UnitedHealth

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K

(cid:2) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED December 31, 2022
or

(cid:3) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM

TO

Commission file number: 1-10864

UnitedHealth Group Incorporated
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of
incorporation or organization)

UnitedHealth Group Center
9900 Bren Road East
Minnetonka, Minnesota
(Address of principal executive offices)

41-1321939
(I.R.S. Employer
Identification No.)

55343
(Zip Code)

(952) 936-1300
(Registrant’s telephone number, including area code)

Title of each class

Securities registered pursuant to Section 12(b) of the Act:
Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $.01 par value

UNH
Securities registered pursuant to Section 12(g) of the Act: None

New York Stock Exchange

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes (cid:2) No (cid:3)
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes (cid:3) No (cid:2)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes (cid:2) No (cid:3)
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405
of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes (cid:2) No (cid:3)
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an
emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company”
in Rule 12b-2 of the Exchange Act.
(cid:2)
Large accelerated filer
Smaller reporting company (cid:3)
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. (cid:3)
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control
over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its
audit report. (cid:2)
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing
reflect the correction of an error to previously issued financial statements. (cid:3)
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by
any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). (cid:3)
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes (cid:3) No (cid:2)
The aggregate market value of voting stock held by non-affiliates of the registrant as of June 30, 2022 was $479,550,880,245 (based on the last reported sale
price of $513.63 per share on June 30, 2022 as reported on the New York Stock Exchange), excluding only shares of voting stock held beneficially by directors,
executive officers and subsidiaries of the registrant.
As of January 31, 2023, there were 932,846,602 shares of the registrant’s Common Stock, $.01 par value per share, issued and outstanding.

(cid:3)
Non-accelerated filer
Emerging growth company (cid:3)

Accelerated filer (cid:3)

DOCUMENTS INCORPORATED BY REFERENCE
The information required by Part III of this report, to the extent not set forth herein, is incorporated by reference from the registrant’s definitive proxy statement
relating to its 2023 Annual Meeting of Shareholders. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days after the
end of the fiscal year to which this report relates.

UNITEDHEALTH GROUP

Table of Contents

Part I
Business ............................................................................................................................................
Item 1.
Item 1A.
Risk Factors........................................................................................................................................
Item 1B. Unresolved Staff Comments ....................................................................................................................
Properties...........................................................................................................................................
Item 2.
Legal Proceedings ................................................................................................................................
Item 3.
Mine Safety Disclosures .........................................................................................................................
Item 4.

Part II
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities .............
Item 5.
[Reserved]..........................................................................................................................................
Item 6.
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations .........................................
Item 7A. Quantitative and Qualitative Disclosures About Market Risk .............................................................................
Financial Statements and Supplementary Data ..............................................................................................
Item 8.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure ........................................
Item 9.
Item 9A.
Controls and Procedures .........................................................................................................................
Item 9B. Other Information.................................................................................................................................
Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections...................................................................

Item 10.
Item 11.
Item 12.
Item 13.
Item 14.

Part III
Directors, Executive Officers and Corporate Governance .................................................................................
Executive Compensation ........................................................................................................................
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ...........................
Certain Relationships and Related Transactions, and Director Independence ..........................................................
Principal Accountant Fees and Services ......................................................................................................

Part IV
Exhibit and Financial Statement Schedules ..................................................................................................
Item 15.
Item 16.
Form 10-K Summary.............................................................................................................................
Signatures .........................................................................................................................................................

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PART I

ITEM 1. BUSINESS

OUR BUSINESSES

Overview

The terms “we,” “our,” “us,” “its,” “UnitedHealth Group,” or the “Company” used in this report refer to UnitedHealth Group
Incorporated and its subsidiaries.

UnitedHealth Group Incorporated is a health care and well-being company with a mission to help people live healthier lives and
help make the health system work better for everyone. Our two distinct, yet complementary business platforms—Optum and
UnitedHealthcare—are working to help build a modern, high-performing health system through improved access, affordability,
outcomes and experiences for the individuals and organizations we are privileged to serve.

The ability to analyze complex data and apply deep health care expertise and insights allows us to serve people, care providers,
businesses, communities and governments with more innovative products and complete, end-to-end offerings for many of the
biggest challenges facing health care today.

Optum combines clinical expertise, technology and data to empower people, partners and providers with the guidance and tools
they need to achieve better health. Optum serves the broad health care marketplace, including payers, care providers, employers,
governments, life sciences companies and consumers, through its Optum Health, Optum Insight and Optum Rx businesses.
These businesses improve overall health system performance by optimizing care quality and delivery, reducing costs and
improving consumer and provider experience, leveraging distinctive capabilities in data and analytics, pharmacy care services,
health care operations, population health and health care delivery.

UnitedHealthcare offers a full range of health benefits, enabling affordable coverage, simplifying the health care experience and
delivering access to high-quality care. UnitedHealthcare Employer & Individual serves employers ranging from sole
proprietorships to large, multi-site and national employers, public sector employers and individual consumers. UnitedHealthcare
Medicare & Retirement delivers health and well-being benefits for Medicare beneficiaries and retirees. UnitedHealthcare
Community & State manages health care benefit programs on behalf of state Medicaid and community programs and their
participants.

We have four reportable segments:
• Optum Health;
• Optum Insight;
• Optum Rx; and
• UnitedHealthcare, which includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement and

UnitedHealthcare Community & State.

Optum

Optum is an information and technology-enabled health services business serving the broad health care marketplace, including:

•

•

Those who need care: consumers who need the right care, information, resources, products and engagement to improve
their health, achieve their health goals and receive an improved patient experience that is personalized and holistic and
delivered in all care settings, including in-home and virtually.

Those who provide care: pharmacies, hospitals, physicians and other health care facilities seeking to improve the health
system and reduce the administrative burden allowing for providers to focus time on patients leading to the best possible
patient care and experiences while achieving better health outcomes at lower costs. Improved health outcomes are achieved

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by leveraging our clinical expertise, data and analytics to better predict, prevent and intercept consumers’ health conditions
and ensure they receive the best evidence-based care.

•

•

Those who pay for care: employers; health plans; and state, federal and municipal agencies devoted to ensuring the people
they sponsor receive high-quality care, administered and delivered efficiently and effectively, all while driving health
equity so that every individual, family and community has access to the care they need.

Those who innovate for care: global life sciences organizations dedicated to developing more effective approaches to care,
enabling technologies and medicines to improve care delivery and health outcomes.

Optum operates three business segments leveraging distinctive capabilities in health care delivery, population health, health care
operations, data and analytics and pharmacy care services:
• Optum Health delivers care, care management, wellness and consumer engagement, and health financial services;
• Optum Insight offers data, analytics, research, consulting, technology and managed services solutions; and
• Optum Rx provides diversified pharmacy care services.

Optum Health

Optum Health provides comprehensive and patient-centered care, addressing the physical, mental, social, and financial well-
being of 102 million consumers and serves more than 100 health payer partners. We engage people in the most appropriate care
settings, including clinical sites, in-home and virtual. Optum Health delivers primary, multi-specialty, behavioral, surgical and
urgent care; helps patients and providers navigate and address complex, chronic and behavioral health needs; offers post-acute
care planning services; and serves consumers and care providers through advanced, on-demand digital health technologies, such
as telehealth and remote patient monitoring, and innovative health care financial services. Optum Health works directly with
consumers, care delivery systems, providers, employers, payers, and public-sector entities to provide high quality, accessible
and equitable care with improved health outcomes and reduced total cost of care.

Optum Health enables care providers to transition from traditional fee-for-service payment models to performance-based
delivery and payment models designed to improve patient health outcomes and experience through value-based care. Through
strategic partnerships, alliances and ownership arrangements, Optum Health helps care providers adopt new approaches and
technologies improving the coordination of care across providers to serve patients more comprehensively.

Optum Health offerings include fully accountable value-based arrangements, where Optum Health assumes responsibility for
health care costs in exchange for a monthly premium. Offerings also include administrative fee arrangements, where Optum
Health manages or administers products and services in exchange for a monthly fee, and fee-for-service arrangements, where
Optum Health delivers health-related products and medical services for patients at a contracted fee.

Optum Financial, including Optum Bank, serves consumers through nearly 20 million consumer accounts with nearly $20
billion in assets under management as of December 31, 2022. Organizations across the health system rely on Optum Financial
to manage and improve payment flows through its highly automated, scalable, end-to-end digital payment systems and
integrated card solutions. For financial services offerings, Optum Financial charges fees and earns investment income on
managed funds.

Optum Health sells its products primarily through its direct sales force, strategic collaborations and external producers in three
key areas: employers, including large, mid-sized and small employers; payers including health plans, third-party administrators
(TPAs), underwriter/stop-loss carriers and individual product intermediaries; and public entities including the U.S. Departments
of Health and Human Services (HHS), Veterans Affairs, Defense, and other federal, state and local health care agencies.

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Optum Insight

Optum Insight connects the health care system with services, analytics and platforms that make clinical, administrative and
financial processes simpler and more efficient for all participants in the health care system. Hospital systems, physicians, health
plans, public entities, life sciences companies and other organizations comprising the health care industry depend on Optum
Insight to help them improve performance and reduce costs through administrative efficiency and payment simplification,
advance care quality through evidence-based standards built directly into clinical workflows, meet compliance mandates and
modernize their core operating systems to meet the changing needs of the health system.

Health Systems. Serves hospitals, physicians and other care providers to improve operating performance, better coordinate care
and reduce administrative costs through technology and services to improve population health management, patient engagement,
revenue cycle management and strategic growth plans.

Health Plans. Serves health plans by improving financial performance and enhancing outcomes through proactive analytics, a
comprehensive payment integrity portfolio and technology-enabled and staff-supported risk and quality services. Optum Insight
helps health plans navigate a dynamic environment defined by shifts in employer vs. public-sector coverage, the demand for
affordable benefit plans and the need to leverage new technology to reduce complexity.

State Governments. Provides advanced technology and analytics services to modernize the administration of critical safety net
programs, such as Medicaid, while improving cost predictability.

Life Sciences Companies. Combines data and analytics expertise with comprehensive technologies and health care knowledge to
help life sciences companies, including those in pharmaceuticals and medical technology, adopt a more comprehensive
approach to advancing therapeutic discoveries and improving clinical outcomes.

Many of Optum Insight’s software and information products and professional services are delivered over extended periods,
often several years. Optum Insight maintains an order backlog to track unearned revenues under these long-term arrangements.
The backlog consists of estimated revenue from signed contracts, other legally binding agreements and anticipated contract
renewals based on historical experience with Optum Insight’s customers. Optum Insight’s aggregate backlog as of December 31,
2022 was approximately $30.0 billion, of which $16.8 billion is expected to be realized within the next 12 months. The
aggregate backlog includes $10.7 billion related to affiliated agreements. Optum Insight’s aggregate backlog as of December 31,
2021, was $22.4 billion, including $8.9 billion related to affiliated agreements.

Optum Insight’s products and services are sold primarily through a direct sales force. Optum Insight’s products are also
supported and distributed through an array of alliances and business partnerships with other technology vendors, who integrate
and interface Optum Insight’s products with their applications.

Optum Rx

Optum Rx provides a full spectrum of pharmacy care services through its network of more than 67,000 retail pharmacies,
through home delivery, specialty and community health pharmacies, the provision of in-home and community-based infusion
services and through rare disease and gene therapy support services. It also offers direct-to-consumer solutions.

Optum Rx manages a broad range of prescription drug spend, including widely available retail drugs as well as limited and
ultra-limited distribution drugs in oncology, HIV, pain management and ophthalmology. Optum Rx serves the growing
pharmacy needs of people with behavioral health and substance use disorders. In 2022, Optum Rx managed $124 billion in
pharmaceutical spending, including $52 billion in specialty pharmaceutical spending.

Optum Rx serves health benefits providers, large national employer plans, unions and trusts, purchasing coalitions and public-
sector entities. Optum Rx sells its services through direct sales, health insurance brokers and other health care consultants.

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Optum Rx offers multiple clinical programs, digital tools and services to help clients manage overall pharmacy and health care
costs in a clinically appropriate manner which are designed to deliver improved consumer experiences, better health outcomes
and a lower total cost of care. Optum Rx provides various utilization management, medication management, quality assurance,
adherence and counseling programs to complement each client’s plan design and clinical strategies. Optum Rx is accelerating
the integration of medical, pharmacy and behavioral care and treating the whole patient by embedding our pharmacists as key
members of the patient care team.

UnitedHealthcare

Through its health benefits offerings, UnitedHealthcare is enabling better health, creating a better health care experience for its
customers and helping to control rising health care costs. UnitedHealthcare’s market position is built on:

•

•

•

•

•

•

strong local-market relationships;

the breadth of product offerings, based upon extensive expertise in distinct market segments in health care;

service and advanced technology, including digital consumer engagement;

competitive medical and operating cost positions;

effective clinical engagement; and

innovation for customers and consumers.

UnitedHealthcare uses Optum’s capabilities to help coordinate and provide patient care, improve affordability of medical care,
analyze cost trends, manage pharmacy care services, work with care providers more effectively and create a simpler and more
satisfying consumer and physician experience.

In the United States, UnitedHealthcare arranges for discounted access to care through networks which, as of December 31,
2022, include 1.7 million physicians and other health care professionals and 6,400 hospitals and other facilities.

UnitedHealthcare is subject to extensive government regulation. See further discussion of our regulatory environment below
under “Government Regulation” and in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and
Results of Operations.”

UnitedHealthcare Employer & Individual

Domestically, UnitedHealthcare Employer & Individual offers a comprehensive array of consumer-oriented health benefit plans
and services for large national employers, public sector employers, mid-sized employers, small businesses, and individuals. As
of December 31, 2022, UnitedHealthcare Employer & Individual provides access to medical services for 26.7 million people.
Globally, UnitedHealthcare Employer & Individual serves nearly 7.7 million people with medical and dental benefits, typically
in exchange for a monthly premium per member, residing principally in Brazil, Chile, Colombia and Peru, but also in more than
150 other countries. UnitedHealthcare Employer & Individual offers health care delivery in our principal global markets through
nearly 45 hospitals, and more than 200 outpatient and ambulatory clinics and surgery centers to UnitedHealthcare Employer &
Individual global members and consumers served by other payers.

Through its risk-based product offerings, UnitedHealthcare Employer & Individual assumes the risk of both medical and
administrative costs for its customers in return for a monthly premium which is typically a fixed rate per individual served for a
one-year period. Through its administrative and other management services arrangements to customers who elect to self-fund
the health care costs of their employees and employees’ dependents, UnitedHealthcare Employer & Individual receives a fixed
monthly service fee per individual served. These customers retain the risk of financing medical benefits for their employees and
employees’ dependents, while UnitedHealthcare Employer & Individual provides services such as coordination and facilitation
of medical and related services to customers, consumers and health care professionals, administration of transaction processing
and access to a contracted network of physicians, hospitals and other health care professionals, including dental and vision
professionals. UnitedHealthcare Employer & Individual is focused on providing informed benefit solutions that create

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customized plan designs and clinical programs for employers that contribute to well-being and reduce the total cost of care
along with providing simpler consumer experiences in response to market dynamics.

UnitedHealthcare Employer & Individual typically distributes its products through a variety of channels, dependent upon the
specific product, including: through consultants or direct sales, in collaboration with brokers and agents, through wholesale
agents or agencies who contract with health insurance carriers to distribute individual or group benefits, through professional
employer organizations and associations and through both multi-carrier and its own proprietary private exchange marketplaces.

UnitedHealthcare Employer & Individual’s major product families include consumer engagement products, such as high-
deductible consumer driven benefit plans and a variety of innovative consumer centric products; traditional products; clinical
and pharmacy products; and specialty benefits, such as vision, dental, hearing, accident protection, critical illness, disability and
hospital indemnity offerings.

UnitedHealthcare Medicare & Retirement

UnitedHealthcare Medicare & Retirement provides health and well-being services to individuals age 50 and older, addressing
their unique needs. UnitedHealthcare Medicare & Retirement has distinct benefit designs, pricing, underwriting, clinical
program management and marketing capabilities dedicated to health products and services in this market.

UnitedHealthcare Medicare & Retirement offers a selection of products allowing people choice in obtaining the health coverage
and services they need as their circumstances change. These offerings include care management and health system navigator
services, clinical management programs, nurse health line services, 24-hour access to health care information, access to
discounted health services from a network of care providers and administrative services.

UnitedHealthcare Medicare & Retirement has extensive distribution capabilities and experience, including direct marketing to
consumers on behalf of its key clients, including AARP, the nation’s largest membership organization dedicated to the needs of
people age 50 and over, and state and U.S. government agencies. Products are also offered through agents, employer groups and
digital channels.

Major product categories include:

Medicare Advantage. Provides health care coverage for seniors and other eligible Medicare beneficiaries through the Medicare
Advantage program administered by the Centers for Medicare & Medicaid Services (CMS), including Medicare Advantage
HMO plans, Preferred Provider Organization (PPO) plans, Point-of-Service plans, Private-Fee-for-Service plans and Special
Needs Plans (SNPs). Under the Medicare Advantage program, UnitedHealthcare Medicare & Retirement provides health
benefits coverage in exchange for a fixed monthly premium per member from CMS plus, in some cases, monthly consumer
premiums. Premium amounts received from CMS vary based on the geographic areas in which individuals reside; demographic
factors such as age, gender and institutionalized status; and the health status of the individual. UnitedHealthcare Medicare &
Retirement served 7.1 million people through its Medicare Advantage products as of December 31, 2022.

We have continued to enhance our offerings, focusing on more digital and physical care resources in the home, expanding our
concierge navigation services and enabling the home as a safe and effective setting of care. For example, through our
HouseCalls program, nurse practitioners performed nearly 2.3 million clinical preventive home care visits in 2022 to address
unmet care opportunities and close gaps in care.

Medicare Part D. Provides Medicare Part D benefits to beneficiaries through its Medicare Advantage and stand-alone Medicare
Part D plans. The stand-alone Medicare Part D plans address a large spectrum of people’s needs and preferences for their
prescription drug coverage, including low-cost prescription options. As of December 31, 2022, UnitedHealthcare enrolled 9.6
million people in the Medicare Part D programs, including 3.3 million individuals in stand-alone Medicare Part D plans, with
the remainder in Medicare Advantage plans incorporating Medicare Part D coverage.

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Medicare Supplement. Provides a full range of supplemental products at diverse price points. These products cover various
levels of coinsurance and deductible gaps to which seniors are exposed in the traditional Medicare program. UnitedHealthcare
Medicare & Retirement served 4.4 million seniors nationwide through various Medicare Supplement products in association
with AARP as of December 31, 2022.

Premium revenues from CMS represented 38% of UnitedHealth Group’s total consolidated revenues for the year ended
December 31, 2022, most of which were generated by UnitedHealthcare Medicare & Retirement.

UnitedHealthcare Community & State

UnitedHealthcare Community & State is dedicated to serving state programs caring for the economically disadvantaged, the
medically underserved and those without the benefit of employer-funded health care coverage, typically in exchange for a
monthly premium per member from the state program. UnitedHealthcare Community & State’s primary customers oversee
Medicaid plans, including Temporary Assistance to Needy Families; Children’s Health Insurance Programs (CHIP); Dual SNPs
(DSNPs); Long-Term Services and Supports (LTSS); Aged, Blind and Disabled; and other federal, state and community health
care programs. As of December 31, 2022, UnitedHealthcare Community & State participated in programs in 35 states and the
District of Columbia, and served 8.2 million people; including 1.5 million people through Medicaid expansion programs in 19
states under the Patient Protection and Affordable Care Act (ACA).

States using managed care services for Medicaid beneficiaries select health plans by using a formal bid process or by awarding
individual contracts. These health plans and care programs are designed to address the complex needs of the populations they
serve, including the chronically ill, people with disabilities and people with a higher risk of medical, behavioral and social
conditions. UnitedHealthcare Community & State administers benefits for the unique needs of children, pregnant women,
adults, seniors and those who are institutionalized or are nursing home eligible. These individuals often live in medically
underserved areas and are less likely to have a consistent relationship with the medical community or a care provider. They also
often face significant social and economic challenges.

GOVERNMENT REGULATION

Our businesses are subject to comprehensive U.S. federal and state and international laws and regulations. We are regulated by
agencies which generally have discretion to issue regulations and interpret and enforce laws and rules. U.S. federal and state and
international governments continue to consider and enact various legislative and regulatory proposals which could materially
impact certain aspects of the health care system. New laws, regulations and rules, or changes in the interpretation of existing
laws, regulations and rules, including as a result of changes in the political environment, could adversely affect our businesses.

See Part I, Item 1A, “Risk Factors” for a discussion of the risks related to our compliance with U.S. federal and state and
international laws and regulations.

U.S. Federal Laws and Regulation

When we contract with the federal government, we are subject to federal laws and regulations relating to the award,
administration and performance of U.S. government contracts. CMS regulates our UnitedHealthcare businesses and certain
aspects of our Optum businesses. Payments by CMS to our businesses are subject to regulations, including those governing fee-
for-service and the submission of information relating to the health status of enrollees for purposes of determining the amounts
of certain payments to us. CMS also has the right to audit our performance to determine our compliance with CMS contracts
and regulations and the quality of care we provide to Medicare beneficiaries. Our commercial business is further subject to
CMS audits related to medical loss ratios (MLRs) and risk adjustment data.

UnitedHealthcare Community & State has Medicaid and CHIP contracts, which are subject to federal regulations regarding
services to be provided to Medicaid enrollees, payment for those services and other aspects of these programs. There are many
regulations affecting Medicare and Medicaid compliance, and the regulatory environment with respect to these programs is
complex.

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Our businesses are also subject to laws and regulations relating to consumer protection, anti-fraud and abuse, anti-kickbacks,
false claims, prohibited referrals, inappropriate reduction or limitation of health care services, anti-money laundering, securities
and antitrust compliance.

Privacy, Security and Data Standards Regulation. Certain of our operations are subject to regulation under the administrative
simplification provisions of the Health Insurance Portability and Accountability Act of 1996, as amended (HIPAA), which apply
to both the group and individual health insurance markets, including self-funded employee benefit plans. Federal regulations
related to HIPAA contain minimum standards for electronic transactions and code sets and for the privacy and security of
protected health information.

Our businesses must comply with the Health Information Technology for Economic and Clinical Health Act (HITECH) which
regulates matters relating to privacy, security and data standards. HITECH imposes requirements on uses and disclosures of
health information; includes contracting requirements for HIPAA business associate agreements; extends parts of HIPAA
privacy and security provisions to business associates; adds federal data breach notification requirements for covered entities
and business associates and reporting requirements to HHS and the Federal Trade Commission (FTC) and, in some cases, to the
local media; strengthens enforcement and imposes higher financial penalties for HIPAA violations and, in certain cases, imposes
criminal penalties for individuals, including employees. In the conduct of our business, depending on the circumstances, we may
act as either a covered entity or a business associate.

The use and disclosure of individually identifiable health data by our businesses are also regulated in some instances by other
federal laws, including the Gramm-Leach-Bliley Act (GLBA) or state statutes implementing GLBA. These federal laws and
state statutes generally require insurers to provide customers with notice regarding how their non-public personal health and
financial information is used and the opportunity to “opt out” of certain disclosures before the insurer shares such information
with a third party, and generally prescribe safeguards for the protection of personal information. Neither the GLBA nor HIPAA
privacy regulations preempt more stringent state laws and regulations, which may apply to us, as discussed below. Federal
consumer protection laws may also apply in some instances to privacy and security practices related to personally identifiable
information.

ERISA. The Employee Retirement Income Security Act of 1974, as amended (ERISA), regulates how our services are provided
to or through certain types of employer-sponsored health benefit plans. ERISA is a set of laws and regulations subject to
interpretation by the U.S. Department of Labor (DOL) as well as the federal courts. ERISA sets forth standards on how our
business units may do business with employers who sponsor employee health benefit plans, particularly those who maintain
self-funded plans. Regulations established by the DOL subject us to additional requirements for administration of benefits,
claims payment and member appeals under health care plans governed by ERISA.

State Laws and Regulation

Health Care Regulation. Our insurance and HMO subsidiaries must be licensed by the jurisdictions in which they conduct
business. All of the states in which our subsidiaries offer insurance and HMO products regulate those products and operations.
The states require periodic financial reports and establish minimum capital or restricted cash reserve requirements. The National
Association of Insurance Commissioners (NAIC) has adopted model regulations, which require expanded governance practices
and risk and solvency assessment reporting. Most states have adopted these or similar measures to expand the scope of
regulations relating to corporate governance and internal control activities of HMOs and insurance companies. We are required
to maintain a risk management framework and file a confidential self-assessment report with state insurance regulators. We file
reports annually with Connecticut, our lead regulator, and with New York, as required by the state’s regulation.

Our health plans and insurance companies are regulated under state insurance holding company regulations. Such regulations
generally require registration with applicable state departments of insurance and the filing of reports describing capital structure,
ownership, financial condition, certain affiliated transactions and general business operations. Most state insurance holding
company laws and regulations require prior regulatory approval of acquisitions and material affiliated transfers of assets, as well
as transactions between the regulated companies and their parent holding companies or affiliates. These laws may restrict the
ability of our regulated subsidiaries to pay dividends to our holding companies.

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Some of our business activity is subject to other health care-related regulations and requirements, including PPO, Managed Care
Organization (MCO), utilization review (UR), TPA, pharmacy care services, durable medical equipment or care provider-related
regulations and licensure requirements. These regulations differ from state to state and may contain network, contracting,
product and rate, licensing and financial and reporting requirements. Health care-related laws and regulations set specific
standards for delivery of services, appeals, grievances and payment of claims, adequacy of health care professional networks,
fraud prevention, protection of consumer health information, pricing and underwriting practices and covered benefits and
services. State health care anti-fraud and abuse prohibitions encompass a wide range of activities, including kickbacks for
referral of members, billing for unnecessary medical services and improper marketing. Certain of our businesses are subject to
state general agent, broker and sales distribution laws and regulations. UnitedHealthcare Community & State and certain of our
Optum businesses are subject to regulation by state Medicaid agencies which oversee the provision of benefits to our Medicaid
and CHIP beneficiaries and to our beneficiaries dually eligible for Medicare and Medicaid. We also contract with state
governmental entities and are subject to state laws and regulations relating to the award, administration and performance of state
government contracts.

State Privacy and Security Regulations. A number of states have adopted laws and regulations which may affect our privacy
and security practices, such as state laws governing the use, disclosure and protection of social security numbers and protected
health information or which are designed to implement GLBA or protect credit card account data. State and local authorities
increasingly focus on the importance of protecting individuals from identity theft, with a significant number of states enacting
laws requiring businesses to meet minimum cyber-security standards and notify individuals of security breaches involving
personal information. State consumer protection laws may also apply to privacy and security practices related to personally
identifiable information, including information related to consumers and care providers. Different approaches to state privacy
and insurance regulation and varying enforcement philosophies may materially and adversely affect our ability to standardize
our products and services across state lines. See Part I, Item 1A, “Risk Factors” for a discussion of the risks related to
compliance with state privacy and security regulations.

Corporate Practice of Medicine and Fee-Splitting Laws. Certain of our businesses function as direct medical service providers
and, as such, are subject to additional laws and regulations. Some states have corporate practice of medicine laws prohibiting
specific types of entities from practicing medicine or employing physicians to practice medicine. Moreover, some states prohibit
certain entities from engaging in fee-splitting practices, which involve sharing in the fees or revenues of a professional practice.
These prohibitions may be statutory or regulatory, or may be imposed through judicial or regulatory interpretation. The laws,
regulations and interpretations in certain states have been subject to limited judicial and regulatory interpretation and are subject
to change.

Pharmacy and Pharmacy Benefits Management (PBM) Regulations

Optum Rx’s businesses include home delivery, specialty and compounding pharmacies, as well as clinic-based pharmacies
which must be licensed as pharmacies in the states in which they are located. Certain of our pharmacies must also register with
the U.S. Drug Enforcement Administration (DEA) and individual state controlled substance authorities to dispense controlled
substances. In addition to adhering to the laws and regulations in the states where our pharmacies are located, we also are
required to comply with laws and regulations in some non-resident states where we deliver pharmaceuticals, including those
requiring us to register with the board of pharmacy in the non-resident state. These non-resident states generally expect our
pharmacies to follow the laws of the state in which the pharmacies are located, but some non-resident states also require us to
comply with their laws where pharmaceuticals are delivered. Additionally, certain of our pharmacies which participate in
programs for Medicare and state Medicaid providers are required to comply with applicable Medicare and Medicaid provider
rules and regulations. Other laws and regulations affecting our pharmacies include federal and state statutes and regulations
governing the labeling, packaging, advertising and adulteration of prescription drugs and dispensing of controlled substances.
See Part I, Item 1A, “Risk Factors” for a discussion of the risks related to our pharmacy care services businesses.

Federal and state legislation regulating PBM activities affects both our ability to limit access to a pharmacy provider network or
remove network providers. Additionally, many states limit our ability to manage and establish maximum allowable costs for
generic prescription drugs. With respect to formulary services, a number of government entities, including CMS, HHS and state
departments of insurance, regulate the administration of prescription drug benefits offered through federal or state exchanges.

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Many states also regulate the scope of prescription drug coverage, as well as the delivery channels to receive such prescriptions,
for insurers, MCOs and Medicaid managed care plans. These regulations could limit or preclude (i) certain plan designs, (ii)
limited networks, (iii) use of particular care providers or distribution channels, (iv) copayment differentials among providers and
(v) formulary tiering practices.

Legislation seeking to regulate PBM activities introduced or enacted at the federal or state level could impact our business
practices with others in the pharmacy supply chain, including pharmaceutical manufacturers and network providers. In addition,
organizations like the NAIC periodically issue model regulations while credentialing organizations, like the National Committee
for Quality Assurance (NCQA) and the Utilization Review Accreditation Commission (URAC), may establish standards
impacting PBM pharmacy activities. Although these model regulations and standards do not have the force of law, they may
influence states to adopt their recommendations and impact the services we deliver to our clients.

Consumer Protection Laws

Certain of our businesses participate in direct-to-consumer activities and are subject to regulations applicable to online
communications and other general consumer protection laws and regulations such as the Federal Tort Claims Act, the Federal
Postal Service Act and the FTC’s Telemarketing Sales Rule. Most states also have similar consumer protection laws.

Certain laws, such as the Telephone Consumer Protection Act, give the FTC, the Federal Communications Commission (FCC)
and state attorneys general the ability to regulate, and bring enforcement actions relating to, telemarketing practices and certain
automated outbound contacts such as phone calls, texts or emails. Under certain circumstances, these laws may provide
consumers with a private right of action. Violations of these laws could result in substantial statutory penalties and other
sanctions.

