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FWIW, 6% is clearly "Hollywood accounting," just look at the stock chart. No business with six percent margins has stock performance like UNH.
by avn2109 2y ago
FWIW, 6% is clearly "Hollywood accounting," just look at the stock chart. No business with six percent margins has stock performance like UNH.
- onlyrealcuzzo 2y agoHave you seen Carvana's stock?
- brodouevencode 2y agoIt just means that their costs have correlated with revenues, which is to be expected in certain industries. The better comparison would be with other insurance carriers.
- gruez 2y ago"Hollywood accounting" only works because you're transferring the profits of one enterprise (ie. the movie itself) to something else (ie. the production/distribution company). Unitedhealth Group is a publicly traded company. Where are they funneling the profits to?
- ceejayoz 2y agoSubsidiaries and affiliates. For example: https://www.ftc.gov/news-events/news/press-releases/2024/09/ftc-sues-prescription-drug-middlemen-artificially-inflating-insulin-drug-prices https://www.ftc.gov/news-events/news/press-releases/2024/09/... > The FTC’s administrative complaint alleges that CVS Health’s Caremark, Cigna’s ESI, and United Health Group’s Optum, and their respective GPOs—Zinc Health Services, Ascent Health Services, and Emisar Pharma Services—have abused their economic power by rigging pharmaceutical supply chain competition in their favor, forcing patients to pay more for life-saving medication. According to the complaint, these PBMs, known as the Big Three, together administer about 80% of all prescriptions in the United States.
- gruez 2y agoWouldn't that still end up on the parent company's financial statements? What are PBMs' margins compared to insurance companies?