Q1 2020 Earnings Call

April 15, 2020

[music].

Operator: HTMI, your program's about to begin. Good morning and welcome to the UnitedHealth Group First Quarter 2020 earnings conference call. A question-and-answer session will follow UnitedHealth Group's prepared remarks, and as a reminder, today's call is being recorded. Here is some important introductory information. This call contains forward-looking statements under US federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. A description of some of the risks and uncertainties can be found in the reports that we file with the Securities and Exchange Commission, including the cautionary statements included in our current and periodic filings. This call will also reference non-GAAP amounts. A reconciliation of the non-GAAP to GAAP amounts is available on the earnings reports and SEC filing section of the company's investors page at www.unitedhealthgroup.com.

Good morning, and welcome to the United Health Group first quarter 2020 earnings Conference call.

Operator: Good morning and welcome to the UnitedHealth Group First Quarter 2020 earnings conference call. A question-and-answer session will follow UnitedHealth Group's prepared remarks, and as a reminder, today's call is being recorded. Here is some important introductory information. This call contains forward-looking statements under US federal securities laws.

A question and answer session will follow Unitedhealth group's prepared remarks. It as a reminder, today's call is being recorded.

There were some important introductory information. This call contains forward looking statements under U.S. Federal Securities laws.

These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. A description of some of the risks and uncertainties can be found in the reports that we file with the Securities and Exchange Commission, including the cautionary statements included in our current and periodic filings. This call will also reference non-GAAP amounts.

These statements are subject to risks and uncertainties that could cause actual results could differ materially from historical experience were present expectations.

Description of some of the risks and uncertainties can be found in the reports that we filed to securities and Exchange Commission, including the cautionary statements included in our current and periodic filings.

This call will also reference non-GAAP amounts.

A reconciliation of the non-GAAP to GAAP amounts is available on the earnings reports and SEC filing section of the company's investors page at www.unitedhealthgroup.com. Information presented on this call is contained in the earnings release we issued this morning and in our Form 8-K dated 15 April 2020, which may be accessed from the investor page of the company's website. I will now turn the conference over to the Chief Executive Officer of UnitedHealth Group, Mr. David Wichmann. Please go ahead.

A reconciliation of the non-GAAP to GAAP amounts is available on the earnings reports, an FCC filing section of the company's investors page at Www Dot Unitedhealth group Dot com.

Operator: Information presented on this call is contained in the earnings release we issued this morning and in our Form 8-K dated 15 April 2020, which may be accessed from the investor page of the company's website. I will now turn the conference over to the Chief Executive Officer of UnitedHealth Group, Mr. David Wichmann. Please go ahead.

Information presented on this call is contained in the earnings release, we issued this morning, you didn't or form 8-K dated April 15th 2020, which may be accessed from the investor page of the company's website.

Ill now turn the conference over to the Chief Executive Officer of United Health Group Mr., David Whitman. Please go ahead.

Good morning, and thank you for joining us.

David Wichmann: Good morning, and thank you for joining us. With all that is going on, we've structured things a bit differently today. We'll get directly to what's likely top of mind for all of you: the impact of the COVID-19 global health crisis on our businesses and the actions we're taking to support our communities, members, patients, care providers, customers, government partners, and team members and their family. These are still the early days in the response to COVID-19, and we anticipate we will experience and learn more as events unfold in the months ahead. UnitedHealth Group was consciously built with the restless mindset, adaptable capabilities, culture, and the enduring human values to respond and serve in meeting challenges such as we are seeing today. The commitment, ingenuity, compassion, and engagement of the 325,000 people of UnitedHealth Group has never been stronger.

With all that is going on we've structured things a bit differently today.

Well get directly to whats likely top of mind for all of you the impact of Koby 19, Global health crisis on our businesses and the actions, we're taking to support our communities members patient.

Care providers customers government partners and team members and their families.

These are still the early days in the response to covert 19, and we anticipate we will experience and learn more as events unfold in the months ahead.

UnitedHealth Group was consciously built with the restless mindset, adaptable capabilities, culture, and the enduring human values to respond and serve in meeting challenges such as we are seeing today. The commitment, ingenuity, compassion, and engagement of the 325,000 people of UnitedHealth Group has never been stronger. I will start today by expressing my gratitude and admiration to this restless team for the extraordinary efforts and personal sacrifices being made every day.

Unitedhealth group with consciously built but the restless mindset.

Optimal capabilities culture, and the enduring human values to respond and served and meeting challenges such as we are seeing today.

The commitment ingenuity and passion and engagement of the 325000 people of United Health Group has never been stronger.

David Wichmann: I will start today by expressing my gratitude and admiration to this restless team for the extraordinary efforts and personal sacrifices being made every day. They are doctors, nurses, pharmacists, social workers, and other clinical and non-clinical healthcare workers on the front lines of care, as well as customer care representatives, transaction processors, supply chain experts, technology engineers, data scientists, and others supporting them, the health system, and our communities. The COVID-19 pandemic is deeply personal to them and to all of us. They are connected digitally, triaging people with symptoms, engaging directly with our most vulnerable patients, ensuring essential chronic and COVID-19-related medical and behavioral health services are available and accessed while helping keep the health system coordinated, connected, and working for individuals and their doctors.

I will start today by expressing my gratitude and admiration to this restless team for the extraordinary efforts and personal sacrifices being made every day.

They are doctors, nurses, pharmacists, social workers, and other clinical and non-clinical healthcare workers on the front lines of care, as well as customer care representatives, transaction processors, supply chain experts, technology engineers, data scientists, and others supporting them, the health system, and our communities. The COVID-19 pandemic is deeply personal to them and to all of us.

They are doctors nurses pharmacist total workers and other clinical and Nonclinical healthcare workers on the front lines of care.

As well as customer care Representatives transaction processors supply chain experts technology engineers data scientists and other supporting them health system in our communities.

Cobot 19 pandemic is deeply personal to them.

And to all of us.

They are connected digitally, triaging people with symptoms, engaging directly with our most vulnerable patients, ensuring essential chronic and COVID-19-related medical and behavioral health services are available and accessed while helping keep the health system coordinated, connected, and working for individuals and their doctors.

They're connected digitally triaging people with symptoms engaging directly with our most about vulnerable patients entering essential chronic and cobot 19 related medical and behavioral health services are available and access while helping keep the health system coordinated connected and working for individuals and their doctors.

They are enhancing safety for those most at risk, making sure the right medicines are getting to the right patients when and where they need it.

David Wichmann: They are enhancing safety for those most at risk, making sure the right medicines are getting to the right patients when and where they need it, and the right testing and protective gear is available to properly safeguard the health workforce. They are driving innovative solutions around testing, healthcare workforce safety, improving critical product, supply, and services availability, helping develop and evaluate therapies, and applying advanced analytics to identify, predict, and combat COVID-19. For our heroic clinical team, we have further hardened our safety-first workforce environment for those caring for patients across our more than 1,500 facilities and those providing medications and services caring for people in their homes. Like all of us, they are concerned about the health and safety of their own families and friends.

They are enhancing safety for those most at risk, making sure the right medicines are getting to the right patients when and where they need it, and the right testing and protective gear is available to properly safeguard the health workforce. They are driving innovative solutions around testing, healthcare workforce safety, improving critical product, supply, and services availability, helping develop and evaluate therapies, and applying advanced analytics to identify, predict, and combat COVID-19.

And the right testing and protective gear is available to properly safeguard the health workforce.

They are driving innovative solutions around testing healthcare workforce safety, improving critical product supply and services availability, helping develop and evaluate therapies and applying advanced analytics to identify predict and combat coated 19.

For our heroic clinical team, we have further hardened our safety-first workforce environment for those caring for patients across our more than 1,500 facilities and those providing medications and services caring for people in their homes. Like all of us, they are concerned about the health and safety of their own families and friends. Yet they remain front and center, engaging fully each day to serve many selflessly away from their families for weeks so they can ensure care is provided to those most in need.

For our heroic clinical team we have further hardened our safety first workforce environment for those caring for patients across our more than 1500 facilities and those providing medications and services caring for people in their homes.

Like all of us, they're concerned about the health and safety of their own families and friends.

David Wichmann: Yet they remain front and center, engaging fully each day to serve many selflessly away from their families for weeks so they can ensure care is provided to those most in need. I have never been more proud or more humbled to be on their team. Every team member at UnitedHealth Group remains fully employed, supported, protected, and engaged in the COVID-19 crisis. Let me pause to acknowledge and add a note of deep gratitude to Andrew Witty, who has announced this morning will be taking a leave of absence to provide leadership for the efforts of the World Health Organization to find and distribute a vaccine for COVID-19.

Yeah, They remain front and center engaging fully each day to serve many selflessly away from their families for weeks. So they can ensure cares provided to those most in need.

I have never been more proud or more humbled to be on their team. Every team member at UnitedHealth Group remains fully employed, supported, protected, and engaged in the COVID-19 crisis. Let me pause to acknowledge and add a note of deep gratitude to Andrew Witty, who has announced this morning will be taking a leave of absence to provide leadership for the efforts of the World Health Organization to find and distribute a vaccine for COVID-19.

I have never been more proud.

Or humbled to be on their team.

Every team member at United Health Group remains fully employed supported protected and engaged in the cope with 19 crisis.

Let me pause to acknowledge and add a note a deep gratitude to enter witty who has announced this morning, we'll be taking a leave of absence to provide leadership for the efforts of the world Health organization to find a distribute a vaccine for coping 19.

Our gratitude for Andrew is grounded in all he has done to guide United Health Group and Optum, So effectively insensitively for all who we serve and all who work at this enterprise.

David Wichmann: Our gratitude for Andrew is grounded in all he has done to guide UnitedHealth Group and Optum so effectively and sensitively for all who we serve and all who work at this enterprise, and his willingness to apply his leadership and phenomenal talents to this new assignment for which he is so aptly suited. We couldn't be more proud to call one of our own, to see one of our own serve in this way. We look forward to both his success in leading this effort and his return to our company once this important work is done. He is on the call with us today and available to respond to your questions before he reports to duty with the World Health Organization. From the outset of the COVID-19 outbreak, we mobilized to keep our entire enterprise fully intact and functioning at the highest performance levels.

Our gratitude for Andrew is grounded in all he has done to guide UnitedHealth Group and Optum so effectively and sensitively for all who we serve and all who work at this enterprise, and his willingness to apply his leadership and phenomenal talents to this new assignment for which he is so aptly suited. We couldn't be more proud to call one of our own, to see one of our own serve in this way. We look forward to both his success in leading this effort and his return to our company once this important work is done.

And his willingness to apply his leadership and phenomenal talents to this new assignment for which he is so aptly suited.