Banking Regulation

Optum Bank is subject to regulation by federal banking regulators, including the Federal Deposit Insurance Corporation (FDIC),
which performs annual examinations to ensure the bank is operating in accordance with federal safety and soundness
requirements, and the Consumer Financial Protection Bureau, which may perform periodic examinations to ensure the bank is in
compliance with applicable consumer protection statutes, regulations and agency guidelines. Optum Bank is also subject to
supervision and regulation by the Utah State Department of Financial Institutions, which carries out annual examinations to
ensure the bank is operating in accordance with state safety and soundness requirements and performs periodic examinations of
the bank’s compliance with applicable state banking statutes, regulations and agency guidelines. In the event of unfavorable
examination results from any of these agencies, the bank could become subject to increased operational expenses and capital
requirements, enhanced governmental oversight and monetary penalties.

Non-U.S. Regulation

Certain of our businesses operate internationally and are subject to regulation in the jurisdictions in which they are organized or
conduct business. These regulatory regimes vary from jurisdiction to jurisdiction. In addition, our non-U.S. businesses and
operations are subject to U.S. laws regulating the conduct and activities of U.S.-based businesses operating abroad, such as the
Foreign Corrupt Practices Act (FCPA), which prohibits offering, promising, providing or authorizing others to give anything of
value to a foreign government official to obtain or retain business or otherwise secure a business advantage.

COMPETITION

As a diversified health care company, we operate in highly competitive markets across the full expanse of health care benefits
and services. Our competitors include organizations ranging from startups to highly sophisticated Fortune 50 global enterprises,
for-profit and non-profit companies, and private and government-sponsored entities. New entrants to our markets and business
combinations among our competitors and suppliers also contribute to a dynamic and competitive environment. We compete
fundamentally on the quality and value we provide to those we serve which can include elements such as product and service

9

innovation; use of technology; consumer and provider engagement and satisfaction; and sales, marketing and pricing. See Part I,
Item 1A, “Risk Factors” for additional discussion of our risks related to competition.

INTELLECTUAL PROPERTY RIGHTS

We have obtained trademark registration for the UnitedHealth Group, Optum and UnitedHealthcare names and logos. We own
registrations for certain of our other trademarks in the United States and abroad. We hold a portfolio of patents and have patent
applications pending from time to time. We are not substantially dependent on any single patent or group of related patents.

Unless otherwise noted, trademarks appearing in this report are trademarks owned by us. We disclaim any proprietary interest in
the marks and names of others.

HUMAN CAPITAL RESOURCES

Our nearly 400,000 employees, as of December 31, 2022, including more than 140,000 clinical professionals, are guided by our
mission to help people live healthier lives and help make the health system work better for everyone. Our mission and cultural
values of integrity, compassion, relationships, innovation and performance align with our long-term business strategy to increase
access to care, make care more affordable, enhance the care experience, improve health outcomes and advance health equity.
Our mission and values attract individuals who are determined to make a difference—individuals whose talent, innovation,
engagement and empowerment are critical in our ability to achieve our mission. Similar to other businesses, in 2022 we
experienced moderately higher levels of employment attrition, but due to increased recruiting capacity, upgraded digital
capabilities and continued investment in our workforce, we continue to be able to meet the needs of those we serve.

We are committed to developing our people and culture by creating an inclusive environment where people of diverse
backgrounds, experiences and perspectives make us better. Our approach is data-driven and leader led and uses enterprise and
business scorecards to ensure our leaders are accountable for a consistent focus on hiring, developing, advancing and retaining
diverse talent. We have embedded inclusion and diversity throughout our culture, including in our talent acquisition and talent
management practices; leadership development; careers; learning and skills; and systems and processes. We strive to maintain a
sustainable and diverse talent pipeline by building strong strategic partnerships and outreach through early career programs,
internships and apprenticeships. We support career coaching, mentorship and accelerated leadership development programs to
ensure mobility and advancement for our diverse talent. To foster an engaged workforce and an inclusive culture, we invest in a
broad array of learning and culture development programs. We rely on a shared leadership framework, which clearly and
objectively defines our expectations, enables an environment where everyone has the opportunity to learn and grow, and helps
us identify, develop and deploy talent to help achieve our mission.

We prioritize pay equity by regularly evaluating and reviewing our compensation practices by gender, ethnicity and race.
Receiving on-going feedback from our team members is another way to strengthen and reinforce a culture of inclusion. Our
Employee Experience Index measures an employee’s sense of commitment and belonging to our company and is a metric in the
Stewardship section of our annual incentive plan. Our Sustainability Report, which can be accessed on our website at
www.unitedhealthgroup.com, provides further information about our people and culture.

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INFORMATION ABOUT OUR EXECUTIVE OFFICERS

The following sets forth certain information regarding our executive officers as of February 24, 2023, including the business
experience of each executive officer during the past five years:

Name

Andrew Witty ......................................
Dirk McMahon.....................................
John Rex ............................................
Rupert Bondy.......................................
Erin McSweeney...................................
Thomas Roos .......................................
Brian Thompson ...................................

Age

58
63
61
61
58
50
48

Position

Chief Executive Officer
President and Chief Operating Officer
Executive Vice President and Chief Financial Officer
Executive Vice President, Chief Legal Officer and Corporate Secretary
Executive Vice President and Chief People Officer
Senior Vice President and Chief Accounting Officer
Chief Executive Officer of UnitedHealthcare

Our Board of Directors elects executive officers annually. Our executive officers serve until their successors are duly elected
and qualified, or until their earlier death, resignation, removal or disqualification.

Andrew Witty has served as Chief Executive Officer and a member of the Board of Directors of UnitedHealth Group since
February 2021. Previously, Andrew served as Chief Executive Officer of Optum from July 2018 to April 2021, President of
UnitedHealth Group from November 2019 to February 2021 and as a UnitedHealth Group director from August 2017 to March
2018. Prior to joining UnitedHealth Group, he was Chief Executive Officer and a board member of GlaxoSmithKline, a global
pharmaceutical company, from 2008 to 2017.

Dirk McMahon has served as President and Chief Operating Officer of UnitedHealth Group since February 2021. He previously
served as Chief Executive Officer of UnitedHealthcare June 2019 to April 2021, President and Chief Operating Officer of
Optum from April 2017 to June 2019 and Executive Vice President, Operations at UnitedHealth Group from November 2014 to
April 2017. Dirk also served as Chief Executive Officer of Optum Rx from November 2011 to November 2014. Prior to 2011,
he held various positions in UnitedHealthcare in operations, technology and finance.

John Rex has served as Executive Vice President and Chief Financial Officer of UnitedHealth Group since June 2016. From
March 2012 to June 2016, he served as Executive Vice President and Chief Financial Officer of Optum. Prior to joining Optum
in 2012, John was a Managing Director at JP Morgan, a global financial services firm.

Rupert Bondy has served as Executive Vice President and Chief Legal Officer of UnitedHealth Group since March 2022 and
additionally as Corporate Secretary since April 2022. Prior to joining UnitedHealth Group, Rupert served as Senior Vice
President, General Counsel and Corporate Secretary at Reckitt Benckiser Group, a consumer goods group focused on hygiene,
health and nutrition products, from January 2017 to February 2022. Prior to joining Reckitt Benckieser Group, he served as
Group General Counsel of BP plc, an international energy company, and, among his prior positions, as Senior Vice President
and General Counsel of GlaxoSmithKline, a global pharmaceutical company.

Erin McSweeney has served as Executive Vice President and Chief People Officer of UnitedHealth Group since March 2022.
From February 2021 to March 2022, Erin served as chief of staff to UnitedHealth Group’s Office of the Chief Executive. From
January 2017 to February 2021, she served as Executive Vice President and Chief Human Resources Officer at Optum. Prior to
joining UnitedHealth Group, Erin was Executive Vice President and Chief Human Resources Officer for EMC Corporation, an
international technology company.

Tom Roos has served as Senior Vice President and Chief Accounting Officer of UnitedHealth Group since August 2015. Prior to
joining UnitedHealth Group, Tom was a Partner at Deloitte & Touche LLP, an independent registered public accounting firm.

Brian Thompson has served as Chief Executive Officer of UnitedHealthcare since April 2021. Prior to this role, he served as
Chief Executive Officer of UnitedHealthcare’s government programs including Medicare & Retirement and Community & State

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from July 2019 to April 2021; as Chief Executive Officer of Medicare & Retirement from April 2017 to July 2019; and as Chief
Financial Officer of UnitedHealthcare’s Employer & Individual and Medicare & Retirement businesses from August 2010 to
April 2017.

Additional Information

Our executive offices are located at UnitedHealth Group Center, 9900 Bren Road East, Minnetonka, Minnesota 55343; our
telephone number is (952) 936-1300.

You can access our website at www.unitedhealthgroup.com to learn more about our company. We make periodic and current
reports and amendments available, free of charge, on our website, as soon as reasonably practicable after we file or furnish these
reports to the Securities and Exchange Commission (SEC). Information on or linked to our website is neither part of nor
incorporated by reference into this Annual Report on Form 10-K or any other SEC filings.

ITEM 1A. RISK FACTORS

CAUTIONARY STATEMENTS

The statements, estimates, projections or outlook contained in this Annual Report on Form 10-K include forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). When used in this Annual
Report on Form 10-K and in future filings by us with the SEC, in our news releases, presentations to securities analysts or
investors, and in oral statements made by or with the approval of one of our executive officers, the words “believe,” “expect,”
“intend,” “estimate,” “anticipate,” “forecast,” “outlook,” “plan,” “project,” “should” or similar words or phrases are intended to
identify such forward-looking statements. These statements are intended to take advantage of the “safe harbor” provisions of the
PSLRA. These forward-looking statements involve risks and uncertainties which may cause our actual results to differ
materially from the expectations expressed or implied in the forward-looking statements. Any forward-looking statement in this
report speaks only as of the date of this report and, except as required by law, we undertake no obligation to update any
forward-looking statement to reflect events or circumstances, including unanticipated events, after the date of this report.

The following discussion contains cautionary statements regarding our business, which investors and others should consider. We
do not undertake to address in future filings or communications regarding our business or results of operations how any of these
factors may have caused our results to differ from discussions or information contained in previous filings or communications.
In addition, any of the matters discussed below may have affected past, as well as current, forward-looking statements about
future results. Any or all forward-looking statements in this Annual Report on Form 10-K and in any other SEC filings or public
statements we make may turn out to be wrong. Our forward-looking statements can be affected by inaccurate assumptions we
might make or by known or unknown risks and uncertainties. Many factors discussed below will be important in determining
our future results. By their nature, forward-looking statements are not guarantees of future performance or results and are
subject to risks, uncertainties and assumptions which are difficult to predict or quantify.

Risks Related to Our Business and Our Industry

If we fail to estimate, price for and manage our medical costs or set benefit designs in an effective manner, the
profitability of our risk-based products and services could decline and could materially and adversely affect our results
of operations, financial position and cash flows.

Through our risk-based benefit products, we assume the risk of both medical and administrative costs for our customers in
return for monthly premiums. We generally use approximately 80% to 85% of our premium revenues to pay the costs of health
care services delivered to these customers. The profitability of our products depends in large part on our ability to predict, price
for and effectively manage medical costs. Our Optum Health business also enters into fully accountable value-based
arrangements with payers. Premium revenues from risk-based products comprise nearly 80% of our total consolidated revenues.
If we fail to predict accurately, or effectively price for or manage, the costs of providing care under risk-based arrangements,
our results of operations could be materially and adversely affected.

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We manage medical costs through underwriting criteria, product design, negotiation of competitive provider contracts and care
management programs. Total medical costs are affected by the number of individual services rendered, the cost of each service
and the type of service rendered. Our premium revenue on commercial policies and Medicaid contracts is typically based on a
fixed monthly rate per individual or family served for a 12-month period and is generally priced one to six months before the
contract commences. Our revenue on certain Medicare policies is based on bids submitted to CMS in June of the year before the
contract year. Our premium revenue on fully accountable value-based care products at Optum Health is typically based on a
fixed monthly rate per individual served. Although we base the commercial, Medicaid and value-based premiums we charge and
our Medicare bids on our estimates of future medical costs over the fixed contract period, many factors may cause actual costs
to exceed those estimated and reflected in premiums or bids. These factors may include medical cost inflation, increased use of
services, increased cost of individual services, costs to deliver care, large-scale medical emergencies, the potential effects of
climate change, pandemics, the introduction of new or costly drugs, treatments and technology, new treatment guidelines, newly
mandated benefits or other regulatory changes and insured population characteristics. For Optum Health’s fully accountable
value-based care, our inability to provide higher-quality outcomes and better experiences at lower costs or our inability to
integrate our care delivery models could impact our results of operations, financial positions and cash flows. Relatively small
differences between predicted and actual medical costs or utilization rates as a percentage of revenues can result in significant
changes in our financial results.

In addition, the financial results we report for any particular period include estimates of costs incurred for which claims are still
outstanding. These estimates involve an extensive degree of judgment. If these estimates prove inaccurate, our results of
operations could be materially and adversely affected.

If we fail to maintain properly the integrity or availability of our data or successfully consolidate, integrate, upgrade or
expand our existing information systems, or if our technology products do not operate as intended, our business could be
materially and adversely affected.

Our business depends on the integrity and timeliness of the data we use to serve our members, customers and health care
professionals and to operate our business. If the data we rely upon to run our businesses is found to be inaccurate or unreliable
or if we fail to maintain or protect our information systems and data integrity effectively, we could experience failures in our
health, wellness and information technology products; lose existing customers; have difficulty attracting new customers;
experience problems in determining medical cost estimates and establishing appropriate pricing; have difficulty preventing,
detecting and controlling fraud; have disputes with customers, physicians and other health care professionals; become subject to
regulatory sanctions, penalties, investigations or audits; incur increases in operating expenses; or suffer other adverse
consequences.

The volume of health care data generated, and the uses of data, including electronic health records, are rapidly expanding. Our
ability to implement new and innovative services, automate and deploy new technologies to simplify administrative processes
and clinical decision making, price our products and services adequately, provide effective service to our customers and
consumers in an efficient and uninterrupted fashion, provide timely payments to care providers, and report accurately our results
of operations depends on the integrity of the data in our information systems. In addition, connectivity among technologies is
becoming increasingly important and recent trends toward greater consumer engagement in health care require new and
enhanced technologies, including more sophisticated applications for mobile devices. Our information systems require an
ongoing commitment of significant resources to maintain, protect and enhance existing systems and develop new systems to
keep pace with continuing changes in information processing technology, evolving systems and regulatory standards and
changing customer preferences.

We periodically consolidate, integrate, upgrade and expand our information systems’ capabilities as a result of technology
initiatives, recently enacted regulations, changes in our system platforms and integration of new business acquisitions. Our
process of consolidating the number of systems we operate, upgrading and expanding our information systems’ capabilities,
enhancing our systems and developing new systems to keep pace with continuing changes in information processing technology
may not be successful. Failure to protect, consolidate and integrate our systems successfully could result in higher than expected
costs and diversion of management’s time and energy, which could materially and adversely affect our results of operations,
financial position and cash flows.

13

Certain of our businesses sell and install software products which may contain unexpected design defects or may encounter
unexpected complications during installation or when used with other technologies utilized by the customer. A failure of our
technology products to operate as intended and in a seamless fashion with other products could materially and adversely affect
our results of operations, financial position and cash flows.

Uncertain and rapidly evolving U.S. federal and state, non-U.S. and international laws and regulations related to health data and
the health information technology market may alter the competitive landscape or present compliance challenges and could
materially and adversely affect the configuration of our information systems and platforms, and our ability to compete in this
market.

If we or third parties we rely on sustain cyber-attacks or other privacy or data security incidents resulting in security
breaches disrupting our operations or resulting in the unintended dissemination of protected personal information or
proprietary or confidential information, we could suffer a loss of revenue and increased costs, exposure to significant
liability, reputational harm and other serious negative consequences.

We routinely process, store and transmit large amounts of data in our operations, including protected personal information
subject to privacy, security or data breach notification laws, as well as proprietary or confidential information relating to our
business or third parties. Some of the data we process, store and transmit may be outside of the United States due to our
information technology systems and international business operations. We are regularly the target of attempted cyber-attacks
and other security threats and may be subject to breaches of the information technology systems we use. We have programs in
place to detect, contain and respond to data security incidents and provide employee awareness training regarding phishing,
malware and other cyber risks to protect against cyber risks and security breaches. However, because the techniques used to
obtain unauthorized access, disable or degrade service, or sabotage systems change frequently and are increasing in
sophistication, we may be unable to anticipate these techniques, detect breaches for long periods of time or implement adequate
preventive measures. Experienced computer programmers and hackers may be able to penetrate our security controls and access,
misappropriate or otherwise compromise protected personal information or proprietary or confidential information or that of
third parties, create system disruptions or cause system shutdowns, negatively affecting our operations. They also may be able to
develop and deploy viruses, worms and other malicious software programs attacking our systems or otherwise exploit any
security vulnerabilities. Hardware, software, or applications we develop or procure from third parties may contain defects in
design or manufacture or other problems which could unexpectedly compromise information security. Our facilities and services
may also be vulnerable to security incidents or security attacks; acts of vandalism or theft; coordinated attacks by activist
entities; financial fraud schemes; misplaced or lost data; human error; malicious social engineering; or other events which could
negatively affect our systems, our customers’ data, proprietary or confidential information relating to our business or third
parties, or our operations. Moreover, there has been an increase in new financial fraud schemes and ransomware attacks on large
companies, whereby cybercriminals install malicious software preventing users or the enterprise from accessing computer files,
systems or networks and demand payment of a ransom for return of access. In addition, there may be a heightened vulnerability
due to the lack of physical supervision and on-site infrastructure for remote workforce operations. In certain circumstances we
may rely on third-party vendors to process, store and transmit large amounts of data for our business whose operations are
subject to similar risks.

The costs to eliminate or address the foregoing security threats and vulnerabilities before or after a cyber-incident could be
material. We have business continuation and resiliency plans which are maintained, updated and tested regularly in an effort to
ensure successful containment and remediation of potential disruptions or cyber events. In the event that our remediation efforts
may not be successful, it could result in interruptions, delays, or cessation of service and loss of existing or potential customers.
In addition, breaches of our security measures and the unauthorized dissemination of sensitive personal information, proprietary
information or confidential information about us or our customers or other third parties, could expose our customers’ private
information and our customers to the risk of financial or medical identity theft, or expose us or other third parties to a risk of
loss or misuse of this information, result in litigation and liability, including regulatory penalties, for us, damage our brand and
reputation, or otherwise harm our business.

14

If we fail to compete effectively to maintain or increase our market share, including maintaining or increasing
enrollments in businesses providing health benefits, our results of operations, financial position and cash flows could be
materially and adversely affected.

Our businesses face significant competition in all of the geographic markets in which we operate. In particular geographies or
product segments, our competitors, compared to us, may have greater capabilities, resources or market share; a more established
reputation; superior supplier or health care professional arrangements; better existing business relationships; lower profit margin
or financial return expectations; or other factors which give such competitors a competitive advantage. Our competitive position
may also be adversely affected by significant merger and acquisition activity in the industries in which we operate, both among
our competitors and suppliers. Consolidation may make it more difficult for us to retain or increase our customer base, improve
the terms on which we do business with our suppliers, or maintain or increase profitability.

In addition, our success in the health care marketplace depends on our ability to develop and deliver innovative and potentially
disruptive products and services to satisfy evolving market demands. If we do not continue to innovate and provide products and
services, which are useful and relevant to health care payers, consumers and our customers, we may not remain competitive and
risk losing market share to existing competitors and disruptive new market entrants. For example, new direct-to-consumer
business models from competing businesses may make it more difficult for us to directly engage consumers in the selection and
management of their health care benefits and health care usage. We may face challenges from new technologies and market
entrants which could affect our existing relationship with health plan enrollees in these areas. Any failure by us to continue to
develop innovative care models, including accelerating the transition of care to value-based models achieving higher quality
outcomes and better experiences at lower costs and expanding access to virtual and in-home care, could result in competitive
disadvantages and loss of market share. Additionally, our competitive position could be adversely affected by a failure to
develop satisfactory data and analytics capabilities or provide services focused on these capabilities to our clients. Our business,
results of operations, financial position and cash flows also could be materially and adversely affected if we do not compete
effectively in our markets, if we set rates too high or too low in highly competitive markets, if we do not design and price our
products properly and competitively, if we are unable to innovate and deliver products and services demonstrating value to our
customers, if we do not provide a satisfactory level of services, if membership or demand for other services does not increase as
we expect or declines, or if we lose accounts with more profitable products while retaining or increasing membership in
accounts with less profitable products. The expected resumption of Medicaid redeterminations may also impact our ability to
maintain market share if we are unable to retain or add new consumers to other benefit offerings.

If we fail to develop and maintain satisfactory relationships with health care payers, physicians, hospitals and other
service providers, our business could be materially and adversely affected.

We depend substantially on our continued ability to contract with health care payers (as a service provider to those payers), as
well as physicians, hospitals, pharmaceutical benefit service providers, pharmaceutical manufacturers and other service
providers at competitive prices. If we fail to develop and maintain satisfactory relationships with health care providers, whether
in-network or out-of-network, it could materially and adversely affect our business, results of operations, financial position and
cash flows. In addition, certain activities related to network design, provider participation in networks and provider payments
could result in disputes, which may be costly, divert management’s attention from our operations and result in negative
publicity.

In any particular market, physicians and health care providers could refuse to contract with us, demand higher payments, or take
other actions which could result in higher medical costs, less desirable products for customers or difficulty meeting regulatory
or accreditation requirements. In some markets, certain health care providers, particularly hospitals, physician and hospital
organizations or multi-specialty physician groups, may have significant market positions or near monopolies which could
diminish our bargaining power. In addition, Accountable Care Organizations (ACOs); physician group management services
organizations (which aggregate physician practices for administrative efficiency); and other organizational structures adopted by
physicians, hospitals and other care providers may change the way in which these providers do business with us and may
change the competitive landscape. Such organizations or groups of physicians may compete directly with us, which could
adversely affect our business, and our results of operations, financial position and cash flows by impacting our relationships
with these providers or affecting the way we price our products and estimate our costs, which might require us to incur costs to

15

change our operations. In addition, if these providers refuse to contract with us, use their market position to negotiate favorable
contracts or place us at a competitive disadvantage, our ability to market products or to be profitable in those areas could be
materially and adversely affected.

Our health care benefits businesses have risk-based arrangements with some physicians, hospitals and other health care
providers. These arrangements limit our exposure to the risk of increasing medical costs, but expose us to risk related to the
adequacy of the financial and medical care resources of the health care provider. To the extent a risk-based health care provider
organization faces financial difficulties or otherwise is unable to perform its obligations under the arrangement, we may be held
responsible for unpaid health care claims which should have been the responsibility of the health care provider and for which
we have already paid the provider. Further, payment or other disputes between a primary care provider and specialists with
whom the primary care provider contracts could result in a disruption in the provision of services to our members or a reduction
in the services available to our members. Health care providers with which we contract may not properly manage the costs of
services, maintain financial solvency or avoid disputes with other providers. Any of these events could have a material adverse
effect on the provision of services to our members and our operations.

Some providers that render services to our members do not have contracts with us. In some instances, those providers may
dispute the payment for these services and may institute litigation or arbitration.

The success of some of our businesses, including Optum Health and UnitedHealthcare Employer & Individual’s international
operations, depends on maintaining satisfactory relationships with physicians as our employees, independent contractors or joint
venture partners. The physicians who practice medicine or contract with our affiliated physician organizations could terminate
their provider contracts or otherwise become unable or unwilling to continue practicing medicine or contracting with us. We
face and will likely continue to face heightened competition to acquire or manage physician practices or to employ or contract
with individual physicians. If we are unable to maintain or grow satisfactory relationships with physicians, or to acquire, recruit
or, in some instances, employ physicians, or to retain enrollees following the departure of a physician, our revenues could be
materially and adversely affected. In addition, our affiliated physician organizations contract with competitors of
UnitedHealthcare. Our businesses could suffer if our affiliated physician organizations fail to maintain relationships with these
companies, or fail to adequately price their contracts with these third-party payers.

Further, physicians, hospitals, pharmaceutical benefit service providers, pharmaceutical manufacturers and certain health care
providers are customers of our Optum businesses. Physicians also provide medical services at facilities owned by our Optum
businesses. Given the importance of health care providers and other constituents to our businesses, failure to maintain
satisfactory relationships with them could materially and adversely affect our results of operations, financial position and cash
flows.

We are routinely subject to various legal actions, which could damage our reputation and, if resolved unfavorably, could
result in substantial penalties or monetary damages and materially and adversely affect our results of operations,
financial position and cash flows.

We are routinely made party to a variety of legal actions related to, among other matters, the design, management and delivery
of our product and service offerings. Any failure by us to adhere to the laws and regulations applicable to our businesses could
subject us to civil and criminal penalties.

Legal actions to which we are a party have included or in the future could include matters related to health care benefits
coverage and payment of claims (including disputes with enrollees, customers and contracted and non-contracted physicians,
hospitals and other health care professionals), tort claims (including claims related to the delivery of health care services, such
as medical malpractice by staff at our affiliates’ facilities, or by health care practitioners who are employed by us, have
contractual relationships with us, or serve as providers to our managed care networks, including as a result of a failure to adhere
to applicable clinical, quality and/or patient safety standards), antitrust claims (including as a result of changes in the
enforcement of antitrust laws), whistleblower claims (including claims under the False Claims Act or similar statutes), contract
and labor disputes, tax claims and claims related to disclosure of certain business practices. In addition, certain of our pharmacy
services operations are subject to clinical quality, patient safety and other risks inherent in the dispensing, packaging and

16

distribution of drugs, including claims related to purported dispensing and other operational errors. We may also be party to
certain class action lawsuits brought by health care professional groups and consumers. We operate in jurisdictions outside of
the United States where contractual rights, tax positions and applicable regulations may be subject to interpretation or
uncertainty to a greater degree than in the United States, and therefore subject to dispute by customers, government authorities
or others.

We are largely self-insured with regard to litigation risks, including claims of medical malpractice against our affiliated
physicians and us. Although we record liabilities for our estimates of the probable costs resulting from self-insured matters, it is
possible the level of actual losses will significantly exceed the liabilities recorded. Additionally, physicians and other healthcare
providers have become subject to an increasing number of legal actions alleging medical malpractice and general professional
liabilities. Even in states that have imposed caps on damages for such actions, litigants are seeking recoveries under new
theories of liability that might not be subject to the caps on damages. These actions involve significant defense costs and could
result in substantial monetary damages or damage to our reputation.

We cannot predict the outcome of significant legal actions in which we are involved. We incur expenses to resolve these matters
and current and future legal actions could further increase our cost of doing business and materially and adversely affect our
results of operations, financial position and cash flows. Moreover, certain legal actions could result in adverse publicity which
could damage our reputation and materially and adversely affect our ability to retain our current business or grow our market
share in some markets and businesses.

If we fail to successfully manage our strategic alliances, to complete, manage or integrate acquisitions and other
significant strategic transactions or relationships domestically or outside the United States it could materially and
adversely affect our business, prospects, results of operations, financial position and cash flows.

As part of our business strategy, we frequently engage in discussions with third parties regarding possible investments,
acquisitions, divestitures, strategic alliances, joint ventures and outsourcing transactions and often enter into agreements relating
to such transactions. For example, we have a strategic alliance with AARP under which we provide AARP-branded Medicare
Supplement insurance to AARP members and other AARP-branded products and services to Medicare beneficiaries. If we fail
to meet the needs of our alliance or joint venture partners, including by developing additional products and services, providing
high levels of service, pricing our products and services competitively or responding effectively to applicable federal and state
regulatory changes, our alliances and joint ventures could be damaged or terminated, which in turn could adversely impact our
reputation, business and results of operations. Further, governmental actions, such as actions by the FTC or DOJ, may affect our
ability to complete our merger and acquisition transactions, which could adversely affect our future growth. If we fail to identify
and successfully complete transactions to meet our strategic objectives, we may be required to expend resources to develop
products and technology internally, be placed at a competitive disadvantage or we may be adversely affected by negative market
perceptions, any of which may have a material adverse effect on our results of operations, financial position or cash flows.

Successful acquisitions are also dependent on effectively integrating the acquired business into our existing operations,
including our internal control environment and culture, or otherwise leveraging its operations which may present challenges
different from those presented by organic growth and may be difficult for us to manage. In addition, even with appropriate
diligence, pre-acquisition practices of an acquired business may expose us to legal challenges and investigations. For example,
in January 2021, an indictment for alleged violations of antitrust laws was issued by the DOJ against our subsidiary, Surgical
Care Affiliates (SCA), based on conduct alleged to have begun more than five years prior to our acquisition of SCA. We are
vigorously defending this lawsuit, but if SCA is found liable, we may be subject to criminal fines or reputational harm. If we
cannot successfully integrate our acquired businesses and realize contemplated revenue growth opportunities, cost savings and
other synergies, our business, prospects, results of operations, financial position and cash flows could be materially and
adversely affected.

As we expand and operate our business outside of the United States, we are presented with challenges differing from those
presented by acquisitions of domestic businesses, including challenges in adapting to new markets, languages, business, labor
and cultural practices and regulatory environments. Adapting to these challenges could require us to devote significant senior
management attention and other resources to the acquired businesses before we realize anticipated synergies or other benefits

17

from those businesses. These challenges vary widely by country and, outside of the United States, may include political
instability, government intervention, discriminatory regulation and currency exchange controls or other restrictions, which could
prevent us from transferring funds from these operations out of the countries in which our acquired businesses operate, or
converting local currencies we hold into U.S. dollars or other currencies. If we are unable to manage successfully our non-U.S.
acquisitions, our business, prospects, results of operations and financial position could be materially and adversely affected.

Foreign currency exchange rates and fluctuations may have an impact on our shareholders’ equity from period to period, which
could adversely affect our debt to debt-plus-equity ratio, and our future revenues, costs and cash flows from international
operations. Any measures we may implement to reduce the effect of volatile currencies may be costly or ineffective.

We are subject to risks associated with public health crises arising from large-scale medical emergencies, pandemics,
natural disasters and other extreme events, which have and could have an adverse effect on our business, results of
operations, financial condition and financial performance.

