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UnitedHealth Group's (UNH) Arm Launches OptumRx Weight Engage
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UnitedHealth Group Incorporated’s (UNH - Free Report) pharmacy care arm, OptumRx, recently announced the launch of Optum Rx Weight Engage for consumers of employers and plan sponsors. Weight Engage will be available from Jan 1, 2024, and is expected to provide wellness support and help with managing weight.
This move bodes well for UNH, as continued innovation in its pharmacy services enhances its offerings to clients, leading to better retention and improved customer win numbers. UNH aims to deliver retention rates in the high 90s for this selling season. UNH’s pharmacy service offerings accounted for half of Optum Rx’s revenues in the third quarter. As Optum Rx is increasing its focus on enhancing offerings and delivering medication at the lowest cost possible, it is solidifying its position in this market. Moreover, a thriving Optum business will translate to lower medical costs for UNH, benefiting its results.
Weight Engage aims to improve the affordability of medications, manage coverages and bring about positive health outcomes. The new program will also assist clients with cardiometabolic solutions, leading to lower costs and improved health outcomes. This new program will provide solutions that help with monitoring patients, support tools, and connecting them to an obesity management specialist, under a provider-guided program. A patient would be enrolled in a live program with a health coach, assisting them with weight loss in a consumer-driven program.
Flexibility for clients as well as consumers is a major positive of this program. Help in navigation through benefit coverage, provider network to assist with clinical needs and questions, and coaching for better health, should attract customers to this new program. New customer wins should fuel growth of Optum in the future.
UNH’s Optum Rx undertakes several initiatives to provide comprehensive solutions to clients. In November 2023, it transferred eight products to tier 1 on its standard formulary. This will make insulin available for $35 or less per month starting Jan 1, 2024. Moves like this should help Optum Rx achieve its target of 1.5 billion scripts by this year-end.
Shares of UnitedHealth Group have gained 2.9% in the year-to-date period compared with the industry’s 0.4% growth. UNH currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Centene Corporation’s 2023 earnings indicates a 15.2% year-over-year increase to $6.66 per share. It has witnessed one upward estimate revision over the past 60 days against no movement in the opposite direction. The consensus mark for CNC’s 2023 revenues indicates 4.4% growth from a year ago. CNC beat earnings estimates in two of the last four quarters and missed twice, the average surprise being 5.6%.
Bausch Health’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, the average surprise being 0.04%. The consensus estimate for BHC’s 2023 earnings indicates a rise of 11.1% from the prior-year reported figure. The consensus mark for revenues suggests an improvement of 5.9% from the prior-year figure.
The Zacks Consensus Estimate for Atai Life Sciences’ current-year earnings implies a 68.4% improvement from the year-ago reported figure. It has witnessed four upward estimate revisions over the past 60 days against no movement in the opposite direction. ATAI beat earnings estimates in two of the last four quarters, met once and missed on one occasion, the average surprise being 3.2%.
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UnitedHealth Group's (UNH) Arm Launches OptumRx Weight Engage
UnitedHealth Group Incorporated’s (UNH - Free Report) pharmacy care arm, OptumRx, recently announced the launch of Optum Rx Weight Engage for consumers of employers and plan sponsors. Weight Engage will be available from Jan 1, 2024, and is expected to provide wellness support and help with managing weight.
This move bodes well for UNH, as continued innovation in its pharmacy services enhances its offerings to clients, leading to better retention and improved customer win numbers. UNH aims to deliver retention rates in the high 90s for this selling season. UNH’s pharmacy service offerings accounted for half of Optum Rx’s revenues in the third quarter. As Optum Rx is increasing its focus on enhancing offerings and delivering medication at the lowest cost possible, it is solidifying its position in this market. Moreover, a thriving Optum business will translate to lower medical costs for UNH, benefiting its results.
Weight Engage aims to improve the affordability of medications, manage coverages and bring about positive health outcomes. The new program will also assist clients with cardiometabolic solutions, leading to lower costs and improved health outcomes. This new program will provide solutions that help with monitoring patients, support tools, and connecting them to an obesity management specialist, under a provider-guided program. A patient would be enrolled in a live program with a health coach, assisting them with weight loss in a consumer-driven program.
Flexibility for clients as well as consumers is a major positive of this program. Help in navigation through benefit coverage, provider network to assist with clinical needs and questions, and coaching for better health, should attract customers to this new program. New customer wins should fuel growth of Optum in the future.
UNH’s Optum Rx undertakes several initiatives to provide comprehensive solutions to clients. In November 2023, it transferred eight products to tier 1 on its standard formulary. This will make insulin available for $35 or less per month starting Jan 1, 2024. Moves like this should help Optum Rx achieve its target of 1.5 billion scripts by this year-end.
Shares of UnitedHealth Group have gained 2.9% in the year-to-date period compared with the industry’s 0.4% growth. UNH currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
Some better-ranked stocks in the broader Medical space are Centene Corporation (CNC - Free Report) , Bausch Health Companies Inc. (BHC - Free Report) and Atai Life Sciences N.V. (ATAI - Free Report) . Each of these companies presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Centene Corporation’s 2023 earnings indicates a 15.2% year-over-year increase to $6.66 per share. It has witnessed one upward estimate revision over the past 60 days against no movement in the opposite direction. The consensus mark for CNC’s 2023 revenues indicates 4.4% growth from a year ago. CNC beat earnings estimates in two of the last four quarters and missed twice, the average surprise being 5.6%.
Bausch Health’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, the average surprise being 0.04%. The consensus estimate for BHC’s 2023 earnings indicates a rise of 11.1% from the prior-year reported figure. The consensus mark for revenues suggests an improvement of 5.9% from the prior-year figure.
The Zacks Consensus Estimate for Atai Life Sciences’ current-year earnings implies a 68.4% improvement from the year-ago reported figure. It has witnessed four upward estimate revisions over the past 60 days against no movement in the opposite direction. ATAI beat earnings estimates in two of the last four quarters, met once and missed on one occasion, the average surprise being 3.2%.