The company said it had failed to predict or account for the increase in costs when it set its pricing for 2025, particularly in its Medicare business.

While UnitedHealth remained profitable, its operating earnings for the three months fell sharply to $5.2 billion from $7.9 billion in the same period of 2024. Revenues, however, increased to $111.6 billion for the three months of 2025, compared with $98.9 billion for the same period of 2024.

UnitedHealth Group provided a full-year profit forecast on Tuesday after suspending its prior outlook in May, revealing billions of additional costs the company will face in the upcoming quarters.