Large-scale medical emergencies, pandemics (such as COVID-19) and other extreme events could result in public health crises
or otherwise have a material adverse effect on our business operations, cash flows, financial conditions and results of operations.
For example, disruptions in public and private infrastructure resulting from such events could increase our operating costs and
ability to provide services to our clients and customers. Additionally, as a result of these events, the premiums and fees we
charge may not be sufficient to cover our medical and administrative costs, deferred medical care could be sought in future
periods at potentially higher acuity levels, we could experience reduced demand for our services, our clinical and non-clinical
workforce could be impacted resulting in reduced capacity to handle demand for care or otherwise impact our business
operations. For example, COVID-19 has materially impacted our results of operations in previous periods. Public health crises
arising from natural disasters, such as wildfires, hurricanes, and snowstorms, or effects of climate change could impact our
business operations and result in increased medical care costs. Government enaction of emergency powers in response to public
health crises could disrupt our business operations, including by restricting pharmaceuticals or other supplies, and could increase
the risk of shortages of necessary items.

Our sales performance will suffer if we do not adequately attract, retain and provide support to a network of
independent producers and consultants.

Our products and services are sold in part through nonexclusive producers and consultants and we compete for their services
and allegiance. Our sales could be materially and adversely affected if we are unable to attract, retain and support independent
producers and consultants or if our sales strategy is not appropriately aligned across distribution channels. Our relationships with
producers could be materially and adversely impacted by changes in our business practices and the nature of our relationships to
address these pressures, including potential reductions in commission levels.

Unfavorable economic conditions could materially and adversely affect our revenues and our results of operations.

Unfavorable economic conditions may impact demand for certain of our products and services. Unfavorable economic
conditions also have caused and could continue to cause employers to stop offering certain health care coverage as an employee
benefit or elect to offer this coverage on a voluntary, employee-funded basis to reduce their operating costs. In addition,
unfavorable economic conditions could adversely impact our ability to increase premiums or result in the cancellation by certain
customers of our products and services. These conditions could lead to a decrease in people served and premium and fee
revenues and could materially and adversely affect our results of operations, financial position and cash flows.

During a prolonged unfavorable economic environment, state and federal budgets could be materially and adversely affected,
resulting in reduced reimbursements or payments in our federal and state government health care coverage programs, including
Medicare, Medicaid and CHIP. A reduction in state Medicaid reimbursement rates could be implemented retroactively to apply
to payments already negotiated or received from the government and could materially and adversely affect our results of
operations, financial position and cash flows. In addition, state and federal budgetary pressures could cause the affected
governments to impose new or a higher level of taxes or assessments for our commercial programs, such as premium taxes on

18

health insurance and surcharges or fees on select fee-for-service and capitated medical claims. Any of these developments or
actions could materially and adversely affect our results of operations, financial position and cash flows.

A prolonged unfavorable economic environment could also adversely impact the financial position of hospitals and other care
providers which could materially and adversely affect our contracted rates with these parties and increase our medical costs or
materially and adversely affect their ability to purchase our service offerings. Further, unfavorable economic conditions could
adversely impact the customers of our Optum businesses, including health plans, hospitals, care providers, employers and others
which could, in turn, materially and adversely affect Optum’s financial results.

Our failure to attract, develop, retain, and manage the succession of key employees and executives could adversely affect
our business, results of operations and future performance.

We are dependent on our ability to attract, develop and retain qualified employees and executives, including those with diverse
backgrounds, experiences and skills, to operate and expand our business. If we are unable to attract, develop, retain and
effectively manage the development and succession plans for key employees and executives, our business, results of operations
and future performance could be adversely affected. Experienced and highly skilled employees and executives in the health care
and technology industries are in high demand and the market for their services is extremely competitive. We may have
difficulty in replacing key executives because of the limited number of qualified individuals in these industries with the breadth
of skills and experience required to operate and successfully expand our business. Adverse changes to our corporate culture,
which seeks to foster integrity, compassion, relationships, innovation and performance, could harm our business operations and
our ability to retain key employees and executives. While we have development and succession plans in place for our key
employees and executives, these plans do not guarantee that the services of our key employees and executives will continue to
be available to us.

Our investment portfolio may suffer losses which could adversely affect our results of operations, financial position and
cash flows.

Market fluctuations could impair our profitability and capital position. Volatility in interest rates affects our interest income and
the market value of our investments in debt securities of varying maturities which constitute the vast majority of the fair value
of our investments as of December 31, 2022. In addition, a delay in payment of principal or interest by issuers, or defaults by
issuers (primarily issuers of our investments in corporate and municipal bonds), could reduce our investment income and require
us to write down the value of our investments which could adversely affect our profitability and equity.

Our investments may not produce total positive returns and we may sell investments at prices which are less than their carrying
values. Changes in the value of our investment assets, as a result of interest rate fluctuations, changes in issuer financial or
market conditions, illiquidity or otherwise, could have an adverse effect on our equity. In addition, if it should become
necessary for us to liquidate our investment portfolio on an accelerated basis, such an action could have an adverse effect on our
results of operations and the capital position of our regulated subsidiaries.

If the value of our intangible assets is materially impaired, our results of operations, equity and credit ratings could be
materially and adversely affected.

As of December 31, 2022, our goodwill and other intangible assets had a carrying value of $108 billion, representing 44% of
our total consolidated assets. We periodically evaluate our goodwill and other intangible assets to determine whether all or a
portion of their carrying values may be impaired, in which case a charge to earnings may be necessary. The value of our
goodwill may be materially and adversely impacted if businesses we acquire perform in a manner inconsistent with our
assumptions. In addition, from time to time we divest businesses, and any such divestiture could result in significant asset
impairment and disposition charges, including those related to goodwill and other intangible assets. Any future evaluations
requiring an impairment of our goodwill and other intangible assets could materially and adversely affect our results of
operations and equity in the period in which the impairment occurs. A material decrease in equity could, in turn, adversely
affect our credit ratings.

19

If we are not able to protect our proprietary rights to our databases, software and related products, our ability to market
our knowledge and information-related businesses could be hindered and our results of operations, financial position and
cash flows could be materially and adversely affected.

We rely on our agreements with customers, confidentiality agreements with employees and third parties, and our trademarks,
trade secrets, copyrights and patents to protect our proprietary rights. These legal protections and precautions may not prevent
misappropriation of our proprietary information. In addition, substantial litigation regarding intellectual property rights exists in
the software industry, and we expect software products to be increasingly subject to third-party infringement claims as the
number of products and competitors in this industry segment grows. Such litigation and misappropriation of our proprietary
information could hinder our ability to market and sell products and services which could materially and adversely affect our
results of operations, financial position and cash flows.

Any downgrades in our credit ratings could adversely affect our business, financial condition and results of operations.

Claims paying ability, financial strength and debt ratings by nationally recognized statistical rating organizations are important
factors in establishing the competitive position of insurance companies. Ratings information is broadly disseminated and
generally used by customers and creditors. We believe our claims paying ability and financial strength ratings are important
factors in marketing our products to certain of our customers. Our credit ratings impact both the cost and availability of future
borrowings. Each of the credit rating agencies reviews its ratings periodically. Our ratings reflect each credit rating agency’s
opinion of our financial strength, operating performance and ability to meet our debt obligations or obligations to policyholders.
We may not be able to maintain our current credit ratings in the future. Any downgrades in our credit ratings could materially
increase our costs of or ability to access funds in the debt capital markets and otherwise materially increase our operating costs.

Risks Related to the Regulation of Our Business

Our business activities in the United States and other countries are highly regulated and new laws or regulations or
changes in existing laws or regulations or their enforcement or application could materially and adversely affect our
business.

We are regulated by federal, state and local governments in the United States and other countries where we do business. Our
insurance and HMO subsidiaries must be licensed by and are subject to regulation in the jurisdictions in which they conduct
business. For example, states require periodic financial reports and enforce minimum capital or restricted cash reserve
requirements. Health plans and insurance companies are also regulated under state insurance holding company regulations and
some of our activities may be subject to other health care-related regulations and requirements, including regulations and
licensure requirements related to PPOs, MCOs, UR and TPAs. Under state guaranty association laws, certain insurance
companies can be assessed (up to prescribed limits) for certain obligations to the policyholders and claimants of impaired or
insolvent insurance companies which write the same line or similar lines of business. Any such assessment could expose our
insurance entities and other insurers to the risk they would be required to pay a portion of an impaired or insolvent insurance
company’s claims through state guaranty associations.

Certain of our businesses provide products or services to government agencies. For example, some of our Optum and
UnitedHealthcare businesses hold government contracts or provide services related to government contracts and are subject to
U.S. federal and state and non-U.S. self-referral, anti-kickback, medical necessity, risk adjustment, false claims and other laws
and regulations governing government contractors and the use of government funds. Our relationships with these government
agencies are subject to the terms of our contracts with the agencies and to laws and regulations regarding government contracts.
Among others, certain laws and regulations restrict or prohibit companies from performing work for government agencies which
might be viewed as an actual or potential conflict of interest. These laws may limit our ability to pursue and perform certain
types of engagements, thereby materially and adversely affecting our results of operations, financial position and cash flows.

Certain of our Optum businesses are also subject to regulations distinct from those faced by our insurance and HMO
subsidiaries, some of which could impact our relationships with physicians, hospitals and customers. These regulations include
state telemedicine regulations; debt collection laws; banking regulations; distributor and producer licensing requirements; state
corporate practice of medicine doctrines; fee-splitting rules; and health care facility licensure and certificate of need

20

requirements. These risks and uncertainties may materially and adversely affect our ability to market or provide our products
and services, or to achieve targeted operating margins, or may increase the regulatory burdens under which we operate.

The laws and rules governing our businesses and interpretations of those laws and rules are subject to frequent change. For
example, legislative, administrative and public policy changes to the ACA have been and likely will continue to be considered,
and we cannot predict if the ACA will be further modified. Litigation challenges have been brought seeking to invalidate the
ACA in whole or in part and future litigation challenges are possible. Further, the integration of entities we acquire into our
businesses may affect the way in which existing laws and rules apply to us, including by subjecting us to laws and rules which
did not previously apply to us. The broad latitude given to the agencies administering, interpreting and enforcing current and
future regulations governing our businesses could force us to change how we do business, restrict revenue and enrollment
growth, increase our health care and administrative costs and capital requirements, or expose us to increased liability in courts
for coverage determinations, contract interpretation and other actions.

We also must obtain and maintain regulatory approvals to market many of our products and services, increase prices for certain
regulated products and services and complete certain acquisitions and dispositions or integrate certain acquisitions. For example,
premium rates for our health insurance and managed care products are subject to regulatory review or approval in many states
and by the federal government. Additionally, we must submit data on proposed rate increases to HHS on many of our products
for monitoring purposes. Geographic and product expansions of our businesses may be subject to state and federal regulatory
approvals. Delays in obtaining necessary approvals or our failure to obtain or maintain adequate approvals could materially and
adversely affect our results of operations, financial position and cash flows.

We currently operate outside of the United States and in the future may acquire or commence additional businesses based
outside of the United States, increasing our exposure to non-U.S. regulatory regimes. Our failure to comply with U.S. or non-
U.S. laws and regulations governing our conduct outside the United States or to establish constructive relations with non-U.S.
regulators could adversely affect our ability to market our products and services or to do so at targeted operating margins, which
may have a material adverse effect on our business, financial condition and results of operations. Non-U.S. regulatory regimes,
which vary by jurisdiction, encompass, among other matters, local and cross-border taxation, licensing, tariffs, intellectual
property, investment, capital (including minimum solvency margin and reserve requirements), management control, labor, anti-
fraud, anti-corruption and privacy and data protection regulations (including requirements for cross-border data transfers). For
example, our UnitedHealthcare Employer & Individual international business subjects us to Brazilian laws and regulations
affecting hospitals, managed care and insurance industries and to regulation by Brazilian regulators, including the national
regulatory agency for private health insurance and plans, the Ageˆncia Nacional de Sau´de Suplementar, while our Banme´dica
business is subject to Chilean, Colombian and Peruvian laws, regulations and regulators applicable to hospitals and private
insurance. Any international regulator may take an approach to the interpretation, implementation and enforcement of industry
regulations which could differ from the approach taken by U.S. regulators. In addition, our non-U.S. businesses and operations
are subject to U.S. laws regulating the conduct and activities of U.S.-based businesses operating abroad, such as the FCPA,
which prohibits offering, promising, providing or authorizing others to give anything of value to a foreign government official
to obtain or retain business or otherwise secure a business advantage.

The health care industry is regularly subject to negative publicity, including as a result of governmental investigations, adverse
media coverage and political debate surrounding industry regulation. Negative publicity may adversely affect our stock price
and damage our reputation in various markets.

As a result of our participation in various government health care programs, both as a payer and as a service provider to
payers, we are exposed to additional risks associated with program funding, enrollments, payment adjustments, audits
and government investigations which could materially and adversely affect our business, results of operations, financial
position and cash flows.

We participate in various federal, state and local government health care benefit programs, including as a payer in Medicare
Advantage, Medicare Part D, various Medicaid programs and CHIP, and receive substantial revenues from these programs.
Certain of our Optum businesses also provide services to payers participating in government health care programs. A reduction
or less than expected increase, or a protracted delay, in government funding for these programs or change in allocation

21

methodologies, or termination of the contract at the option of the government, may materially and adversely affect our results of
operations, financial position and cash flows.

The government health care programs in which we participate generally are subject to frequent changes, including changes
which may reduce the number of persons enrolled or eligible for coverage, reduce the amount of reimbursement or payment
levels, reduce our participation in certain service areas or markets, or increase our administrative or medical costs under such
programs. Revenues for these programs depend on periodic funding from the federal government or applicable state
governments and allocation of the funding through various payment mechanisms. Funding for these government programs
depends on many factors outside of our control, including general economic conditions and budgetary constraints at the federal
or applicable state level. For example, CMS has in the past reduced or frozen Medicare Advantage benchmarks and additional
cuts to Medicare Advantage benchmarks are possible. In addition, from time to time, CMS makes changes to the way it
calculates Medicare Advantage risk adjustment payments. Although we have adjusted members’ benefits and premiums on a
selective basis, ceased to offer benefit plans in certain counties, and intensified both our medical and operating cost
management in response to the benchmark reductions and other funding pressures, these or other strategies may not fully
address the funding pressures in the Medicare Advantage program. In addition, payers in the Medicare Advantage program may
be subject to reductions in payments from CMS as a result of decreased funding or recoupment pursuant to government audit.
States have also made changes in rates and reimbursements for Medicaid members and audits can result in unexpected
recoupments.

Under the Medicaid managed care program, state Medicaid agencies solicit bids from eligible health plans to continue their
participation in the acute care Medicaid health programs. If we are not successful in obtaining renewals of state Medicaid
managed care contracts, we risk losing the members who were enrolled in those Medicaid plans. Under the Medicare Part D
program, to qualify for automatic enrollment of low income members, our bids must result in an enrollee premium below a
regional benchmark, which is calculated by the government after all regional bids are submitted. If the enrollee premium is not
below the government benchmark, we risk losing the members who were auto-assigned to us and will not have additional
members auto-assigned to us. In general, our bids are based upon certain assumptions regarding enrollment, utilization, medical
costs and other factors. If any of these assumptions is materially incorrect, either as a result of unforeseen changes to the
programs on which we bid, implementation of material program or policy changes after our bid submission, or submission by
our competitors at lower rates than our bids, our results of operations, financial position and cash flows could be materially and
adversely affected.

Many of the government health care coverage programs we participate in are subject to the prior satisfaction of certain
conditions or performance standards or benchmarks. For example, as part of the ACA, CMS has a system providing various
quality bonus payments to Medicare Advantage plans meeting certain quality star ratings at the individual plan or local contract
level. The star rating system considers various measures adopted by CMS, including, among others, quality of care, preventive
services, chronic illness management, handling of appeals and customer satisfaction. Plans must have a rating of four stars or
higher to qualify for bonus payments. If we do not maintain or continue to improve our star ratings, our plans may not be
eligible for quality bonuses and we may experience a negative impact on our revenues and the benefits our plans can offer,
which could materially and adversely affect the marketability of our plans, number of people we serve, and our results of
operations, financial position and cash flows. Any changes in standards or care delivery models applying to government health
care programs, including Medicare and Medicaid, or our inability to improve our quality scores and star ratings to meet
government performance requirements or to match the performance of our competitors could result in limitations to our
participation in or exclusion from these or other government programs, which in turn could materially and adversely affect our
results of operations, financial position and cash flows.

CMS uses various payment mechanisms to allocate funding for Medicare programs, including adjustment of monthly capitation
payments to Medicare Advantage plans and Medicare Part D plans according to the predicted health status of each beneficiary
as supported by data from health care providers for Medicare Advantage plans, as well as, for Medicare Part D plans, risk-
sharing provisions based on a comparison of costs forecasted in our annual bids to actual prescription drug costs. Some state
Medicaid programs utilize a similar process. For example, our UnitedHealthcare Medicare & Retirement and UnitedHealthcare
Community & State businesses submit information relating to the health status of enrollees to CMS or state agencies for
purposes of determining the amount of certain payments to us. CMS and the Office of Inspector General for HHS periodically

22

perform risk adjustment data validation (RADV) audits of selected Medicare health plans to validate the coding practices of and
supporting documentation maintained by health care providers. Certain of our local plans have been selected for such audits,
which in the past have resulted and in the future could result in retrospective adjustments to payments made to our health plans,
fines, corrective action plans or other adverse action by CMS.

We have been involved, and in the future may become involved in routine, regular and special governmental investigations,
audits, reviews and assessments. Such investigations, audits, reviews or assessments sometimes arise out of, or prompt claims
by private litigants or whistleblowers who, among other allegations, may claim we failed to disclose certain business practices
or, as a government contractor, submitted false or erroneous claims to the government. Governmental investigations, audits,
reviews and assessments could lead to government actions, which have resulted in, and in the future could result in, adverse
publicity, the assessment of damages, civil or criminal fines or penalties, or other sanctions, including restrictions or changes in
the way we conduct business, loss of licensure or exclusion from participation in government programs, any of which could
have a material adverse effect on our business, results of operations, financial position and cash flows.

Our pharmacy care services businesses face regulatory and operational risks and uncertainties which may differ from
the risks of our other businesses.

We provide pharmacy care services through our Optum Rx and UnitedHealthcare businesses. Each business is subject to federal
and state anti-kickback, beneficiary inducement and other laws governing the relationships of the business with pharmaceutical
manufacturers, physicians, pharmacies, customers and consumers. In addition, federal and state legislatures regularly consider
new regulations for the industry which could materially affect current industry practices, including potential new legislation and
regulations regarding the receipt or disclosure of rebates and other fees from pharmaceutical companies, the development and
use of formularies and other utilization management tools, the use of average wholesale prices or other pricing benchmarks,
pricing for specialty pharmaceuticals, limited access to networks and pharmacy network reimbursement methodologies. Further,
various governmental agencies have conducted and continue to conduct investigations and studies into certain PBM practices,
which have resulted and may result in PBMs agreeing to civil penalties, including the payment of money and entry into
corporate integrity agreements, or could materially and adversely impact the PBM business model. As a provider of pharmacy
benefit management services, Optum Rx is also subject to an increasing number of licensure, registration and other laws and
accreditation standards. Optum Rx conducts business through home delivery, specialty and compounding pharmacies,
pharmacies located in community mental health centers and home infusion, which subjects it to extensive federal, state and
local laws and regulations, including those of the DEA and individual state controlled substance authorities, the Food and Drug
Administration (FDA) and Boards of Pharmacy.

We could face potential claims in connection with purported errors by our home delivery, specialty or compounding or clinic-
based pharmacies or the provision of home infusion services, claims related to the inherent risks in the packaging and
distribution of pharmaceuticals and other health care products. Disruptions from any of our home delivery, specialty pharmacy
or home infusion services could materially and adversely affect our results of operations, financial position and cash flows.

In addition, our pharmacy care services businesses provide services to sponsors of health benefit plans subject to ERISA. A
private party or the DOL, which is the agency that enforces ERISA, could assert the fiduciary obligations imposed by the statute
apply to some or all of the services provided by our pharmacy care services businesses even where those businesses are not
contractually obligated to assume fiduciary obligations. If a court were to determine such fiduciary obligations apply, we could
be subject to claims for breaches of fiduciary obligations or claims we entered into certain prohibited transactions.

If we fail to comply with applicable privacy, security and data laws, regulations and standards, including with respect to
third-party service providers utilizing protected personal information on our behalf, our business, reputation, results of
operations, financial position and cash flows could be materially and adversely affected.

The collection, maintenance, protection, use, transmission, disclosure and disposal of protected personal information are
regulated at the federal, state, international and industry levels and addressed in requirements imposed on us by contracts with
customers. These laws, rules and requirements are subject to change. Compliance with new privacy and security laws,

23

regulations and requirements may result in increased operating costs, and may constrain or require us to alter our business
model or operations.

Internationally, many of the jurisdictions in which we operate have established their own data security and privacy legal
framework with which we or our customers must comply. We expect there will continue to be new proposed laws, regulations
and industry standards concerning privacy, data protection and information security in the European Union, Brazil, Chile, India
and other jurisdictions, and we cannot yet determine the impacts such future laws, regulations and standards may have on our
businesses or the businesses of our customers. For example, the European Union’s General Data Protection Regulation (GDPR)
imposes more stringent European Union data protection requirements on us or our customers, and prescribes greater penalties
for noncompliance. Brazilian privacy legislation, similar in certain respects to GDPR, took effect in September 2020.

Many of our businesses are also subject to the Payment Card Industry Data Security Standard, which is a multifaceted security
standard designed to protect payment card account data.

HIPAA requires business associates as well as covered entities to comply with certain privacy and security requirements. While
we provide for appropriate protections through our contracts with our third-party service providers and in certain cases assess
their security controls, we have limited oversight or control over their actions and practices. Several of our businesses act as
business associates to their covered entity customers and, as a result, collect, use, disclose and maintain protected personal
information in order to provide services to these customers. HHS administers its audit program to assess HIPAA compliance
efforts by covered entities and business associates. An audit resulting in findings or allegations of noncompliance could have a
material adverse effect on our results of operations, financial position and cash flows.

Through our Optum businesses, we maintain a database of administrative and clinical data statistically de-identified in
accordance with HIPAA standards. Noncompliance or findings of noncompliance with applicable laws, regulations or
requirements, or the occurrence of any privacy or security breach involving the misappropriation, loss or other unauthorized
disclosure of protected personal information, whether by us or by one of our third-party service providers, could have a material
adverse effect on our reputation and business and, among other consequences, could subject us to mandatory disclosure to the
media, loss of existing or new customers, significant increases in the cost of managing and remediating privacy or security
incidents, and material fines, penalties and litigation awards. Any of these consequences could have a material and adverse
effect on our results of operations, financial position and cash flows.

Restrictions on our ability to obtain funds from our regulated subsidiaries could materially and adversely affect our
results of operations, financial position and cash flows.

Because we operate as a holding company, we are dependent on dividends and administrative expense reimbursements from our
subsidiaries to fund our obligations. Many of these subsidiaries are regulated by state departments of insurance or similar
regulatory authorities. We are also required by law or regulation to maintain specific prescribed minimum amounts of capital in
these subsidiaries. The levels of capitalization required depend primarily on the volume of premium revenues generated by the
applicable subsidiary. In most states, we are required to seek approval by state regulatory authorities before we transfer money
or pay dividends from our regulated subsidiaries exceeding specified amounts. An inability of our regulated subsidiaries to pay
dividends to their parent companies in the desired amounts or at the time of our choosing could adversely affect our ability to
reinvest in our business through capital expenditures or business acquisitions, as well as our ability to maintain our corporate
quarterly dividend payment, repurchase shares of our common stock and repay our debt. If we are unable to obtain sufficient
funds from our subsidiaries to fund our obligations, our results of operations, financial position and cash flows could be
materially and adversely affected.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

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ITEM 2. PROPERTIES

We own and lease real properties to support our business operations in the United States and other countries. Our reportable
segments use these facilities for their respective business purposes, and we believe the current facilities are suitable for their
respective uses and are adequate for our anticipated future needs.

ITEM 3. LEGAL PROCEEDINGS

The information required by this Item 3 is incorporated herein by reference to the information set forth under the captions
“Legal Matters” and “Governmental Investigations, Audits and Reviews” in Note 12 of the Notes to the Consolidated Financial
Statements included in Part II, Item 8, “Financial Statements and Supplementary Data”

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND

ISSUER PURCHASES OF EQUITY SECURITIES

MARKET AND HOLDERS

Our common stock is traded on the New York Stock Exchange (NYSE) under the symbol UNH. On January 31, 2023, there
were 10,260 holders of record of our common stock.

DIVIDEND POLICY

In June 2022, the Company’s Board of Directors increased the Company’s quarterly cash dividend to shareholders to an annual
rate of $6.60 compared to $5.80 per share, which the Company had paid since June 2021. Declaration and payment of future
quarterly dividends is at the discretion of the Board and may be adjusted as business needs or market conditions change.

ISSUER PURCHASES OF EQUITY SECURITIES

Issuer Purchases of Equity Securities (a)
Fourth Quarter 2022

For the Month Ended

Total Number of
Shares Purchased

Average Price Paid
Per Share

Total Number of Shares
Purchased as Part of
Publicly Announced
Plans or Programs

Maximum Number of
Shares That May Yet Be
Purchased Under The
Plans or Programs

October 31, 2022.....................................
November 30, 2022..................................
December 31, 2022 ..................................

Total....................................................

0.7
0.6
0.6

1.9

$

$

519.51
533.81
533.56

528.87

0.7
0.6
0.6

1.9

32.3
31.7
31.1

(in millions)

(in millions)

(in millions)

(a) In November 1997, our Board of Directors adopted a share repurchase program, which the Board evaluates periodically. In June 2018, the Board of
Directors renewed our share repurchase program with an authorization to repurchase up to 100 million shares of our common stock in open market
purchases or other types of transactions (including prepaid or structured repurchase programs). There is no established expiration date for the program.

25

PERFORMANCE GRAPH

The following performance graph compares the cumulative five-year total return to shareholders on our common stock relative
to the cumulative total returns of the S&P Health Care Index, the Dow Jones US Industrial Average Index and the S&P 500
Index for the five-year period ended December 31, 2022. The comparisons assume the investment of $100 on December 31,
2017 in our common stock and in each index, and dividends were reinvested when paid.

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN
Among UnitedHealth Group, the S&P Health Care Index,
the Dow Jones US Industrial Average Index and the S&P 500 Index

$300 

$250 

$200 

$150 

$100 

$50 

$0 

12/17

12/18

12/19

12/20

12/21

12/22

UnitedHealth Group 

S&P Health Care

Dow Jones US Industrial Average 

S&P 500 

UnitedHealth Group ................................
S&P Health Care Index............................
Dow Jones US Industrial Average...............
S&P 500 Index .......................................

$

100.00
100.00
100.00
100.00

$

114.52
106.47
96.52
95.62

$

137.41
128.64
120.98
125.72

$ 166.55
145.93
132.75
148.85

$

241.85
184.07
160.55
191.58

$

258.65
180.47
149.53
156.89

12/17

12/18

12/19

12/20

12/21

12/22

The stock price performance included in this graph is not necessarily indicative of future stock price performance.

26

ITEM 6.

[Reserved]

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

The following discussion should be read together with the accompanying Consolidated Financial Statements and Notes to the
Consolidated Financial Statements thereto included in Part II Item 8, “Financial Statements and Supplementary Data.” Readers
are cautioned the statements, estimates, projections or outlook contained in this report, including discussions regarding financial
prospects, economic conditions, trends and uncertainties contained in this Item 7, may constitute forward-looking statements
within the meaning of the PSLRA. These forward-looking statements involve risks and uncertainties which may cause our
actual results to differ materially from the expectations expressed or implied in the forward-looking statements. A description of
some of the risks and uncertainties can be found further below in this Item 7 and in Part I, Item 1A, “Risk Factors.”

Discussions of year-over-year comparisons between 2021 and 2020 are not included in this Form 10-K and can be found in Part
II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Form
10-K for the fiscal year ended December 31, 2021.

EXECUTIVE OVERVIEW

General

UnitedHealth Group is a diversified health care company with a mission to help people live healthier lives and help make the
health system work better for everyone. Our two complementary businesses—Optum and UnitedHealthcare—are driven by this
unified mission and vision to improve health care access, affordability, experiences and outcomes for the individuals and
organizations we are privileged to serve.

We have four reportable segments across our two business platforms, Optum and UnitedHealthcare:
• Optum Health;
• Optum Insight;
• Optum Rx; and
• UnitedHealthcare, which includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement and

UnitedHealthcare Community & State.

Further information on our business and reportable segments is presented in Part I, Item 1, “Business” and in Note 14 of the
Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data.”

Business Trends

Our businesses participate in the United States, South America and certain other international health markets. In the United
States, health care spending has grown consistently for many years and comprises 18% of gross domestic product (GDP). We
expect overall spending on health care to continue to grow in the future, due to inflation, medical technology and
pharmaceutical advancement, regulatory requirements, demographic trends in the population and national interest in health and
well-being. The rate of market growth may be affected by a variety of factors, including macroeconomic conditions, which
could impact our results of operations, including our continued efforts to control health care costs.

Pricing Trends. To price our health care benefits, products and services, we start with our view of expected future costs,
including inflation and labor market dynamics. We frequently evaluate and adjust our approach in each of the local markets we
serve, considering relevant factors, such as product positioning, price competitiveness and environmental, competitive,
legislative and regulatory considerations, including minimum medical loss ratio (MLR) thresholds and similar revenue
adjustments. We will continue seeking to balance growth and profitability across all these dimensions.

27

The commercial risk market remains highly competitive in the small group, large group and individual segments. We expect
broad-based competition to continue as the industry adapts to individual and employer needs.

Medicare Advantage funding continues to be pressured, as discussed below in “Regulatory Trends and Uncertainties.”

In Medicaid, we believe the payment rate environment creates the risk of continued downward pressure on Medicaid margin
percentages. We continue to take a prudent, market-sustainable posture for both new business and maintenance of existing
relationships. We continue to advocate for actuarially sound rates commensurate with our medical cost trends and we remain
dedicated to partnering with those states that are committed to the long-term viability of their programs.

Medical Cost Trends. Our medical cost trends primarily relate to changes in unit costs; care activity; and prescription drug
costs. We endeavor to mitigate those increases by engaging physicians and consumers with information and helping them make
clinically sound choices, with the objective of helping them achieve high-quality, affordable care.

Medicaid Redeterminations. In December 2022, Congress passed the 2023 Omnibus Appropriations bill that allows states to
resume Medicaid redeterminations beginning in April 2023. Redeterminations will result in a decline in people served through
our Medicaid business and an expected increase in people served through our commercial and exchange-based offerings as we
endeavor to ensure that people have continued access to benefits.