We couldn't be more proud.

Called one of our own so you want to borrow and serve in this way and.

And we look forward to both his success and leading this effort and his return to our company. Once this important work is done.

He is on the call with us today and available to respond to your questions before he reports to duty with the World Health Organization. From the outset of the COVID-19 outbreak, we mobilized to keep our entire enterprise fully intact and functioning at the highest performance levels. As we stand today, we are supporting all of our products, services, and commitments across all of our businesses and markets.

He is on the call with us today and available to respond to your questions before reports to duty with the World Health organization.

From the outside of covered 19 outbreak, we mobilized to keep our entire enterprise fully intact and functioning at the highest performance levels as we stand today, we are supporting all of our products services and commitments across all of our businesses and markets.

David Wichmann: As we stand today, we are supporting all of our products, services, and commitments across all of our businesses and markets. We have long had a high proportion of our more than 200,000-person non-clinical team working from home, and we were able to quickly move nearly all of the rest to work at home as well. They have been performing well, and our service levels remain strong for our clients, members, patients, and the health system broadly. For the millions of people we are privileged to serve through UnitedHealthcare, we have taken every step possible to broaden access to care. We have offered additional enrollment opportunities to those who previously declined employer-sponsored offerings, eliminated all COVID-19-related cost sharings, and removed prior authorizations to speed patient transitions of care so health systems can diagnose, treat, and redirect patients.

We have long had a high proportion of our more than 200,000-person non-clinical team working from home, and we were able to quickly move nearly all of the rest to work at home as well. They have been performing well, and our service levels remain strong for our clients, members, patients, and the health system broadly. For the millions of people we are privileged to serve through UnitedHealthcare, we have taken every step possible to broaden access to care.

We have long had a high proportion of our more than 200000 person Nonclinical team working from home and we were able to quickly move nearly all of the rest to work at home as well.

I've been performing well and our service levels remained strong for our clients members patients and the health system broadly.

For the millions of people, we're privileged to serve their United Healthcare, we have taken every step possible to broaden access to care.

We have offered additional enrollment opportunities to those who previously declined employer-sponsored offerings, eliminated all COVID-19-related cost sharings, and removed prior authorizations to speed patient transitions of care so health systems can diagnose, treat, and redirect patients. We have developed revised payment timeframes to help people sustain coverage, and we are helping people displaced from their jobs to smoothly transition to affordable coverage which meets their needs.

We have offered additional enrollment opportunities to those who previously declined employer sponsored offerings eliminated all cobot 19 related cost sharing and remove prior authorizations to speed patient transitions of care. So health systems can diagnose treat and redirect patients.

David Wichmann: We have developed revised payment timeframes to help people sustain coverage, and we are helping people displaced from their jobs to smoothly transition to affordable coverage which meets their needs. Last week, we moved to provide nearly $2 billion in liquidity to the health system, accelerating payments to care providers whose clinical operations have been impacted. We have been partnering with other companies and academic institutions to develop and validate protocols and processes to more rapidly and frequently test healthcare professionals on the front line, applying new technology to ensure safe and full availability of this critical workforce. This leverages the self-administered collection innovation we developed, which is simplifying COVID-19 testing. We have been tracking infectious disease patterns to identify supply-demand inequities and resource needs in every major metropolitan statistical area across the US health system.

We have developed revised payment time frames to help people sustained coverage and we're helping people displaced from their job to smoothly transition to affordable coverage, which meets their needs.

Last week, we moved to provide nearly $2 billion in liquidity to the health system, accelerating payments to care providers whose clinical operations have been impacted. We have been partnering with other companies and academic institutions to develop and validate protocols and processes to more rapidly and frequently test healthcare professionals on the front line, applying new technology to ensure safe and full availability of this critical workforce.

Last week, we move to provide nearly $2 billion and liquidity to the health system accelerating payments to care providers, whose clinical operations have been impacted.

We have been partnering with other companies and academic institutions to develop and validate protocols and processes to more rapidly and frequently test health care professionals on the front line applying new technology to ensure safe and full availability of this critical workforce.

This leverages the self-administered collection innovation we developed, which is simplifying COVID-19 testing. We have been tracking infectious disease patterns to identify supply-demand inequities and resource needs in every major metropolitan statistical area across the US health system. This will emerge as a new capability to provide enhanced disease surveillance in the future.

This leverages the self administered collection innovation, we developed which is simplifying coated 19 testing.

And we have been tracking infectious disease pattern to identify supply demand in equities and resource needs in every major metropolitan statistical area across the Us health system.

David Wichmann: This will emerge as a new capability to provide enhanced disease surveillance in the future. Our high-risk members have been identified, and we are surrounding them with services to reduce the impacts of social isolation on their access to physical and behavioral care while keeping them as safe as possible. We have provided over $50 million in initial domestic and global grant funding and investments to advance health workforce safety, support those in geographies most afflicted, aid seniors secluded in their homes, and help communities address rising levels of homelessness and food insecurity. Like the broader health system, in recent weeks, we have seen a reduction in elective care, which is impacting both the UnitedHealthcare benefits and the Optum care delivery businesses. Most traditional procedural work has been postponed at our SCA ambulatory surgery centers.

This will emerge as a new capability to provide enhanced disease surveillance in the future.

Our high-risk members have been identified, and we are surrounding them with services to reduce the impacts of social isolation on their access to physical and behavioral care while keeping them as safe as possible. We have provided over $50 million in initial domestic and global grant funding and investments to advance health workforce safety, support those in geographies most afflicted, aid seniors secluded in their homes, and help communities address rising levels of homelessness and food insecurity.

Our high risk members have been identified and we are surrounding them with services to reduce impacts of social isolation on their access to physical and behavioral care, while keeping them as safe as possible.

And we have provided over $50 million and initial domestic and global grant funding and investments to advance health workforce safety.

Report those in geographies, most afflicted aid senior secluded in their homes and help communities address rising levels of homelessness and food and security.

Like the broader health system in recent weeks, we have seen a reduction in elective care, which is impacting both the United healthcare benefits and the optumcare delivery businesses.

Like the broader health system, in recent weeks, we have seen a reduction in elective care, which is impacting both the UnitedHealthcare benefits and the Optum care delivery businesses. Most traditional procedural work has been postponed at our SCA ambulatory surgery centers. Likewise, the UnitedHealthcare and Optum at-risk care delivery businesses have seen lower demand for these services.

Most traditional procedure work has been postponed at our CA ambulatory surgery centers.

David Wichmann: Likewise, the UnitedHealthcare and Optum at-risk care delivery businesses have seen lower demand for these services. We are seeing timeframes and discussions for new business opportunities being extended as most business partners focus on crisis response. Many employers have had to furlough employees, driving higher levels of unemployment, which may ultimately affect the outlook for growth in our group benefits business while increasing our membership in individual lines and Medicaid coverages. While it feels awkward to be talking about earnings outlooks at this moment, you saw our press release. We are maintaining our 2020 earnings per share outlook established at our investor conference. We view this as the most reasonable baseline posture in these uncertain times as we continue to grow and operate our businesses while assessing the multitude of potentially offsetting factors across our uniquely diverse enterprise. These factors will become clearer in the months to come.

Likewise, the United Healthcare and Optum at risk care delivery businesses have seen lower demand for these services.

We are seeing timeframes and discussions for new business opportunities being extended as most business partners focus on crisis response. Many employers have had to furlough employees, driving higher levels of unemployment, which may ultimately affect the outlook for growth in our group benefits business while increasing our membership in individual lines and Medicaid coverages. While it feels awkward to be talking about earnings outlooks at this moment, you saw our press release.

We are seeing time frames and discussions for new business opportunities being extended as most business partners focus on crisis response.

Many employers have had to furloughed employees driving higher levels of unemployment, which may ultimately affect the outlook for growth and our group benefits business, while increasing our membership in individual lines and Medicaid coverages.

Well a feels awkward to be talking about earnings outlook set. This moment you saw our press release, we are maintaining our 2020 earnings per share outlook established at our Investor Conference.

We are maintaining our 2020 earnings per share outlook established at our investor conference. We view this as the most reasonable baseline posture in these uncertain times as we continue to grow and operate our businesses while assessing the multitude of potentially offsetting factors across our uniquely diverse enterprise. These factors will become clearer in the months to come. Their related financial effects on our business will clarify as well.

We view this as the most reasonable baseline posture in these uncertain times as we continue to grow and operate our businesses, while assessing the multitude of potentially offsetting factors across our uniquely diverse enterprise.

These factors will become clear in the months to come that related financial effects on our business will clarify as well.

David Wichmann: Their related financial effects on our business will clarify as well. As they do, we commit to providing swift relief, even as we consider the uncertainty of the environment going forward. While there is still much to understand, we can be very clear with you today that we are committed to ensuring that any financial imbalances which arise from this situation are reconciled proactively and addressed fairly and timely for all those we serve. Let me now share a few of the specific actions underway at Optum and UnitedHealthcare. Optum has cared directly for more than 10,000 COVID-19 patients to date and is operating more than 400 test sites across the country. We quickly shifted more than 4,000 additional Optum care physicians to our digital care clinics on our way to more than 10,000 in the weeks to come.

As they do, we commit to providing swift relief, even as we consider the uncertainty of the environment going forward. While there is still much to understand, we can be very clear with you today that we are committed to ensuring that any financial imbalances which arise from this situation are reconciled proactively and addressed fairly and timely for all those we serve. Let me now share a few of the specific actions underway at Optum and UnitedHealthcare.

As they do we commit to providing swift relief.

Even as we consider the uncertainty of the environment going forward.

While there is still much to understand we can we can be very clear with you today that we are committed to ensuring that any financial imbalances, which are rights from this situation are reconciled proactively and addressed fairly and timely for all those we serve.

Let me now share a few of the specific actions underway at Optum in the United Healthcare.

Optum has cared directly for more than 10,000 COVID-19 patients to date and is operating more than 400 test sites across the country. We quickly shifted more than 4,000 additional Optum care physicians to our digital care clinics on our way to more than 10,000 in the weeks to come. This rapid response was made possible by the swift work of the regulatory agencies, allowing flexibility in state licensure requirements for clinicians across service categories and state lines.

Optimists care directly for more than 10000, cobot 19 patients to date and as operating more than 400 test sites across the country.

We quickly shifted more than 4000 additional optumcare positions to our digital care clinics on our way to more than 10000 in the weeks to come.

