UNITEDHEALTH GROUP INC
For the period ended Dec 31, 2024. Filed Feb 27, 2025.
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FY2024 · Filed Feb 27, 2025
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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) | 2024 | 2023 | 2022 |
|---|---|---|---|
| Medical costs payable, beginning of period | $32,395 | $29,056 | $24,483 |
| Acquisitions (dispositions), net | (755) | 1 | 308 |
| Reported medical costs: | |||
| Current year | 264,885 | 242,734 | 211,252 |
| Prior years | (700) | (840) | (410) |
| Total reported medical costs | 264,185 | 241,894 | 210,842 |
| Medical payments: | |||
| Payments for current year | (231,890) | (211,380) | (184,049) |
| Payments for prior years | (29,532) | (27,176) | (22,528) |
| Total medical payments | (261,422) | (238,556) | (206,577) |
| Less: medical costs payable included within businesses held for sale | (179) | — | — |
| Medical costs payable, end of period | $34,224 | $32,395 | $29,056 |
For the years ended December 31, 2024, 2023 and 2022, prior years’ medical cost reserve development included no individual factors that were significant. Medical costs payable included IBNR of $23.7 billion and $22.3 billion at December 31, 2024 and 2023, respectively. Substantially all of the IBNR balance as of December 31, 2024 relates to the current year.
The following is information about incurred and paid medical cost development as of December 31, 2024:
| Net Incurred Medical Costs | |||
|---|---|---|---|
| (in millions) · For the Years Ended December 31, | |||
| Year · 2023 · 2024 | |||
| 2023 | $242,734 | $242,156 | |
| 2024 | 264,885 | ||
| Total | $507,041 | ||
| Net Cumulative Medical Payments | |||
| (in millions) | For the Years Ended December 31, | ||
| Year | 2023 | 2024 | |
| 2023 | $(211,380) | $(240,112) | |
| 2024 | (231,890) | ||
| Total | (472,002) | ||
| Net remaining outstanding liabilities prior to 2023 | 119 | ||
| Acquisitions (dispositions), net | (755) | ||
| Medical costs payable included within businesses held for sale | (179) | ||
| Total medical costs payable | $34,224 | ||
- Short-Term Borrowings and Long-Term Debt
Short-term borrowings and senior unsecured long-term debt consisted of commercial paper and notes as follows:
| Carrying Value as of December 31, · Carrying Value as of December 31, | |||||||
|---|---|---|---|---|---|---|---|
| (in millions, except percentages) · 2024 · 2023 · (continued) · 2024 · 2023 | |||||||
| Commercial paper | $1,300 | $1,088 | $1,000 4.625%, Jul 2035 | 971 | 1,014 | ||
| $750 3.5%, Feb 2024 | — | 750 | $850 5.8%, Mar 2036 | 838 | 838 | ||
| $1,000 0.55%, May 2024 | — | 999 | $500 6.5%, Jun 2037 | 492 | 491 | ||
| $750 2.375%, Aug 2024 | — | 750 | $650 6.625%, Nov 2037 | 641 | 640 | ||
| $500 5%, Oct 2024 | — | 499 | $1,100 6.875%, Feb 2038 | 1,079 | 1,078 | ||
| $2,000 3.75%, Jul 2025 | 1,999 | 1,997 | $1,250 3.5%, Aug 2039 | 1,243 | 1,242 | ||
| $750 5.15%, Oct 2025 | 749 | 748 | $1,000 2.75%, May 2040 | 970 | 968 | ||
| $300 3.7%, Dec 2025 | 300 | 299 | $300 5.7%, Oct 2040 | 296 | 296 | ||
| $500 1.25%, Jan 2026 | 499 | 498 | $350 5.95%, Feb 2041 | 346 | 346 | ||
| $1,000 3.1%, Mar 2026 | 999 | 998 | $1,500 3.05%, May 2041 | 1,485 | 1,484 | ||
| $1,000 1.15%, May 2026 | 953 | 924 | $600 4.625%, Nov 2041 | 590 | 590 | ||