Delivery System and Payment Modernization. The health care market continues to change based on demographic shifts, new
regulations, political forces and both payer and patient expectations. Health plans and care providers are being called upon to
work together to close gaps in care and improve overall care quality and patient experience, improve the health of populations
and reduce costs. We are working to accelerate this vision through the innovation and integration of our care delivery models
including in clinic, in-home, behavioral and virtual care, and by using our data and analytics to provide clinicians with the
necessary information in order to provide the best possible care in the most cost efficient setting. We continue to see a greater
number of people enrolled in fully accountable value-based plans rewarding high-quality, affordable care and fostering
collaboration.

This trend is creating needs for health management services which can coordinate care around the primary care physician,
including new primary care channels, and for investments in new clinical and administrative information and management
systems, which we believe provide growth opportunities for our Optum business platform.

Regulatory Trends and Uncertainties

Following is a summary of management’s view of the trends and uncertainties related to regulatory matters. For additional
information regarding regulatory trends and uncertainties, see Part I, Item 1 “Business — Government Regulation” and Item 1A,
“Risk Factors.”

Medicare Advantage Rates. Medicare Advantage rate notices over the years have at times resulted in industry base rates well
below industry forward medical trend. For example, the February 2023 Advance Notice for 2024 rates would result in an
industry base rate decrease, well short of what is an increasing industry forward medical cost trend, creating continued pressure
in the Medicare Advantage program. Further, proposed substantial revisions to the risk adjustment model, which serves to adjust
rates to reflect a patient’s health status and care resource needs, would result in reduced funding and benefits for people,
especially those with some of the greatest health and social challenges.

As a result of ongoing Medicare funding pressures, there are adjustments we can make to partially offset these rate pressures
and reductions for a particular period. For example, we can seek to intensify our medical and operating cost management, make
changes to the size and composition of our care provider networks, adjust member benefits and implement or increase the
member premiums supplementing the monthly payments we receive from the government. Additionally, we decide annually on
a county-by-county basis where we will offer Medicare Advantage plans.

28

SELECTED OPERATING PERFORMANCE ITEMS

The following represents a summary of select 2022 year-over-year operating comparisons to 2021.

•

Consolidated revenues increased by 13%, UnitedHealthcare revenues increased 12% and Optum revenues grew 17%.

• UnitedHealthcare served nearly 1.1 million more people, led by growth in community-based and senior offerings.
•

Earnings from operations increased by 19%, including an increase of 20% at UnitedHealthcare and 17% at Optum.

• Diluted earnings per common share increased 17% to $21.18.
•

Cash flows from operations were $26.2 billion.

•

Return on equity was 27.2%.

RESULTS SUMMARY

The following table summarizes our consolidated results of operations and other financial information:

(in millions, except percentages and per share data)

Revenues:

Premiums ..............................................................
Products................................................................
Services ................................................................
Investment and other income.......................................

$

Total revenues ..............................................................

Operating costs:

Medical costs .........................................................
Operating costs .......................................................
Cost of products sold ................................................
Depreciation and amortization .....................................

Total operating costs.......................................................

Earnings from operations .................................................
Interest expense.............................................................

Earnings before income taxes ............................................
Provision for income taxes ...............................................

Net earnings .................................................................
Earnings attributable to noncontrolling interests ......................

Net earnings attributable to UnitedHealth Group common

shareholders ..............................................................

Diluted earnings per share attributable to UnitedHealth Group

common shareholders...................................................
Medical care ratio (a) ......................................................
Operating cost ratio ........................................................
Operating margin...........................................................
Tax rate ......................................................................
Net earnings margin (b) ...................................................
Return on equity (c)........................................................

$

$

For the Years Ended December 31,
2021

2022

2020

$

$

$

257,157
37,424
27,551
2,030

324,162

210,842
47,782
33,703
3,400

295,727

28,435
(2,092)

26,343
(5,704)

20,639
(519)

20,120

21.18
82.0%
14.7
8.8
21.7
6.2
27.2%

$

$

$

226,233
34,437
24,603
2,324

287,597

186,911
42,579
31,034
3,103

263,627

23,970
(1,660)

22,310
(4,578)

17,732
(447)

17,285

18.08
82.6%
14.8
8.3
20.5
6.0
25.2%

$

$

$

201,478
34,145
20,016
1,502

257,141

159,396
41,704
30,745
2,891

234,736

22,405
(1,663)

20,742
(4,973)

15,769
(366)

15,403

16.03
79.1%
16.2
8.7
24.0
6.0
24.9%

Change
2022 vs. 2021

30,924
2,987
2,948
(294)

14%
9
12
(13)

36,565

13

23,931
5,203
2,669
297

32,100

4,465
(432)

4,033
(1,126)

2,907
(72)

13
12
9
10

12

19
26

18
25

16
16

2,835

16%

17%

3.10
(0.6)%
(0.1)
0.5
1.2
0.2
2.0%

(a) Medical care ratio (MCR) is calculated as medical costs divided by premium revenue.

(b) Net earnings margin attributable to UnitedHealth Group common shareholders.

(c) Return on equity is calculated as net earnings attributable to UnitedHealth Group common shareholders divided by average shareholders’ equity. Average

shareholders’ equity is calculated using the shareholders’ equity balance at the end of the preceding year and the shareholders’ equity balances at the end of
each of the four quarters of the year presented.

29

2022 RESULTS OF OPERATIONS COMPARED TO 2021 RESULTS

Consolidated Financial Results

Revenues

The increases in revenues were primarily driven by growth in the number of people served through Medicare Advantage and
Medicaid, pricing trends and growth across the Optum businesses.

Medical Costs and MCR

Medical costs increased due to growth in people served. The MCR decreased due to COVID-19 effects, partially offset by
decreased prior years favorable development and business mix.

Operating Cost Ratio

The operating cost ratio decreased primarily due to productivity gains, partially offset by investments and business mix.

Reportable Segments

See Note 14 of Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and
Supplementary Data” for more information on our segments. We utilize various metrics to evaluate and manage our reportable
segments, including individuals served by UnitedHealthcare by major market segment and funding arrangement, people served
by Optum Health and adjusted scripts for Optum Rx. These metrics are the main drivers of revenue, earnings and cash flows at
each business. The metrics also allow management and investors to evaluate and understand business mix, including the level
and scope of services provided to people and pricing trends when comparing the metrics to revenue by segment.

The following table presents a summary of the reportable segment financial information:

(in millions, except percentages)

Revenues
UnitedHealthcare ............................................................

Optum Health ..........................................................
Optum Insight..........................................................
Optum Rx...............................................................
Optum eliminations ...................................................

Optum .........................................................................
Eliminations ..................................................................

Consolidated revenues......................................................

Earnings from operations
UnitedHealthcare ............................................................

$

$

Optum Health ..........................................................
Optum Insight..........................................................
Optum Rx...............................................................

Optum .........................................................................

For the Years Ended December 31,
2021

2022

2020

Change
2022 vs. 2021

$

249,741

$

222,899

$

200,875

$

26,842

12%

71,174
14,581
99,773
(2,760)

182,768
(108,347)

324,162

14,379

6,032
3,588
4,436

14,056

$

$

54,065
12,199
91,314
(2,013)

155,565
(90,867)

287,597

11,975

4,462
3,398
4,135

11,995

$

$

39,808
10,802
87,498
(1,800)

136,308
(80,042)

257,141

12,359

3,434
2,725
3,887

10,046

$

$

17,109
2,382
8,459
(747)

27,203
(17,480)

32
20
9
37

17
19

36,565

13%

2,404

1,570
190
301

2,061

4,465

20%

35
6
7

17

19%

Consolidated earnings from operations ..................................

$

28,435

$

23,970

$

22,405

$

Operating margin
UnitedHealthcare ............................................................
Optum Health ..........................................................
Optum Insight..........................................................
Optum Rx...............................................................
Optum .........................................................................
Consolidated operating margin............................................

5.8%
8.5
24.6
4.4
7.7
8.8%

5.4%
8.3
27.9
4.5
7.7
8.3%

6.2%
8.6
25.2
4.4
7.4
8.7%

0.4%
0.2
(3.3)
(0.1)
—
0.5%

30

UnitedHealthcare

The following table summarizes UnitedHealthcare revenues by business:

(in millions, except percentages)

UnitedHealthcare Employer & Individual — Domestic ...............................
UnitedHealthcare Employer & Individual — Global (a) ..............................

$

UnitedHealthcare Employer & Individual — Total (a) ..........................

UnitedHealthcare Medicare & Retirement ...............................................
UnitedHealthcare Community & State ...................................................

For the Years Ended December 31,
2022
2020
2021

Change
2022 vs. 2021

$

$

63,599
8,668

72,267

113,671
63,803

60,023
8,345

68,368

100,552
53,979

$

55,872
7,752

63,624

90,764
46,487

3,576
323

3,899

13,119
9,824

6%
4

6

13
18

Total UnitedHealthcare revenues....................................................

$

249,741

$

222,899

$

200,875

$

26,842

12%

(a) On January 1, 2022, we realigned our operating segments to combine UnitedHealthcare Global and UnitedHealthcare Employer & Individual.

The following table summarizes the number of individuals served by our UnitedHealthcare businesses, by major market
segment and funding arrangement:

(in thousands, except percentages)

Commercial — domestic:

Risk-based .........................................................................
Fee-based ..........................................................................

Total commercial — domestic ..............................................

Medicare Advantage ...................................................................
Medicaid .................................................................................
Medicare Supplement (Standardized) ...............................................

Total community and senior.................................................

Total UnitedHealthcare — domestic medical ............................
Commercial — global .................................................................

Total UnitedHealthcare — medical ........................................

Supplemental Data:

2022

December 31,
2021

2020

Change
2022 vs. 2021

8,045
18,640

26,685

7,105
8,170
4,375

19,650

46,335
5,360

51,695

7,985
18,595

26,580

6,490
7,655
4,395

18,540

45,120
5,510

50,630

7,910
18,310

26,220

5,710
6,620
4,460

16,790

43,010
5,425

48,435

1%

60
45 —

105 —

9
615
515
7
(20) —

1,110

1,215
(150)

1,065

6

3
(3)

2%

Medicare Part D stand-alone ...................................................

3,295

3,700

4,045

(405)

(11)%

Medicare Advantage increased due to growth in people served through individual and group Medicare Advantage plans. The
increase in people served through Medicaid was primarily driven by states continuing to ease redetermination requirements and
growth in people served through Dual Special Needs Plans.

UnitedHealthcare’s revenues increased due to growth in the number of people served through Medicare Advantage and
Medicaid. Earnings from operations increased due to growth in people served and COVID-19 effects, partially offset by
decreased prior years favorable development.

Optum

Total revenues and earnings from operations increased due to growth across the Optum businesses. The results by segment were
as follows:

Optum Health

Revenues at Optum Health increased primarily due to organic growth in patients served under value-based care arrangements
and business combinations. Earnings from operations increased due to organic growth in the number of people served under

31

value-based care arrangements, cost management initiatives, asset dispositions and COVID-19 effects. Optum Health served
approximately 102 million people as of December 31, 2022 compared to 100 million people as of December 31, 2021.

Optum Insight

Revenues and earnings from operations at Optum Insight increased due to growth in technology and managed services, with
managed services revenue growth driven by business combinations and new health system partnerships.

Optum Rx

Revenues and earnings from operations at Optum Rx increased due to higher script volumes from growth in people served,
increased utilization and organic growth in pharmacy care services, including community health, specialty and home delivery
pharmacies. Earnings from operations also increased as a result of continued supply chain management initiatives. Optum Rx
fulfilled 1,438 million and 1,368 million adjusted scripts in 2022 and 2021, respectively.

LIQUIDITY, FINANCIAL CONDITION AND CAPITAL RESOURCES

Liquidity

Introduction

We manage our liquidity and financial position in the context of our overall business strategy. We continually forecast and
manage our cash, investments, working capital balances and capital structure to meet the short-term and long-term obligations
of our businesses while seeking to maintain liquidity and financial flexibility. Cash flows generated from operating activities are
principally from earnings before noncash expenses.

Our regulated subsidiaries generate significant cash flows from operations and are subject to, among other things, minimum
levels of statutory capital, as defined by their respective jurisdictions, and restrictions on the timing and amount of dividends
paid to their parent companies.

Our U.S. regulated subsidiaries paid their parent companies dividends of $8.8 billion and $8.0 billion in 2022 and 2021,
respectively. See Note 10 of the Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial
Statements and Supplementary Data” for further detail concerning our regulated subsidiary dividends.

Our nonregulated businesses also generate significant cash flows from operations available for general corporate use. Cash
flows generated by these entities, combined with dividends from our regulated entities and financing through the issuance of
long-term debt as well as issuance of commercial paper or the ability to draw under our committed credit facilities, further
strengthen our operating and financial flexibility. We use these cash flows to expand our businesses through acquisitions,
reinvest in our businesses through capital expenditures, repay debt and return capital to our shareholders through dividends and
repurchases of our common stock.

32

Summary of our Major Sources and Uses of Cash and Cash Equivalents

(in millions)

Sources of cash:

For the Years Ended December 31,
2021

2022

2020

Change
2022 vs. 2021

Cash provided by operating activities ..............................................
Issuances of long-term debt and short-term borrowings, net of repayments .
Proceeds from common share issuances ...........................................
Customer funds administered ........................................................
Cash received for dispositions .......................................................

$

Total sources of cash ........................................................................

Uses of cash:

Cash paid for acquisitions, net of cash assumed ..................................
Cash dividends paid ...................................................................
Common share repurchases ..........................................................
Purchases of property, equipment and capitalized software ....................
Purchases of investments, net of sales and maturities ...........................
Purchases of redeemable noncontrolling interests ................................
Other .....................................................................................

Total uses of cash ............................................................................
Effect of exchange rate changes on cash and cash equivalents.......................

$

$

26,206
12,536
1,253
5,548
3,414

48,957

(21,458)
(5,991)
(7,000)
(2,802)
(6,837)
(176)
(2,737)

(47,001)
34

22,343
2,481
1,355
622
15

26,816

(4,821)
(5,280)
(5,000)
(2,454)
(1,843)
(1,338)
(1,564)

(22,300)
(62)

$

22,174
2,586
1,440
1,677
221

28,098

(7,139)
(4,584)
(4,250)
(2,051)
(2,836)
—
(1,186)

(22,046)
(116)

3,863
10,055
(102)
4,926
3,399

(16,637)
(711)
(2,000)
(348)
(4,994)
1,162
(1,173)

96

Net increase in cash and cash equivalents ...............................................

$

1,990

$

4,454

$

5,936

$

(2,464)

2022 Cash Flows Compared to 2021 Cash Flows

Increased cash flows provided by operating activities were primarily driven by changes in working capital accounts and
increased net earnings. Other significant changes in sources or uses of cash year-over-year included increased net issuances of
long-term debt, customer funds administered, primarily driven by Medicare Part D timing and increased HSA deposits, cash
received for dispositions and decreased purchases of redeemable noncontrolling interests, partially offset by increased cash paid
for acquisitions, net purchases of investments and common stock repurchases.

Financial Condition

As of December 31, 2022, our cash, cash equivalent, available-for-sale debt securities and equity securities balances of $69.4
billion included $23.4 billion of cash and cash equivalents (of which $1.3 billion was available for general corporate use), $42.3
billion of debt securities and $3.7 billion of equity securities. Given the significant portion of our portfolio held in cash
equivalents, we do not anticipate fluctuations in the aggregate fair value of our financial assets to have a material impact on our
liquidity or capital position. Other sources of liquidity, primarily from operating cash flows and our commercial paper program,
which is fully supported by our bank credit facilities, reduce the need to sell investments during adverse market conditions. See
Note 4 of the Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and
Supplementary Data” for further detail concerning our fair value measurements.

Our available-for-sale debt portfolio had a weighted-average duration of 4.0 years and a weighted-average credit rating of
“Double A” as of December 31, 2022. When multiple credit ratings are available for an individual security, the average of the
available ratings is used to determine the weighted-average credit rating.

Capital Resources and Uses of Liquidity

Cash Requirements. The Company’s cash requirements within the next twelve months include medical costs payable, accounts
payable and accrued liabilities, short-term borrowings and current maturities of long-term debt, other current liabilities, and
purchase commitments and other obligations. We expect the cash required to meet these obligations to be primarily generated

33

through cash flows from current operations; cash available for general corporate use; and the realization of current assets, such
as accounts receivable.

Our long-term cash requirements under our various contractual obligations and commitments include:
• Debt obligations. See Note 8 of the Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial
Statements and Supplementary Data” for further detail of our long-term debt and the timing of expected future payments.
Interest coupon payments are typically paid semi-annually.

• Operating leases. See Note 12 of the Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial
Statements and Supplementary Data” for further detail of our obligations and the timing of expected future payments.

•

Purchase and other obligations. These include $5.6 billion, $2.9 billion of which is expected to be paid within the next
twelve months, of fixed or minimum commitments under existing purchase obligations for goods and services, including
agreements cancelable with the payment of an early termination penalty, and remaining capital commitments for venture
capital funds and other funding commitments. These amounts exclude agreements cancelable without penalty and liabilities
to the extent recorded in our Consolidated Balance Sheets as of December 31, 2022.

• Other liabilities. These include other long-term liabilities reflected in our Consolidated Balance Sheets as of December 31,
2022, including obligations associated with certain employee benefit programs, unrecognized tax benefits and various long-
term liabilities, which have some inherent uncertainty in the timing of these payments.

•

Redeemable noncontrolling interests. See Note 2 of the Notes to the Consolidated Financial Statements included in Part II,
Item 8, “Financial Statements and Supplementary Data” for further detail. We do not have any material expected
redemptions in the next twelve months.

We expect the cash required to meet our long-term obligations to be primarily generated through future cash flows from
operations. However, we also have the ability to generate cash to satisfy both our current and long-term requirements through
the issuance of commercial paper, issuance of long-term debt, or drawing under our committed credit facilities or the ability to
sell investments. We believe our capital resources are sufficient to meet future, short-term and long-term, liquidity needs.

Short-Term Borrowings. Our revolving bank credit facilities provide liquidity support for our commercial paper borrowing
program, which facilitates the private placement of senior unsecured debt through independent broker-dealers, and are available
for general corporate purposes. For more information on our commercial paper and bank credit facilities, see Note 8 of the
Notes to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data.”

Our revolving bank credit facilities contain various covenants, including covenants requiring us to maintain a defined debt to
debt-plus-shareholders’ equity ratio of not more than 60%, subject to increase in certain circumstances set forth in the applicable
credit agreement. As of December 31, 2022, our debt to debt-plus-shareholders’ equity ratio, as defined and calculated under the
credit facilities, was 38%.

Long-Term Debt. Periodically, we access capital markets to issue long-term debt for general corporate purposes, such as to
meet our working capital requirements, to refinance debt, to finance acquisitions or for share repurchases. For more information
on our debt, see Note 8 of the Notes to the Consolidated Financial Statements included in Part II, Item 8 “Financial Statements
and Supplementary Data.”

Credit Ratings. Our credit ratings as of December 31, 2022 were as follows:

Senior unsecured debt ........................................
Commercial paper .............................................

A3
P-2

Positive
n/a

A+
A-1

Stable
n/a

A
F1

Stable
n/a

A
AMB-1+

Stable
n/a

Moody’s

Ratings

Outlook

S&P Global
Ratings Outlook

Fitch
Ratings Outlook

A.M. Best

Ratings

Outlook

34

The availability of financing in the form of debt or equity is influenced by many factors, including our profitability, operating
cash flows, debt levels, credit ratings, debt covenants and other contractual restrictions, regulatory requirements and economic
and market conditions. A significant downgrade in our credit ratings or adverse conditions in the capital markets may increase
the cost of borrowing for us or limit our access to capital.

Share Repurchase Program. As of December 31, 2022, we had Board of Directors’ authorization to purchase up to 31 million
shares of our common stock. For more information on our share repurchase program, see Note 10 of the Notes to the
Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data.”

Dividends. In June 2022, the Company’s Board of Directors increased the Company’s quarterly cash dividend to shareholders to
an annual rate of $6.60 compared to $5.80 per share. For more information on our dividend, see Note 10 of the Notes to the
Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data.”

Pending Acquisitions. As of December 31, 2022, we have entered into agreements to acquire companies in the health care
sector, most notably, LHC Group, Inc. (NASDAQ: LHCG), subject to regulatory approval and other customary closing
conditions. The total anticipated capital required for these acquisitions, excluding the payoff of acquired indebtedness, is
approximately $9 billion. We completed the acquisition of LHC Group, Inc. on February 22, 2023.

We do not have other significant contractual obligations or commitments requiring cash resources. However, we continually
evaluate opportunities to expand our operations, which include internal development of new products, programs and technology
applications and may include acquisitions.

CRITICAL ACCOUNTING ESTIMATES

Critical accounting estimates are those estimates requiring management to make challenging, subjective or complex judgments,
often because they must estimate the effects of matters inherently uncertain and may change in subsequent periods. Critical
accounting estimates involve judgments and uncertainties which are sufficiently sensitive and may result in materially different
results under different assumptions and conditions.

Medical Costs Payable

Medical costs and medical costs payable include estimates of our obligations for medical care services rendered on behalf of
consumers, but for which claims have either not yet been received or processed. Depending on the health care professional and
type of service, the typical billing lag for services can be up to 90 days from the date of service. Approximately 90% of claims
related to medical care services are known and settled within 90 days from the date of service.

In each reporting period, our operating results include the effects of more completely developed medical costs payable estimates
associated with previously reported periods. If the revised estimate of prior period medical costs is less than the previous
estimate, we will decrease reported medical costs in the current period (favorable development). If the revised estimate of prior
period medical costs is more than the previous estimate, we will increase reported medical costs in the current period
(unfavorable development). Medical costs in 2022, 2021 and 2020 included favorable medical cost development related to prior
years of $410 million, $1.7 billion and $880 million, respectively.

In developing our medical costs payable estimates, we apply different estimation methods depending on the month for which
incurred claims are being estimated. For example, for the most recent two months, we estimate claim costs incurred by applying
observed medical cost trend factors to the average per member per month (PMPM) medical costs incurred in prior months for
which more complete claim data is available, supplemented by a review of near-term completion factors.

Completion Factors. A completion factor is an actuarial estimate, based upon historical experience and analysis of current
trends, of the percentage of incurred claims during a given period adjudicated by us at the date of estimation. Completion
factors are the most significant factors we use in developing our medical costs payable estimates for periods prior to the most
recent two months. Completion factors include judgments in relation to claim submissions such as the time from date of service

35

to claim receipt, claim levels and processing cycles, as well as other factors. If actual claims submission rates from providers
(which can be influenced by a number of factors, including provider mix and electronic versus manual submissions), actual care
activity incurred (which can be influenced by pandemics or seasonal illnesses, such as influenza), or our claim processing
patterns are different than estimated, our reserve estimates may be significantly impacted.

The following table illustrates the sensitivity of these factors and the estimated potential impact on our medical costs payable
estimates for those periods as of December 31, 2022:

Completion Factors
(Decrease) Increase in Factors

Increase (Decrease)
In Medical Costs Payable
(in millions)

(0.75)%.................................................................................................................................
(0.50) ...................................................................................................................................
(0.25) ...................................................................................................................................
0.25 .....................................................................................................................................
0.50 .....................................................................................................................................
0.75 .....................................................................................................................................

$

765
508
254
(252)
(503)
(753)

Medical Cost Per Member Per Month Trend Factors. Medical cost PMPM trend factors are significant factors we use in
developing our medical costs payable estimates for the most recent two months. Medical cost trend factors are developed
through a comprehensive analysis of claims incurred in prior months, provider contracting and expected unit costs, benefit
design and a review of a broad set of health care utilization indicators. These factors include but are not limited to pharmacy
utilization trends, inpatient hospital authorization data and seasonal and other incidence data from the National Centers for
Disease Control. We also consider macroeconomic variables such as GDP growth, employment and disposable income. A large
number of factors can cause the medical cost trend to vary from our estimates, including: our ability and practices to manage
medical and pharmaceutical costs, changes in level and mix of services utilized; mix of benefits offered, including the impact of
co-pays and deductibles; changes in medical practices; and catastrophes, epidemics and pandemics.

The following table illustrates the sensitivity of these factors and the estimated potential impact on our medical costs payable
estimates for the most recent two months as of December 31, 2022:

Medical Cost PMPM Quarterly Trend
Increase (Decrease) in Factors

Increase (Decrease)
In Medical Costs Payable
(in millions)

3% ......................................................................................................................................
2 .........................................................................................................................................
1 .........................................................................................................................................
(1) .......................................................................................................................................
(2) .......................................................................................................................................
(3) .......................................................................................................................................

$

985
656
328
(328)
(656)
(985)

The completion factors and medical costs PMPM trend factors analyses above include outcomes considered reasonably likely
based on our historical experience estimating liabilities for incurred but not reported benefit claims.

Management believes the amount of medical costs payable is reasonable and adequate to cover our liability for unpaid claims as
of December 31, 2022; however, actual claim payments may differ from established estimates as discussed above. Assuming a
hypothetical 1% difference between our December 31, 2022 estimates of medical costs payable and actual medical costs
payable, excluding AARP Medicare Supplement Insurance and any potential offsetting impact from premium rebates, 2022 net
earnings would have increased or decreased by approximately $215 million.

For more detail related to our medical cost estimates, see Note 2 of the Notes to the Consolidated Financial Statements included
in Part II, Item 8, “Financial Statements and Supplementary Data.”

36

Goodwill

We evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change indicating the
carrying value may not be recoverable. When testing goodwill for impairment, we may first assess qualitative factors to
determine if it is more likely than not the carrying value of a reporting unit exceeds its estimated fair value. During a qualitative
analysis, we consider the impact of changes, if any, to the following factors: macroeconomic, industry and market factors; cost
factors; changes in overall financial performance; and any other relevant events and uncertainties impacting a reporting unit. If
our qualitative assessment indicates a goodwill impairment is more likely than not, we perform additional quantitative analyses.
We may also elect to skip the qualitative testing and proceed directly to the quantitative testing. For reporting units where a
quantitative analysis is performed, we perform a test measuring the fair values of the reporting units and comparing them to
their carrying values, including goodwill. If the fair value is less than the carrying value of the reporting unit, an impairment is
recognized for the difference, up to the carrying amount of goodwill.

We estimate the fair values of our reporting units using a discounted cash flow method which includes assumptions about a
wide variety of internal and external factors. Significant assumptions used in the discounted cash flow method include financial
projections of free cash flow, including revenue trends, medical costs trends, operating productivity, income taxes and capital
levels; long-term growth rates for determining terminal value beyond the discretely forecasted periods; and discount rates. For
each reporting unit, comparative market multiples are used to corroborate the results of our discounted cash flow test.

Financial projections and long-term growth rates used for our reporting units are consistent with, and use inputs from, our
internal long-term business plan and strategies. Discount rates are determined for each reporting unit and include consideration
of the implied risk inherent in their forecasts. Our most significant estimate in the discount rate determinations involves our
adjustments to the peer company weighted average costs of capital reflecting reporting unit-specific factors. We have not made
any adjustments to decrease a discount rate below the calculated peer company weighted average cost of capital for any
reporting unit. Company-specific adjustments to discount rates are subjective and thus are difficult to measure with certainty.
The passage of time and the availability of additional information regarding areas of uncertainty with respect to the reporting
units’ operations could cause these assumptions to change in the future. Additionally, as part of our quantitative impairment
testing, we perform various sensitivity analyses on certain key assumptions, such as discount rates and cash flow projections to
analyze the potential for a material impact. As of October 1, 2022, we completed our annual impairment tests for goodwill with
all of our reporting units having fair values substantially in excess of their carrying values.

LEGAL MATTERS

A description of our legal proceedings is presented in Note 12 of Notes to the Consolidated Financial Statements included in
Part II, Item 8, “Financial Statements and Supplementary Data.”

CONCENTRATIONS OF CREDIT RISK

Investments in financial instruments such as marketable securities and accounts receivable may subject us to concentrations of
credit risk. Our investments in marketable securities are managed under an investment policy authorized by our Board of
Directors. This policy limits the amounts which may be invested in any one issuer and generally limits our investments to U.S.
government and agency securities, state and municipal securities and corporate debt obligations of investment grade.
Concentrations of credit risk with respect to accounts receivable are limited due to the large number of employer groups and
other customers constituting our client base. As of December 31, 2022, there were no significant concentrations of credit risk.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our primary market risks are exposures to changes in interest rates impacting our investment income and interest expense and
the fair value of certain of our fixed-rate investments and debt, as well as foreign currency exchange rate risk of the U.S. dollar
primarily to the Brazilian real and Chilean peso.

37

As of December 31, 2022, we had $31 billion of financial assets on which the interest rates received vary with market interest
rates, which may significantly impact our investment income. Also as of December 31, 2022, $16 billion of our financial
liabilities, which include debt and deposit liabilities, were at interest rates which vary with market rates, either directly or
through the use of related interest rate swap contracts.

The fair value of our fixed-rate investments and debt also varies with market interest rates. As of December 31, 2022, $38
billion of our investments were fixed-rate debt securities and $43 billion of our debt was non-swapped fixed-rate term debt. An
increase in market interest rates decreases the market value of fixed-rate investments and fixed-rate debt. Conversely, a decrease
in market interest rates increases the market value of fixed-rate investments and fixed-rate debt.

We manage exposure to market interest rates by diversifying investments across different fixed-income market sectors and debt
across maturities, as well as by matching a portion of our floating-rate assets and liabilities, either directly or through the use of
interest rate swap contracts. Unrealized gains and losses on investments in available-for-sale debt securities are reported in
comprehensive income.

The following tables summarize the impact of hypothetical changes in market interest rates across the entire yield curve by 1%
point or 2% points as of December 31, 2022 and 2021 on our investment income and interest expense per annum and the fair
value of our investments and debt (in millions, except percentages):

Increase (Decrease) in Market Interest Rate

December 31, 2022

Investment
Income Per
Annum

Interest
Expense Per
Annum

Fair Value of
Financial Assets

Fair Value of
Financial Liabilities

2%......................................................................................
1 ........................................................................................
(1) ......................................................................................
(2) ......................................................................................

$

$

629
314
(314)
(629)

$

327
164
(135)
(266)

$

(3,390)
(1,746)
1,838
3,746

(7,365)
(4,002)
4,808
10,641

Increase (Decrease) in Market Interest Rate

December 31, 2021

Investment
Income Per
Annum

Interest
Expense Per
Annum

Fair Value of
Financial Assets

Fair Value of
Financial Liabilities

2%......................................................................................
1 ........................................................................................
(1) ......................................................................................
(2) ......................................................................................

