New York, Feb 4, 2026, 12:28 EST — Regular session
- UnitedHealth shares dipped roughly 3% by midday, trailing other managed-care stocks
- Study tied to Optum highlights rising surgery-center prices following acquisitions
- Investors are eyeing the Medicare Advantage rate decision expected in early April for clues on what’s next
Shares of UnitedHealth Group Incorporated dropped roughly 3% Wednesday, closing at $275.58 after hitting a low of $275.18. Meanwhile, Humana and Cigna saw gains, and CVS Health slipped slightly.
The pullback deepens a tense period for the managed-care bellwether following Washington’s shockwaves late last month. Investors remain uncertain about how much pricing power insurers retain and how aggressively regulators might clamp down on segments beyond the core insurance business.
This is crucial now since UnitedHealth’s earnings hinge on government-backed programs and Optum, its rapidly expanding health-services division. Whenever either segment faces fresh scrutiny, the stock usually reacts first — dragging the sector along behind it.
A fresh controversy has emerged from a Health Affairs study examining Optum’s acquisitions. Researchers at Cornell University, led by Derek T. Lake and Lawrence P. Casalino, linked Optum’s takeover of 24 ambulatory surgery centers to an 11% hike in prices seen in commercial claims data. This increase came from higher facility fees and rising professional fees charged by Optum-employed doctors. Healthcare Dive, citing the study, estimated the result added about $10.1 million in annual spending for seven common procedures across the markets analyzed, with a possible total impact topping $67 million annually. UnitedHealth did not respond to requests for comment, the outlet noted. (PubMed)
Regulatory heat is rising on pharmacy benefit managers (PBMs), the middlemen controlling drug coverage and discount negotiations. Reuters reported Wednesday that Cigna’s Express Scripts struck a 10-year deal with the U.S. Federal Trade Commission over insulin pricing. The FTC’s legal battle against UnitedHealth’s Optum unit and CVS Caremark, however, is still underway. (Reuters)
The main concern remains Medicare Advantage, the privately run Medicare funded by government payments. The Trump administration’s preliminary 2027 rate update proposed just a 0.09% increase—well below Wall Street’s expectations. Analysts warn insurers might need to reduce benefits or scale back in some regions to maintain margins. Medicare Advantage rates usually get finalized by early April, and one analyst pointed out the proposed update tends to improve by the final version. (Reuters)
UnitedHealth is already bracing for a tougher 2026. On Jan. 27, the company said it expects revenue to top $439 billion—a drop of about 2%—and forecast an adjusted medical care ratio near 88.8%, reflecting the portion of premiums spent on medical costs. CEO Steve Hemsley told investors, “Momentum inside this organization is palpable.” Meanwhile, UnitedHealthcare chief Tim Noel warned the proposed Medicare update would bring “very meaningful benefit reductions” and force a hard look at the company’s footprint. (Reuters)
Wednesday’s action showed that selling pressure isn’t uniform across insurers. UnitedHealth finds itself caught in the middle of debates over Medicare Advantage, the Optum consolidation, and now the PBM issue — three fronts where regulators could swiftly alter the landscape.
There’s still a way to soften the blow. A clearer final Medicare Advantage rate set in early April could calm nerves about 2027 margins and reveal if last month’s adjustment overshot.
The downside is straightforward: if the final Medicare update remains largely flat and regulators intensify their focus on Optum’s provider contracts and PBM operations, analysts could continue lowering profit forecasts. That would make any recovery uneven.
The next key date for traders is the Medicare Advantage rate finalization in early April. Until then, investors will watch closely for fresh regulatory filings or legal developments in the FTC’s PBM case, along with more data on Optum’s pricing power.
