UnitedHealth Isn’t Out of the Woods With $6 Billion Medicare Hit

UnitedHealth Group Inc.’s results Tuesday will reflect the full effect of Medicare payment changes set in motion three years ago that cost the company billions, cratering profits last year and blindsiding investors.

US regulators said the overhaul was intended to make payments to insurers more accurate. For UnitedHealth, it meant billions in lost revenue over three years. The hit, including $6 billion still to come in 2026, was more severe than the company initially expected. The full extent became clear when the insurer slashed its outlook last year, shocking Wall Street.

Executives have said they’re acting swiftly to cushion ...