$

$

499
250
(85)
(85)

$

133
67
(7)
(7)

$

(3,080)
(1,564)
1,398
1,857

(8,664)
(4,723)
5,655
10,892

Note: The impact of hypothetical changes in interest rates may not reflect the full 100 or 200 basis point change on interest income and interest expense or on
the fair value of financial assets and liabilities as the rates are assumed to not fall below zero.

We have an exposure to changes in the value of foreign currencies, primarily the Brazilian real and the Chilean peso, to the U.S.
dollar in translation of UnitedHealthcare Employer & Individual’s international business operating results at the average exchange
rate over the accounting period, and assets and liabilities at the exchange rate at the end of the accounting period. The gains or
losses resulting from translating foreign assets and liabilities into U.S. dollars are included in equity and comprehensive income.

An appreciation of the U.S. dollar against the Brazilian real or Chilean peso reduces the carrying value of the net assets
denominated in those currencies. For example, as of December 31, 2022, a hypothetical 10% and 25% increase in the value of
the U.S. dollar against those currencies would have caused a reduction in net assets of approximately $560 million and $1.2
billion, respectively. We manage exposure to foreign currency earnings risk primarily by conducting our international business
operations in their functional currencies.

As of December 31, 2022, we had $3.7 billion of investments in equity securities, primarily consisting of investments in
employee savings plan related investments, other venture investments and non-U.S. dollar fixed-income funds. Valuations in
non-U.S. dollar funds are subject to foreign exchange rates.

38

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Registered Public Accounting Firm (PCAOB ID No 34).....................................................................
Consolidated Balance Sheets ..................................................................................................................................
Consolidated Statements of Operations ......................................................................................................................
Consolidated Statements of Comprehensive Income ......................................................................................................
Consolidated Statements of Changes in Equity .............................................................................................................
Consolidated Statements of Cash Flows .....................................................................................................................
Notes to the Consolidated Financial Statements............................................................................................................
Description of Business .........................................................................................................................
Basis of Presentation, Use of Estimates and Significant Accounting Policies .........................................................
Investments........................................................................................................................................
Fair Value .........................................................................................................................................
Property, Equipment and Capitalized Software .............................................................................................
Goodwill and Other Intangible Assets ........................................................................................................
Medical Costs Payable ..........................................................................................................................
Short-Term Borrowings and Long-Term Debt ..............................................................................................
Income Taxes .....................................................................................................................................
Shareholders’ Equity.............................................................................................................................
Share-Based Compensation.....................................................................................................................
Commitments and Contingencies..............................................................................................................
Business Combinations..........................................................................................................................
Segment Financial Information ................................................................................................................

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Page

40
42
43
44
45
46
47
47
47
53
54
57
57
59
60
61
63
64
66
68
69

39

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of UnitedHealth Group Incorporated and Subsidiaries:

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of UnitedHealth Group Incorporated and Subsidiaries (the
“Company”) as of December 31, 2022 and 2021, the related consolidated statements of operations, comprehensive income,
changes in equity and cash flows for each of the three years in the period ended December 31, 2022, and the related notes
(collectively referred to as the “financial statements”). In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its
operations and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with accounting
principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company’s internal control over financial reporting as of December 31, 2022, based on criteria established in
Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission and our report dated February 24, 2023 expressed an unqualified opinion on the Company’s internal control over
financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on
the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and applicable rules
and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to
error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that
was communicated or required to be communicated to the Audit and Finance Committee and that (1) relates to accounts or
disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex
judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken
as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit
matter or on the accounts or disclosures to which it relates.

Incurred but not Reported (IBNR) Claim Liability—Refer to Notes 2 and 7 to the financial statements.

Critical Audit Matter Description

Medical costs payable includes estimates of the Company’s obligations for medical care services rendered on behalf of insured
consumers, for which claims have either not yet been received or processed. These estimates are referred to as incurred but not
reported (IBNR) claim liabilities. At December 31, 2022, the Company’s IBNR balance was $20 billion. The Company
develops IBNR estimates using an actuarial model that requires management to exercise certain judgments in developing its
estimates. Judgments made by management include medical cost per member per month trend factors and completion factors,

40

which include assumptions over the time from date of service to claim receipt, the impact of actual care activity, and processing
cycles.

We identified the IBNR claim liability as a critical audit matter because of the significant assumptions made by management in
estimating the liability. This required complex auditor judgment, and an increased extent of effort, including the involvement of
actuarial specialists in performing procedures to evaluate the reasonableness of management’s methods, assumptions and
judgments in developing the liability.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures included the following, among others:
• We tested the effectiveness of controls over management’s estimate of the IBNR claim liability balance, including controls
over the judgments in both the completion factors and the medical cost per member per month trend factors, as well as
controls over the claims and membership data used in the estimation process.

• We tested the underlying claims and membership data and other information that served as the basis for the actuarial

analysis, to test that the inputs to the actuarial estimate were complete and accurate.

• With the assistance of actuarial specialists, we evaluated the reasonableness of the actuarial methods and assumptions used

by management to estimate the IBNR claim liability by:

(cid:4)

Performing an overlay of the historical claims data used in management’s current year model to the data used in prior
periods to validate that there were no material changes to the claims data tested in prior periods.

(cid:4) Developing an independent estimate of the IBNR claim liability and comparing our estimate to management’s

estimate.

(cid:4)

Performing a retrospective review comparing management’s prior year estimate of IBNR to claims processed in 2022
with dates of service in 2021 or prior.

/S/ DELOITTE & TOUCHE LLP

Minneapolis, Minnesota
February 24, 2023

We have served as the Company’s auditor since 2002.

41

(in millions, except per share data)

Assets
Current assets:

UnitedHealth Group
Consolidated Balance Sheets

December 31,
2022

December 31,
2021

Cash and cash equivalents
Short-term investments ........................................................................................................
Accounts receivable, net of allowances of $877 and $954 ..............................................................
Other current receivables, net of allowances of $1,433 and $993......................................................
Assets under management ....................................................................................................
Prepaid expenses and other current assets..................................................................................

$

Total current assets...................................................................................................................
Long-term investments ..............................................................................................................
Property, equipment and capitalized software, net of accumulated depreciation and amortization of $6,930 and

$5,992 ...............................................................................................................................
Goodwill ...............................................................................................................................
Other intangible assets, net of accumulated amortization of $6,137 and $5,636 ..........................................
Other assets............................................................................................................................

$

23,365
4,546
17,681
12,769
4,087
6,621

69,069
43,728

10,128
93,352
14,401
15,027

21,375
2,532
14,216
13,866
4,449
5,320

61,758
43,114

8,969
75,795
10,044
12,526

Total assets ........................................................................................................................... $

245,705

$

212,206

Liabilities, redeemable noncontrolling interests and equity
Current liabilities:

Medical costs payable ......................................................................................................... $
Accounts payable and accrued liabilities ...................................................................................
Short-term borrowings and current maturities of long-term debt.......................................................
Unearned revenues .............................................................................................................
Other current liabilities ........................................................................................................

Total current liabilities ..............................................................................................................
Long-term debt, less current maturities...........................................................................................
Deferred income taxes...............................................................................................................
Other liabilities .......................................................................................................................

$

29,056
27,715
3,110
3,075
26,281

89,237
54,513
2,769
12,839

24,483
24,643
3,620
2,571
22,975

78,292
42,383
3,265
11,787

Total liabilities ........................................................................................................................

159,358

135,727

Commitments and contingencies (Note 12)
Redeemable noncontrolling interests..............................................................................................
Equity:

Preferred stock, $0.001 par value — 10 shares authorized; no shares issued or outstanding ......................
Common stock, $0.01 par value — 3,000 shares authorized; 934 and 941 issued and outstanding ..............
Retained earnings ..............................................................................................................
Accumulated other comprehensive loss ....................................................................................
Nonredeemable noncontrolling interests ...................................................................................

Total equity............................................................................................................................

4,897

1,434

—
9
86,156
(8,393)
3,678

81,450

—
10
77,134
(5,384)
3,285

75,045

Total liabilities, redeemable noncontrolling interests and equity ........................................................ $

245,705

$

212,206

See Notes to the Consolidated Financial Statements

42

UnitedHealth Group
Consolidated Statements of Operations

For the Years Ended
December 31,

2022

2021

2020

(in millions, except per share data)

Revenues:

Premiums ....................................................................................................... $
Products.........................................................................................................
Services .........................................................................................................
Investment and other income ...............................................................................

257,157 $
37,424
27,551
2,030

226,233 $
34,437
24,603
2,324

Total revenues .......................................................................................................

324,162

287,597

Operating costs:

Medical costs ..................................................................................................
Operating costs ................................................................................................
Cost of products sold .........................................................................................
Depreciation and amortization ..............................................................................

Total operating costs................................................................................................

Earnings from operations........................................................................................
Interest expense .....................................................................................................

Earnings before income taxes...................................................................................
Provision for income taxes ........................................................................................

Net earnings.........................................................................................................
Earnings attributable to noncontrolling interests...............................................................

210,842
47,782
33,703
3,400

295,727

28,435
(2,092)

26,343
(5,704)

20,639
(519)

186,911
42,579
31,034
3,103

263,627

23,970
(1,660)

22,310
(4,578)

17,732
(447)

201,478
34,145
20,016
1,502

257,141

159,396
41,704
30,745
2,891

234,736

22,405
(1,663)

20,742
(4,973)

15,769
(366)

Net earnings attributable to UnitedHealth Group common shareholders............................ $

20,120 $

17,285 $

15,403

Earnings per share attributable to UnitedHealth Group common shareholders:

Basic ............................................................................................................ $

21.47 $

18.33 $

Diluted .......................................................................................................... $

21.18 $

18.08 $

Basic weighted-average number of common shares outstanding .......................................
Dilutive effect of common share equivalents ................................................................

Diluted weighted-average number of common shares outstanding ....................................

Anti-dilutive shares excluded from the calculation of dilutive effect of common share equivalents..

937
13

950

3

943
13

956

1

16.23

16.03

949
12

961

8

See Notes to the Consolidated Financial Statements

43

UnitedHealth Group
Consolidated Statements of Comprehensive Income

(in millions)

For the Years Ended
December 31,

2022

2021

2020

Net earnings ............................................................................................................. $

20,639 $

17,732 $

15,769

Other comprehensive loss:

Gross unrealized (losses) gains on investment securities during the period .......................
Income tax effect ............................................................................................

Total unrealized (losses) gains, net of tax .........................................................

Gross reclassification adjustment for net realized losses (gains) included in net earnings ......
Income tax effect ............................................................................................

Total reclassification adjustment, net of tax ......................................................

Total foreign currency translation gains (losses) .......................................................

Other comprehensive loss ........................................................................................

Comprehensive income .................................................................................................
Comprehensive income attributable to noncontrolling interests .................................................

(4,292)
984

(3,308)

139
(32)

107

192

(3,009)

17,630
(519)

(1,028)
248

(780)

(173)
40

(133)

(657)

(1,570)

16,162
(447)

1,058
(253)

805

(75)
17

(58)

(983)

(236)

15,533
(366)

Comprehensive income attributable to UnitedHealth Group common shareholders .................. $

17,111 $

15,715 $

15,167

See Notes to the Consolidated Financial Statements

44

UnitedHealth Group
Consolidated Statements of Changes in Equity

(in millions)

Balance at January 1, 2020...............................
Adjustment to adopt ASU 2016-13 .....................
Net earnings ................................................
Other comprehensive income (loss) ....................
Issuances of common stock, and related tax effects..
Share-based compensation ...............................
Common share repurchases ..............................
Cash dividends paid on common shares ($4.83 per

share)......................................................

Redeemable noncontrolling interests fair value and

other adjustments .......................................

Acquisition and other adjustments of

nonredeemable noncontrolling interests.............

Distributions to nonredeemable noncontrolling

interests ...................................................

Balance at December 31, 2020 ..........................
Net earnings ................................................
Other comprehensive loss ................................
Issuances of common stock, and related tax effects..
Share-based compensation ...............................
Common share repurchases ..............................
Cash dividends paid on common shares ($5.60 per

share)......................................................

Redeemable noncontrolling interests fair value and

other adjustments .......................................

Acquisition and other adjustments of

nonredeemable noncontrolling interests.............

Distributions to nonredeemable noncontrolling

interests ...................................................

Balance at December 31, 2021 ..........................
Net earnings ................................................
Other comprehensive (loss) gains .......................
Issuances of common stock, and related tax effects..
Share-based compensation ...............................
Common share repurchases ..............................
Cash dividends paid on common shares ($6.40 per

share)......................................................

Redeemable noncontrolling interests fair value and

other adjustments .......................................

Acquisition and other adjustments of

nonredeemable noncontrolling interests.............

Distributions to nonredeemable noncontrolling

interests ...................................................

Accumulated Other
Comprehensive
Income (Loss)

Common Stock
Shares Amount

Additional
Paid-In
Capital

Retained
Earnings

Net Unrealized
Gains (Losses)
on Investments

Foreign
Currency
Translation
(Losses)
Gains

Nonredeemable
Noncontrolling
Interests

Total
Equity

948 $

9 $

7 $ 61,178 $

589 $

(4,167) $

(28)
15,403

(2,674)

(4,584)

12

(14)

1

1,119
647
— (1,576)

(197)

747

(983)

254

2,820 $ 60,436
(28)
15,657
(236)
1,120
647
(4,250)

(4,584)

(197)

40

40

(277)

(277)

946

10

— 69,295
17,285

1,336

(5,150)

(913)

(657)

2,837
360

8

(13)

—

—

1,100
729
(940)

(4,060)

(5,280)

(889)

(106)

68,328
17,645
(1,570)
1,100
729
(5,000)

(5,280)

(995)

407

407

(319)

(319)

941

10

— 77,134
20,120

423

(5,807)

(3,201)

192

3,285
406

7

—

(14)

(1)

903
875
(1,892)

(5,107)

(5,991)

114

374

75,045
20,526
(3,009)
903
875
(7,000)

(5,991)

114

374

(387)

(387)

Balance at December 31, 2022 ..........................

934 $

9 $

— $ 86,156 $

(2,778) $

(5,615) $

3,678 $ 81,450

See Notes to the Consolidated Financial Statements

45

UnitedHealth Group
Consolidated Statements of Cash Flows

(in millions)

For the Years Ended
December 31,

2022

2021

2020

Operating activities
Net earnings .............................................................................................................. $
Noncash items:

Depreciation and amortization ..................................................................................
Deferred income taxes ............................................................................................
Share-based compensation .......................................................................................
Other, net ...........................................................................................................

Net change in other operating items, net of effects from acquisitions and changes in AARP balances:

Accounts receivable ...............................................................................................
Other assets .........................................................................................................
Medical costs payable ............................................................................................
Accounts payable and other liabilities .........................................................................
Unearned revenues ................................................................................................

20,639 $

17,732 $

15,769

3,400
(673)
925
(331)

(2,523)
(1,374)
4,053
1,964
126

3,103
130
800
(944)

(1,000)
(1,031)
2,701
1,162
(310)

2,891
(8)
679
(52)

(688)
(2,195)
152
5,348
278

Cash flows from operating activities .................................................................................

26,206

22,343

22,174

Investing activities
Purchases of investments ...............................................................................................
Sales of investments.....................................................................................................
Maturities of investments...............................................................................................
Cash paid for acquisitions, net of cash assumed....................................................................
Purchases of property, equipment and capitalized software ......................................................
Cash received from dispositions ......................................................................................
Other, net..................................................................................................................

Cash flows used for investing activities .............................................................................

Financing activities
Common share repurchases ............................................................................................
Cash dividends paid .....................................................................................................
Proceeds from common stock issuances .............................................................................
Repayments of long-term debt ........................................................................................
Proceeds from (repayments of) short-term borrowings, net ......................................................
Proceeds from issuance of long-term debt...........................................................................
Customer funds administered ..........................................................................................
Purchases of redeemable noncontrolling interests..................................................................
Other, net..................................................................................................................

Cash flows from (used for) financing activities ....................................................................

Effect of exchange rate changes on cash and cash equivalents ..................................................

Increase in cash and cash equivalents .............................................................................
Cash and cash equivalents, beginning of period ................................................................

(18,825)
5,907
6,081
(21,458)
(2,802)
3,414
(793)

(28,476)

(7,000)
(5,991)
1,253
(3,015)
732
14,819
5,548
(176)
(1,944)

4,226

34

1,990
21,375

(17,139)
7,045
8,251
(4,821)
(2,454)
15
(1,269)

(10,372)

(5,000)
(5,280)
1,355
(3,150)
(1,302)
6,933
622
(1,338)
(295)

(7,455)

(62)

4,454
16,921

(16,577)
6,489
7,252
(7,139)
(2,051)
221
(727)

(12,532)

(4,250)
(4,584)
1,440
(3,150)
872
4,864
1,677
—
(459)

(3,590)

(116)

5,936
10,985

Cash and cash equivalents, end of period ........................................................................ $

23,365 $

21,375 $

16,921

Supplemental cash flow disclosures
Cash paid for interest ................................................................................................... $
Cash paid for income taxes ............................................................................................

1,945 $
5,222

1,653 $
3,966

1,704
4,935

See Notes to the Consolidated Financial Statements

46

UnitedHealth Group
Notes to the Consolidated Financial Statements

1. Description of Business

UnitedHealth Group Incorporated (individually and together with its subsidiaries, “UnitedHealth Group” and “the Company”) is
a health care and well-being company with a mission to help people live healthier lives and help make the health system work
better for everyone. Our two distinct, yet complementary business platforms—Optum and UnitedHealthcare—are working to
help build a modern, high-performing health system through improved access, affordability, outcomes and experiences for the
individuals and organizations we are privileged to serve.

2. Basis of Presentation, Use of Estimates and Significant Accounting Policies

Basis of Presentation

The Company has prepared the Consolidated Financial Statements according to U.S.22 Generally Accepted Accounting
Principles (GAAP) and has included the accounts of UnitedHealth Group and its subsidiaries.

Use of Estimates

These Consolidated Financial Statements include certain amounts based on the Company’s best estimates and judgments. The
Company’s most significant estimates relate to estimates and judgments for medical costs payable and goodwill. Certain of
these estimates require the application of complex assumptions and judgments, often because they involve matters inherently
uncertain and will likely change in subsequent periods. The impact of any change in estimates is included in earnings in the
period in which the estimate is adjusted.

Revenues

Premiums

Premium revenues are primarily derived from risk-based arrangements in which the premium is typically at a fixed rate per
individual served for a one-year period, and the Company assumes the economic risk of funding its customers’ health care and
related administrative costs.

Premium revenues are recognized in the period in which eligible individuals are entitled to receive health care benefits. Health
care premium payments received from the Company’s customers in advance of the service period are recorded as unearned
revenues. Fully insured commercial products of U.S. health plans, Medicare Advantage and Medicare Prescription Drug Benefit
(Medicare Part D) plans with medical loss ratios (MLRs) as calculated under the definitions in the Patient Protection and
Affordable Care Act (ACA) and related federal and state regulations and implementing regulation, falling below certain targets
are required to rebate ratable portions of their premiums annually. Commercial premiums within the Company’s individual and
small group markets are also subject to the ACA risk adjustment program. Medicare Advantage premium revenue includes the
impact of the Centers for Medicare & Medicaid Services (CMS) quality bonuses based on plans’ Star rating. Certain of the
Company’s Medicaid business is also subject to state minimum MLR rebates.

Premium revenues are recognized based on the estimated premiums earned, net of projected rebates, because the Company is
able to reasonably estimate the ultimate premiums of these contracts. The Company also records premium revenues for certain
value-based arrangements at its Optum Health care delivery businesses. Under these value-based arrangements, the Company
enters into agreements with health plans to stand ready to deliver, integrate, direct and control certain health care services for
patients. In exchange, the Company receives a premium that is typically paid on a per-patient per-month basis. The Company
considers these value-based arrangements to represent a single performance obligation where premium revenues are recognized
in the period in which health care services are made available.

The Company’s Medicare Advantage and Medicare Part D premium revenues are subject to periodic adjustment under CMS’
risk adjustment payment methodology. CMS deploys a risk adjustment model which apportions premiums paid to all health
plans according to health severity and certain demographic factors. The CMS risk adjustment model provides higher per

47

member payments for enrollees diagnosed with certain conditions and lower payments for enrollees who are healthier. Under
this risk adjustment methodology, CMS calculates the risk adjusted premium payment using diagnosis and encounter data from
hospital inpatient, hospital outpatient and physician treatment settings. The Company and health care providers collect, capture
and submit the necessary and available data to CMS within prescribed deadlines. The Company estimates risk adjustment
premium revenues based upon the data submitted and expected to be submitted to CMS. Risk adjustment data for the
Company’s plans are subject to review by the government, including audit by regulators. See Note 12 for additional information
regarding these audits.

Products and Services

For the Company’s Optum Rx pharmacy care services business, the majority of revenues are derived from products sold through
a contracted network of retail pharmacies or home delivery, specialty and community health pharmacies. Product revenues
include the cost of pharmaceuticals (net of rebates), a negotiated dispensing fee and customer co-payments. Pharmacy products
are billed to customers based on the number of transactions occurring during the billing period. Product revenues are recognized
when the prescriptions are dispensed. The Company has entered into contracts in which it is primarily obligated to pay its
network pharmacy providers for benefits provided to their customers regardless of whether the Company is paid. The Company
is also involved in establishing the prices charged by retail pharmacies, determining which drugs will be included in formulary
listings and selecting which retail pharmacies will be included in the network offered to plan sponsors’ members and
accordingly, product revenues are reported on a gross basis.

Services revenue includes a number of services and products sold through Optum. Optum Health’s service revenues include net
patient service revenues recorded based upon established billing rates, less allowances for contractual adjustments, and are
recognized as services are provided. For its financial services offerings, Optum Health charges fees and earns investment
income on managed funds. Optum Insight provides software and information products, advisory consulting arrangements and
managed services outsourcing contracts, which may be delivered over several years. Optum Insight revenues are generally
recognized over time and measured each period based on the progress to date as services are performed or made available to
customers.

Services revenue also consists of fees derived from services performed for customers who self-insure the health care costs of
their employees and employees’ dependents. Under service fee contracts, the Company receives monthly, a fixed fee per
employee, which is recognized as revenue as the Company performs, or makes available, the applicable services to the
customer. The customers retain the risk of financing health care costs for their employees and employees’ dependents, and the
Company administers the payment of customer funds to physicians and other health care professionals from customer-funded
bank accounts. As the Company has neither the obligation for funding the health care costs, nor the primary responsibility for
providing the medical care, the Company does not recognize premium revenue and medical costs for these contracts in its
Consolidated Financial Statements. For these fee-based customer arrangements, the Company provides coordination and
facilitation of medical services; transaction processing; customer, consumer and care professional services; and access to
contracted networks of physicians, hospitals and other health care professionals. These services are performed throughout the
contract period.

As of December 31, 2022 and 2021, accounts receivables related to products and services were $7.1 billion and $5.4 billion,
respectively. In 2022 and 2021, the Company had no material bad-debt expense and there were no material contract assets,
contract liabilities or deferred contract costs recorded on the Consolidated Balance Sheets as of December 31, 2022 or 2021.

For the years ended December 31, 2022, 2021 and 2020, revenue recognized from performance obligations related to prior
periods (for example, due to changes in transaction price) was not material.

Revenue expected to be recognized in any future year related to remaining performance obligations, excluding revenue
pertaining to contracts having an original expected duration of one year or less, contracts where revenue is recognized as
invoiced and contracts with variable consideration related to undelivered performance obligations, was $12.5 billion, of which
approximately half is expected to be recognized in the next three years.

See Note 14 for disaggregation of revenue by segment and type.

48

Medical Costs and Medical Costs Payable

The Company’s estimate of medical costs payable represents management’s best estimate of its liability for unpaid medical
costs as of December 31, 2022.

Each period, the Company re-examines previously established medical costs payable estimates based on actual claim
submissions and other changes in facts and circumstances. As more complete claim information becomes available, the
Company adjusts the amount of the estimates and includes the changes in estimates in medical costs in the period in which the
change is identified. Approximately 90% of claims related to medical care services are known and settled within 90 days from
the date of service and substantially all within twelve months.

Medical costs and medical costs payable include estimates of the Company’s obligations for medical care services rendered on
behalf of consumers, but for which claims have either not yet been received, processed, or paid. The Company develops
estimates for medical care services incurred but not reported (IBNR), which includes estimates for claims which have not been
received or fully processed, using an actuarial process consistently applied, centrally controlled and automated. The actuarial
models consider factors such as time from date of service to claim processing, seasonal variances in medical care consumption,
health care professional contract rate changes, care activity and other medical cost trends, membership volume and
demographics, the introduction of new technologies, benefit plan changes, and business mix changes related to products,
customers and geography.

In developing its medical costs payable estimates, the Company applies different estimation methods depending on which
incurred claims are being estimated. For the most recent two months, the Company estimates claim costs incurred by applying
observed medical cost trend factors to the average per member per month (PMPM) medical costs incurred in prior months for
which more complete claim data are available, supplemented by a review of near-term completion factors (actuarial estimates,
based upon historical experience and analysis of current trends, of the percentage of incurred claims during a given period
adjudicated by the Company at the date of estimation). For months prior to the most recent two months, the Company applies
the completion factors to actual claims adjudicated-to-date to estimate the expected amount of ultimate incurred claims for those
months.

Cost of Products Sold

The Company’s cost of products sold includes the cost of pharmaceuticals dispensed to unaffiliated customers either directly at
its home delivery, specialty and community pharmacy locations, or indirectly through its nationwide network of participating
pharmacies. Rebates attributable to unaffiliated clients are accrued as rebates receivable and a reduction of cost of products sold,
with a corresponding payable for the amounts of the rebates to be remitted to those unaffiliated clients in accordance with their
contracts and recorded in the Consolidated Statements of Operations as a reduction of product revenue. Cost of products sold
also includes the cost of personnel to support the Company’s transaction processing services, system sales, maintenance and
professional services.

Cash, Cash Equivalents and Investments

Cash and cash equivalents are highly liquid investments having an original maturity of three months or less. The fair value of
cash and cash equivalents approximates their carrying value because of the short maturity of the instruments.

Investments with maturities of less than one year are classified as short-term. Because of regulatory requirements, certain
investments are included in long-term investments regardless of their maturity date. The Company classifies these investments
as held-to-maturity and reports them at amortized cost. Substantially all other investments are classified as available-for-sale and
reported at fair value based on quoted market prices, where available. Equity investments, with certain exceptions, are measured
at fair value with changes in fair value recognized in net earnings.

The Company excludes unrealized gains and losses on investments in available-for-sale debt securities from net earnings and
reports them as comprehensive income and, net of income tax effects, as a separate component of equity. To calculate realized
gains and losses on the sale of debt securities, the Company specifically identifies the cost of each investment sold.

49

The Company evaluates an available-for-sale debt security for credit-related impairment by considering the present value of
expected cash flows relative to a security’s amortized cost, the extent to which fair value is less than amortized cost, the
financial condition and near-term prospects of the issuer and specific events or circumstances which may influence the
operations of the issuer. Credit-related impairments are recorded as an allowance, with an offset to investment and other
income. Non-credit related impairments are recorded through other comprehensive income. If the Company intends to sell an
impaired security, or will likely be required to sell a security before recovery of the entire amortized cost, the entire impairment
is included in net earnings.

New information and the passage of time can change these judgments. The Company manages its investment portfolio to limit
its exposure to any one issuer or market sector, and largely limits its investments to investment grade quality. Securities
downgraded below policy minimums after purchase will be disposed of in accordance with the Company’s investment policy.

Assets Under Management

The Company provides health insurance products and services to members of AARP under a Supplemental Health Insurance
Program (the AARP Program) and to AARP members and non-members under separate Medicare Advantage and Medicare Part
D arrangements. The products and services under the AARP Program include supplemental Medicare benefits, hospital
indemnity insurance, including insurance for individuals between 50 to 64 years of age, and other related products.

Pursuant to the Company’s agreement with AARP, program assets are managed separately from the Company’s general
investment portfolio and are used to pay costs associated with the AARP Program. These assets are invested at the Company’s
discretion, within investment guidelines approved by AARP. The Company does not guarantee any rates of return on these
investments and, upon any transfer of the AARP Program contract to another entity, the Company would transfer cash equal in
amount to the fair value of these investments at the date of transfer to the entity. Because the purpose of these assets is to fund
the medical costs payable, the rate stabilization fund (RSF) liabilities and other related liabilities associated with this AARP
contract, assets under management are classified as current assets, consistent with the classification of these liabilities.

The effects of changes in other balance sheet amounts associated with the AARP Program also accrue to the overall benefit of
the AARP policyholders through the RSF balance. Accordingly, the Company excludes the effect of such changes in its
Consolidated Statements of Cash Flows.

Other Current Receivables

Other current receivables include amounts due from pharmaceutical manufacturers for rebates and Medicare Part D drug
discounts, accrued interest and other miscellaneous amounts due to the Company.

The Company’s pharmacy care services businesses contract with pharmaceutical manufacturers, some of which provide rebates
based on use of the manufacturers’ products by its affiliated and unaffiliated clients. The Company accrues rebates as they are
earned by its clients on a monthly basis based on the terms of the applicable contracts, historical data and current estimates. The
pharmacy care services businesses bill these rebates to the manufacturers on a monthly or quarterly basis depending on the
contractual terms and record rebates attributable to affiliated clients as a reduction to medical costs. The Company generally
receives rebates two to five months after billing. As of December 31, 2022 and 2021, total pharmaceutical manufacturer rebates
receivable included in other receivables in the Consolidated Balance Sheets amounted to $8.2 billion and $7.2 billion,
respectively.

As of December 31, 2022 and 2021, the Company’s Medicare Part D receivables amounted to $1.3 billion and $3.4 billion,
respectively.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets include pharmaceutical drug and supplies inventory of $3.5 billion and $2.9 billion as
of December 31, 2022 and 2021, respectively.

50

Property, Equipment and Capitalized Software

Property, equipment and capitalized software are stated at cost, net of accumulated depreciation and amortization. Capitalized
software consists of certain costs incurred in the development of internal-use software, including external direct costs of
materials and services and applicable payroll costs of employees devoted to specific software development.

The Company calculates depreciation and amortization using the straight-line method over the estimated useful lives of the
assets. The useful lives for property, equipment and capitalized software are:

Furniture, fixtures and equipment................................................................................................
Buildings .............................................................................................................................
Capitalized software................................................................................................................

3 to 10 years
35 to 40 years
3 to 5 years

Leasehold improvements are depreciated over the shorter of the remaining lease term or their estimated useful economic life.

