“the 2025 medical cost trend was in line with our expectation of approximately 7.5% and supports our 2026 trend expectation of 10%.”

In context

“leader in that movement. We expect 2026 to be a year of focus and execution. An important one in the history of our company. Have emerged strongly from challenging periods in our past and are committed to that course today. Our team is showing great resilience and energy and we believe strongly this we're taking will pay off. With that, I'll turn it over to Tim. Timothy Noel: Thanks, Steve. UnitedHealthcare finished 2025, having made progress to more effectively serve our members and network partners. Another important element in building sustainable growth. We closed the year with medical care patterns in each business in line with our updated outlook and ultimately supportive of our pricing decisions for 2026. With that, I will briefly walk through each business. Starting with Medicare, the 2025 medical cost trend was in line with our expectation of approximately 7.5% and supports our 2026 trend expectation of 10%. This reflects consistently elevated utilization in addition to increases in physician fee schedules, and the continuation of higher service intensity per care encounter. As part of our efforts to address elevated trends and funding cuts, we plan for some Medicare Advantage membership contraction in 2026. We now expect UHC Medicare Advantage contraction will be in the range of 1.3 million to 1.4 million members for the full year including group, individual, and dual special needs plans. These are greater losses than originally anticipated as competitive market dynamics drove higher than expected planned shopping during the intensely competitive annual enrollment period. Our 2026 approach favored margin recovery and these membership trends are a result of these actions. We similarly positio”