NEW YORK, Jan 16, 2026, 18:13 EST — After-hours
- Shares of UnitedHealth dropped roughly 2.3% on Friday, underperforming a generally subdued market.
- A MedPAC report reignited the controversy surrounding Medicare Advantage payments and coding practices.
- Investors are focusing on UnitedHealth’s results set for Jan. 27, along with its guidance for 2026.
Shares of UnitedHealth Group Incorporated (UNH) dropped 2.3%, closing at $331.02 in after-hours trading on Friday.
The move comes just before a long weekend, as U.S. equity markets shut down Monday for Martin Luther King Jr. Day. That pause offers investors a brief window to digest the rapid-fire healthcare policy and payment updates. 1
UnitedHealth plans to release its full-year results and 2026 outlook later this month, a crucial update for investors tracking medical-cost trends and reimbursement challenges. 2
On Friday, the Medicare Payment Advisory Commission (MedPAC) reported that the federal government is set to spend roughly $76 billion more this year on Medicare Advantage compared to what it would cost if those beneficiaries remained in traditional Medicare. Medicare Advantage, the private-plan option, drew sharp criticism from a commissioner who said it’s “hard not to be shocked” by the size of these “potential overpayments.” 3
Managed-care stocks slipped Friday. Humana slid 3.76%, Elevance Health dipped 1.85%, and both the S&P 500 and Dow finished just below the flat line. 4
Not all analysts are dialing back. Bernstein SocGen Group stuck with an Outperform rating on UnitedHealth, setting a $444 price target. Analyst Lance Wilkes highlighted the company’s “strong earnings growth” potential, along with a rebound in Medicare Advantage and Medicaid margins after recent dips. 5
UnitedHealthcare, the insurer’s arm, rolled out a rural-provider program this week. The six-month pilot will accelerate Medicare Advantage payments to independent rural hospitals across four states, slashing collection times from under 30 days to less than 15. Bobby Hunter, CEO of UnitedHealthcare Government Programs, described rural hospitals as “the backbone of their communities.” 6
Policy risk cuts both ways. A Senate Judiciary Committee report out this week accused UnitedHealth of leveraging aggressive risk-adjustment coding to boost Medicare Advantage payments. UnitedHealth pushed back, saying it disagrees with the report’s portrayal and insists its programs “comply” with government rules. Risk adjustment boosts insurer payouts when patients are sicker, and the dispute usually hinges on how diagnoses are coded. 7
Washington stirred the pot again. On Thursday, President Donald Trump floated a plan to swap insurance subsidies for direct payments to consumers, saying, “You go out and buy your own healthcare.” The White House outline was thin on specifics and hinges on Congressional approval. UnitedHealth shares jumped roughly 2% in afternoon trading following the news, Reuters reported. 8
UnitedHealth’s heavy presence in the Dow amplified the slide. MarketWatch’s early Friday analysis revealed that its decline, combined with Salesforce’s drop, drove most of the index’s 162-point fall in morning trading. 9
Trading kicks back in on Tuesday, Jan. 20, as investors scan for fresh signals from Washington and clearer updates on Medicare Advantage payments and coding. UnitedHealth is set to report earnings on Tuesday, Jan. 27, ahead of the market open, with a conference call at 8:00 a.m. ET. 10