| $500 floating rate, Jul 2026 | 499 | — | $502 4.375%, Mar 2042 | 487 | 486 | ||
| $650 4.75%, Jul 2026 | 648 | — | $625 3.95%, Oct 2042 | 610 | 609 | ||
| $750 3.45%, Jan 2027 | 749 | 748 | $750 4.25%, Mar 2043 | 737 | 736 | ||
| $500 4.6%, Apr 2027 | 496 | — | $1,500 5.5%, Jul 2044 | 1,475 | — | ||
| $625 3.375%, Apr 2027 | 623 | 622 | $2,000 4.75%, Jul 2045 | 1,976 | 1,975 | ||
| $600 3.7%, May 2027 | 598 | 598 | $750 4.2%, Jan 2047 | 739 | 739 | ||
| $950 2.95%, Oct 2027 | 946 | 944 | $725 4.25%, Apr 2047 | 718 | 718 | ||
| $1,000 5.25%, Feb 2028 | 998 | 1,011 | $950 3.75%, Oct 2047 | 935 | 935 | ||
| $1,150 3.85%, Jun 2028 | 1,147 | 1,146 | $1,350 4.25%, Jun 2048 | 1,332 | 1,331 | ||
| $850 3.875%, Dec 2028 | 847 | 846 | $1,100 4.45%, Dec 2048 | 1,087 | 1,087 | ||
| $1,250 4.25%, Jan 2029 | 1,221 | 1,238 | $1,250 3.7%, Aug 2049 | 1,237 | 1,236 | ||
| $400 4.7%, Apr 2029 | 398 | — | $1,250 2.9%, May 2050 | 1,212 | 1,211 | ||
| $900 4%, May 2029 | 854 | 862 | $2,000 3.25%, May 2051 | 1,972 | 1,972 | ||
| $1,000 2.875%, Aug 2029 | 902 | 908 | $2,000 4.75%, May 2052 | 1,966 | 1,966 | ||
| $1,250 4.8%, Jan 2030 | 1,225 | — | $2,000 5.875%, Feb 2053 | 1,968 | 1,968 | ||
| $1,250 5.3%, Feb 2030 | 1,243 | 1,275 | $2,000 5.05%, Apr 2053 | 1,969 | 1,969 | ||
| $1,250 2%, May 2030 | 1,240 | 1,238 | $1,750 5.375%, Apr 2054 | 1,729 | — | ||
| $1,000 4.9%, Apr 2031 | 982 | — | $2,750 5.625%, Jul 2054 | 2,724 | — | ||
| $1,500 2.3%, May 2031 | 1,271 | 1,290 | $1,250 3.875%, Aug 2059 | 1,229 | 1,229 | ||
| $1,500 4.95%, Jan 2032 | 1,489 | — | $1,000 3.125%, May 2060 | 967 | 966 | ||
| $1,500 4.2%, May 2032 | 1,372 | 1,412 | $1,000 4.95%, May 2062 | 981 | 981 | ||
| $2,000 5.35%, Feb 2033 | 1,966 | 2,046 | $1,500 6.05%, Feb 2063 | 1,466 | 1,466 | ||
| $1,500 4.5%, Apr 2033 | 1,410 | 1,463 | $1,750 5.2%, Apr 2063 | 1,710 | 1,709 | ||
| $1,250 5%, Apr 2034 | 1,214 | — | $1,100 5.5%, Apr 2064 | 1,085 | — | ||
| $2,000 5.15%, Jul 2034 | 1,959 | — | $1,850 5.75%, Jul 2064 | 1,822 | — | ||
| Total short-term borrowings and long-term debt | $76,180 | $61,473 | |||||
The Company’s long-term debt obligations also included $0.7 billion and $1.1 billion of other financing obligations, of which $197 million and $188 million were current as of December 31, 2024 and 2023, respectively.
Maturities of short-term borrowings and long-term debt for the years ending December 31 are as follows:
| (in millions) | |
|---|---|
| 2025 | $4,548 |
| 2026 | 3,756 |
| 2027 | 3,531 |
| 2028 | 3,106 |
| 2029 | 3,656 |
| Thereafter | 59,908 |
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, 2024, the Company’s outstanding commercial paper had a weighted-average annual interest rate of 4.4%.
The Company has $7.0 billion five-year, $7.0 billion three-year and $7.0 billion 364-day revolving bank credit facilities with 26 banks, which mature in December 2029, December 2027 and December 2025, 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, 2024, 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, 2024, annual interest rates would have ranged from 4.9% to 7.5%.
Debt Covenants
As of December 31, 2024, the Company was in compliance with the various covenants under its bank credit facilities.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.