David Wichmann: This rapid response was made possible by the swift work of the regulatory agencies, allowing flexibility in state licensure requirements for clinicians across service categories and state lines. We thank and commend them for these actions and encourage long-term continuation of these policies. Our digital health consumer engagement has accelerated in many directions. For example, we've applied new COVID-19 clinical pathways to our device-based remote monitoring services to identify and prioritize high-risk individuals for follow-up care. Our newly developed COVID-19 symptom checker provides people with recommendations on how to proceed based on their results. We've provided access to our digital behavioral healthcare services, which give clients on-demand help for stress, anxiety, and depression. All content, coping tools, and peer support are free to everyone. Because it's critical everyone receives their needed medications, we are providing early refills, extended authorizations, and increased home delivery options.

This rapid response has was made possible by the Swift work of the regulatory agencies, allowing flexibility in state licensure requirements for clinicians across service categories and state lines.

We thank and commend them for these actions and encourage long-term continuation of these policies. Our digital health consumer engagement has accelerated in many directions. For example, we've applied new COVID-19 clinical pathways to our device-based remote monitoring services to identify and prioritize high-risk individuals for follow-up care. Our newly developed COVID-19 symptom checker provides people with recommendations on how to proceed based on their results.

We thank and commend them for these actions and encouraged long term continuation of these policies.

Our digital health consumer engagement has accelerated in many directions. For example, we've applied new cobot 19 clinical pathways to our device based remote monitoring services to identify and prioritize high risk individuals for follow up care.

Our newly developed Cobot 19 symptom checker provides people with recommendations on how to proceed based on their results.

We've provided access to our digital behavioral healthcare services, which give clients on-demand help for stress, anxiety, and depression. All content, coping tools, and peer support are free to everyone. Because it's critical everyone receives their needed medications, we are providing early refills, extended authorizations, and increased home delivery options. We also extended hours at our behavioral health pharmacies to ensure medication adherence for those with mental health and substance abuse challenges.

And we provided access to our digital behavioral health care services, which give clients on demand help for stress anxiety and depression, all content coping tools and peer support our free to everyone.

Because its critical everyone received their needed medications, we are providing early refills extended authorizations and increased home delivery options.

David Wichmann: We also extended hours at our behavioral health pharmacies to ensure medication adherence for those with mental health and substance abuse challenges. The spread of the virus has created a significant health risk for those receiving life-sustaining infusion services traditionally administered in the hospital or hospital clinic settings. For these patients, we're providing infusion services through our Optum Infusion Ambulatory Suites and in their homes through our nurse infusion specialists. Finally, Optum is innovating on the front lines of care delivery, developing screening protocols to identify patients who are likely to need hospitalizations, and collaborating with health and care delivery organizations to share this knowledge. UnitedHealthcare is working at full speed as well with partners across the health system to address the current global emergency.

We also extended hours that are behavioral health pharmacies to ensure medication adherence for those with mental health and substance abuse challenges.

The spread of the virus has created a significant health risk for those receiving life-sustaining infusion services traditionally administered in the hospital or hospital clinic settings. For these patients, we're providing infusion services through our Optum Infusion Ambulatory Suites and in their homes through our nurse infusion specialists.

The spread of the virus has created a significant health risk for those receiving like sustaining infusion surfaces traditionally administered in the hospital or hospital clinic settings for these patients were providing infusion services through our optum infusion ambulatory suites.

And in their homes through our nurse infusion specialists.

Finally, Optum is innovating on the front lines of care delivery, developing screening protocols to identify patients who are likely to need hospitalizations, and collaborating with health and care delivery organizations to share this knowledge. UnitedHealthcare is working at full speed as well with partners across the health system to address the current global emergency.

Finally, optum is innovating on the front lines of care delivery developing screening protocols to identify patients are likely to need hospitalizations and collaborating with health and care delivery organizations to share this knowledge.

Unitedhealthcare is working at full speed as well with partners across the health system to address the current global emergency.

David Wichmann: For consumers, UnitedHealthcare has made it simple and easy to access care, waiving cost sharing for COVID-19 testing and treatment, and eliminating many administrative requirements. Tens of thousands of people have taken advantage of a special enrollment period we opened for those needing coverage for health benefits. More than 2 million consumers took advantage of our offer to obtain early prescription drug refills to ensure no one experienced gaps in treatment. UnitedHealthcare digital and telehealth services were ready and, as a result, extensively used as a safe, simple, and free way to connect with care providers, either through a partner or directly with the patient's own doctor. UnitedHealthcare is paying careful attention to vulnerable members, especially in Medicare and Medicaid, by expanding access to our personalized digital care platforms, which provide up-to-date information about prevention, coverage, and care.

For consumers, UnitedHealthcare has made it simple and easy to access care, waiving cost sharing for COVID-19 testing and treatment, and eliminating many administrative requirements. Tens of thousands of people have taken advantage of a special enrollment period we opened for those needing coverage for health benefits. More than 2 million consumers took advantage of our offer to obtain early prescription drug refills to ensure no one experienced gaps in treatment.

For consumers Unitedhealthcare has made it simple and easy to access care waving cost sharing for cobot, 19 testing and treatment and eliminating many administrative requirements.

Tens of thousands of people have taken advantage of this of a special enrollment period, we opened for those needing coverage for health benefits and more than 2 million consumers took advantage of our offer to obtain early prescription drug refills to ensure no one experienced gaps in treatment.

UnitedHealthcare digital and telehealth services were ready and, as a result, extensively used as a safe, simple, and free way to connect with care providers, either through a partner or directly with the patient's own doctor. UnitedHealthcare is paying careful attention to vulnerable members, especially in Medicare and Medicaid, by expanding access to our personalized digital care platforms, which provide up-to-date information about prevention, coverage, and care.

Unitedhealthcare digital and Telehealth services were ready and as a result extensively used as a safe simple and free way to connect with care providers, either through a partner or directly with the patient's own doctor.

The United Healthcare is paying careful attention to vulnerable members, especially in Medicare and Medicaid by expanding access to our personalized digital care platforms, which provide up to date information about prevention coverage and care.

People can quickly talk to a nurse refill and schedule home delivery for prescriptions and get access to emotional support.

David Wichmann: People can quickly talk to a nurse, refill and schedule home delivery for prescriptions, and get access to emotional support 24 hours a day. We are also helping federal, state, and local authorities address system capacity shortages by supporting them with domain operating experience. One example involves two UHC community and state leaders, Dr. Jeffrey Brenner and Kathleen Stillo, who are now working exclusively with the state of New Jersey for the next several months to establish a critically needed field-based hospital system. These are just a few examples of how the people of Optum and UnitedHealthcare have mobilized to respond to this public health challenge. There are many more, and they are happening every day. Now I'll turn it over to John Rex, our Chief Financial Officer. Thank you, Dave. I know you've had an opportunity to look through our Q1 financial results this morning.

People can quickly talk to a nurse, refill and schedule home delivery for prescriptions, and get access to emotional support 24 hours a day. We are also helping federal, state, and local authorities address system capacity shortages by supporting them with domain operating experience. One example involves two UHC community and state leaders, Dr. Jeffrey Brenner and Kathleen Stillo, who are now working exclusively with the state of New Jersey for the next several months to establish a critically needed field-based hospital system.

Four hours a day.

We're also helping federal state and local authorities address system capacity shortages by supporting them with domain operating experience.

One example involves two you HC community and state leaders Dr., Jeffrey Brenner and Kathleen still low we're now working exclusively with the state in New Jersey for the next several months to establish a critically needed field based hospital system.

These are just a few examples of how the people of Optum and UnitedHealthcare have mobilized to respond to this public health challenge. There are many more, and they are happening every day. Now I'll turn it over to John Rex, our Chief Financial Officer.

These are just a few examples of how the people of Optum and Unitedhealthcare have mobilized to respond to this public health challenge.

There are many more and they're happening every day.

Now I'll turn it over to John Rex, Our Chief Financial Officer.

John Rex: Thank you, Dave. I know you've had an opportunity to look through our Q1 financial results this morning. As such, given the unique circumstances, I'll be brief about the quarter. As Dave said, while it feels somewhat uncomfortable to be speaking of the financial aspects of this challenging situation, we know this is what you need to understand for your work. Given the timing of the COVID-19 outbreak and its progression in the United States, the first quarter financial impact was limited.

Thank you Dave.

I know you've had an opportunity to look through our first quarter financial results. This morning and assets given the unique circumstances I'll be brief about the quarter.

David Wichmann: As such, given the unique circumstances, I'll be brief about the quarter. As Dave said, while it feels somewhat uncomfortable to be speaking of the financial aspects of this challenging situation, we know this is what you need to understand for your work. Given the timing of the COVID-19 outbreak and its progression in the United States, the first quarter financial impact was limited. As you know, incidence rates in the US only started moving meaningfully in mid-March. Elective care trends did not begin to be meaningfully impacted until later in the month. At the segment levels, UnitedHealthcare and the OptumHealth, OptumInsight, and our OptumRx businesses all reported first quarter operating earnings that were in line with our own expectations going into the year. Looking ahead, we are maintaining our full year 2020 earnings per share outlook.

As Dave said, while it feel somewhat uncomfortable to be speaking of the financial aspects of this challenging situation. We know this is what you need to understand for your work.

Given the timing of the code 90 outbreak in its progression in United States. The first quarter financial impact was limited.

As you know, incidence rates in the US only started moving meaningfully in mid-March. Elective care trends did not begin to be meaningfully impacted until later in the month. At the segment levels, UnitedHealthcare and the OptumHealth, OptumInsight, and our OptumRx businesses all reported first quarter operating earnings that were in line with our own expectations going into the year. Looking ahead, we are maintaining our full year 2020 earnings per share outlook.

As you know incidence rates in the US only started moving meaningfully in mid March.

And elective care trends did not begin to be meaningfully impacted until later in the month.

At the segment levels, United Healthcare, and the Optumhealth insight and Rx businesses, All reported first quarter operating earnings that were in line with our own expectations going into the year.

Looking ahead, we are maintaining our full year twentytwenty earnings per share outlook.

As I'm sure you would expect this view is subject to a number of key considerations that yet to play fully out including.

David Wichmann: As I'm sure you would expect, this view is subject to a number of key considerations that have yet to play fully out, including the full incidence and intensity levels we experience, the duration and ultimate impact on economic, employment, and business activity levels, and the duration and extent of disrupted care patterns as the virus runs its course. Beyond our maintained Earnings Per Share outlook, we anticipate other key investor conference metrics likely will play out differently than we expected at that time. Our quarterly progression will likely vary from historical patterns. For example, the environment today suggests Q2 could be the lowest Medical Care Ratio of the year, potentially meaningfully so, with elective care demands still restrained. Offsetting this impact, we would anticipate H2 Medical Care Ratio could be meaningfully elevated.

