UBS Sees Upside for UnitedHealth (UNH) Amid Medicare Advantage Restructuring

UnitedHealth Group Incorporated (NYSE:UNH) ranks among the best cheap rising stocks to invest in now. UBS maintained its $378 price target and Buy rating on UnitedHealth Group Incorporated (NYSE:UNH) on September 19 as the healthcare giant manages developments in its Medicare Advantage division. UnitedHealth made no adjustments to its second-half cost trends projections across core business lines, with Medicaid and Commercial segments staying in line with earlier statements.

With almost 200,000 full market departures, the company disclosed plans to withdraw from Medicare Advantage plans that impact 600,000 people in PPO packages. The remaining 400,000 members’ retention expectations have been decreased by management, implying that the 600,000 affected members might be a total loss for the insurance segment.

According to UnitedHealth Group Incorporated (NYSE:UNH), its decision to pull commissions on specific Medicare Advantage plans mainly impacted PPO plans, for which the company has no expansion ambitions.

UnitedHealth Group Incorporated (NYSE:UNH) is a renowned US multinational corporation that provides managed healthcare and insurance services. The company operates through four main segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx.

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Disclosure: None. This article is originally published at Insider Monkey.