Operating Leases

The Company leases facilities and equipment under long-term operating leases which are non-cancelable and expire on various
dates. At the lease commencement date, lease right-of-use (ROU) assets and lease liabilities are recognized based on the present
value of the future minimum lease payments over the lease term, which includes all fixed obligations arising from the lease
contract. If an interest rate is not implicit in a lease, the Company utilizes its incremental borrowing rate for a period closely
matching the lease term.

The Company’s ROU assets are included in other assets, and lease liabilities are included in other current liabilities and other
liabilities in the Company’s Consolidated Balance Sheet.

Goodwill

To determine whether goodwill is impaired, annually or more frequently if needed, the Company performs impairment tests.
The Company may first assess qualitative factors to determine if it is more likely than not the carrying value of a reporting unit
exceeds its estimated fair value. The Company may also elect to skip the qualitative testing and proceed directly to the
quantitative testing. When performing quantitative testing, the Company first estimates the fair values of its reporting units
using discounted cash flows. To determine fair values, the Company must make assumptions about a wide variety of internal
and external factors. Significant assumptions used in the impairment analysis include financial projections of free cash flow
(including significant assumptions about operations, capital requirements and income taxes), long-term growth rates for
determining terminal value and discount rates. Comparative market multiples are used to corroborate the results of the
discounted cash flow test. If the fair value is less than the carrying value of the reporting unit, an impairment is recognized for
the difference, up to the carrying amount of goodwill.

There was no impairment of goodwill during the years ended December 31, 2022, 2021 and 2020.

Intangible Assets

The Company’s intangible assets are subject to impairment tests when events or circumstances indicate an intangible asset (or
asset group) may be impaired. The Company’s indefinite-lived intangible assets are also tested for impairment annually. There
was no impairment of intangible assets during the years ended December 31, 2022, 2021 and 2020.

Other Current Liabilities

Other current liabilities include health savings account deposits ($13.5 billion and $11.4 billion as of December 31, 2022 and
2021, respectively), accruals for premium rebates payable, the RSF associated with the AARP Program, the current portion of
future policy benefits and customer balances.

51

Policy Acquisition Costs

The Company’s short duration health insurance contracts typically have a one-year term and may be canceled by the customer
with at least 30 days’ notice. Costs related to the acquisition and renewal of short duration customer contracts are primarily
charged to expense as incurred.

Redeemable Noncontrolling Interests

Redeemable noncontrolling interests in the Company’s subsidiaries whose redemption is outside of the Company’s control are
classified as temporary equity. These interests primarily relate to put options on unowned shares, which are typically
redeemable at fair value after a certain time period. The Company accretes changes in the redemption value to the earliest
redemption date utilizing the interest method. If all interests were currently redeemable, the difference between the carrying
value and the estimated redemption value is not material. The following table provides details of the Company’s redeemable
noncontrolling interests’ activity for the years ended December 31, 2022 and 2021:

(in millions)

Redeemable noncontrolling interests, beginning of period ..................................................................... $
Net earnings ............................................................................................................................
Acquisitions.............................................................................................................................
Redemptions ............................................................................................................................
Distributions ............................................................................................................................
Fair value and other adjustments ....................................................................................................

Redeemable noncontrolling interests, end of period ............................................................................. $

2022

2021

1,434 $
113
3,108
(176)
(82)
500

4,897 $

2,211
87
28
(1,338)
(255)
701

1,434

Share-Based Compensation

The Company recognizes compensation expense for share-based awards, including stock options and restricted stock and
restricted stock units (collectively, restricted shares), on a straight-line basis over the related service period (generally the
vesting period) of the award, or to an employee’s eligible retirement date under the award agreement, if earlier. Restricted
shares vest ratably, primarily over four years, and compensation expense related to restricted shares is based on the share price
on the date of grant. Stock options vest ratably primarily over four years and may be exercised up to 10 years from the date of
grant. Compensation expense related to stock options is based on the fair value at the date of grant, which is estimated on the
date of grant using a binomial option-pricing model. Under the Company’s Employee Stock Purchase Plan (ESPP), eligible
employees are allowed to purchase the Company’s stock at a discounted price, which is 90% of the market price of the
Company’s common stock at the end of the six-month purchase period. Share-based compensation expense for all programs is
recognized in operating costs in the Consolidated Statements of Operations.

Net Earnings Per Common Share

The Company computes basic earnings per common share attributable to UnitedHealth Group common shareholders by dividing
net earnings attributable to UnitedHealth Group common shareholders by the weighted-average number of common shares
outstanding during the period. The Company determines diluted net earnings per common share attributable to UnitedHealth
Group common shareholders using the weighted-average number of common shares outstanding during the period, adjusted for
potentially dilutive shares associated with stock options, restricted shares and the ESPP (collectively, common stock equivalents),
using the treasury stock method. The treasury stock method assumes a hypothetical issuance of shares to settle the share-based
awards, with the assumed proceeds used to purchase common stock at the average market price for the period. Assumed proceeds
include the amount the employee must pay upon exercise and the average unrecognized compensation cost. The difference
between the number of shares assumed issued and number of shares assumed purchased represents the dilutive shares.

52

3.

Investments

A summary of debt securities by major security type is as follows:

(in millions)

December 31, 2022
Debt securities — available-for-sale:

Amortized
Cost

Gross
Unrealized
Gains

Gross
Unrealized
Losses

Fair
Value

U.S. government and agency obligations ................................................
State and municipal obligations............................................................
Corporate obligations........................................................................
U.S. agency mortgage-backed securities .................................................
Non-U.S. agency mortgage-backed securities ...........................................
Total debt securities — available-for-sale .....................................................
Debt securities — held-to-maturity:

U.S. government and agency obligations ................................................
State and municipal obligations............................................................
Corporate obligations........................................................................
Total debt securities — held-to-maturity.......................................................
Total debt securities ...............................................................................

December 31, 2021
Debt securities — available-for-sale:

U.S. government and agency obligations ................................................
State and municipal obligations............................................................
Corporate obligations........................................................................
U.S. agency mortgage-backed securities .................................................
Non-U.S. agency mortgage-backed securities ...........................................
Total debt securities — available-for-sale .....................................................
Debt securities — held-to-maturity:

U.S. government and agency obligations ................................................
State and municipal obligations............................................................
Corporate obligations........................................................................
Total debt securities — held-to-maturity.......................................................
Total debt securities ...............................................................................

$

$

$

$

4,093
7,702
23,675
7,379
3,077
45,926

578
29
89
696
46,622

3,206
6,829
20,947
5,868
2,819
39,669

511
30
100
641
40,310

$

$

$

$

1
25
17
15
1
59

—
—
—
—
59

23
297
372
88
42
822

2
2
—
4
826

$

$

$

$

$

(285)
(479)
(1,798)
(808)
(294)
(3,664)

(14)
(3)
—
(17)
(3,681) $

(31)
(20)
(145)
(55)
(23)
(274)

(2)
—
—
(2)
(276)

$

$

3,809
7,248
21,894
6,586
2,784
42,321

564
26
89
679
43,000

3,198
7,106
21,174
5,901
2,838
40,217

511
32
100
643
40,860

Nearly all of the Company’s investments in mortgage-backed securities were rated “Triple A” as of December 31, 2022. The
Company held $3.7 billion and $3.5 billion of equity securities as of December 31, 2022 and 2021, respectively. The
Company’s investments in equity securities primarily consist of employee savings plan related investments, venture investments
and shares of Brazilian real denominated fixed-income funds with readily determinable fair values. Additionally, the Company’s
investments included $1.5 billion and $1.3 billion of equity method investments in operating businesses in the health care
sector, as of December 31, 2022 and 2021, respectively. The allowance for credit losses on held-to-maturity securities as of
December 31, 2022 and 2021 was not material.

The amortized cost and fair value of debt securities as of December 31, 2022, by contractual maturity, were as follows:

(in millions)

Available-for-Sale

Held-to-Maturity

Amortized
Cost

Fair
Value

Amortized
Cost

Fair
Value

Due in one year or less.................................................................................. $
Due after one year through five years ................................................................
Due after five years through ten years................................................................
Due after ten years.......................................................................................
U.S. agency mortgage-backed securities .............................................................
Non-U.S. agency mortgage-backed securities.......................................................

4,713 $
13,135
12,210
5,412
7,379
3,077

4,682 $
12,404
10,897
4,968
6,586
2,784

Total debt securities ..................................................................................... $

45,926 $

42,321 $

374 $
265
37
20
—
—

696 $

369
256
36
18
—
—

679

53

The fair value of available-for-sale debt securities with gross unrealized losses by major security type and length of time that
individual securities have been in a continuous unrealized loss position were as follows:

(in millions)

December 31, 2022
U.S. government and agency obligations......................... $
State and municipal obligations....................................
Corporate obligations ................................................
U.S. agency mortgage-backed securities .........................
Non-U.S. agency mortgage-backed securities ...................

Less Than 12 Months
Gross
Unrealized
Losses

Fair
Value

12 Months or Greater
Gross
Unrealized
Losses

Fair
Value

Total

Fair
Value

Gross
Unrealized
Losses

2,007 $
4,630
13,003
3,561
1,698

(96) $
(288)
(893)
(345)
(128)

1,290 $
1,178
6,637
2,239
976

(189) $
(191)
(905)
(463)
(166)

3,297 $
5,808
19,640
5,800
2,674

(285)
(479)
(1,798)
(808)
(294)

Total debt securities — available-for-sale........................ $

24,899 $

(1,750) $

12,320 $

(1,914) $

37,219 $

(3,664)

December 31, 2021
U.S. government and agency obligations......................... $
State and municipal obligations....................................
Corporate obligations ................................................
U.S. agency mortgage-backed securities .........................
Non-U.S. agency mortgage-backed securities ...................

1,976 $
1,386
9,357
3,078
1,321

Total debt securities — available-for-sale........................ $

17,118 $

(18) $
(19)
(130)
(52)
(18)

(237) $

249 $
31
376
116
114

886 $

(13) $
(1)
(15)
(3)
(5)

2,225 $
1,417
9,733
3,194
1,435

(37) $

18,004 $

(31)
(20)
(145)
(55)
(23)

(274)

The Company’s unrealized losses from all securities as of December 31, 2022 were generated from approximately 35,000
positions out of a total of 41,000 positions. The Company believes it will collect the timely principal and interest due on its debt
securities having an amortized cost in excess of fair value. The unrealized losses were primarily caused by interest rate increases
and not by unfavorable changes in the credit quality associated with these securities which impacted the Company’s assessment
on collectability of principal and interest. At each reporting period, the Company evaluates available-for-sale debt securities for
any credit-related impairment when the fair value of the investment is less than its amortized cost. The Company evaluated the
expected cash flows, the underlying credit quality and credit ratings of the issuers noting no significant credit deterioration since
purchase. As of December 31, 2022, the Company did not have the intent to sell any of the securities in an unrealized loss
position. Therefore, the Company believes these losses to be temporary. The allowance for credit losses on available-for-sale
debt securities as of December 31, 2022 and 2021 was not material.

4. Fair Value

Certain assets and liabilities are measured at fair value in the Consolidated Financial Statements or have fair values disclosed in
the Notes to the Consolidated Financial Statements. These assets and liabilities are classified into one of three levels of a
hierarchy defined by GAAP. In instances in which the inputs used to measure fair value fall into different levels of the fair
value hierarchy, the fair value measurement is categorized in its entirety based on the lowest level input which is significant to
the fair value measurement in its entirety. The Company’s assessment of the significance of a particular item to the fair value
measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.

The fair value hierarchy is summarized as follows:

Level 1—Quoted prices (unadjusted) for identical assets/liabilities in active markets.

Level 2—Other observable inputs, either directly or indirectly, including:
• Quoted prices for similar assets/liabilities in active markets;
• Quoted prices for identical or similar assets/liabilities in inactive markets (e.g., few transactions, limited information,

noncurrent prices, high variability over time);

54

•

•

Inputs other than quoted prices observable for the asset/liability (e.g., interest rates, yield curves, implied volatilities, credit
spreads); and

Inputs corroborated by other observable market data.

Level 3—Unobservable inputs cannot be corroborated by observable market data.

There were no transfers in or out of Level 3 financial assets or liabilities during the years ended December 31, 2022 or 2021.

Nonfinancial assets and liabilities or financial assets and liabilities measured at fair value on a nonrecurring basis are subject to
fair value adjustments only in certain circumstances, such as when the Company records an impairment. For the years ended
December 31, 2022 and 2021, the Company recognized $211 million and $840 million, respectively, of unrealized gains in
investment and other income related to fair value adjustments on equity securities primarily in our venture portfolio, based upon
transaction of the same or similar security. There were no other significant fair value adjustments for these assets and liabilities
recorded during the years ended December 31, 2022 or 2021.

The following methods and assumptions were used to estimate the fair value and determine the fair value hierarchy
classification of each class of financial instrument included in the tables below:

Cash and Cash Equivalents. The carrying value of cash and cash equivalents approximates fair value as maturities are less than
three months. Fair values of cash equivalent instruments which do not trade on a regular basis in active markets are classified as
Level 2.

Debt and Equity Securities. Fair values of debt securities and equity securities reported at fair value on a recurring basis are
based on quoted market prices, where available. The Company obtains one price for each security primarily from a third-party
pricing service (pricing service), which generally uses quoted or other observable inputs for the determination of fair value. The
pricing service normally derives the security prices through recently reported trades for identical or similar securities, and, if
necessary, makes adjustments through the reporting date based upon available observable market information. For securities not
actively traded, the pricing service may use quoted market prices of comparable instruments or discounted cash flow analyses,
incorporating inputs currently observable in the markets for similar securities. Inputs often used in the valuation methodologies
include, but are not limited to, benchmark yields, credit spreads, default rates, prepayment speeds and nonbinding broker quotes.
As the Company is responsible for the determination of fair value, it performs quarterly analyses on the prices received from the
pricing service to determine whether the prices are reasonable estimates of fair value. Specifically, the Company compares the
prices received from the pricing service to prices reported by a secondary pricing source, such as its custodian, its investment
consultant and third-party investment advisors. Additionally, the Company compares changes in the reported market values and
returns to relevant market indices to test the reasonableness of the reported prices. The Company’s internal price verification
procedures and reviews of fair value methodology documentation provided by independent pricing services have not historically
resulted in adjustment to the prices obtained from the pricing service.

Fair values of debt securities which do not trade on a regular basis in active markets but are priced using other observable inputs
are classified as Level 2.

Fair value estimates for Level 1 and Level 2 equity securities reported at fair value on a recurring basis are based on quoted
market prices for actively traded equity securities and/or other market data for the same or comparable instruments and
transactions in establishing the prices.

The fair values of Level 3 investments in corporate bonds, which are not a significant portion of our investments, are estimated
using valuation techniques relying heavily on management assumptions and qualitative observations.

Throughout the procedures discussed above in relation to the Company’s processes for validating third-party pricing
information, the Company validates the understanding of assumptions and inputs used in security pricing and determines the
proper classification in the hierarchy based on such understanding.

55

Assets Under Management. Assets under management consists of debt securities and other investments held to fund costs
associated with the AARP Program and are priced and classified using the same methodologies as the Company’s investments
in debt and equity securities.

Long-Term Debt. The fair values of the Company’s long-term debt are estimated and classified using the same methodologies
as the Company’s investments in debt securities.

The following table presents a summary of fair value measurements by level and carrying values for items measured at fair
value on a recurring basis in the Consolidated Balance Sheets:

(in millions)

December 31, 2022
Cash and cash equivalents ...............................................................
Debt securities — available-for-sale:

U.S. government and agency obligations .......................................
State and municipal obligations...................................................
Corporate obligations...............................................................
U.S. agency mortgage-backed securities ........................................
Non-U.S. agency mortgage-backed securities ..................................

Total debt securities — available-for-sale ............................................

Equity securities ...........................................................................
Assets under management ...............................................................

Quoted Prices
in Active
Markets
(Level 1)

Other
Observable
Inputs
(Level 2)

Unobservable
Inputs
(Level 3)

Total
Fair and
Carrying
Value

$

23,202

$

163

$

— $

23,365

3,505
—
7
—
—

3,512

2,043
1,788

304
7,248
21,695
6,586
2,784

38,617

35
2,203

—
—
192
—
—

192

70
96

3,809
7,248
21,894
6,586
2,784

42,321

2,148
4,087

Total assets at fair value .................................................................

$

30,545

$

41,018

$

358

$

71,921

Percentage of total assets at fair value .................................................

42%

57%

1%

100%

December 31, 2021
Cash and cash equivalents ...............................................................
Debt securities — available-for-sale:

U.S. government and agency obligations .......................................
State and municipal obligations...................................................
Corporate obligations...............................................................
U.S. agency mortgage-backed securities ........................................
Non-U.S. agency mortgage-backed securities ..................................

Total debt securities — available-for-sale ............................................

Equity securities ...........................................................................
Assets under management ...............................................................

$

21,359

$

16

$

— $

21,375

3,017
—
40
—
—

3,057

2,090
1,972

181
7,106
20,916
5,901
2,838

36,942

23
2,376

—
—
218
—
—

218

64
101

383

3,198
7,106
21,174
5,901
2,838

40,217

2,177
4,449

$

68,218

Total assets at fair value .................................................................

$

28,478

$

39,357

$

Percentage of total assets at fair value .................................................

42%

57%

1%

100%

56

The following table presents a summary of fair value measurements by level and carrying values for certain financial
instruments not measured at fair value on a recurring basis in the Consolidated Balance Sheets:

(in millions)

Quoted Prices
in Active
Markets
(Level 1)

Other
Observable
Inputs
(Level 2)

Unobservable
Inputs
(Level 3)

Total
Fair
Value

Total
Carrying
Value

December 31, 2022
Debt securities — held-to-maturity ...............................
Long-term debt and other financing obligations ................
December 31, 2021
Debt securities — held-to-maturity ...............................
Long-term debt and other financing obligations ................

$
$

$
$

577
$
— $

102
53,626

534
$
— $

102
52,583

$
$

$
$

— $
— $

7

$
— $

679
53,626

643
52,583

$
$

$
$

696
56,823

641
46,003

The carrying amounts reported on the Consolidated Balance Sheets for other current financial assets and liabilities approximate
fair value because of their short-term nature. These assets and liabilities are not listed in the table above.

5. Property, Equipment and Capitalized Software

A summary of property, equipment and capitalized software is as follows:

(in millions)

December 31,
2022

December 31,
2021

Land and improvements ...............................................................................................
Buildings and improvements..........................................................................................
Computer equipment ...................................................................................................
Furniture and fixtures ..................................................................................................
Less accumulated depreciation .......................................................................................

$

Property and equipment, net ..........................................................................................

Capitalized software ....................................................................................................
Less accumulated amortization .......................................................................................

Capitalized software, net ..............................................................................................

$

697
5,519
2,093
2,113
(4,499)

5,923

6,636
(2,431)

4,205

Total property, equipment and capitalized software, net .........................................................

$

10,128

$

502
4,882
1,851
2,014
(3,857)

5,392

5,712
(2,135)

3,577

8,969

Depreciation expense for property and equipment was $1.1 billion for the year ended December 31, 2022, and $1.0 billion for
both years ended December 31, 2021 and 2020. Amortization expense for capitalized software for the years ended December
31, 2022, 2021 and 2020 was $1.0 billion, $0.9 billion and $0.8 billion, respectively.

6. Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill, by reportable segment, were as follows:

(in millions)

UnitedHealthcare

Optum Health

Optum Insight

Optum Rx

Consolidated

Balance at January 1, 2021 ...............................
Acquisitions .................................................
Foreign currency effects and other adjustments, net .

$

Balance at December 31, 2021...........................
Acquisitions .................................................
Foreign currency effects and other adjustments, net .

$

27,785
60
(456)

27,389
19
(13)

$

19,844
4,648
(268)

24,224
5,158
(144)

$

8,173
96
350

8,619
8,623
2

$

15,535
—
28

15,563
3,910
2

Balance at December 31, 2022...........................

$

27,395

$

29,238

$

17,244

$

19,475

$

71,337
4,804
(346)

75,795
17,710
(153)

93,352

57

The gross carrying value, accumulated amortization and net carrying value of other intangible assets were as follows:

(in millions)

Customer-related .................................................
Trademarks and technology ....................................
Trademarks and other indefinite-lived........................
Other ...............................................................

December 31, 2022

December 31, 2021

Gross
Carrying
Value

$ 16,303
2,398
661
1,176

Accumulated
Amortization

$ (5,179)
(704)
—
(254)

Net
Carrying
Value

$ 11,124
1,694
661
922

Gross
Carrying
Value

$ 13,011
1,630
617
422

Accumulated
Amortization

$ (4,697)
(739)
—
(200)

Net
Carrying
Value

$

8,314
891
617
222

Total................................................................

$ 20,538

$ (6,137)

$ 14,401

$ 15,680

$ (5,636)

$ 10,044

The acquisition date fair values and weighted-average useful lives assigned to finite-lived intangible assets acquired in business
combinations consisted of the following by year of acquisition:

2022

2021

(in millions, except years)

Fair
Value

Customer-related............................................................................................
Trademarks and technology...............................................................................
Other ..........................................................................................................

$

3,927
1,058
776

Weighted-
Average
Useful Life

15 years
6 years
13 years

Total acquired finite-lived intangible assets............................................................

$

5,761

13 years

$

Fair
Value

Weighted-
Average
Useful Life

$

484
147
29

660

9 years
5 years
11 years

8 years

Estimated full year amortization expense relating to intangible assets for each of the next five years ending December 31 is as
follows:

(in millions)

2023..........................................................................................................................................................
2024..........................................................................................................................................................
2025..........................................................................................................................................................
2026..........................................................................................................................................................
2027..........................................................................................................................................................

$

1,562
1,478
1,360
1,206
1,154

Amortization expense relating to intangible assets for the years ended December 31, 2022, 2021 and 2020 was $1.3 billion, $1.2
billion and $1.1 billion, respectively.

58

7. Medical Costs Payable

The following table shows the components of the change in medical costs payable for the years ended December 31:

(in millions)

Medical costs payable, beginning of period ..............................................
Acquisitions ....................................................................................
Reported medical costs:

Current year ..............................................................................
Prior years ................................................................................
Total reported medical costs ................................................................

Medical payments:

Payments for current year .............................................................
Payments for prior years ...............................................................
Total medical payments ......................................................................

2022

2021

2020

$

24,483
308

$

21,872
88

$

21,690
316

211,252
(410)
210,842

(184,049)
(22,528)
(206,577)

188,631
(1,720)
186,911

(165,524)
(18,864)
(184,388)

160,276
(880)
159,396

(139,974)
(19,556)
(159,530)

Medical costs payable, end of period ......................................................

$

29,056

$

24,483

$

21,872

For the year ended December 31, 2022, prior year’s medical cost reserve development included no individual factors that were
significant. For the years ended December 31, 2021 and 2020, prior years’ medical cost reserve development was primarily
driven by lower than expected care activity. Additionally, prior years’ medical cost reserve development in the year ended
December 31, 2021 was driven by care patterns disrupted by COVID-19.

Medical costs payable included IBNR of $20.0 billion and $17.1 billion at December 31, 2022 and 2021, respectively.
Substantially all of the IBNR balance as of December 31, 2022 relates to the current year.

The following is information about incurred and paid medical cost development as of December 31, 2022:

(in millions)
Year

Net Incurred Medical Costs
For the Years Ended December 31,

2021

2022

2021 ......................................................................................................................
2022 ......................................................................................................................

$

188,631

Total ......................................................................................................................

$

$

188,407
211,252

399,659

(in millions)
Year

Net Cumulative Medical Payments
For the Years Ended December 31,

2021

2022

2021 ....................................................................................................................
2022 ....................................................................................................................

$

(165,524)

$

Total ....................................................................................................................
Net remaining outstanding liabilities prior to 2021.............................................................

Total medical costs payable ........................................................................................

$

(186,944)
(184,049)

(370,993)
390

29,056

59

8. Short-Term Borrowings and Long-Term Debt

Short-term borrowings and senior unsecured long-term debt consisted of the following:

(in millions, except percentages)

Commercial paper ......................................................................................................................
$1,100 million 2.875% notes due March 2022.....................................................................................
$1,000 million 3.350% notes due July 2022........................................................................................
$900 million 2.375% notes due October 2022 .....................................................................................
$15 million 0.000% notes due November 2022....................................................................................
$625 million 2.750% notes due February 2023 ....................................................................................
$750 million 2.875% notes due March 2023 .......................................................................................
$750 million 3.500% notes due June 2023 .........................................................................................
$750 million 3.500% notes due February 2024 ....................................................................................
$1,000 million 0.550% notes due May 2024 .......................................................................................
$750 million 2.375% notes due August 2024 ......................................................................................
$500 million 5.000% notes due October 2024 .....................................................................................
$2,000 million 3.750% notes due July 2025........................................................................................
$750 million 5.150% notes due October 2025 .....................................................................................
$300 million 3.700% notes due December 2025 ..................................................................................
$500 million 1.250% notes due January 2026 .....................................................................................
$1,000 million 3.100% notes due March 2026.....................................................................................
$1,000 million 1.150% notes due May 2026 .......................................................................................
$750 million 3.450% notes due January 2027 .....................................................................................
$625 million 3.375% notes due April 2027 ........................................................................................
$600 million 3.700% notes due May 2027 .........................................................................................
$950 million 2.950% notes due October 2027 .....................................................................................
$1,000 million 5.250% notes due February 2028..................................................................................
$1,150 million 3.850% notes due June 2028 .......................................................................................
$850 million 3.875% notes due December 2028 ..................................................................................
$900 million 4.000% notes due May 2029 .........................................................................................
$1,000 million 2.875% notes due August 2029....................................................................................
$1,250 million 5.300% notes due February 2030..................................................................................
$1,250 million 2.000% notes due May 2030 .......................................................................................
$1,500 million 2.300% notes due May 2031 .......................................................................................
$1,500 million 4.200% notes due May 2032 .......................................................................................
$2,000 million 5.350% notes due February 2033..................................................................................
$1,000 million 4.625% notes due July 2035........................................................................................
$850 million 5.800% notes due March 2036 .......................................................................................
$500 million 6.500% notes due June 2037 .........................................................................................
$650 million 6.625% notes due November 2037 ..................................................................................
$1,100 million 6.875% notes due February 2038..................................................................................
$1,250 million 3.500% notes due August 2039....................................................................................
$1,000 million 2.750% notes due May 2040 .......................................................................................
$300 million 5.700% notes due October 2040 .....................................................................................
$350 million 5.950% notes due February 2041 ....................................................................................
$1,500 million 3.050% notes due May 2041 .......................................................................................
$600 million 4.625% notes due November 2041 ..................................................................................
$502 million 4.375% notes due March 2042 .......................................................................................
$625 million 3.950% notes due October 2042 .....................................................................................
$750 million 4.250% notes due March 2043 .......................................................................................
$2,000 million 4.750% notes due July 2045........................................................................................
$750 million 4.200% notes due January 2047 .....................................................................................
$725 million 4.250% notes due April 2047 ........................................................................................
$950 million 3.750% notes due October 2047 .....................................................................................

60

$

Carrying Value As of
December 31,

2022

2021

$

800
—
—
—
—
622
746
750
749
998
749
499
1,995
747
299
498
998
893
748
622
597
943
1,008
1,145
845
849
886
1,269
1,237
1,256
1,393
2,037
993
840
493
642
1,079
1,242
967
296
346
1,483
590
486
609
736
1,975
739
718
935

—
1,097
999
899
14
632
768
749
748
996
748
—
1,994
—
299
497
997
972
747
621
—
942
—
1,144
844
—
1,023
—
1,235
1,482
—
—
993
839
492
642
1,078
1,242
966
296
346
1,483
589
485
608
736
1,974
739
718
934

(in millions, except percentages)

$1,350 million 4.250% notes due June 2048 .......................................................................................
$1,100 million 4.450% notes due December 2048 ................................................................................
$1,250 million 3.700% notes due August 2049....................................................................................
$1,250 million 2.900% notes due May 2050 .......................................................................................
$2,000 million 3.250% notes due May 2051 .......................................................................................
$2,000 million 4.750% notes due May 2052 .......................................................................................
$2,000 million 5.875% notes due February 2053..................................................................................
$1,250 million 3.875% notes due August 2059....................................................................................
$1,000 million 3.125% notes due May 2060 .......................................................................................
$1,000 million 4.950% notes due May 2062 .......................................................................................
$1,500 million 6.050% notes due February 2063..................................................................................

Carrying Value As of
December 31,

2022

2021

1,331
1,087
1,236
1,210
1,971
1,965
1,968
1,228
966
981
1,466

1,330
1,087
1,236
1,209
1,970
—
—
1,228
965
—
—

Total short-term borrowings and long-term debt ..................................................................................

$

56,756

$

44,632

The Company’s long-term debt obligations also included $0.9 billion and $1.4 billion of other financing obligations, of which
$192 million and $611 million were current as of December 31, 2022 and 2021, respectively.

Maturities of short-term borrowings and long-term debt for the years ending December 31 are as follows:

(in millions)

2023 ......................................................................................................................................................
2024 ......................................................................................................................................................
2025 ......................................................................................................................................................
2026 ......................................................................................................................................................
2027 ......................................................................................................................................................
Thereafter................................................................................................................................................

$

3,117
3,136
3,186
2,636
3,061
43,638

Short-Term Borrowings

Commercial paper consists of short-duration, senior unsecured debt privately placed on a discount basis through broker-dealers.

The Company has $6.0 billion five-year, $6.0 billion three-year and $6.0 billion 364-day revolving bank credit facilities with
25 banks, which mature in December 2027, December 2025 and December 2023, respectively. These facilities provide full
liquidity support for the Company’s commercial paper program and are available for general corporate purposes. As of
December 31, 2022, no amounts had been drawn on any of the bank credit facilities. The annual interest rates, which are
variable based on term, are calculated based on one-month term Secured Overnight Financing Rate (SOFR) plus a SOFR
Adjustment of 10 basis points plus a credit spread based on the Company’s senior unsecured credit ratings. If amounts had been
drawn on the bank credit facilities as of December 31, 2022, annual interest rates would have ranged from 5.1% to 7.5%.

Debt Covenants

The Company’s bank credit facilities contain various covenants, including requiring the Company to maintain a debt to debt-
plus-shareholders’ equity ratio of not more than 60%. The Company was in compliance with its debt covenants as of
December 31, 2022.

9.

Income Taxes

The current income tax provision reflects the tax consequences of revenues and expenses currently taxable or deductible on
various income tax returns for the year reported. The deferred income tax provision or benefit generally reflects the net change

61

in deferred income tax assets and liabilities during the year, excluding any deferred income tax assets and liabilities of acquired
businesses. The components of the provision for income taxes for the years ended December 31 are as follows:

(in millions)

Current Provision:

Federal .................................................................................................................
State and local ........................................................................................................