As I'm sure you would expect, this view is subject to a number of key considerations that have yet to play fully out, including the full incidence and intensity levels we experience, the duration and ultimate impact on economic, employment, and business activity levels, and the duration and extent of disrupted care patterns as the virus runs its course. Beyond our maintained Earnings Per Share outlook, we anticipate other key investor conference metrics likely will play out differently than we expected at that time.

The full incidents and intensity levels, we experience.

The duration and ultimately impact an economic employment and business activity levels.

And the duration and extent of disrupted care patterns as the virus runs its course.

Beyond our maintained earnings per share outlook, we anticipate other key investor conference metrics likely will play out differently than we expected at that time.

Our quarterly progression will likely vary from historical patterns. For example, the environment today suggests Q2 could be the lowest Medical Care Ratio of the year, potentially meaningfully so, with elective care demands still restrained. Offsetting this impact, we would anticipate H2 Medical Care Ratio could be meaningfully elevated. Among some of the factors we consider, people will hopefully have more comprehensive care access by the second half of the year. Some of the currently deferred care can be restored.

And our quarterly progression will likely vary from historical patterns.

For example, the environment today suggest the second quarter could be the lowest medical care ratio of the year.

Potentially meaningfully so.

With elective care demand still restrained.

Offsetting this impact we would anticipate the second half medical care ratio could be meaningfully elevated.

Among some of the factors we consider.

David Wichmann: Among some of the factors we consider, people will hopefully have more comprehensive care access by the second half of the year. Some of the currently deferred care can be restored. Individuals with chronic conditions are among those for whom we have considerable concern in this environment. While we are mitigating the impact through other means, mistreatments can aggravate health status, resulting in initially more intense care needs as the system reopens. We will proactively work to help them quickly seek care. The impact of testing and coverage expansion, such as serologic tests. These are just a few of the factors we must consider, and I'm confident you are eager to probe into all of these areas and likely more.

People well hopefully have more comprehensive care access by the second half of the year.

And some of the currently deferred care can be restored.

Individuals with chronic conditions are among those for whom we have considerable concern in this environment. While we are mitigating the impact through other means, mistreatments can aggravate health status, resulting in initially more intense care needs as the system reopens. We will proactively work to help them quickly seek care. The impact of testing and coverage expansion, such as serologic tests.

Individuals of chronic conditions are among those for whom we have considerable concern in this environment.

While we are mitigating the impact through other means miss treatments can aggravate health status, resulting in initially more intense counties as the system reopened.

We will proactively work to help them quickly seek care.

And the impact of testing and coverage expansion such as Sarah logic tests.

These are just a few of the factors we must consider, and I'm confident you are eager to probe into all of these areas and likely more. We appreciate your understanding of our need to defer on providing point estimates and even ranges today, given the evolving situation, the multi-variables at play, and their interdependencies, and our regard for the many thoughtful views that will shape the situation. Our strong financial position and liquidity enable us to fully meet both our operational and strategic needs.

These are just a few of the factors we must consider.

And Im confident you were eager to probe into all of these areas and likely more.

We appreciate your understanding of our need to differ on providing point estimates and even ranges today given the evolving situation.

David Wichmann: We appreciate your understanding of our need to defer on providing point estimates and even ranges today, given the evolving situation, the multi-variables at play, and their interdependencies, and our regard for the many thoughtful views that will shape the situation. Our strong financial position and liquidity enable us to fully meet both our operational and strategic needs. We ended the quarter with an intentionally higher excess cash balance and a higher than normal debt-to-capital ratio. This was a prudent response to what we saw in more volatile financial markets during the month of March. When considering our quarter-ending excess corporate cash position, we sized our debt-to-total capital ratio at about 40.5%. As markets become more normal, we will return to our previous cash management and leverage positions.

The multi variables at play and their interdependencies.

And our regard for the mini thoughtful views that will shape the situation.

Our strong financial position and liquidity enable us to fully both our operational and strategic needs.

We ended the quarter with an intentionally higher excess cash balance and a higher than normal debt-to-capital ratio. This was a prudent response to what we saw in more volatile financial markets during the month of March. When considering our quarter-ending excess corporate cash position, we sized our debt-to-total capital ratio at about 40.5%. As markets become more normal, we will return to our previous cash management and leverage positions.

We ended the quarter within intentionally higher excess cash balance and a higher than normal debt to capital ratio.

This was a prudent response to what we saw in more volatile financial markets during the month of March.

When considering our quarter ending excess corporate tax position.

We size our debt to total capital ratio at about 40.5%.

As markets become more normal we will return to our previous cash management and leverage position.

David Wichmann: Given our critical relationship with our healthcare delivery partners, we moved quickly to implement policies to provide enhanced liquidity for care providers by accelerating nearly $2 billion in payments. Provided needed support to health systems and individual care providers. These types of actions are important to help provide more financial stability for the system. We expect some metrics, such as Days in Medical Claims Payable and cash flow, will be impacted as a result of these actions. While that will be transitory, as we move through this situation together. With that, I'll turn it back to Dave. Thank you, John. I hope this gives you some insight into what we are seeing and the actions we are taking to serve people, communities, and the health system during these unprecedented times.

Given our critical relationship with our healthcare delivery partners, we moved quickly to implement policies to provide enhanced liquidity for care providers by accelerating nearly $2 billion in payments. Provided needed support to health systems and individual care providers. These types of actions are important to help provide more financial stability for the system. We expect some metrics, such as Days in Medical Claims Payable and cash flow, will be impacted as a result of these actions.

These types of actions are important to help provide more financial stability for the system.

We expect some metrics such as days and medical claims payable and cash flow will be impacted as a result of these actions.

While that will be transitory, as we move through this situation together. With that, I'll turn it back to Dave.

Well that will be transitory as we move through the situation together.

With that I'll turn it back today.

David Wichmann: Thank you, John. I hope this gives you some insight into what we are seeing and the actions we are taking to serve people, communities, and the health system during these unprecedented times. We are committed to applying the full capacity of our enterprise to serve not just our patients, members, and customers, but also the hundreds of millions of people impacted across the nation and around the world.

Thank you John I.

I Hope this gives you some insight into what we are seeing and the actions we're taking to serve people communities and the health system. During these unprecedented times.

David Wichmann: We are committed to applying the full capacity of our enterprise to serve not just our patients, members, and customers, but also the hundreds of millions of people impacted across the nation and around the world. We will continue to protect our team members and their families, apply our skills, energy, and broad capabilities to serve and aid others in this time of crisis. Our mission is to help people live healthier lives and to make the health system work better for everyone. This moment of challenge is proof of the resolve of the 325,000 women and men of UnitedHealth Group to achieve this mission.

We are committed to applying the full capacity of our enterprise this or not just our patients members and customers, but also the hundreds of millions of people impacted across the nation and around the world.

We will continue to protect our team members and their families, apply our skills, energy, and broad capabilities to serve and aid others in this time of crisis. Our mission is to help people live healthier lives and to make the health system work better for everyone. This moment of challenge is proof of the resolve of the 325,000 women and men of UnitedHealth Group to achieve this mission.

We will continue to protect our team members and their families apply our skills energy and broad capabilities to serve and eight others in this time of crisis.

Our mission is to help people live healthier lives and to make the health system work better for everyone.

At this moment of challenge as proof of the resolve of the 325000 women and men of United Health Group to achieve this mission.

David Wichmann: And you can also expect us to be fully prepared to excel on the other side of COVID-19, ready to respond to demand for health system resources, and adapt our strategic priorities to emerging opportunities to lead in the development of the next generation health system in a socially conscious way. Let's open it up to questions, please, one per person, so we can get to as many as possible. Thank you. At this time, if you have a question or comment, please press the star and one on your touch-tone phone. You may remove yourself from the queue by pressing the pound key. Again, we ask you to limit yourself to one question. If you ask multiple questions, we will only be answering the first question so we can respond to everyone in the queue this morning. Thank you. We'll go first to Gary Taylor with JPMorgan.

And you can also expect us to be fully prepared to excel on the other side of COVID-19, ready to respond to demand for health system resources, and adapt our strategic priorities to emerging opportunities to lead in the development of the next generation health system in a socially conscious way. Let's open it up to questions, please, one per person, so we can get to as many as possible. Thank you. At this time, if you have a question or comment, please press the star and one on your touch-tone phone.

And you can also expect us to be fully prepared.

Excel on the other side of cope with 19.

Ready to respond to demand for health system resources, and adapt our strategic priorities to emerging opportunities to lead in the development of the next generation health system in a socially conscious way.

Let's open it up two questions. Please one per person till we get can get to as many as possible. Thank you.

At this time, if you have a question or comment please press the star and worn on your Touchtone phone you may remove yourself from MCU by pressing the power key again, we ask you to limit yourself to one question. If you ask multiple questions. We will only be answering the first question. So we can respond to everyone and MCU. This morning. Thank you.

You may remove yourself from the queue by pressing the pound key. Again, we ask you to limit yourself to one question. If you ask multiple questions, we will only be answering the first question so we can respond to everyone in the queue this morning. Thank you. We'll go first to Gary Taylor with JPMorgan. Please go ahead. Your line is open.

We'll go first to.

Gary Taylor with JP Morgan. Please go ahead your line is open.

David Wichmann: Please go ahead. Your line is open. Hi, good morning. Thank you very much. Wondering if we could get the quarter-end IBNR before the quarter, and if you could just comment on Optum Health's performance from 2007 to 2011 and how the business is different today in terms of more risk-based business. You've added some fee-for-service businesses, but how you'd expect the performance of Optum Health to track versus how it performed back in the financial crisis. Thanks. Gary, can you clarify the first part of your question, please? Yeah, I was just hoping within the medical claims payable number, you could give us the IBNR number that typically shows up in the queue. Do you want the dollar estimate? The dollar amount, yeah. So Gary, this is John Rex here. We get our queue out very, very quickly, and we'll have that for you.

Gary Taylor: Hi, good morning. Thank you very much. Wondering if we could get the quarter-end IBNR before the quarter, and if you could just comment on Optum Health's performance from 2007 to 2011 and how the business is different today in terms of more risk-based business. You've added some fee-for-service businesses, but how you'd expect the performance of Optum Health to track versus how it performed back in the financial crisis. Thanks.

John Rex: Gary, can you clarify the first part of your question, please?

Hi, good morning.

Thank you very much I'm wondering if we could get the a quarter in IB NR before the quarter and if you could just comment on Optumhealth.

Performance from 2007 to 11 and how the business is different.

Today in terms of our risk based business you've added some fee for service businesses, but how you would expect.

The performance of Optumhealth to track versus how it performed back in the financial crisis. Thanks.

Gary could you can you clarify the first part of your question. Please.

Gary Taylor: Yeah, I was just hoping within the medical claims payable number, you could give us the IBNR number that typically shows up in the queue.

