Why did UnitedHealth's net profit decline in Q1 2024?

UnitedHealth's net profit declined in Q1 2024 due to several factors:

1. Increase in Medical Costs: The most significant factor contributing to the decline in net profit was the rise in medical costs. Medical costs increased by 16.1% year-over-year, reaching $62.2 billion in the fourth quarter. This increase was driven by several factors, including the resumption of elective procedures by more seniors, claims related to COVID-19 activities, RSV vaccinations, and other service utilization.
2. Ransomware Attack on Change Healthcare: UnitedHealth's stock price took a hit due to a ransomware attack on its subsidiary, Change Healthcare, in February 2024. This cybersecurity breach negatively impacted the company's profitability and reputation.

In conclusion, the decline in UnitedHealth's net profit in Q1 2024 was primarily due to the significant increase in medical costs and the ransomware attack on Change Healthcare.

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UNH Net Income YoY, Net Income