.750% notes due July 2025 | 1,997 | 1,995 |
| $750 million 5.150% notes due October 2025 | 748 | 747 |
| $300 million 3.700% notes due December 2025 | 299 | 299 |
| $500 million 1.250% notes due January 2026 | 498 | 498 |
| $1,000 million 3.100% notes due March 2026 | 998 | 998 |
| $1,000 million 1.150% notes due May 2026 | 924 | 893 |
| $750 million 3.450% notes due January 2027 | 748 | 748 |
| $625 million 3.375% notes due April 2027 | 622 | 622 |
| $600 million 3.700% notes due May 2027 | 598 | 597 |
| $950 million 2.950% notes due October 2027 | 944 | 943 |
| $1,000 million 5.250% notes due February 2028 | 1,011 | 1,008 |
| $1,150 million 3.850% notes due June 2028 | 1,146 | 1,145 |
| $850 million 3.875% notes due December 2028 | 846 | 845 |
| $1,250 million 4.250% notes due January 2029 | 1,238 | — |
| $900 million 4.000% notes due May 2029 | 862 | 849 |
| $1,000 million 2.875% notes due August 2029 | 908 | 886 |
| $1,250 million 5.300% notes due February 2030 | 1,275 | 1,269 |
| $1,250 million 2.000% notes due May 2030 | 1,238 | 1,237 |
| $1,500 million 2.300% notes due May 2031 | 1,290 | 1,256 |
| $1,500 million 4.200% notes due May 2032 | 1,412 | 1,393 |
| $2,000 million 5.350% notes due February 2033 | 2,046 | 2,037 |
| $1,500 million 4.500% notes due April 2033 | 1,463 | — |
| $1,000 million 4.625% notes due July 2035 | 1,014 | 993 |
| $850 million 5.800% notes due March 2036 | 838 | 840 |
| $500 million 6.500% notes due June 2037 | 491 | 493 |
| $650 million 6.625% notes due November 2037 | 640 | 642 |
| $1,100 million 6.875% notes due February 2038 | 1,078 | 1,079 |
| $1,250 million 3.500% notes due August 2039 | 1,242 | 1,242 |
| $1,000 million 2.750% notes due May 2040 | 968 | 967 |
| $300 million 5.700% notes due October 2040 | 296 | 296 |
| $350 million 5.950% notes due February 2041 | 346 | 346 |
| $1,500 million 3.050% notes due May 2041 | 1,484 | 1,483 |
| $600 million 4.625% notes due November 2041 | 590 | 590 |
| $502 million 4.375% notes due March 2042 | 486 | 486 |
| Carrying Value as of December 31, | ||
|---|---|---|
| (in millions, except percentages) | 2023 | 2022 |
| $625 million 3.950% notes due October 2042 | 609 | 609 |
| $750 million 4.250% notes due March 2043 | 736 | 736 |
| $2,000 million 4.750% notes due July 2045 | 1,975 | 1,975 |
| $750 million 4.200% notes due January 2047 | 739 | 739 |
| $725 million 4.250% notes due April 2047 | 718 | 718 |
| $950 million 3.750% notes due October 2047 | 935 | 935 |
| $1,350 million 4.250% notes due June 2048 | 1,331 | 1,331 |
| $1,100 million 4.450% notes due December 2048 | 1,087 | 1,087 |
| $1,250 million 3.700% notes due August 2049 | 1,236 | 1,236 |
| $1,250 million 2.900% notes due May 2050 | 1,211 | 1,210 |
| $2,000 million 3.250% notes due May 2051 | 1,972 | 1,971 |
| $2,000 million 4.750% notes due May 2052 | 1,966 | 1,965 |
| $2,000 million 5.875% notes due February 2053 | 1,968 | 1,968 |
| $2,000 million 5.050% notes due April 2053 | 1,969 | — |
| $1,250 million 3.875% notes due August 2059 | 1,229 | 1,228 |
| $1,000 million 3.125% notes due May 2060 | 966 | 966 |
| $1,000 million 4.950% notes due May 2062 | 981 | 981 |
| $1,500 million 6.050% notes due February 2063 | 1,466 | 1,466 |
| $1,750 million 5.200% notes due April 2063 | 1,709 | — |
| Total short-term borrowings and long-term debt | $61,473 | $56,756 |
The Company’s long-term debt obligations also included $1.1 billion and $0.9 billion of other financing obligations, of which $188 million and $192 million were current as of December 31, 2023 and 2022, respectively.
Maturities of short-term borrowings and long-term debt for the years ending December 31 are as follows:
| (in millions) | |
|---|---|
| 2024 | $4,276 |
| 2025 | 3,224 |
| 2026 | 2,674 |
| 2027 | 3,099 |
| 2028 | 3,174 |
| Thereafter | 47,176 |
Short-Term Borrowings
Commercial paper consists of short-duration, senior unsecured debt privately placed on a discount basis through broker-dealers. As of December 31, 2023, the Company’s outstanding commercial paper had a weighted-average annual interest rate of 5.4%.
The Company has $6.0 billion five-year, $6.0 billion three-year and $6.0 billion 364-day revolving bank credit facilities with 25 banks, which mature in December 2028, December 2026 and December 2024, respectively. These facilities provide full liquidity support for the Company’s commercial paper program and are available for general corporate purposes. As of December 31, 2023, no amounts had been drawn on any of the bank credit facilities. The annual interest rates, which are variable based on term, are calculated based on one-month term Secured Overnight Financing Rate (SOFR) plus a SOFR Adjustment of 10 basis points plus a credit spread based on the Company’s senior unsecured credit ratings. If amounts had been drawn on the bank credit facilities as of December 31, 2023, annual interest rates would have ranged from 5.8% to 8.5%.
Debt Covenants
The Company’s bank credit facilities contain various covenants, including requiring the Company to maintain a debt to debt-plus-shareholders’ equity ratio of not more than 60%. The Company was in compliance with its debt covenants as of December 31, 2023.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.