The news about UnitedHealth's profits forced the insurer's share prices lower.
Los Angeles Times: UnitedHealth's Shares Dip On Small Increase In Quarterly Profits
The Minnetonka, Minn., company said government funding cuts to Medicare Advantage plans were one drag during the quarter, but it said overall medical costs remained in check (Terhune, 10/17).
The Wall Street Journal: Tough Prognosis For Health Insurers
Health insurers got a first taste Thursday of the challenges awaiting them under the new federal health law, with UnitedHealth Group Inc. issuing a cautious outlook for 2014 due to funding cuts tied to the law. Under the health law, insurers like UnitedHealth and Humana Inc. will reap lower payments for additional services beyond the basic fee-for-service Medicare program (Martin, 10/17).