The nation's largest health plan in terms of market cap continues to put up dominant numbers. UnitedHealth Group said its third-quarter revenue climbed 15 percent to $11.3 billion and net income rose 21 percent to $842 million. The performance impressed analysts who had been expecting slightly lower earnings. The big story of the quarter for UnitedHealth, of course, is the PacifiCare merger, which is expected to give the company a big boost, assuming the deal overcomes objections from critics and regulators who think it rewards PacifiCare executives too richly.
Many analysts see Medicare Part D as a potential gold mine for UnitedHealth. The PacifiCare deal is expected to give the company both a West Coast beach head and bulk up its Medicare business.
- see this article from TheStreet.com