UnitedHealth Stock Tanks Over Higher Q4 Medical Loss Ratio

(RTTNews) - On Friday, UnitedHealth Group Incorporated (UNH) reported its fourth quarter earnings which were higher than the prior year and also surpassed the Street estimates. However, the company's stock tumbled over higher medical loss ratio.

Currently, the company's stock is sliding 3.54 %, to $520.27 over the previous close of $539.68 on a volume of 3,540,510. It had traded between $445.68 and $554.70 in the past 52 weeks.

Medical loss ratio, which represents the percentage of premiums spent on medical care of customers, stood at 85% compared to the previous year's 82.8% and the analysts' estimate of around 84.1%.

The rise in the ratio led the investors to believe that customers are using more services than expected and that pattern could continue in the present fiscal year.