UNITEDHEALTH GROUP INC
For the period ended Dec 31, 2025. Filed Mar 2, 2026.
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FY2025 · Filed Mar 2, 2026
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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) | 2025 | 2024 | 2023 |
|---|---|---|---|
| Medical costs payable, beginning of period | $34,224 | $32,395 | $29,056 |
| Acquisitions (dispositions), net | 32 | (755) | 1 |
| Reported medical costs: | |||
| Current year | 313,463 | 264,885 | 242,734 |
| Prior years | (140) | (700) | (840) |
| Premium deficiency and loss contracts reserves | 672 | — | — |
| Total reported medical costs | 313,995 | 264,185 | 241,894 |
| Medical payments: | |||
| Payments for current year | (277,135) | (231,890) | (211,380) |
| Payments for prior years | (31,290) | (29,532) | (27,176) |
| Total medical payments | (308,425) | (261,422) | (238,556) |
| Less: increase in medical costs payable included within businesses held for sale | (489) | (179) | — |
| Medical costs payable, end of period | $39,337 | $34,224 | $32,395 |
For the years ended December 31, 2025, 2024 and 2023, prior years’ medical cost reserve development included no individual factors that were significant. Medical costs payable included IBNR of $26.7 billion and $23.7 billion at December 31, 2025 and 2024, respectively. Substantially all of the IBNR balance as of December 31, 2025 relates to the current year.
The following is information about incurred and paid medical cost development as of December 31, 2025:
| Net Incurred Medical Costs | |||
|---|---|---|---|
| (in millions) · For the Years Ended December 31, | |||
| Year · 2024 · 2025 | |||
| 2024 | $264,885 | $264,550 | |
| 2025 | 313,463 | ||
| Changes in premium deficiency and loss contracts reserves | 672 | ||
| Total | $578,685 | ||
| Net Cumulative Medical Payments | |||
| (in millions) | For the Years Ended December 31, | ||
| Year | 2024 | 2025 | |
| 2024 | $(231,890) | $(262,318) | |
| 2025 | (277,135) | ||
| Total | (539,453) | ||
| Net remaining outstanding liabilities prior to 2024 | 562 | ||
| Acquisitions | 32 | ||
| Increase in medical costs payable included within businesses held for sale | (489) | ||
| Total medical costs payable | $39,337 | ||
- 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) · 2025 · 2024 · (continued) · 2025 · 2024 | |||||||||||
| Commercial paper | $2,249 | $1,300 | $850 5.8%, Mar 2036 | 839 | 838 | ||||||
| $2,000 3.75%, Jul 2025 | — | 1,999 | $500 6.5%, Jun 2037 | 492 | 492 | ||||||
| $750 5.15% Oct 2025 | — | 749 | $650 6.625%, Nov 2037 | 641 | 641 | ||||||
| $300 3.7%, Dec 2025 | — | 300 | $1,100 6.875%, Feb 2038 | 1,080 | 1,079 | ||||||
| $500 1.25%, Jan 2026 | 500 | 499 | $1,250 3.5%, Aug 2039 | 1,243 | 1,243 | ||||||
| $1,000 3.1%, Mar 2026 | 1,000 | 999 | $1,000 2.75%, May 2040 | 972 | 970 | ||||||
| $1,000 1.15%, May 2026 | 989 | 953 | $300 5.7%, Oct 2040 | 297 | 296 | ||||||
| $650 4.75%, Jul 2026 | 649 | 648 | $350 5.95%, Feb 2041 | 346 | 346 | ||||||
| $500 floating rate, Jul 2026 | 500 | 499 | $1,500 3.05%, May 2041 | 1,485 | 1,485 | ||||||
| $750 3.45%, Jan 2027 | 749 | 749 | $600 4.625%, Nov 2041 | 591 | 590 | ||||||
| $500 4.6%, Apr 2027 | 498 | 496 | $502 4.375%, Mar 2042 | 487 | 487 | ||||||
| $625 3.375%, Apr 2027 | 624 | 623 | $625 3.95%, Oct 2042 | 611 | 610 | ||||||
