UNH · 10-Q · 2026Q1 · Full report

Medical Cost Trends

UNITEDHEALTH GROUP INC · 2026-05-05 · Importance 49 · Surprise 32

Medical costs were $73,489 million in Q1 2026, effectively flat versus $73,411 million in Q1 2025, while the medical care ratio (MCR) improved to 83.9% from 84.8% (a 0.9 percentage point decrease). The company cites increased care patterns, higher health care unit costs and prescription drug cost pressure as primary drivers of medical cost trend, alongside increases in provider pricing and service intensity per visit. Favorable reserve development, affordability initiatives and pricing trends partially offset elevated medical cost trends and contributed to the lower MCR in Q1 2026. The company also notes enhanced audit, clinical policy and payment integrity tooling to mitigate unnecessary costs going forward.

Key facts

• Medical care ratio (MCR) decreased to 83.9% in the first quarter of 2026 from 84.8% in the first quarter of 2025 (a decrease of 0.9 percentage points). source
• Medical costs were $73,489 million for the three months ended March 31, 2026 compared to $73,411 million for the three months ended March 31, 2025 (essentially consistent). source