Yes, I was just hoping within the medical claims payable number you could give us the IB in our number that typically shows up in the Q.

John Rex: Do you want the dollar estimate?

You want to the ones one dollar supply the dollar amount yeah.

Gary Taylor: The dollar amount, yeah.

John Rex: So Gary, this is John Rex here. We get our queue out very, very quickly, and we'll have that for you. And you can follow up with Brett also if you need any color on that particular metric. And so as for, I think, you can see that our days payable are consistent with quarter-end, last quarter, and then also slightly elevated year over year as well. So I think you can take something from that.

But.

So Gary this is John Rex there that we get our Q out very very quickly and well we'll have that for you man and you can follow up with Brad also if you need any color on on that particular metric.

David Wichmann: And you can follow up with Brett also if you need any color on that particular metric. And so as for, I think, you can see that our days payable are consistent with quarter-end, last quarter, and then also slightly elevated year over year as well. So I think you can take something from that. And then also, just generally speaking, what's gone on with development in terms of the continued conservative posture of the business and how it records its quarter-end, year-end, and other IBNR estimates. Just also rely on the fact that it's consistently applied to the best of our ability, as always, and informed not just by claim lags, but other things as well. So on Optum Health, just I might suggest that rather than responding directly to your question, I'd just suggest that it is right on our expectations.

And so as for.

You can see that our yard days payable are consistent with quarter end last last quarter, and then also slightly elevated year over year as well.

So I think you can take something from that and then also just generally speaking what's going on with development in terms of continued conservative posture, the business and how it recorded year at quarter end yearend another.

And then also, just generally speaking, what's gone on with development in terms of the continued conservative posture of the business and how it records its quarter-end, year-end, and other IBNR estimates. Just also rely on the fact that it's consistently applied to the best of our ability, as always, and informed not just by claim lags, but other things as well. So on Optum Health, just I might suggest that rather than responding directly to your question, I'd just suggest that it is right on our expectations.

Our estimates.

Just also.

Rely on the fact that it's consistently applied to the best of our ability as always and then form not just by claim legs, but other things as Paul.

So on Optumhealth.

Just.

Suggested.

Rather than the.

Responding directly to your question I just suggested is right on our expectations I know, there's some commentary about it this morning, but there was definitely on our expectations, what what people I don't think realized about this business is that.

David Wichmann: I know there's some commentary about it this morning, but it was definitely on our expectations. What people I don't think realize about this business is that the elective and chronic disease management deferrals work both ways in a business that has 2/3 of its business, our revenues are risk-based, and 1/3 of them are fee-for-service based. So you might want to think about that as you think about the performance expectations of this business going forward. I just want you to know I'm very proud of this team and how they've served and how they've adapted. And if I can, I'd ask Wyatt Decker to provide you with a few examples of how the team's performed. Thank you, Dave. And thank you, Gary, for the question.

I know there's some commentary about it this morning, but it was definitely on our expectations. What people I don't think realize about this business is that the elective and chronic disease management deferrals work both ways in a business that has 2/3 of its business, our revenues are risk-based, and 1/3 of them are fee-for-service based. So you might want to think about that as you think about the performance expectations of this business going forward.

The elective and chronic disease management deferrals work both ways in a business that has two thirds of its business our revenues or risk based in a third of them our fee for service base.

So you might want to think about that as you think about the performance expectations of this business going forward I. Just once you know I'm very proud of this team.

I just want you to know I'm very proud of this team and how they've served and how they've adapted. And if I can, I'd ask Wyatt Decker to provide you with a few examples of how the team's performed.

And how they have served and how they've adapted and if I can I'd ask Wyatt Decker to provide you with a few examples of how the teams performed.

Wyatt Decker: Thank you, Dave. Thank you, Gary, for the question. Yes, to characterize the response to COVID-19 of Optum and Optum Health, I would use four adjectives: courage, compassion, collaboration, and a can-do spirit. The over 65,000 doctors, nurses, and advanced practitioners, and others of this team have been on the front lines of the COVID response, as you heard earlier from Dave, and have stood up over 436 testing centers.

Thank you, Dave and thank you Gary for the question.

Yes to characterize their response to covert 19 of Optum and Optumhealth I would use for adjectives courage compassion collaboration and it can do spirit.

David Wichmann: Yes, to characterize the response to COVID-19 of Optum and Optum Health, I would use four adjectives: courage, compassion, collaboration, and a can-do spirit. The over 65,000 doctors, nurses, and advanced practitioners, and others of this team have been on the front lines of the COVID response, as you heard earlier from Dave, and have stood up over 436 testing centers. We have dramatically scaled our ability to care for patients digitally, including through telehealth vehicles, and will, by the end of this month, have over 10,000 providers on telehealth platforms and solutions. We have been proud to be also on the front lines of innovation, collaborating with R&D on a whole host of solutions.

Over 65000, doctors nurses and fast practitioners and others have this team had been on the front lines of the co. Good response as you heard earlier from from Dave.

And has stood up over 436 testing centers, we have dramatically scaled our ability to care for patients digitally including through Tele health vehicles and will by the end of this month have over 10000 providers.

We have dramatically scaled our ability to care for patients digitally, including through telehealth vehicles, and will, by the end of this month, have over 10,000 providers on telehealth platforms and solutions. We have been proud to be also on the front lines of innovation, collaborating with R&D on a whole host of solutions.

On Tele health platforms and solutions.

We have been proud to be also on the front lines of innovation collaborating with R&D on a whole host of solutions.

Just as an example, in New York and New Jersey, we have over 329 care sites, including 49 urgent care centers, and stood up the first drive-through testing solution for the state of New Jersey and continue to work very closely with those states and the cities within them to respond effectively to COVID. So much more to come. We anticipate to emerge on the other side of this, an even more sophisticated, digitally enabled national provider of healthcare that is focused on serving our patients and delivering value-based healthcare.

David Wichmann: And just as an example, in New York and New Jersey, we have over 329 care sites, including 49 urgent care centers, and stood up the first drive-through testing solution for the state of New Jersey and continue to work very closely with those states and the cities within them to respond effectively to COVID. So much more to come. We anticipate to emerge on the other side of this, an even more sophisticated, digitally enabled national provider of healthcare that is focused on serving our patients and delivering value-based healthcare. Thank you, Dave. So that was Dr. Wyatt Decker. I think most of you know Dr. Decker well enough by now, having been with us for a while. But just as a reminder, he was the CEO of Mayo Clinic Scottsdale, which is obviously one of their strongest flagship locations.

And just as an example in New York and New Jersey, we have over 329 care sites, including 49 urgent care centers and stood up the first drive through testing solution for the state of New Jersey and continue to work very closely.

With those states and the cities within them to respond effectively to cope with it so much.

Much market Com, we anticipate to emerge on the other side of this a.

Even more.

Sophisticated digitally enabled national provider of health care that is focused on serving our patients and delivering value based healthcare. Thank you.

Operator: Thank you, Dave. So that was Dr. Wyatt Decker. I think most of you know Dr. Decker well enough by now, having been with us for a while. Just as a reminder, he was the CEO of Mayo Clinic Scottsdale, which is obviously one of their strongest flagship locations. He's also an emergency room physician, which clearly showed through in this crisis or is showing through in this crisis. He's intensely calm right in the middle of a crisis.

So that was Dr. why a decker I think most you know dr. decker well enough by now having been with us for awhile, but just as a reminder, he was the CEO of Mayo Scottsdale, which is obviously one of their strongest flagship locations.

David Wichmann: He's also an emergency room physician, which clearly showed through in this crisis or is showing through in this crisis. He's intensely calm right in the middle of a crisis. And if you think about the numbers of things they've had to deal with, let's just say it's been an honor and a privilege to have him here with us today. Next question, please. We'll go next to Justin Lake with Wolfe Research. Please go ahead. Thanks. Good morning. First, I wanted to dig into early trends on commercial membership. Would love to hear what you're seeing in the commercial risk book, for instance, in terms of premium collections in April through mid-month, right? How much have you collected in April, given all the uncertainty here versus a typical collection? And how many of your members you think have been furloughed?

He is also an emergency room position, which you know.

Clearly showed through and this crisis or is showing through in this crisis units intensely calm.

Right in the middle of the crisis, and if you think about the numbers and things they've had to deal with.

If you think about the numbers of things they've had to deal with, let's just say it's been an honor and a privilege to have him here with us today. Next question, please. We'll go next . Please go ahead.

Let's just say it's been a it's been a honored and privileged to have them here with us today.

Next question please.

We'll go next to Justin Lake with Wolfe Research. Please go ahead.

Justin Lake: Thanks. Good morning. First, I wanted to dig into early trends on commercial membership. Would love to hear what you're seeing in the commercial risk book, for instance, in terms of premium collections in April through mid-month, right? How much have you collected in April, given all the uncertainty here versus a typical collection? How many of your members you think have been furloughed?

Thanks, Good morning.

First I wanted to dig into early trends on commercial membership would love to hear what you're seeing into commercial risk spoke for instance in terms of premium collections in April.

To the mid long right how much of you collected it.

April given all the uncertainty here versus like typical collection and to have any of your members. You think had been furloughed. We're just trying to understand the impact of furlough versus unemployment and then yes, I know, there's a lot of uncertainty out there, but as you go into commercial renewals that has to be price reset and wind it up a set Medicaid Medicare bids in the next four to six weeks.

David Wichmann: We're just trying to understand the impact of furlough versus unemployment. And then I know there's a lot of uncertainty out there, but as you go into commercial renewals that have to be priced for 7/1 and have to set Medicare bids in the next four to six weeks, a lot of questions on how you're going to bid or set price relative to the potential for deferred utilization coming back next year, possibility of a COVID return during flu season, etc. So any color you can give us on pricing as well would be really helpful. Thanks. Okay. Dirk? Yeah. Thanks, Justin, for the question. So on premium relief, we're working with our customers on a daily basis to find the right solutions to ensure their employees can continue to have access to the care they need. I'll give you a little bit of numerical context.

David Wichmann: We're just trying to understand the impact of furlough versus unemployment. I know there's a lot of uncertainty out there, but as you go into commercial renewals that have to be priced for 7/1 and have to set Medicare bids in the next four to six weeks, a lot of questions on how you're going to bid or set price relative to the potential for deferred utilization coming back next year, possibility of a COVID return during flu season, etc. So any color you can give us on pricing as well would be really helpful. Thanks.

A lot of questions on how you're going to bid.

Or set price relative to the potential for deferred utilization coming back next year possibility of a cold and returned during flu season et cetera. So any color you can give us on pricing is what would be really helpful. Thanks.