$

Foreign.................................................................................................................
Total current provision ....................................................................................................
Deferred (benefit) provision ..............................................................................................

2022

2021

2020

$

4,842
855

680
6,377
(673)

3,451
481

516
4,448
130

$

4,098
392

491
4,981
(8)

Total provision for income taxes ........................................................................................

$

5,704

$

4,578

$

4,973

The reconciliation of the tax provision at the U.S. federal statutory rate to the provision for income taxes and the effective tax
rate for the years ended December 31 is as follows:

(in millions, except percentages)

Tax provision at the U.S. federal statutory rate ...........................................
State income taxes, net of federal benefit ..................................................
Share-based awards — excess tax benefit .................................................
Non-deductible compensation................................................................
Health insurance tax ...........................................................................
Foreign rate differential .......................................................................
Other, net ........................................................................................

$

2022

5,532
621
(110)
150
—
(265)
(224)

21.0% $
2.4
(0.4)
0.6
—
(1.0)
(0.9)

2021

4,685
419
(100)
144
—
(246)
(324)

21.0% $
1.9
(0.4)
0.6
—
(1.1)
(1.5)

2020

4,356
315
(130)
134
626
(164)
(164)

21.0%
1.5
(0.6)
0.7
3.0
(0.8)
(0.8)

Provision for income taxes ...................................................................

$

5,704

21.7% $

4,578

20.5% $

4,973

24.0%

Deferred income tax assets and liabilities are recognized for the differences between the financial and income tax reporting
bases of assets and liabilities based on enacted tax rates and laws. The components of deferred income tax assets and liabilities
as of December 31 are as follows:

(in millions)

Deferred income tax assets:

Accrued expenses and allowances .............................................................................................
U.S. federal and state net operating loss carryforwards ....................................................................
Share-based compensation ......................................................................................................
Nondeductible liabilities ........................................................................................................
Non-U.S. tax loss carryforwards ...............................................................................................
Lease liability .....................................................................................................................
Net unrealized losses on investments .........................................................................................
Other-domestic....................................................................................................................
Other-non-U.S.....................................................................................................................
Subtotal...................................................................................................................................
Less: valuation allowances............................................................................................................
Total deferred income tax assets .....................................................................................................
Deferred income tax liabilities:

U.S. federal and state intangible assets .......................................................................................
Non-U.S. goodwill and intangible assets .....................................................................................
Capitalized software .............................................................................................................
Depreciation and amortization .................................................................................................
Prepaid expenses..................................................................................................................
Outside basis in partnerships ...................................................................................................
Lease right-of-use asset..........................................................................................................
Net unrealized gains on investments ..........................................................................................
Other-non-U.S.....................................................................................................................
Total deferred income tax liabilities.................................................................................................
Net deferred income tax liabilities...................................................................................................

$

$

2022

2021

$

707
540
154
341
631
972
829
291
423
4,888
(291)
4,597

(3,520)
(550)
(548)
(520)
(275)
(653)
(958)
—
(342)
(7,366)
(2,769) $

723
287
117
296
435
1,284
—
228
376
3,746
(198)
3,548

(2,658)
(512)
(833)
(349)
(256)
(565)
(1,267)
(125)
(248)
(6,813)
(3,265)

62

Valuation allowances are provided when it is considered more likely than not deferred tax assets will not be realized. The
valuation allowances primarily relate to future tax benefits on certain federal, state and non-U.S. net operating loss
carryforwards. Gross federal net operating loss carryforwards of $490 million expire beginning in 2023 through 2037 and $611
million have an indefinite carryforward period; state net operating loss carryforwards expire beginning in 2023 through 2042,
with some having an indefinite carryforward period. Substantially all of the non-U.S. tax loss carryforwards have indefinite
carryforward periods.

As of December 31, 2022, the Company’s undistributed earnings from non-U.S. subsidiaries are intended to be indefinitely
reinvested in non-U.S. operations, and therefore no U.S. deferred taxes have been recorded. Taxes payable on the remittance of
such earnings would be minimal.

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 31 is as follows:

(in millions)

Gross unrecognized tax benefits, beginning of period ...............................................................
Gross increases:

Current year tax positions ..........................................................................................
Prior year tax positions..............................................................................................

Gross decreases:

Prior year tax positions..............................................................................................
Statute of limitations lapses ........................................................................................

2022

2021

2020

$

2,310

$

1,829

$

1,423

586
206

(21)
—

538
10

(47)
(20)

416
120

(130)
—

Gross unrecognized tax benefits, end of period .......................................................................

$

3,081

$

2,310

$

1,829

The Company believes it is reasonably possible its liability for unrecognized tax benefits will decrease in the next twelve
months by $260 million as a result of audit settlements and the expiration of statutes of limitations.

The Company classifies net interest and penalties associated with uncertain income tax positions as income taxes within its
Consolidated Statements of Operations. During the years ended December 31, 2022, 2021 and 2020, the Company recognized
$64 million, $66 million and $52 million of net interest and penalties, respectively. The Company had $253 million and $194
million of accrued interest and penalties for uncertain tax positions as of December 31, 2022 and 2021, respectively. These
amounts are not included in the reconciliation above. As of December 31, 2022, there were $1.7 billion of unrecognized tax
benefits which, if recognized, would affect the effective tax rate.

The Company currently files income tax returns in the United States, various states and localities and non-U.S. jurisdictions.
The U.S. Internal Revenue Service (IRS) has completed exams on the consolidated income tax returns for fiscal years 2016 and
prior. The Company’s 2017 through 2020 tax years are under review by the IRS under its Compliance Assurance Program. With
the exception of a few states, the Company is no longer subject to income tax examinations prior to the 2014 tax year. In
general, the Company is subject to examination in non-U.S. jurisdictions for years 2015 and forward.

10. Shareholders’ Equity

Regulatory Capital and Dividend Restrictions

The Company’s regulated insurance and HMO subsidiaries are subject to regulations and standards in their respective
jurisdictions. These standards, among other things, require these subsidiaries to maintain specified levels of statutory capital, as
defined by each jurisdiction, and restrict the timing and amount of dividends and other distributions which may be paid to their
parent companies. In the United States, most of these state regulations and standards are generally consistent with model
regulations established by the NAIC. These standards generally permit dividends to be paid from statutory unassigned surplus of
the regulated subsidiary and are limited based on the regulated subsidiary’s level of statutory net income and statutory capital
and surplus. These dividends are referred to as “ordinary dividends” and generally may be paid without prior regulatory
approval. If the dividend, together with other dividends paid within the preceding twelve months, exceeds a specified statutory

63

limit or is paid from sources other than earned surplus, it is generally considered an “extraordinary dividend” and must receive
prior regulatory approval.

For the year ended December 31, 2022, the Company’s domestic insurance and HMO subsidiaries paid their parent companies
dividends of $8.8 billion, including $7.4 billion of extraordinary dividends. For the year ended December 31, 2021, the
Company’s domestic insurance and HMO subsidiaries paid their parent companies dividends of $8.0 billion, including
$4.7 billion of extraordinary dividends.

The Company’s global financially regulated subsidiaries had estimated aggregate statutory capital and surplus of $33.8 billion
as of December 31, 2022. The estimated statutory capital and surplus necessary to satisfy regulatory requirements of the
Company’s global financially regulated subsidiaries was approximately $15.4 billion as of December 31, 2022.

Optum Bank must meet minimum capital requirements of the FDIC under the capital adequacy rules to which it is subject. At
December 31, 2022, the Company believes Optum Bank met the FDIC requirements to be considered “Well Capitalized.”

Share Repurchase Program

Under its Board of Directors’ authorization, the Company maintains a share repurchase program. The objectives of the share
repurchase program are to optimize the Company’s capital structure and cost of capital, thereby improving returns to
shareholders, as well as to offset the dilutive impact of share-based awards. Repurchases may be made from time to time in
open market purchases or other types of transactions (including prepaid or structured share repurchase programs), subject to
certain restrictions. In June 2018, the Board of Directors renewed the Company’s share repurchase program with an
authorization to repurchase up to 100 million shares of its common stock.

A summary of common share repurchases for the years ended December 31, 2022 and 2021 is as follows:

(in millions, except per share data)

Years Ended December 31,

2022

2021

Common share repurchases, shares ........................................................................................
Common share repurchases, average price per share....................................................................
Common share repurchases, aggregate cost ..............................................................................
Board authorized shares remaining.........................................................................................

$
$

14
501.67
7,000
31

$
$

13
389.92
5,000
45

Dividends

In June 2022, the Company’s Board of Directors increased the Company’s quarterly cash dividend to shareholders to an annual
rate of $6.60 compared to $5.80 per share, which the Company had paid since June 2021. Declaration and payment of future
quarterly dividends is at the discretion of the Board and may be adjusted as business needs or market conditions change.

The following table provides details of the Company’s 2022 dividend payments:

Payment Date

Amount per Share

Total Amount Paid
(in millions)

March 22................................................................................................................
June 28 ..................................................................................................................
September 20...........................................................................................................
December 13 ...........................................................................................................

$

$

1.45
1.65
1.65
1.65

1,363
1,545
1,542
1,541

11. Share-Based Compensation

The Company’s outstanding share-based awards consist mainly of non-qualified stock options and restricted shares. As of
December 31, 2022, the Company had 59 million shares available for future grants of share-based awards under the 2020 Stock
Incentive Plan. As of December 31, 2022, there were 18 million shares of common stock available for issuance under the ESPP.

64

Stock Options

Stock option activity for the year ended December 31, 2022 is summarized in the table below:

Weighted-
Average
Exercise
Price

Weighted-
Average
Remaining
Contractual Life
(in years)

Aggregate
Intrinsic Value
(in millions)

Outstanding at beginning of period ....................................................
Granted .....................................................................................
Exercised ...................................................................................
Forfeited....................................................................................

Outstanding at end of period............................................................

Exercisable at end of period ............................................................
Vested and expected to vest, end of period...........................................

Shares
(in millions)
25
4
(5)
(1)

23

13
23

$

241
459
215
356

281

213
278

Restricted Shares

Restricted share activity for the year ended December 31, 2022 is summarized in the table below:

(shares in millions)

$

5.8

4.4
5.7

5,914

4,170
5,854

Weighted-Average
Grant Date
Fair Value
per Share

Shares

Nonvested at beginning of period .............................................................................................
Granted ............................................................................................................................
Vested ..............................................................................................................................

Nonvested at end of period .....................................................................................................

$

4
2
(2)

4

303
483
287

401

Other Share-Based Compensation Data

(in millions, except per share amounts)

Stock Options
Weighted-average grant date fair value of shares granted, per share.........................................
Total intrinsic value of stock options exercised..................................................................
Restricted Shares
Weighted-average grant date fair value of shares granted, per share.........................................
Total fair value of restricted shares vested .......................................................................
Employee Stock Purchase Plan
Number of shares purchased ........................................................................................
Share-Based Compensation Items
Share-based compensation expense, before tax ..................................................................
Share-based compensation expense, net of tax effects..........................................................
Income tax benefit realized from share-based award exercises ...............................................

$

$

$

(in millions, except years)

For the Years Ended December 31,
2022
2020
2021

$

$

$

116
1,419

483
760

1

925
836
207

$

$

$

71
1,519

352
560

1

800
719
173

54
1,736

303
574

1

679
619
208

December 31, 2022

Unrecognized compensation expense related to share awards ............................................................
Weighted-average years to recognize compensation expense.............................................................

$

1,165
1.3

65

Share-Based Compensation Recognition and Estimates

The principal assumptions the Company used in calculating grant-date fair value for stock options were as follows:

For the Years Ended December 31,
2021

2022

2020

Risk-free interest rate..................................................................................
Expected volatility .....................................................................................
Expected dividend yield...............................................................................
Forfeiture rate...........................................................................................
Expected life in years..................................................................................

1.9% - 4.3%
0.7% - 1.2%
30.6% - 30.8% 29.2% - 29.8% 22.2% - 29.5%
1.4% - 1.7%
1.3% - 1.5%
5.0%
5.0%
5.1
4.8

1.2%
5.0%
4.7

0.2% - 1.4%

Risk-free interest rates are based on U.S. Treasury yields in effect at the time of grant. Expected volatilities are based on the
historical volatility of the Company’s common stock and the implied volatility from exchange-traded options on the Company’s
common stock. Expected dividend yields are based on the per share cash dividend paid by the Company. The Company uses
historical data to estimate option exercises and forfeitures within the valuation model. The expected lives of options granted
represents the period of time the awards granted are expected to be outstanding based on historical exercise patterns.

Other Employee Benefit Plans

The Company offers a 401(k) plan for its employees. Compensation expense related to this plan was not material for 2022, 2021
and 2020.

In addition, the Company maintains non-qualified, deferred compensation plans, which allow certain members of senior
management and executives to defer portions of their salary or bonus. The deferrals are recorded within long-term investments
with an approximately equal amount in other liabilities in the Consolidated Balance Sheets. The total deferrals are distributable
based upon termination of employment or other periods, as elected under each plan and were $1.6 billion and $1.8 billion as of
December 31, 2022 and 2021, respectively.

12. Commitments and Contingencies

Leases

Operating lease costs, including immaterial variable and short-term lease costs, were $1.3 billion, $1.2 billion and $1.1 billion
for the years ended December 31, 2022, 2021 and 2020, respectively. Cash payments made on the Company’s operating lease
liabilities were $996 million, $921 million and $865 million for the years ended December 31, 2022, 2021 and 2020,
respectively, which were classified within operating activities in the Consolidated Statements of Cash Flows. As of December
31, 2022, the Company’s weighted-average remaining lease term and weighted-average discount rate for its operating leases
were 8.6 years and 3.4%, respectively.

As of December 31, 2022, future minimum annual lease payments under all non-cancelable operating leases were as follows:

(in millions)

Future Minimum
Lease Payments

2023 .................................................................................................................................................
2024 .................................................................................................................................................
2025 .................................................................................................................................................
2026 .................................................................................................................................................
2027 .................................................................................................................................................
Thereafter...........................................................................................................................................

$

Total future minimum lease payments...................................................................................................
Less imputed interest .............................................................................................................................

Total .................................................................................................................................................

$

997
858
702
578
475
2,028

5,638
(808)

4,830

66

Other Commitments

The Company provides guarantees related to its service level under certain contracts. If minimum standards are not met, the
Company may be financially at risk up to a stated percentage of the contracted fee or a stated dollar amount. None of the
amounts accrued, paid or charged to income for service level guarantees were material as of December 31, 2022, 2021 or 2020.

Pending Acquisitions

As of December 31, 2022, the Company has entered into agreements to acquire companies in the health care sector, most
notably, LHC Group, Inc. (NASDAQ: LHCG), subject to regulatory approval and other customary closing conditions. The total
anticipated capital required for these acquisitions, excluding the payoff of acquired indebtedness, is approximately $9 billion.
The Company completed the acquisition of LHC Group, Inc. on February 22, 2023.

Legal Matters

The Company is frequently made party to a variety of legal actions and regulatory inquiries, including class actions and suits
brought by members, care providers, consumer advocacy organizations, customers and regulators, relating to the Company’s
businesses, including management and administration of health benefit plans and other services. These matters include medical
malpractice, employment, intellectual property, antitrust, privacy and contract claims and claims related to health care benefits
coverage and other business practices.

The Company records liabilities for its estimates of probable costs resulting from these matters where appropriate. Estimates of
costs resulting from legal and regulatory matters involving the Company are inherently difficult to predict, particularly where
the matters: involve indeterminate claims for monetary damages or may involve fines, penalties or punitive damages; present
novel legal theories or represent a shift in regulatory policy; involve a large number of claimants or regulatory bodies; are in the
early stages of the proceedings; or could result in a change in business practices. Accordingly, the Company is often unable to
estimate the losses or ranges of losses for those matters where there is a reasonable possibility or it is probable a loss may be
incurred.

Government Investigations, Audits and Reviews

The Company has been involved or is currently involved in various governmental investigations, audits and reviews. These
include routine, regular and special investigations, audits and reviews by CMS, state insurance and health and welfare
departments, state attorneys general, the Office of the Inspector General, the Office of Personnel Management, the Office of
Civil Rights, the Government Accountability Office, the Federal Trade Commission, U.S. Congressional committees, the U.S.
Department of Justice (DOJ), the SEC, the IRS, the U.S. Drug Enforcement Administration, the U.S. Department of Labor, the
FDIC, Consumer Financial Protection Bureau, the Defense Contract Audit Agency and other governmental authorities.
Similarly, our international businesses are also subject to investigations, audits and reviews by applicable foreign governments,
including South American and other non-U.S. governmental authorities. Certain of the Company’s businesses have been
reviewed or are currently under review, including for, among other matters, compliance with coding and other requirements
under the Medicare risk-adjustment model. CMS has selected certain of the Company’s local plans for risk adjustment data
validation (RADV) audits to validate the coding practices of and supporting documentation maintained by health care providers
and such audits may result in retrospective adjustments to payments made to the Company’s health plans.

On February 14, 2017, the DOJ announced its decision to pursue certain claims within a lawsuit initially asserted against the
Company and filed under seal by a whistleblower in 2011. The whistleblower’s complaint, which was unsealed on February 15,
2017, alleges the Company made improper risk adjustment submissions and violated the False Claims Act. On February 12,
2018, the court granted in part and denied in part the Company’s motion to dismiss. In May 2018, the DOJ moved to dismiss
the Company’s counterclaims, which were filed in March 2018, and moved for partial summary judgment. In March 2019, the
court denied the government’s motion for partial summary judgment and dismissed the Company’s counterclaims without
prejudice. The Company cannot reasonably estimate the outcome which may result from this matter given its procedural status.

67

13. Business Combinations

On October 3, 2022, the Company acquired all of the outstanding common shares of Change Healthcare Inc. (Change) and funded
Change’s payoff of its outstanding debt and credit facility for a total of $13.9 billion in cash. The combination of the Company and
Change will connect and simplify the core clinical, administrative and payment processes health care providers and payers depend
on to serve patients. Change brings key technologies, connections and advanced clinical decision, administrative and financial
support capabilities, enabling better workflow and transactional connectivity across the health care system.

Subsequent to closing and as planned, the Company sold Change’s claims editing business to an affiliate of investment funds of
TPG Inc. for $2.2 billion in cash. The net assets and net liabilities associated with this sale were classified as held-for-sale at the
time of acquisition. There was no gain or loss associated with this transaction.

During the year ended December 31, 2022, the Company completed several other business combinations for total consideration
of $8.8 billion. The Company also sold other businesses for $1.2 billion of cash, with a carrying value of $600 million, and the
difference reflected in the Consolidated Statement of Operations.

Acquired assets (liabilities) at acquisition date were:

(in millions)

Change

Other
Acquisitions

Total

Cash and cash equivalents ..............................................................................
Accounts receivable and other current assets........................................................
Assets held-for-sale ......................................................................................
Property, equipment and other long-term assets ....................................................
Other intangible assets ..................................................................................

$

Total identifiable assets acquired................................................................

Medical costs payable ...................................................................................
Accounts payable and other current liabilities ......................................................
Liabilities held-for-sale .................................................................................
Other long-term liabilities ..............................................................................

Total identifiable liabilities acquired ...........................................................

Total net identifiable assets ...................................................................

Goodwill...................................................................................................
Redeemable noncontrolling interests .................................................................
Nonredeemable noncontrolling interests .............................................................

$

222
925
2,310
254
4,050

7,761

—
(1,017)
(101)
(1,193)

(2,311)

5,450

8,496
—
—

$

523
696
—
1,882
1,764

4,865

(308)
(843)
—
(713)

(1,864)

3,001

9,214
(3,108)
(370)

Net assets acquired .............................................................................

$

13,946

$

8,737

$

745
1,621
2,310
2,136
5,814

12,626

(308)
(1,860)
(101)
(1,906)

(4,175)

8,451

17,710
(3,108)
(370)

22,683

The majority of goodwill is not deductible for income tax purposes. The preliminary purchase price allocations for the various
business combinations are subject to adjustment as valuation analyses, primarily related to intangible assets and contingent
liabilities, are finalized.

The acquisition date fair values and weighted-average useful lives assigned to finite-lived intangible assets acquired consisted of
the following:

(in millions, except years)

Fair Value

Useful Life Fair Value

Useful Life Fair Value

Customer-related ............................................................ $
Trademarks and technology ...............................................
Other ..........................................................................

Total acquired finite-lived intangible assets ............................ $

3,063
977
10

4,050

15 years $
6 years
1 year

864
81
766

13 years $
4 years
13 years

13 years $

1,711

13 years $

3,927
1,058
776

5,761

Weighted-
Average

Weighted-
Average

Weighted-
Average
Useful Life

15 years
6 years
13 years

13 years

Change

Other Acquisitions

Total

The results of operations and financial condition of acquired entities have been included in the Company’s consolidated results
and the results of the corresponding operating segment as of the date of acquisition. Through December 31, 2022, acquired
entities impact on revenues and net earnings was not material.

68

Unaudited pro forma revenues and net earnings for the years ended December 31, 2022 and 2021, as if the business
combinations had occurred on January 1, 2021, were immaterial for both periods.

14. Segment Financial Information

Factors used to determine the Company’s reportable segments include the nature of operating activities, economic characteristics,
existence of separate senior management teams and the type of information used by the Company’s chief operating decision maker
to evaluate its results of operations. Reportable segments with similar economic characteristics, products and services, customers,
distribution methods and operational processes which operate in a similar regulatory environment are combined.

The following is a description of the types of products and services from which each of the Company’s four reportable segments
derives its revenues:
• UnitedHealthcare includes the combined results of operations of UnitedHealthcare Employer & Individual, UnitedHealthcare
Medicare & Retirement and UnitedHealthcare Community & State. The U.S. businesses share significant common assets,
including a contracted network of physicians, health care professionals, hospitals and other facilities, information technology and
consumer engagement infrastructure and other resources. Domestically, UnitedHealthcare Employer & Individual offers an array
of consumer-oriented health benefit plans and services for employers and individuals. Globally, UnitedHealthcare Employer &
Individual provides health and dental benefits and hospital and clinical services to employers and individuals in South America
and other diversified global businesses. UnitedHealthcare Medicare & Retirement provides health care coverage and health and
well-being services to individuals age 50 and older, addressing their unique needs. UnitedHealthcare Community & State
provides diversified health care benefits products and services to state programs caring for the economically disadvantaged, the
medically underserved and those without the benefit of employer-funded health care coverage.

• Optum Health focuses on care delivery, care management, wellness and consumer engagement, and health financial

services. Optum Health is building a comprehensive, connected health care delivery and engagement platform by directly
providing high-quality care, helping people manage chronic and complex health needs, and proactively engaging consumers
in managing their health through in-person, in-home, virtual and digital clinical platforms.

• Optum Insight brings together advanced analytics, technology and health care expertise to deliver integrated services and

solutions. Hospital systems, physicians, health plans, governments, life sciences companies and other organizations depend
on Optum Insight to help them improve performance, achieve efficiency, reduce costs, meet compliance mandates and
modernize their core operating systems to meet the changing needs of the health system.

• Optum Rx offers pharmacy care services and programs, including retail network contracting, home delivery, specialty and
community health pharmacy services, purchasing and clinical capabilities, and develops programs in areas such as step
therapy, formulary management, drug adherence and disease/drug therapy management. Optum Rx integrates pharmacy and
medical care and is positioned to serve patients with complex clinical needs and consumers looking for a better digital
pharmacy experience with transparent pricing.

The Company’s accounting policies for reportable segment operations are consistent with those described in the Summary of
Significant Accounting Policies (see Note 2). Transactions between reportable segments principally consist of sales of pharmacy
care products and services to UnitedHealthcare customers by Optum Rx; care delivery, care management services and certain
product offerings sold to UnitedHealthcare by Optum Health; and health information and technology solutions, consulting and
other services sold to UnitedHealthcare by Optum Insight. These transactions are recorded at management’s estimate of fair
value. Transactions with affiliated customers are eliminated in consolidation. Assets and liabilities jointly used are assigned to
each reportable segment using estimates of pro-rata usage. Cash and investments are assigned so each reportable segment has
working capital and/or at least minimum specified levels of regulatory capital.

As a percentage of the Company’s total consolidated revenues, premium revenues from CMS were 38%, 36% and 36% for
2022, 2021 and 2020, respectively, most of which were generated by UnitedHealthcare Medicare & Retirement and included in
the UnitedHealthcare segment. U.S. customer revenue represented approximately 97% of consolidated total revenues for 2022,
2021 and 2020. Long-lived fixed assets located in the United States represented approximately 81% and 78% of the total long-
lived fixed assets as of December 31, 2022 and 2021, respectively. The non-U.S. revenues and fixed assets are primarily related
to UnitedHealthcare Employer & Individual’s international businesses.

69

The following table presents the reportable segment financial information:

(in millions)

UnitedHealthcare Optum Health Optum Insight Optum Rx

Eliminations Optum

Optum

Optum

Corporate and
Eliminations Consolidated

2022
Revenues — unaffiliated customers:

Premiums......................................... $
Products ..........................................
Services...........................................

238,783 $
—
10,035

Total revenues — unaffiliated customers .........

248,818

Total revenues — affiliated customers ............
Investment and other income .......................

—
923

Total revenues ......................................... $

249,741 $

Earnings from operations ............................ $
Interest expense .......................................

Earnings before income taxes....................... $

14,379 $
—

14,379 $

18,374
72
10,917

29,363

40,883
928

71,174

6,032
—

6,032

Total assets............................................. $
Purchases of property, equipment and

capitalized software ...............................
Depreciation and amortization......................
2021
Revenues — unaffiliated customers:

107,094 $

68,950

799
973

Premiums......................................... $
Products ..........................................
Services...........................................

212,381 $
—
9,661

Total revenues — unaffiliated customers .........

222,042

Total revenues — affiliated customers ............
Investment and other income .......................

—
857

Total revenues ......................................... $

222,899 $

Earnings from operations ............................ $
Interest expense .......................................

Earnings before income taxes....................... $

11,975 $
—

11,975 $

Total assets............................................. $
Purchases of property, equipment and

capitalized software ...............................
Depreciation and amortization......................
2020
Revenues — unaffiliated customers:

102,967 $

60,474

795
1,004

Premiums......................................... $
Products ..........................................
Services...........................................

191,679 $
—
8,464

Total revenues — unaffiliated customers .........

200,143

Total revenues — affiliated customers ............
Investment and other income .......................

—
732

Total revenues ......................................... $

200,875 $

Earnings from operations ............................ $
Interest expense .......................................

Earnings before income taxes....................... $

12,359 $
—

12,359 $

Total assets............................................. $
Purchases of property, equipment and

capitalized software ...............................
Depreciation and amortization......................

98,229 $

52,073

997
943

13,852
32
9,894

23,778

29,234
1,053

54,065

4,462
—

4,462

791
818

9,799
33
6,815

16,647

22,481
680

39,808

3,434
—

3,434

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

— $
180
4,996

5,176

9,288
117

— $

37,172
1,603

38,775

60,936
62

— $ 18,374 $
—
—

37,424
17,516

—

73,314

— $
—
—

—

(2,760)
—

108,347
1,107

(108,347)
—

257,157
37,424
27,551

322,132

—
2,030

14,581 $ 99,773

$ (2,760) $182,768 $ (108,347) $

324,162

3,588 $
—

4,436
—

3,588 $

4,436

31,090 $ 47,476

$

$

$

— $ 14,056 $
—

—

— $

(2,092)

28,435
(2,092)

— $ 14,056 $

(2,092) $

26,343

— $147,516 $

(8,905) $

245,705

698
841

308
643

—
—

2,003
2,427

—
—

2,802
3,400

— $
159
3,936

4,095

7,867
237

— $

34,246
1,112

35,358

55,779
177

— $ 13,852 $
—
—

34,437
14,942

—

(2,013)
—

63,231

90,867
1,467

— $
—
—

—

(90,867)
—

226,233
34,437
24,603

285,273

—
2,324

12,199 $ 91,314

$ (2,013) $155,565 $

(90,867) $

287,597

3,398 $
—

4,135
—

3,398 $

4,135

16,868 $ 40,181

$

$

$

— $ 11,995 $
—

—

— $

(1,660)

23,970
(1,660)

— $ 11,995 $

(1,660) $

22,310

— $117,523 $

(8,284) $

212,206

567
684

301
597

—
—

1,659
2,099

—
—

2,454
3,103

— $
135
3,687

3,822

6,941
39

— $

33,977
1,050

35,027

52,420
51

— $
—
—

9,799 $
34,145
11,552

—

(1,800)
—

55,496

80,042
770

— $
—
—

—

(80,042)
—

201,478
34,145
20,016

255,639

—
1,502

10,802 $ 87,498

$ (1,800) $136,308 $

(80,042) $

257,141

2,725 $
—

3,887
—

2,725 $

3,887

15,425 $ 39,280

$

$

$

— $ 10,046 $
—

—

— $

(1,663)

22,405
(1,663)

— $ 10,046 $

(1,663) $

20,742

— $106,778 $

(7,718) $

197,289

687
920

715
703

461
670

188
598

—
—

1,364
1,971

—
—

2,051
2,891

70

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act
of 1934 (Exchange Act) designed to provide reasonable assurance the information required to be disclosed by us in reports we
file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in
SEC rules and forms; and (ii) accumulated and communicated to our management, including our principal executive officer and
principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

In connection with the filing of this Annual Report on Form 10-K, management evaluated, under the supervision and with the
participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of our
disclosure controls and procedures as of December 31, 2022. Based upon their evaluation, our Chief Executive Officer and
Chief Financial Officer concluded our disclosure controls and procedures were effective at the reasonable assurance level as of
December 31, 2022.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There have been no changes in our internal control over financial reporting during the quarter ended December 31, 2022 which
have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

71

Report of Management on Internal Control Over Financial Reporting as of December 31, 2022

Management of UnitedHealth Group Incorporated and Subsidiaries (the Company) is responsible for establishing and
maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities
Exchange Act of 1934. The Company’s internal control system is designed to provide reasonable assurance to our management
and board of directors regarding the reliability of financial reporting and the preparation of consolidated financial statements for
external purposes in accordance with generally accepted accounting principles. The Company’s internal control over financial
reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with
generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance
with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention
or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on
the consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2022. In
making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) in Internal Control-Integrated Framework (2013). Based on our assessment and the COSO criteria, we
believe that, as of December 31, 2022, the Company maintained effective internal control over financial reporting.

The Company’s independent registered public accounting firm has audited the Company’s internal control over financial
reporting as of December 31, 2022, as stated in the Report of Independent Registered Public Accounting Firm, appearing under
Item 9A.

