UnitedHealth has been successful in moving the medical care ratio in the right direction.
UnitedHealth Group (NYSE: UNH) will report its third-quarter financial results on Tuesday, Oct. 13, before the stock market opens.
As usual, investors will closely monitor the company's revenue and earnings per share and how those have changed from the same period a year ago. They'll also compare those figures to Wall Street's expectations for the quarter to see whether the giant insurer outperformed analysts' forecasts.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
But there's another critical number for UnitedHealth that I'll be looking at even more closely: the medical care ratio, which is the percentage of insurance premiums it took in that were paid out to settle claims. It is a key metric to assess a health insurer's profitability.
Image source: Getty Images.
The federal government requires health insurers that sell large plans, as UnitedHealth does, to spend at least 85% of the premium dollars they receive on medical care and healthcare quality improvement. If they spend too much, though, it can affect the bottom line. Insurers need to meet that requirement as closely as possible to ensure profitability.
In the second quarter, UnitedHealth's medical care ratio fell to 86.7% from 89.4% a year earlier (the ratio surged to 89.9% in the third quarter of 2025). The company says the recent decrease was driven by benefit design and pricing discipline, as well as adjustments to its member mix. UnitedHealth management has been working hard to bring that critical ratio figure down, and it's been working.
The upcoming earnings report will tell us if UnitedHealth was able to maintain the lower ratio it achieved last quarter -- or even push it lower. That's the key to the company's profit margin, earnings per share, and, ultimately, its share price.
Before you buy stock in UnitedHealth Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and UnitedHealth Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $365,910!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,418,530!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of October 3, 2026.
Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.