John Rex: Okay. Dave? Yeah. Thanks, Justin, for the question. So on premium relief, we're working with our customers on a daily basis to find the right solutions to ensure their employees can continue to have access to the care they need. I'll give you a little bit of numerical context. In a typical month, we extend grace periods or offer payment plans to customers that represent about 0.4% of our premium base. For 1 March premiums, we collected most of the premiums prior to the COVID impact really kicking in.

Okay Dirk.

Yes, Thanks, Justin for the question so on a premium relief, we're working with our customers on a daily basis to find the right solutions to ensure their employees can continue to have access to the care. They need I'll give you a little bit a numerical context in a typical month, we extend grace periods or offer payment plans to customers that.

David Wichmann: In a typical month, we extend grace periods or offer payment plans to customers that represent about 0.4% of our premium base. For 1 March premiums, we collected most of the premiums prior to the COVID impact really kicking in. These extensions increased to about 1% of our premium base. For 1 April premiums so far, the amount of extensions have grown to about 3% of our premium base. A little bit elevated, but we're going to continue to work with our customers on payment plans to give them the options for coverage that they need. Let me switch to your second question. You talked a little bit about commercial pricing. Of course, we're in the process of developing our pricing for 2021.

Represent about 0.4% of our premium base for March one premiums we collected most of the premiums prior to the colder impact really kicking in in these extensions increased to about 1% of our premium base. So for April one premium so far the amount of extensions have grown through about.

These extensions increased to about 1% of our premium base. For 1 April premiums so far, the amount of extensions have grown to about 3% of our premium base. A little bit elevated, but we're going to continue to work with our customers on payment plans to give them the options for coverage that they need. Let me switch to your second question. You talked a little bit about commercial pricing. Of course, we're in the process of developing our pricing for 2021.

3% of our premium base so.

A little bit Isle elevated but were to continue to work with our customers on payment plans to give them the options for coverage that they need.

Let me switch to your second question, you talked a little bit about commercial pricing of course, we're in the press of developing our pricing for 2021.

David Wichmann: We're closely monitoring the emerging COVID-19 information, including things like the claim experience for our members who have been diagnosed with the disease, as well as the abatement of other procedures. We're going to continue our commitment to pricing to our forward look of costs, including estimates of things like significantly increased testing costs, as well as hopefully the cost of the vaccine. Our view of the 2021 costs will continue to evolve as we learn more about the virus. The majority of our member months, I should note, are really priced after September. So we'll have time to get a better view on what the 2021 environment will look like. And if it's okay, Dirk, one of the more immediate needs as well is what we're doing on pricing for Medicare. So Tim, do you want to take that? Good morning, Justin. Thanks for the question.

John Rex: We're closely monitoring the emerging COVID-19 information, including things like the claim experience for our members who have been diagnosed with the disease, as well as the abatement of other procedures. We're going to continue our commitment to pricing to our forward look of costs, including estimates of things like significantly increased testing costs, as well as hopefully the cost of the vaccine. Our view of the 2021 costs will continue to evolve as we learn more about the virus.

We're closely monitoring the emerging covert 19 information, including things like the claim experience for our members who have been diagnosed with the disease as well as the abatement of other procedures.

We're going to continue our commitment to pricing to our forward look of costs, including estimates of things like significantly increased testing costs as well as hopefully the cost of the vaccine. Our view of the 2021 costs will continue to evolve as we learn more about the virus.

Justin Lake: The majority of our member months, I should note, are really priced after September. So we'll have time to get a better view on what the 2021 environment will look like. If it's okay, Dave, one of the more immediate needs as well is what we're doing on pricing for Medicare. So Tim, do you want to take that?

The majority of our member months I should note are really priced after September. So we'll have time to get a better view on what the 2020 whenever I will look like and if it's okay dark as the one of the more immediate needs as well as what we're doing on pricing for Medicare. So Tim do you want to take.

[Unknown Speaker]: Good morning, Justin. Thanks for the question. As you know, some of the key inputs to the 2021 Medicare Advantage bid process were published by CMS only last week. So really early in the process, and we never harden our position at this stage. In 2021, as always, we strive to provide consistency and benefits to the members that we serve. We have a long track record of stable to improving benefits and have accomplished this in some challenging circumstances in the past.

Good morning, Justin Thanks for that question, Brian as you know from the key input to the 2021 Medicare advantage.

David Wichmann: As you know, some of the key inputs to the 2021 Medicare Advantage bid process were published by CMS only last week. So really early in the process, and we never harden our position at this stage. In 2021, as always, we strive to provide consistency and benefits to the members that we serve. We have a long track record of stable to improving benefits and have accomplished this in some challenging circumstances in the past. The hit dynamics that played out over years are an example. So too early to talk in detail about our benefits and some of the assumptions there, but our clear goal is stability. Stability is always extremely important to our members, and it's especially important at a time like this. Good. Thank you. Next question, please. We'll go next to Steven Valiquette with Barclays. Please go ahead. Great. Thanks. Good morning, everyone.

Process were published by CMS only last week, so really early in the process and we never harden our position at this stage.

In 2021, as always we strive to provide consistency and benefits to the members that we serve.

We have a long track record of stable to improving benefits and accomplish this in some challenging circumstances in the past the hit dynamics that played out over years are an example, so too early to talk in detail about our benefits and some of the assumption there, but our clear our goal is to bill.

[Unknown Speaker]: The hit dynamics that played out over years are an example. Too early to talk in detail about our benefits and some of the assumptons there, but our clear goal is stability. Stability is always extremely important to our members, and it's especially important at a time like this.

City stability at all is extremely important to our members and its especially in part time like that.

Operator: Good. Thank you. Next question, please. We'll go next to Steven Valiquette with Barclays. Please go ahead.

Good. Thank you next question please.

Well go next to Steven Valiquette with Barclays. Please go ahead.

Steven Valiquette: Great. Thanks. Good morning, everyone. Thanks for taking the question. Hope everyone is staying safe. Just to follow up further on the commercial enrollment trends, I guess I'm curious for Q1 2020, curious how that membership shook out relative to your own expectations.

Great. Thanks, Good morning, everyone. Thanks for taking my question I hope everyone is staying safe, but just a follow up further on the commercial enrollment trends and I guess I'm curious for one Q 20.

David Wichmann: Thanks for taking the question. Hope everyone is staying safe. So just to follow up further on the commercial enrollment trends, I guess I'm curious for Q1 2020, curious how that membership shook out relative to your own expectations. If there was any impact you had related to the rise of unemployment in late March in those Q1 numbers, and how are you thinking about unemployment impact on overall membership for the overall company as the year progresses, knowing that you may recapture or gain some members in your Medicaid book as well? Thanks. Dirk, do you want to take that? Yeah. So thanks for the question. As I said in January, we were expecting to be down for both fully insured and self-funded membership in the first quarter, but we expected to gain that membership in both areas as we pace through the year.

Various how that membership.

Shook out relative to your own expectations, there was any impact related to the rising unemployment in late March in those one cucumbers and.

If there was any impact you had related to the rise of unemployment in late March in those Q1 numbers, and how are you thinking about unemployment impact on overall membership for the overall company as the year progresses, knowing that you may recapture or gain some members in your Medicaid book as well?

And how you're thinking about unemployment impact that overall membership.

For the overall company as the year progressive find that you a recapture or gain some members in the Medicaid book as well thanks.

Operator: Thanks. Dave, do you want to take that?

Thank you and take that yes. So.

David Wichmann: Yeah. Thanks for the question. As I said in January, we were expecting to be down for both fully insured and self-funded membership in the first quarter, but we expected to gain that membership in both areas as we pace through the year. With the current COVID crisis, we expect to be down for the year as businesses close and employers reduce payroll associated and driving group attrition. At this early stage, I can't tell you what that'll be.

Thanks for the question as you know as I said in January we were expecting to be down for both fully insured and self funded membership in the first quarter, but we expected to gain that membership in both areas as we pace through the year.

David Wichmann: With the current COVID crisis, we expect to be down for the year as businesses close and employers reduce payroll associated and driving group attrition. At this early stage, I can't tell you what that'll be. Again, I will say we'll continue with our pricing discipline and remain focused on delivering the unique value proposition for both our customers and consumers. We do expect to see, as you noted, increases in Medicaid and our individual products to ultimately offset some of the losses we experience in the Commercial Group business. Okay. Just one quick confirmation question. Just on that $2 billion of accelerated payments to care providers, that's certainly commendable and very much appreciated on the receiving end.

With the current cobot crisis, we expect to be down for the year as business is closed and employers read dues payroll associated in driving group attrition.

At this early stage I I can't tell you what that'll be.

Again, I will say we'll continue with our pricing discipline and remain focused on delivering the unique value proposition for both our customers and consumers. We do expect to see, as you noted, increases in Medicaid and our individual products to ultimately offset some of the losses we experience in the Commercial Group business. Okay. Just one quick confirmation question. Just on that $2 billion of accelerated payments to care providers, that's certainly commendable and very much appreciated on the receiving end.

Again, I will say, we'll continue with our pricing discipline to remain focused on delivering the unique value proposition for both our customers and consumers. We do expect to see as you noted increases in Medicaid and our individual products to ultimately offset some of the losses, we experienced in the quarter for group business.

Okay. That's one of the confirmation question just on that 2 billion of accelerated payments to care providers, that's certainly commendable and very much appreciate it on the receiving end from an accounting standpoint that have any impact on the reported MLL R. 81% in one Q or just the timing that change in European out from a cost recognition sector.

David Wichmann: Just from an accounting standpoint, did that have any impact on the reported MLR of 81% in Q1, or does the timing not change on your P&L from a cost recognition perspective around? This is John Rex here. No, it didn't have any impact on that. Okay. Just wanted to make sure. It could affect our cash flows in the Q2. That's maybe the way to think about it. Next question, please. Thank you, Stephen. And next is A.J. Rice with Credit Suisse. Please go ahead. Hi, everybody. And I also echo hope everyone's staying safe. John, you mentioned in your comments about the slowdown and some recontracting RFPs, and that makes sense that people can't have face-to-face meetings when they're considering big deals. I assume that that would impact potentially group sales on the insurance side, the Optum Rx selling season, and the Optum Insight selling.

Just from an accounting standpoint, did that have any impact on the reported MLR of 81% in Q1, or does the timing not change on your P&L from a cost recognition perspective around?

John Rex: This is John Rex here. No, it didn't have any impact on that.

Hi, This is John Rex there no it didnt have any impact on that.

Steven Valiquette: Okay. Just wanted to make sure.

Okay, just wanted to make sure it affects our cash flows in the Q2.

John Rex: It could affect our cash flows in the Q2. That's maybe the way to think about it. Next question, please. Thank you, Stephen.