72

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of UnitedHealth Group Incorporated and Subsidiaries:

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of UnitedHealth Group Incorporated and subsidiaries (the
“Company”) as of December 31, 2022, based on criteria established in Internal Control—Integrated Framework (2013) issued
by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company
maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria
established in Internal Control—Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the consolidated financial statements as of and for the year ended December 31, 2022, of the Company and our
report dated February 24, 2023, expressed an unqualified opinion on those financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting, included in the accompanying Report of
Management on Internal Control Over Financial Reporting as of December 31, 2022. Our responsibility is to express an opinion
on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with
the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws
and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk
that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the
assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/S/ DELOITTE & TOUCHE LLP

Minneapolis, Minnesota
February 24, 2023

73

ITEM 9B. OTHER INFORMATION

None.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not Applicable.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

DIRECTORS OF THE REGISTRANT

The following sets forth certain information regarding our directors as of February 24, 2023, including their name and principal
occupation or employment:

Timothy Flynn
Retired Chair
KPMG International

Paul Garcia
Retired Chair and Chief Executive Officer
Global Payments Inc.

Kristen Gil
Vice President and Business Finance Officer
Alphabet Inc

Stephen Hemsley
Chair
UnitedHealth Group

Michele Hooper
Lead Independent Director
UnitedHealth Group
President and Chief Executive Officer
The Directors’ Council

F. William McNabb III
Former Chairman and Chief Executive Officer
The Vanguard Group, Inc.

Valerie Montgomery Rice, M.D.
President and Chief Executive Officer
Morehouse School of Medicine

John Noseworthy, M.D.
Former Chief Executive Officer and President
Mayo Clinic

Andrew Witty
Chief Executive Officer
UnitedHealth Group

Pursuant to General Instruction G(3) to Form 10-K and the Instruction to Item 401 of Regulation S-K, information regarding our
executive officers is provided in Part I, Item 1 under the caption “Information About our Executive Officers.”

We have adopted a code of ethics applicable to our principal executive officer and other senior financial officers, who include
our principal financial officer, principal accounting officer, controller and persons performing similar functions. The code of
ethics, entitled Code of Conduct: Our Principles of Ethics and Integrity, is posted on our website at
www.unitedhealthgroup.com. For information about how to obtain the Code of Conduct, see Part I, Item 1, “Business.” We
intend to satisfy the SEC’s disclosure requirements regarding amendments to, or waivers of, the code of ethics for our senior
financial officers by posting such information on our website indicated above.

The remaining information required by Items 401, 405, 406 and 407(c)(3), (d)(4) and (d)(5) of Regulation S-K will be included
under the headings “Corporate Governance” and “Proposal 1-Election of Directors” in our definitive proxy statement for our
2023 Annual Meeting of Shareholders, and such required information is incorporated herein by reference.

74

ITEM 11. EXECUTIVE COMPENSATION

The information required by Items 402 and 407(e)(4) and (e)(5) of Regulation S-K will be included under the headings
“Executive Compensation,” “Director Compensation,” “Corporate Governance—Risk Oversight” and “Compensation
Committee Interlocks and Insider Participation” in our definitive proxy statement for our 2023 Annual Meeting of Shareholders,
and such required information is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND

RELATED STOCKHOLDER MATTERS

Equity Compensation Plan Information

The following table sets forth certain information as of December 31, 2022, concerning shares of common stock authorized for
issuance under all of our equity compensation plans:

Plan category

(a)
Number of securities
to be issued upon exercise
of outstanding options,
warrants and rights

(in millions)

(b)
Weighted-average
exercise price of
outstanding options,
warrants and rights

(c)
Number of securities
remaining available for
future issuance under
equity compensation plans
(excluding securities
reflected in column (a))

(in millions)

Equity compensation plans approved by shareholders (1) ....
Equity compensation plans not approved by

shareholders (2) ...................................................
Total (2) ...............................................................

23

$

—

23

$

279

279

77(3)

—

77

(1) Consists of the UnitedHealth Group Incorporated 2020 Stock Incentive Plan, as amended, and the UnitedHealth Group 1993 Employee Stock Purchase Plan,

as amended.

(2) Excludes 459,000 shares underlying stock options assumed by us in connection with acquisitions. These options have a weighted-average exercise price of

$358 and an average remaining term of approximately 4 years. These options are administered pursuant to the terms of the plans under which the options
originally were granted. No future awards will be granted under these acquired plans.

(3) Includes 18 million shares of common stock available for future issuance under the 1993 Employee Stock Purchase Plan as of December 31, 2022, and 59
million shares available under the 2020 Stock Incentive Plan as of December 31, 2022. Shares available under the 2020 Stock Incentive Plan may become
the subject of future awards in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other
stock-based awards.

The information required by Item 403 of Regulation S-K will be included under the heading “Security Ownership of Certain
Beneficial Owners and Management” in our definitive proxy statement for our 2023 Annual Meeting of Shareholders, and such
required information is incorporated herein by reference.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by Items 404 and 407(a) of Regulation S-K will be included under the headings “Certain
Relationships and Transactions” and “Corporate Governance” in our definitive proxy statement for our 2023 Annual Meeting of
Shareholders, and such required information is incorporated herein by reference.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information required by Item 9(e) of Schedule 14A will be included under the heading “Disclosure of Fees Paid to
Independent Registered Public Accounting Firm” in our definitive proxy statement for our 2023 Annual Meeting of
Shareholders, and such required information is incorporated herein by reference.

75

PART IV

ITEM 15. EXHIBIT AND FINANCIAL STATEMENT SCHEDULES

(a) 1. Financial Statements

The financial statements are included under Item 8 of this report:

•

•

•

•

•

•

Reports of Independent Registered Public Accounting Firm.

Consolidated Balance Sheets as of December 31, 2022 and 2021.

Consolidated Statements of Operations for the years ended December 31, 2022, 2021, and 2020.

Consolidated Statements of Comprehensive Income for the years ended December 31, 2022, 2021, and 2020.

Consolidated Statements of Changes in Equity for the years ended December 31, 2022, 2021, and 2020.

Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021, and 2020.

• Notes to the Consolidated Financial Statements.

2. Financial Statement Schedules

The following financial statement schedule of the Company is included in Item 15(c):

•

Schedule I—Condensed Financial Information of Registrant (Parent Company Only).

All other schedules for which provision is made in the applicable accounting regulations of the SEC are not required under
the related instructions, are inapplicable, or the required information is included in the consolidated financial statements,
and therefore have been omitted.

(b) The following exhibits are filed or incorporated by reference herein in response to Item 601 of Regulation S-K. The

Company files Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K pursuant
to the Securities Exchange Act of 1934 under Commission File No. 1-10864.

EXHIBIT INDEX**

3.1

3.2

4.1

4.2

4.3

Certificate of Incorporation of UnitedHealth Group Incorporated (incorporated by reference to Exhibit 3.1 to UnitedHealth Group
Incorporated’s Registration Statement on Form 8-A/A, Commission File No. 1-10864, filed on July 1, 2015)

Amended and Restated Bylaws of UnitedHealth Group Incorporated, effective February 23, 2021 (incorporated by reference to
Exhibit 3.2 to UnitedHealth Group Incorporated’s Current Report on Form 8-K filed on February 26, 2021)

Senior Indenture, dated as of November 15, 1998, between United HealthCare Corporation and The Bank of New York
(incorporated by reference to Exhibit 4.1 to UnitedHealth Group Incorporated’s Registration Statement on Form S-3/A, SEC File
Number 333-66013, filed on January 11, 1999)

Amendment, dated as of November 6, 2000, to Senior Indenture, dated as of November 15, 1998, between the UnitedHealth
Group Incorporated and The Bank of New York (incorporated by reference to Exhibit 4.1 to UnitedHealth Group Incorporated’s
Quarterly Report on Form 10-Q for the quarter ended September 30, 2001)

Instrument of Resignation, Appointment and Acceptance of Trustee, dated January 8, 2007, pursuant to the Senior Indenture,
dated as of November 15, 1988, amended as of November 6, 2000, among UnitedHealth Group Incorporated, The Bank of New
York and Wilmington Trust Company (incorporated by reference to Exhibit 4.3 to UnitedHealth Group Incorporated’s Quarterly
Report on Form 10-Q for the quarter ended June 30, 2007)

76

4.4

4.5

*10.1

*10.2

*10.3

*10.4

*10.5

*10.6

*10.7

*10.8

*10.9

*10.10

*10.11

*10.12

*10.13

*10.14

*10.15

Indenture, dated as of February 4, 2008, between UnitedHealth Group Incorporated and U.S. Bank National Association
(incorporated by reference to Exhibit 4.1 to UnitedHealth Group Incorporated’s Registration Statement on Form S-3, SEC File
Number 333-149031, filed on February 4, 2008)

Description of Common Stock (incorporated by reference to Exhibit 4.5 to UnitedHealth Group Incorporated’s Annual Report on
Form 10-K for the year ended December 31, 2019)

UnitedHealth Group 2020 Stock Incentive Plan (incorporated by reference to Exhibit 4.1 to the Company’s Registration
Statement on Form S-8, SEC File Number 333-238854, filed on June 1, 2020)

Form of Agreement for Restricted Stock Unit Award to Executives under UnitedHealth Group Incorporated’s 2020 Stock
Incentive Plan (2023 Version)

Form of Agreement for Nonqualified Stock Option Award to Executives under UnitedHealth Group Incorporated’s 2020 Stock
Incentive Plan (2023 Version)

Form of Agreement for Performance-Based Restricted Stock Unit Award to Executives under UnitedHealth Group Incorporated’s
2020 Stock Incentive Plan (2023 Version)

Form of Agreement for Restricted Stock Unit Award under UnitedHealth Group Incorporated’s 2020 Stock Incentive Plan (Witty)
(2023 Version)

Form of Agreement for Nonqualified Stock Option Award under UnitedHealth Group Incorporated’s 2020 Stock Incentive Plan
(Witty) (2023 Version)

Form of Agreement for Performance-Based Restricted Stock Unit Award under UnitedHealth Group Incorporated’s 2020 Stock
Incentive Plan (Witty) (2023 Version)

Form of Agreement for Restricted Stock Unit Award to Executives under UnitedHealth Group Incorporated’s 2020 Stock
Incentive Plan (incorporated by reference to Exhibit 10.2 to UnitedHealth Group Incorporated’s Annual Report on Form 10-K for
the year ended December 31, 2021)

Form of Agreement for Nonqualified Stock Option Award to Executives under UnitedHealth Group Incorporated’s 2020 Stock
Incentive Plan (incorporated by reference to Exhibit 10.3 to UnitedHealth Group Incorporated’s Annual Report on Form 10-K for
the year ended December 31, 2021)

Form of Agreement for Performance-Based Restricted Stock Unit Award to Executives under UnitedHealth Group Incorporated’s
2020 Stock Incentive Plan (incorporated by reference to Exhibit 10.4 to UnitedHealth Group Incorporated’s Annual Report on
Form 10-K for the year ended December 31, 2021)

Form of Agreement for Restricted Stock Unit Award under UnitedHealth Group Incorporated’s 2020 Stock Incentive Plan (Witty)
(incorporated by reference to Exhibit 10.5 to UnitedHealth Group Incorporated’s Annual Report on Form 10-K for the year ended
December 31, 2021)

Form of Agreement for Nonqualified Stock Option Award under UnitedHealth Group Incorporated’s 2020 Stock Incentive Plan
(Witty) (incorporated by reference to Exhibit 10.6 to UnitedHealth Group Incorporated’s Annual Report on Form 10-K for the
year ended December 31, 2021)

Form of Agreement for Performance-Based Restricted Stock Unit Award under UnitedHealth Group Incorporated’s 2020 Stock
Incentive Plan (Witty) (incorporated by reference to Exhibit 10.7 to UnitedHealth Group Incorporated’s Annual Report on
Form 10-K for the year ended December 31, 2021)

UnitedHealth Group Incorporated 2011 Stock Incentive Plan, as amended and restated in 2018 (incorporated by reference to
Exhibit 10.1 to UnitedHealth Group Incorporated’s Annual Report on Form 10-K for the year ended December 31, 2018)

Form of Agreement for Non-Qualified Stock Option Award to Executives under UnitedHealth Group Incorporated’s 2011 Stock
Incentive Plan, as amended and restated in 2015, for awards made after January 1, 2016 (incorporated by reference to
Exhibit 10.4 to UnitedHealth Group Incorporated’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015)

77

*10.16

*10.17

*10.18

*10.19

*10.20

*10.21

*10.22

*10.23

*10.24

Form of Agreement for Restricted Stock Unit Award to Executives under UnitedHealth Group Incorporated’s 2011 Stock
Incentive Plan, as amended and restated in 2015, for awards made after January 1, 2016 (incorporated by reference to Exhibit
10.5 to UnitedHealth Group Incorporated’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015)

Form of Agreement for Performance-based Restricted Stock Unit Award to Executives under UnitedHealth Group Incorporated’s
2011 Stock Incentive Plan, as amended and restated in 2015, for awards made after January 1, 2016 (incorporated by reference to
Exhibit 10.6 to UnitedHealth Group Incorporated’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015)

Form of Agreement for Deferred Stock Unit Award to Non-Employee Directors under UnitedHealth Group Incorporated’s 2011
Stock Incentive Plan (incorporated by reference to Exhibit 10.6 to UnitedHealth Group Incorporated’s Current Report on Form 8-
K filed on May 27, 2011)

Form of Agreement for Deferred Stock Unit Award to Non-Employee Directors under UnitedHealth Group Incorporated’s 2020
Stock Incentive Plan (incorporated by reference to Exhibit 10.11 to UnitedHealth Group Incorporated’s Annual Report on
Form 10-K for the year ended December 31, 2021)

Form of Indemnification Agreement (incorporated by reference to Exhibit 10.1 to UnitedHealth Group Incorporated’s Current
Report on Form 8-K filed on July 1, 2015)

Amended and Restated UnitedHealth Group Incorporated Executive Incentive Plan (2009 Statement), effective as of December
31, 2008 (incorporated by reference to Exhibit 10.12 to UnitedHealth Group Incorporated’s Annual Report on Form 10-K for the
year ended December 31, 2008)

Amended and Restated UnitedHealth Group Incorporated 2008 Executive Incentive Plan, effective as of December 31, 2008
(incorporated by reference to Exhibit 10.13 to UnitedHealth Group Incorporated’s Annual Report on Form 10-K for the year
ended December 31, 2008)

Amendment, dated as of December 21, 2012, of Amended and Restated UnitedHealth Group Incorporated 2008 Executive
Incentive Plan (incorporated by reference to Exhibit 10.11 to UnitedHealth Group Incorporated’s Annual Report on Form 10-K
for the year ended December 31, 2012)

Second Amendment, dated as of November 5, 2015, of Amended and Restated UnitedHealth Group Incorporated 2008 Executive
Incentive Plan (incorporated by reference to Exhibit 10.3 to UnitedHealth Group Incorporated’s Quarterly Report on Form 10-Q
for the quarter ended September 30, 2015)

*10.25

UnitedHealth Group Executive Savings Plan (2021 Statement) (incorporated by reference to Exhibit 10.11 to UnitedHealth Group
Incorporated’s Annual Report on Form 10-K for the year ended December 31, 2020)

*10.26

First Amendment of UnitedHealth Group Executive Savings Plan (2021 Statement)

*10.27

Second Amendment of UnitedHealth Group Executive Savings Plan (2021 Statement)

*10.28

Executive Long-Term Disability Program, dated as of January 1, 2021

*10.29

Summary of Non-Management Director Compensation, effective as of October 1, 2022

*10.30

UnitedHealth Group Directors’ Compensation Deferral Plan (2023 Statement)

*10.31

Avery Parent Holdings, Inc. 2020 Stock Option and Grant Plan

*10.32

*10.33

*10.34

Change Healthcare Inc. 2019 Omnibus Incentive Plan (incorporated by reference to Exhibit 4.3 to UnitedHealth Group
Incorporated’s Registration Statement on Form S-8, SEC File Number 333-267716, filed on October 3, 2022)

Amended and Restated HCIT Holdings, Inc. 2009 Equity Incentive Plan (incorporated by reference to Exhibit 4.4 to UnitedHealth
Group Incorporated’s Registration Statement on Form S-8, SEC File Number 333-267716, filed on October 3, 2022)

Audax Health Solutions, Inc. 2010 Equity Incentive Plan, as amended (incorporated by reference to Exhibit 4.4 to UnitedHealth
Group Incorporated’s Post-Effective Amendment No. 1 to Registration Statement on Form S-8, SEC File Number 333-205826,
filed on February 15, 2017)

78

*10.35

*10.36

*10.37

*10.38

*10.39

*10.40

*10.41

*10.42

*10.43

*10.44

*10.45

*10.46

Surgical Care Affiliates, Inc. 2016 Omnibus Long-Term Incentive Plan (incorporated by reference to Exhibit 4.3 to UnitedHealth
Group Incorporated’s Post-Effective Amendment No. 1 on Form S-8 to Registration Statement on Form S-4, SEC File Number
333-216153, filed on March 27, 2017)

Surgical Care Affiliates, Inc. 2013 Omnibus Long-Term Incentive Plan (incorporated by reference to Exhibit 4.4 to UnitedHealth
Group Incorporated’s Post-Effective Amendment No. 1 on Form S-8 to Registration Statement on Form S-4, SEC File
Number 333-216153, filed on March 27, 2017)

Surgical Care Affiliates, Inc. Management Equity Incentive Plan (incorporated by reference to Exhibit 4.5 to UnitedHealth Group
Incorporated’s Post-Effective Amendment No. 1 on Form S-8 to Registration Statement on Form S-4, SEC File Number 333-
216153, filed on March 27, 2017)

Surgical Care Affiliates, Inc. Directors and Consultants Equity Incentive Plan (incorporated by reference to Exhibit 4.6 to
UnitedHealth Group Incorporated’s Post-Effective Amendment No. 1 on Form S-8 to Registration Statement on Form S-4, SEC
File Number 333-216153, filed on March 27, 2017)

The Advisory Board Company Amended and Restated 2009 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to
The Advisory Board Company’s Current Report on Form 8-K filed on June 15, 2015)

The Advisory Board Company 2005 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to The Advisory Board
Company’s Current Report on Form 8-K filed on November 17, 2005)

Amended and Restated Employment Agreement, effective as of June 7, 2016, between United HealthCare Services, Inc. and John
Rex (incorporated by reference to Exhibit 10.1 to UnitedHealth Group Incorporated’s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2016)

Amended and Restated Employment Agreement, dated February 3, 2021, between the Company and Andrew P Witty
(incorporated by reference to Exhibit 5.02 to UnitedHealth Group Incorporated’s Current Report on Form 8-K filed on
February 8, 2021)

Amended and Restated Employment Agreement, effective as of March 16, 2015, between United HealthCare Services, Inc. and
Dirk McMahon (incorporated by reference to Exhibit 10.44 to UnitedHealth Group Incorporated’s Annual Report on Form 10-K
for the year ended December 31, 2019)

Amendment to Employment Agreement, effective as of May 31, 2017, between United HealthCare Services, Inc. and Dirk
McMahon (incorporated by reference to Exhibit 10.45 to UnitedHealth Group Incorporated’s Annual Report on Form 10-K for
the year ended December 31, 2019)

Amendment to Employment Agreement, effective as of March 12, 2019, between United HealthCare Services, Inc. and Dirk
McMahon (incorporated by reference to Exhibit 10.46 to UnitedHealth Group Incorporated’s Annual Report on Form 10-K for
the year ended December 31, 2019)

Amended and Restated Employment Agreement, effective as of February 12, 2018, between United HealthCare Services, Inc. and
Brian R. Thompson (incorporated by reference to Exhibit 10.38 to UnitedHealth Group Incorporated’s Annual Report on
Form 10-K for the year ended December 31, 2021)

*10.47

Employment Agreement, effective as of February 28, 2022, between United HealthCare Services, Inc. and Rupert M. Bondy

11.1

21.1

23.1

24.1

31.1

Statement regarding computation of per share earnings (incorporated by reference to the information contained under the heading
“Net Earnings Per Common Share” in Note 2 of Notes to the Consolidated Financial Statements included in Part II, Item 8,
“Financial Statements and Supplementary Data”)

Subsidiaries of UnitedHealth Group Incorporated

Consent of Independent Registered Public Accounting Firm

Power of Attorney

Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

79

32.1

Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS

XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are
embedded within the Inline XBRL document.

101.SCH Inline XBRL Taxonomy Extension Schema Document.

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104

Cover Page Interactive Data File (formatted as Inline XBRL and embedded within Exhibit 101).

*

**

Denotes management contracts and compensation plans in which certain directors and named executive officers
participate and which are being filed pursuant to Item 601(b)(10)(iii)(A) of Regulation S-K.

Pursuant to Item 601(b)(4)(iii) of Regulation S-K, copies of instruments defining the rights of certain holders of long-term
debt are not filed. The Company will furnish copies thereof to the SEC upon request.

(c) Financial Statement Schedule

Schedule I—Condensed Financial Information of Registrant (Parent Company Only).

80

Schedule I

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of UnitedHealth Group Incorporated and Subsidiaries:

Opinion on the Financial Statement Schedule

We have audited the consolidated financial statements of UnitedHealth Group Incorporated and Subsidiaries (the “Company”)
as of December 31, 2022 and 2021, and for each of the three years in the period ended December 31, 2022, and the Company’s
internal control over financial reporting as of December 31, 2022, and have issued our reports thereon dated February 24, 2023;
such reports are included elsewhere in this Form 10-K. Our audits also included the financial statement schedule of the
Company listed in the Index at Item 15. This financial statement schedule is the responsibility of the Company’s management.
Our responsibility is to express an opinion on the Company’s financial statement schedule based on our audits. In our opinion,
the financial statement schedule, when considered in relation to the consolidated financial statements taken as a whole, presents
fairly, in all material respects, the information set forth therein.

/s/ DELOITTE & TOUCHE LLP

Minneapolis, Minnesota
February 24, 2023

81

Schedule I

(in millions, except per share data)

Assets
Current assets:

Condensed Financial Information of Registrant
(Parent Company Only)
UnitedHealth Group
Condensed Balance Sheets

December 31,
2022

December 31,
2021

Cash and cash equivalents ................................................................................................... $
Other current assets ...........................................................................................................

266 $
753

Total current assets .................................................................................................................
Equity in net assets of subsidiaries ...............................................................................................
Long-term notes receivable from subsidiaries..................................................................................
Other assets ..........................................................................................................................

1,019
136,562
6,201
504

2,167
503

2,670
116,907
5,680
32

Total assets .......................................................................................................................... $

144,286 $

125,289

Liabilities and shareholders’ equity
Current liabilities:

Accounts payable and accrued liabilities.................................................................................. $
Current portion of notes payable to subsidiaries .........................................................................
Short-term borrowings and current maturities of long-term debt .....................................................

Total current liabilities .............................................................................................................
Long-term debt, less current maturities..........................................................................................
Other liabilities ......................................................................................................................

Total liabilities.......................................................................................................................

Commitments and contingencies (Note 4)
Shareholders’ equity:

Preferred stock, $0.001 par value — 10 shares authorized; no shares issued or outstanding.....................
Common stock, $0.01 par value — 3,000 shares authorized; 934 and 941 issued and outstanding .............
Retained earnings .............................................................................................................
Accumulated other comprehensive loss ...................................................................................

Total UnitedHealth Group shareholders’ equity ...............................................................................

835 $

8,699
2,918

12,452
53,838
224

66,514

—
9
86,156
(8,393)

77,772

605
8,105
3,009

11,719
41,623
187

53,529

—
10
77,134
(5,384)

71,760

Total liabilities and shareholders’ equity..................................................................................... $

144,286 $

125,289

See Notes to the Condensed Financial Statements of Registrant

82

Schedule I

(in millions)

Revenues:

Condensed Financial Information of Registrant
(Parent Company Only)
UnitedHealth Group
Condensed Statements of Comprehensive Income

For the Years Ended December 31,

2022

2021

2020

Investment and other income .........................................................................

$

Total revenues.................................................................................................

$

255

255

$

494

494

194

194

Operating costs:

Operating costs..........................................................................................
Interest expense .........................................................................................

Total operating costs .........................................................................................

Loss before income taxes ..................................................................................
Benefit for income taxes ....................................................................................

Loss of parent company ...................................................................................
Equity in undistributed income of subsidiaries ..........................................................

Net earnings ..................................................................................................
Other comprehensive loss ...................................................................................

121
2,110

2,231

(1,976)
429

(1,547)
21,667

20,120
(3,009)

40
1,583

1,623

(1,129)
231

(898)
18,183

17,285
(1,570)

27
1,594

1,621

(1,427)
300

(1,127)
16,530

15,403
(236)

Comprehensive income ....................................................................................

$

17,111

$

15,715

$

15,167

See Notes to the Condensed Financial Statements of Registrant

83

Schedule I

(in millions)

Condensed Financial Information of Registrant
(Parent Company Only)
UnitedHealth Group
Condensed Statements of Cash Flows

Operating activities
Cash flows from operating activities....................................................................

Investing activities
Issuances of notes to subsidiaries .......................................................................
Repayments of notes to subsidiaries ....................................................................
Cash paid for acquisitions ................................................................................
Return of capital to parent company ....................................................................
Capital contributions to subsidiaries ....................................................................
Cash received from dispositions .........................................................................

Cash flows used for investing activities ................................................................

Financing activities
Common stock repurchases ..............................................................................
Proceeds from common stock issuances ...............................................................
Cash dividends paid .......................................................................................
Proceed from (repayments of) short-term borrowings, net ..........................................
Proceeds from issuance of long-term debt .............................................................
Repayments of long-term debt...........................................................................
Proceeds from notes from subsidiaries .................................................................
Other, net ....................................................................................................

Cash flows from (used for) financing activities.......................................................

(Decrease) increase in cash and cash equivalents .................................................
Cash and cash equivalents, beginning of period...................................................

Cash and cash equivalents, end of period ...........................................................

Supplemental cash flow disclosures
Cash paid for interest......................................................................................
Cash paid for income taxes...............................................................................

For the Years Ended December 31,

2022

2021

2020

$

14,754

$

11,439

$

8,842

(567)
281
(20,728)
1,424
(570)
2,787

(17,373)

(7,000)
1,253
(5,991)
732
14,819
(3,015)
594
(674)

718

(1,901)
2,167

266

1,969
4,298

$

$

$

$

(444)
37
(4,953)
245
(747)
—

(5,862)

(5,000)
1,355
(5,280)
(1,302)
6,933
(3,150)
3,223
(447)

(3,668)

1,909
258

2,167

1,575
3,050

$

$

(628)
1,089
(7,706)
943
(43)
143

(6,202)

(4,250)
1,440
(4,584)
872
4,864
(3,150)
2,818
(438)

(2,428)

212
46

258

1,633
4,185

See Notes to the Condensed Financial Statements of Registrant

84

Schedule I

Condensed Financial Information of Registrant
(Parent Company Only)
UnitedHealth Group
Notes to Condensed Financial Statements

1. Basis of Presentation

UnitedHealth Group’s parent company financial information has been derived from its consolidated financial statements and
should be read in conjunction with the consolidated financial statements included in this Form 10-K. The accounting policies for
the registrant are the same as those described in Note 2 of the Notes to the Consolidated Financial Statements included in
Part II, Item 8, “Financial Statements and Supplementary Data.”

2.

Subsidiary Transactions

Investment in Subsidiaries. UnitedHealth Group’s investment in subsidiaries is stated at cost plus equity in undistributed
earnings of subsidiaries.
Dividends and Capital Distributions. Cash dividends received from subsidiaries and included in Cash Flows from Operating
Activities in the Condensed Statements of Cash Flows were $15.6 billion, $10.8 billion and $10.0 billion in 2022, 2021 and
2020, respectively. Additionally, $1.4 billion, $0.2 billion and $0.9 billion in cash were received as a return of capital to the
parent company during 2022, 2021 and 2020, respectively.

3.

Short-Term Borrowings and Long-Term Debt

Discussion of short-term borrowings and long-term debt can be found in Note 8 of the Notes to the Consolidated Financial
Statements included in Part II, Item 8, “Financial Statements and Supplementary Data.” Long-term debt obligations of the
parent company do not include other financing obligations at subsidiaries which totaled $0.9 billion and $1.4 billion at
December 31, 2022 and 2021.

Maturities of short-term borrowings and long-term debt for the years ending December 31 are as follows:

(in millions)

2023........................................................................................................................................................ $
2024........................................................................................................................................................
2025........................................................................................................................................................
2026........................................................................................................................................................
2027........................................................................................................................................................
Thereafter .................................................................................................................................................

2,925
3,000
3,050
2,500
2,925
43,502

UnitedHealth Group’s parent company had notes payable to subsidiaries of $8.7 billion and $8.1 billion as of December 31,
2022 and 2021, respectively, which included on-demand features.

4. Commitments and Contingencies

Certain regulated subsidiaries are guaranteed by UnitedHealth Group’s parent company in the event of insolvency. UnitedHealth
Group’s parent company also provides guarantees related to its service level under certain contracts. None of the amounts
accrued, paid or charged to income for service level guarantees were material as of December 31, 2022, 2021 or 2020.

For a summary of commitments and contingencies, see Note 12 of the Notes to the Consolidated Financial Statements included
in Part II, Item 8, “Financial Statements and Supplementary Data.”

ITEM 16.

FORM 10-K SUMMARY

None.

85

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.

SIGNATURES

Dated: February 24, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons
on behalf of the registrant and in the capacities and on the dates indicated.

Signature

/S/ ANDREW WITTY
Andrew Witty

/S/ JOHN REX
John Rex

/S/ THOMAS ROOS
Thomas Roos

*
Timothy Flynn

*
Paul Garcia

*
Kristen Gil

*
Stephen Hemsley

*
Michele Hooper

*
F. William McNabb III

*
Valerie Montgomery Rice, M.D.

*
John Noseworthy, M.D.

*By

/s/ KUAI LEONG
Kuai Leong
As Attorney-in-Fact

UNITEDHEALTH GROUP INCORPORATED

By:

/s/ ANDREW WITTY
Andrew Witty
Chief Executive Officer

Title

Date

February 24, 2023

February 24, 2023

February 24, 2023

February 24, 2023

February 24, 2023

February 24, 2023

February 24, 2023

February 24, 2023

February 24, 2023

February 24, 2023

February 24, 2023

Director and Chief Executive Officer
(principal executive officer)

Executive Vice President and
Chief Financial Officer
(principal financial officer)

Senior Vice President and
Chief Accounting Officer
(principal accounting officer)

Director

Director

Director

Director

Director

Director

Director

Director

86