UnitedHealth (UNH) is among America's largest insurers and is a company that's become pretty divisive in the investing world among those who believe in the company's earnings growth potential and those who bemoan how the company earns those profits. Concerns around the company's denials program and other key issues have plagued the stock, following the murder of its former CEO. And while various practices have been put in place and the company appears to be reviewing how its operating model can best serve the public, that's worth prefacing before we dive into this name.
More recent headlines for UnitedHealth have centered around the company's other key operational push, to expand its Optum Rx model. This push allows the company to expand its cost-based pharmacy reimbursement model, allowing pharmacy services administration partners to take advantage of Optum Rx and potentially serve more customers in a wider range of communities. Additionally, this move is expected to improve “transparency and financial predictability to manage costs and brand-name drug prices and usage increase.”