The way to think about it.

A question. Please thank you Stephen.

And next is AJ rice with credit Suisse. Please go ahead.

Operator: Next is A.J. Rice with Credit Suisse. Please go ahead.

A.J. Rice: Hi, everybody. I also echo hope everyone's staying safe. John, you mentioned in your comments about the slowdown and some recontracting RFPs, and that makes sense that people can't have face-to-face meetings when they're considering big deals. I assume that that would impact potentially group sales on the insurance side, the Optum Rx selling season, and the Optum Insight selling.

Hi, everybody in.

So echo of everyone, saying, they Don you mentioned in your comments about the.

Slowdown in some regions contracting RFP and then make sense that people can have face to face.

Meetings, when they're considering big deals.

I assume that that would impact essentially group sales on the insurance side, the optumrx selling season and the Optum inside.

Selling can you just maybe flush out a little bit more.

David Wichmann: Can you just maybe flesh out a little bit more of how big an impact that is, what you're seeing in those different businesses with respect to large-sale activity? So A.J., it's Dave. I'm the one that said that. So yeah, as this hit, there was a lot of activity in the commercial markets, let's call it, where folks were trying to get their employees to a safe place, work at home, and kind of reestablish their operations as you would expect. It isn't as if everything dried up, but it did slow down a lot. And at least as it relates to the commercial markets, I would expect that that'll come back online here as we get to the other side of COVID-19, or at least for a period of time. Where I think the other place I'd like maybe to have commentary on would be with Andrew Witty.

Can you just maybe flesh out a little bit more of how big an impact that is, what you're seeing in those different businesses with respect to large-sale activity?

How big it impact that is what would what you're seeing in those different businesses with respect to large sale activity.

So a AJ, it's Dave I.

David Wichmann: A.J., it's Dave. I'm the one that said that. Yeah, as this hit, there was a lot of activity in the commercial markets, let's call it, where folks were trying to get their employees to a safe place, work at home, and kind of reestablish their operations as you would expect. It isn't as if everything dried up, but it did slow down a lot. At least as it relates to the commercial markets, I would expect that that'll come back online here as we get to the other side of COVID-19, or at least for a period of time.

To that so.

Yes. It is just as this head there was a lot of activity in the.

In the commercial markets, let's call it where folks were trying to get there employees to safe place work at home and to kind of reestablished our operations as you would expect.

It isn't as if everything dried up but it did slow down a lot.

And you know as leases it relates to the commercial markets.

I would expect that.

That will come back online here as we get to the other side of code 19 or at least for for a period of time.

Where I think the other place I'd like maybe to have commentary on would be with Andrew Witty. Andrew might want to talk a little bit about the impact of the COVID-19 on the appetite for health systems, health plans, and others and what their availability has been for business as well.

Where I think the other place I'd like to have commentary on would be a with Andrew witty of Andrew might want to talk a little bit about the impact of.

David Wichmann: Andrew might want to talk a little bit about the impact of the COVID-19 on the appetite for health systems, health plans, and others and what their availability has been for business as well. Yep. Thanks very much, Dave. And AJ, thanks for the question. As Dave said, a very interesting situation. I would say pipeline opportunities for Rx and for OptumInsight, very strong, but timings of meetings obviously disrupted by the COVID crisis, as Dave just referred to. But focus really just now on the OptumInsight portfolio and pipeline. We're actually seeing significant engagement and interest. I'd say actually a step up in terms of general interest for innovation of how to start thinking through to improve healthcare delivery, how to try and improve their economics as different players in the system become under pressure.

Of the covered 19 on the appetite for health systems, and health plans and others and what their availability has been for business as well.

John Rex: Yep. Thanks very much, Dave. And AJ, thanks for the question. As Dave said, a very interesting situation. I would say pipeline opportunities for Rx and for OptumInsight, very strong, but timings of meetings obviously disrupted by the COVID crisis, as Dave just referred to. Focus really just now on the OptumInsight portfolio and pipeline. We're actually seeing significant engagement and interest.

Yes, thanks, very much David I, Jay Thanks for the question.

He says is a.

Very interesting situation I would say pipeline opportunities for our Exxon for Optuminsight very strong, but timing exalt meetings, obviously disrupted by the by the coking crisis as Dave just refer to a focus really just now on the Optuminsight portfolio on pipeline, we're actually seeing significant.

Engagement and interest I'd say I see a step up in terms of general interest for innovation of have to start thinking through to improve health care delivery, how to try and improve their economics those different players in the system become under pressure, we've seen particularly mall in.

I'd say actually a step up in terms of general interest for innovation of how to start thinking through to improve healthcare delivery, how to try and improve their economics as different players in the system become under pressure. We've seen particularly more and more interest in the John Muir Health-type deal that we announced last year, the more comprehensive engaged system. Timing is unpredictable. We just don't know.

David Wichmann: We've seen particularly more and more interest in the John Muir Health-type deal that we announced last year, the more comprehensive engaged system. So timing is unpredictable. We just don't know. But in terms of appropriateness of our offering for the needs that we're hearing our clients and customers express, I feel very good about that. And I would also say the team led by Robert Musslewhite at OptumInsight are working super hard in terms of innovating our offerings in response to some of the new needs that are being expressed by our clients at this time. So I would say overall feels like a continued meaningful opportunities for OptumInsight. Timing, unpredictable, and we have to wait for a little bit more time to go by before we can be certain of when some of these things get closed. Thank you, A.J.

More and more interest in the jump mule type deal that we announced last year the more comprehensive engage system. So.

Timing is unpredictable, we just don't know, but in terms of appropriateness of offering both the needs that were hearing all clients and customers Express feel very good about about.

In terms of appropriateness of our offering for the needs that we're hearing our clients and customers express, I feel very good about that. I would also say the team led by Robert Musslewhite at OptumInsight are working super hard in terms of innovating our offerings in response to some of the new needs that are being expressed by our clients at this time. So I would say overall feels like a continued meaningful opportunities for OptumInsight.

I would also save it seemed like Robert Musslewhite Optuminsight are working Super hauling terms all innovation our offerings in response to some of the new needs a being expressed by applying so at this time, so I would say overall feels like a.

Continued meaningful opportunities for Optuminsight time in unpredictable and we have to wait for a little bit more time to go Vod before we can be said when some of these things get get close.

Timing, unpredictable, and we have to wait for a little bit more time to go by before we can be certain of when some of these things get closed. Thank you, A.J.

Thank you AJ. So my view is that we'll see a you know a strong demand for optums value proposition once we get to the other side of this situation.

David Wichmann: So my view is we'll see a strong demand for Optum's value proposition once we get to the other side of this situation. Next question, please. Okay. The next question is from Kevin Fishbeck with Bank of America. Please go ahead. Great. Thanks. I appreciate the commentary about the seasonality in MLR, lower in Q2 and then higher in the back half of the year. Do you guys have any, just general thoughts and framework about whenever things do get back to normal? I know that's still a moving target, but how much of what is deferred actually comes back when you see disruptions like this, and how long does it take for that deferred volume to actually come back into the system? It'll be very difficult for us to project that at this stage given all the uncertainties that are out there, Kevin. It's a really great question.

David Wichmann: My view is we'll see a strong demand for Optum's value proposition once we get to the other side of this situation. Next question, please.

Next question please.

Operator: Okay. The next question is from Kevin Fischbeck with Bank of America. Please go ahead.

Okay.

And then next question from Kevin Fischbeck with Bank of America. Please go ahead.

Kevin Fischbeck: Great. Thanks. I appreciate the commentary about the seasonality in MLR, lower in Q2 and then higher in the back half of the year. Do you guys have any, just general thoughts and framework about whenever things do get back to normal? I know that's still a moving target, but how much of what is deferred actually comes back when you see disruptions like this, and how long does it take for that deferred volume to actually come back into the system?

Great. Thanks, I appreciate the commentary about the seasonality and MLL R.

Lower in Q2, and then higher in the back half of the year do you guys have any yes general thoughts on framework about whenever things do you get back to normal I know thats still a moving target.

How much of what is deferred actually comes back where you see disruptions like this and how long does it take for that deferred volume to actually come back into the system.

You know very difficult for US a project that at this stage given all the uncertainties that are out there Kevin. It's a really great question is something that we're going to monitor closely and I think you know by time, we get to the second quarter call, we'll probably have a better better view of all that John do you have anything you want to add just add this situation is just.

David Wichmann: It'll be very difficult for us to project that at this stage given all the uncertainties that are out there, Kevin. It's a really great question. It's something that we're going to monitor closely. I think by the time we get to the Q2 call, we'll probably have a better view of all that. John, do you have anything you want to add?

David Wichmann: It's something that we're going to monitor closely. I think by the time we get to the Q2 call, we'll probably have a better view of all that. John, do you have anything you want to add? I would just add that this situation is just so different than anything we've seen before. When we've looked back at prior situations when you've seen a cessation in demand, it's a different event. It's a hurricane. It's some other event where the system shuts down. And when the system opens up, that demand comes back quite quickly, actually, as long as everything's up and operating. But this is one of these times where we just haven't been through it before either.

John Rex: I would just add that this situation is just so different than anything we've seen before. When we've looked back at prior situations when you've seen a cessation in demand, it's a different event. It's a hurricane. It's some other event where the system shuts down. When the system opens up, that demand comes back quite quickly, actually, as long as everything's up and operating. This is one of these times where we just haven't been through it before either.

So different than anything we've seen before.

When we look back at Pryor situations, when you've seen a cessation demand. It's a different event, it's a not at the hurricane at some other event, where the system shuts down and and with the system opens up that demand comes back quite quickly actually as long as everything up and operating.

But this is one of these up this is one of the time to where we just haven't been through it before either so in terms of us trying to step out and understand.

In terms of us trying to step out and understand both when systems are up, open, and operating, when comfort levels are there to reengage with systems, are elements that we certainly haven't experienced yet. I wouldn't want to step out and kind of predict that the past events that we've seen when something like this has occurred are predictive at all of that. It'll have a lot to do with whether it comes back in the fall, what the timeframes are wearing off, whether the elective procedures come back online, at what pace.

David Wichmann: So, in terms of us trying to step out and understand both when systems are up, open, and operating, when comfort levels are there to reengage with systems, are elements that we certainly haven't experienced yet. And so I wouldn't want to step out and kind of predict that the past events that we've seen when something like this has occurred are predictive at all of that. So it'll have a lot to do with whether it comes back in the fall, what the timeframes are wearing off, whether the elective procedures come back online, at what pace. There's just so many unknowns right now, Kevin. So I wish we could answer your question more fully, and we hope to be able to provide you guys more guidance going forward. Next question, please. And we'll go next to Josh Raskin with Nephron Research. Please go ahead. Thanks. Good morning.