| $600 3.7%, May 2027 | 599 | 598 | $750 4.25%, Mar 2043 | 737 | 737 | ||||||
| $950 2.95%, Oct 2027 | 947 | 946 | $1,500 5.5%, Jul 2044 | 1,476 | 1,475 | ||||||
| $1,000 5.25%, Feb 2028 | 1,010 | 998 | $2,000 4.75%, Jul 2045 | 1,977 | 1,976 | ||||||
| $1,150 3.85%, Jun 2028 | 1,148 | 1,147 | $750 4.2%, Jan 2047 | 740 | 739 | ||||||
| $500 4.40% Jun 2028 | 498 | — | $725 4.25%, Apr 2047 | 718 | 718 | ||||||
| $850 3.875%, Dec 2028 | 847 | 847 | $950 3.75%, Oct 2047 | 936 | 935 | ||||||
| $1,250 4.25%, Jan 2029 | 1,250 | 1,221 | $1,350 4.25%, Jun 2048 | 1,332 | 1,332 | ||||||
| $400 4.7%, Apr 2029 | 406 | 398 | $1,100 4.45%, Dec 2048 | 1,088 | 1,087 | ||||||
| $900 4%, May 2029 | 882 | 854 | $1,250 3.7%, Aug 2049 | 1,237 | 1,237 | ||||||
| $1,000 2.875%, Aug 2029 | 943 | 902 | $1,250 2.9%, May 2050 | 1,213 | 1,212 | ||||||
| $1,250 4.8%, Jan 2030 | 1,257 | 1,225 | $2,000 3.25%, May 2051 | 1,973 | 1,972 | ||||||
| $1,250 5.3%, Feb 2030 | 1,272 | 1,243 | $2,000 4.75%, May 2052 | 1,967 | 1,966 | ||||||
| $1,250 2%, May 2030 | 1,242 | 1,240 | $2,000 5.875%, Feb 2053 | 1,968 | 1,968 | ||||||
| $750 4.65% Jan 2031 | 745 | — | $2,000 5.05%, Apr 2053 | 1,970 | 1,969 | ||||||
| $1,000 4.9%, Apr 2031 | 1,010 | 982 | $1,750 5.375%, Apr 2054 | 1,730 | 1,729 | ||||||
| $1,500 2.3%, May 2031 | 1,340 | 1,271 | $2,750 5.625%, Jul 2054 | 2,724 | 2,724 | ||||||
| $1,500 4.95%, Jan 2032 | 1,490 | 1,489 | $750 5.95%, June 2055 | 735 | — | ||||||
| $1,500 4.2%, May 2032 | 1,428 | 1,372 | $1,250 3.875%, Aug 2059 | 1,229 | 1,229 | ||||||
| $2,000 5.35%, Feb 2033 | 2,024 | 1,966 | $1,000 3.125%, May 2060 | 967 | 967 | ||||||
| $1,500 4.5%, Apr 2033 | 1,460 | 1,410 | $1,000 4.95%, May 2062 | 982 | 981 | ||||||
| $1,250 5%, Apr 2034 | 1,250 | 1,214 | $1,500 6.05%, Feb 2063 | 1,466 | 1,466 | ||||||
| $2,000 5.15%, Jul 2034 | 2,015 | 1,959 | $1,750 5.2%, Apr 2063 | 1,710 | 1,710 | ||||||
| $1,000 5.3%, June 2035 | 992 | — | $1,100 5.5%, Apr 2064 | 1,086 | 1,085 | ||||||
| $1,000 4.625%, Jul 2035 | 1,001 | 971 | $1,850 5.75%, Jul 2064 | 1,822 | 1,822 | ||||||
| Total short-term borrowings and long-term debt | $77,681 | $76,180 | |||||||||
The Company’s long-term debt obligations also included $708 million and $724 million of other financing obligations, of which $182 million and $197 million were current as of December 31, 2025 and 2024, respectively.
Maturities of short-term borrowings and long-term debt for the years ending December 31 are as follows:
| (in millions) | |
|---|---|
| 2026 | $6,082 |
| 2027 | 3,530 |
| 2028 | 3,605 |
| 2029 | 3,655 |
| 2030 | 3,855 |
| Thereafter | 58,657 |
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, 2025, the Company’s outstanding commercial paper had a weighted-average annual interest rate of 3.8%.
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 November 2030, November 2028 and November 2026, 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, 2025, 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 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, 2025, annual interest rates would have ranged from 4.2% to 6.8%.
Debt Covenants
As of December 31, 2025, the Company was in compliance with the various covenants under its bank credit facilities.
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