Investing.com -- UnitedHealth (NYSE:UNH) sent shockwaves throughout the managed care sector Thursday after posting weak first quarter results and lowering its full year guidance. However, for at least one competitor, it is not a “we” problem but a “you” problem.
Elevance Health Inc (NYSE:ELV) said this morning that it plans to reaffirm its adjusted net income guidance for full year 2025 to be $34.15 to $34.85 per diluted share when it reports results on April 22, 2025.
The update from Elevance followed the UnitedHealth warning, which sent the entire sector into a tailspin.
UnitedHealth said it now sees full year 2025 adjusted EPS of $26-$26.50, well below the consensus of $29.74.
UnitedHealth stated that its Medicare Advantage business experienced a sharp rise in care activity, especially in physician and outpatient services, exceeding expectations for 2025 and aligning with elevated 2024 levels. Additionally, unexpected shifts in Optum Health member profiles and low 2024 engagement from plans exiting markets disrupted reimbursement plans for 2025. These challenges were further compounded by a greater-than-anticipated impact from ongoing Medicare funding cuts affecting complex patients.
Elevance, for its part, said first-quarter results reflected medical cost trends in line with expectations, including within its Medicare Advantage business, where costs remain elevated but consistent with projections and pricing. The company also reaffirmed its full-year 2025 Medicare Advantage membership outlook of 2.2 to 2.25 million members, as previously stated.
Just after 11:00 AM ET, Elevance shares traded down 3%. But recovered from morning losses of nearly 10%.
UnitedHealth shares last traded down 23%.
Elsewhere in the sector, Humana (NYSE:HUM) is down 8.4%, CVS Health (NYSE:CVS) is down 2.8%, Cigna (NYSE:CI) is flat, Molina Health is down 3.4%, and Centene (NYSE:CNC) is down 2%.