“We can continue to expect this business to see incremental pressure in 2026 largely driven by state funding shortfalls.”

In context

“hip trends are a result of these actions. We similarly positioned our Medicare Supplement and standalone Part D segments and as a result of the totality of actions taken across UHC Medicare, we expect an improvement in Medicare margins of approximately 50 basis points from 2025. Looking briefly to 2027, the advance notice published yesterday simply doesn't reflect the reality of medical utilization and cost trends. We will continue to work with CMS to ensure an appropriate final growth rate calculation to avoid a profoundly negative impact on seniors' benefits and access to care. That would be a deeply unfortunate result for a program that already under funding pressure from the previous administration despite its track record of success serving seniors and taxpayers. Turning to Medicaid. We can continue to expect this business to see incremental pressure in 2026 largely driven by state funding shortfalls. We have received some rate relief but still anticipate the mismatch between rate and acuity to pressure performance in 2026. While we hope for further improvement in 2027. We expect Medicaid membership contraction of approximately 565,000 to 715,000 people which includes DSNP members. Due to reduced Medicaid eligibility combined with the exit from one state. We took important steps in our commercial pricing and cost management efforts during the second half of this year Nearly all of our employer group and fully insured pricing align with continued increases in care activity for 2026. In the individual ACA market, we re-priced nearly all states in response to higher medical trends, and the elevated needs of ACA beneficiaries in 2025. These actions were necessary to ensure a sustainable fo”