UnitedHealth Group (NYSE:UNH) saw its shares rocket Thursday, soon after letting out word it would provide $1.5 billion in direct financial relief for its customers in the form of premium rebates for consumers on individual and small group employer plans, and cost-sharing waivers for seniors on its Medicare Advantage plans.
The largest U.S. health insurer says employers and individual members enrolled in its UnitedHealthcare fully insured health plans will receive a 5% to 20% premium credit on their June billing statements. As of March 31, the company had 8.2 million members enrolled in those plans.
According to CEO David Wichmann, "As you know, people are hurting right now. Employers are hurting, individual consumers are hurting, and we felt it appropriate to get as much of this back in the hands of people as quickly as possible."
Wichmann added the company aims to help "small businesses, many of which have been out of work for a while."
While insurers have pledged to cover coronavirus testing and medical costs, the pandemic has resulted in a sharp drop in medical spending due to delayed elective surgery and diagnostic procedures since the Trump administration issued a national stay-at-home directive in mid-March.
Some insurers and hospital operators have reported surgical volumes and non-COVID-19 emergency room visits in April down 40% or more from a year ago, which is more than offsetting increased costs on coronavirus care and expenses.
UNH shares leaped $2.86, or 1%, to $291.77.