Both when systems are up open and operating when comfort levels are there to reengage with systems are elements that.

We certainly haven't experienced yet and so I wouldn't want to step out and kind of predicts that the past.

At the past events that we've seen when something like this has occurred our our predictive at all of that.

So it'll have a lot to do with whether it comes back in the fall what time frames are wearing off whether they.

Elective procedures come back online and what pace. There's there's just so many unknowns, but right now Kevin So I wish we could answer your question more fully.

There's just so many unknowns right now, Kevin. I wish we could answer your question more fully, and we hope to be able to provide you guys more guidance going forward. Next question, please.

And we hope to be able to provide you guys or guidance going forward.

Next question please.

And we'll go next to Josh Raskin with.

Operator: We'll go next to Josh Raskin with Nephron Research. Please go ahead.

Nephron research. Please go ahead.

Joshua Raskin: Thanks. Good morning. Just wanted. First one was a clarification. When you're saying guidance is unchanged despite the moving parts and the metrics moving, is that just at this point you view the COVID impacts to be offsetting, or is this just simply we're going to wait to change anything overall? Then my real question is just on the physician groups. You talked about two-thirds of the payments being capitated, so obviously that's a huge help from a liquidity perspective to the providers.

Thanks, Good morning.

David Wichmann: Just wanted. First one was a clarification. When you're saying guidance is unchanged despite the moving parts and the metrics moving, is that just at this point you view the COVID impacts to be offsetting, or is this just simply we're going to wait to change anything overall? And then my real question is just on the physician groups. You talked about two-thirds of the payments being capitated, so obviously that's a huge help from a liquidity perspective to the providers. But is that two-thirds of the total dollars of the OptumCare physicians, or are you talking about just two-thirds of the dollars from UnitedHealthcare to the OptumCare providers? It's across the entire business, Josh. Yeah, Josh, that's John Rex. So two-thirds of OptumHealth revenues are premium revenues, capitated revenues. So obviously if there's deferrals of services, their utilization is lower against their capitated base, as an example.

Just wanted especially the clarification when you're saying guidance is unchanged. Despite the moving parts and the metrics moving is that just at this point you you view the cobot impacts to be offsetting or is this just simply we're going to wait to change anything overall then my real question you said on the physician groups you talked about two thirds.

The payments being Capitated. So obviously, that's a huge helps from a liquidity perspective to the providers, but does that two thirds of that total dollars of the optumcare physicians or are you talking about just two thirds of the dollars from United Health care to the Optumcare providers.

Is that two-thirds of the total dollars of the OptumCare physicians, or are you talking about just two-thirds of the dollars from UnitedHealthcare to the OptumCare providers? It's across the entire business, Josh.

It's across the entire business, Josh Josh as John Rex. So two thirds of Optumhealth revenues, our risk our premium revenues Capitated revenues.

John Rex: Yeah, Josh, that's John Rex. Two-thirds of OptumHealth revenues are premium revenues, capitated revenues. Obviously if there's deferrals of services, their utilization is lower against their capitated base, as an example. As it relates to the guidance going forward, based upon what we see at this stage, we're maintaining that guidance.

Okay. So that so obviously theres a if there is.

Deferrals of services, you know there utilizations lower against their their Capitated base as an example.

David Wichmann: So as it relates to the guidance going forward, based upon what we see at this stage, we're maintaining that guidance. There's really not a whole lot more to be said about it. What I think John articulated well, which would suggest that the elective deferrals today are offsetting COVID-19 costs, and what we committed to today is to the extent that that drives any imbalances in terms of performance or economics across the system, we're committed to rectifying those as swiftly as possible. Obviously, we have to be thoughtful about how we go about that, but that's one of the commitments that we're making today. Josh, clearly we have a number of surveillance tools that we use in kind of both the data and the direct communication. We have members, patients, our clinical workers, and all these are going to continue to inform our response and our forward planning.

So in as it relates to the guidance going forward are based upon what we see at this stage, we're maintaining that guidance, there's really not a whole lot more to be said about it.

There's really not a whole lot more to be said about it. What I think John articulated well, which would suggest that the elective deferrals today are offsetting COVID-19 costs, and what we committed to today is to the extent that that drives any imbalances in terms of performance or economics across the system, we're committed to rectifying those as swiftly as possible. Obviously, we have to be thoughtful about how we go about that, but that's one of the commitments that we're making today.

But what you what I think John articulated well, which would suggest that the elective deferrals today are offsetting covert 19 costs and what we committed to to debate as to the except that that.

Drives any imbalances in terms of.

Paul performance or economics across the system, we're committed to rectifying those as swiftly as possible.

Actually we have to be thoughtful about how we go about that but it is.

That's one of the commitments that were make it today, Josh I clearly we have a you know numbers surveillance tools that we use and kind of both the data that direct communication. We have members patients our clinical workers and all these are going to continue to inform our response in our forward planning.

Josh, clearly we have a number of surveillance tools that we use in kind of both the data and the direct communication. We have members, patients, our clinical workers, and all these are going to continue to inform our response and our forward planning. Thank you, Josh. Next question, please.

Thank you Josh next question please.

David Wichmann: Thank you, Josh. Next question, please. And we'll go next to Ralph Giacobbe with Citi. Please go ahead. Thanks. Good morning. Just wanted to clarify and understand the commentary around sort of that, what you just said in terms of ensuring financial imbalances are reconciled. Does that mean potentially rebating back this year beyond any MLR triggers, or just hoping to understand the context a bit more there? Thanks. Yeah, it could be. So there's a number of things to take into consideration. There were challenges with health system funding and liquidity at the beginning, so we put $2 billion to work. There was clearly homelessness and insecurity issues evolving, so we put a fair amount of dollars to that.

We'll go next to Ralph Giacobbe with Citi. Please go ahead.

And we'll go next to Ralph Jacoby with Citi. Please go ahead.

Ralph Giacobbe: Thanks. Good morning. Just wanted to clarify and understand the commentary around sort of that, what you just said in terms of ensuring financial imbalances are reconciled. Does that mean potentially rebating back this year beyond any MLR triggers, or just hoping to understand the context a bit more there?

Thanks. Good morning, just wanted to kind of take clarifying and understand the commentary around sort of that what you just said in terms of ensuring financial and balances are reconciled does that mean potentially rebating back this year beyond any MLL R triggers or you're just hoping to understand the context a bit more there. Thanks.

David Wichmann: Thanks. Yeah, it could be. There's a number of things to take into consideration. There were challenges with health system funding and liquidity at the beginning, so we put $2 billion to work. There was clearly homelessness and insecurity issues evolving, so we put a fair amount of dollars to that. There was a shortage of PPE broadly across the country, including with our own care delivery capacities, and we remained resolved and committed to making sure that not only our health workforce, but the health workforce broadly stays protected.

Yeah. It could be you know so there's a number of things to take into consideration you know there was a challenges with health system funding and liquidity at the beginning so we put $2 billion to work.

There was clearly homelessness and insecurity issues evolving so we put a fair amount of dollars to that there was a shortage of P.P. broadly across the country, including with our own care delivery capacity. So and we were remain resolved and committed to making sure that not only our health workforce, but the health workforce broadly based protein.

David Wichmann: There was a shortage of PPE broadly across the country, including with our own care delivery capacities, and we remained resolved and committed to making sure that not only our health workforce, but the health workforce broadly stays protected. So not only did we source PPE, but we also focused on generating new and innovative testing capacities that would resolve PPE use as well as keep broadly the health workforce safe across the globe. So those are all good examples of what I'll characterize as imbalances that occurred throughout. And obviously, there's the possibility of financial imbalances to occur as well. And so as we think about those, employers are having to furlough employees. They have no revenues to date. They need and want to keep people in coverage. And it very well could be that under the circumstances, deferrals of services outweigh COVID-19 costs.

Affected so not only did we source PB, but we also focused on generating new and innovative testing capacities that would resolve P.P.E. use as well as keep broadly the health workforce safe across the globe.

Not only did we source PPE, but we also focused on generating new and innovative testing capacities that would resolve PPE use as well as keep broadly the health workforce safe across the globe. Those are all good examples of what I'll characterize as imbalances that occurred throughout. Obviously, there's the possibility of financial imbalances to occur as well. As we think about those, employers are having to furlough employees. They have no revenues to date. They need and want to keep people in coverage.

So those are all the good examples of what I'll characterize is oh imbalances that occurred.

Throughout and obviously, there's the possibility of financial imbalances to occur as well and so as we think about those employers are having a furlough employees. They have no revenues today, they eat they need and want to keep people in coverage and a very well could be that in under this.

It very well could be that under the circumstances, deferrals of services outweigh COVID-19 costs. In those situations, not only would there be normal MLR rebate situations, but we very well may well find ourselves in a position where we can provide some additional premium relief to those clients. It remains to be seen whether or not we are able to do so and to what extent, but it is something that we're deeply committed to doing. Next question, please.

Circumstances.

Deferrals of services outweigh covert 19 costs in those situations not only what they'd be normal M.L.R. rebate situations, but we very much.

David Wichmann: In those situations, not only would there be normal MLR rebate situations, but we very well may well find ourselves in a position where we can provide some additional premium relief to those clients. It remains to be seen whether or not we are able to do so and to what extent, but it is something that we're deeply committed to doing. Next question, please. Next question is from Scott Fidel with Stephens. Please go ahead. Hi, thanks. Good morning, everyone. My question is just thinking about the individual business and your current footprint there, and if we assume that the economic impacts persist for a period of time and that impacts commercial group enrollment, just interested in your thinking about potential appetite for reentering the ACA exchange markets that you had exited.

May well I find ourselves in a position where we can provide some additional premium relate to those to those clients.

It remains to be see whether or not we are able to do sell in to what extent.

Thing that we're deeply committed to doing.

Next question please.

Operator: Next question is from Scott Fidel with Stephens. Please go ahead.

Your next question is from Scott Fidel with Stephens. Please go ahead.

Scott Fidel: Hi, thanks. Good morning, everyone. My question is just thinking about the individual business and your current footprint there, and if we assume that the economic impacts persist for a period of time and that impacts commercial group enrollment, just interested in your thinking about potential appetite for reentering the ACA exchange markets that you had exited.

Hi, Thanks, good morning, everyone.

My question is just I'm thinking about the individual business and your current footprint, there and if we assume that.

Yeah economic impacts persist for a period of time in that impacts commercial group enrollment just interested in your thinking about potential appetite for re entering.

She exchange markets.

Got you I'd actually Ed and I guess, just given the timing of when you need to submit those filings I would assume that that's probably decision that I'm, even though there's lot of uncertainty right. Now you guys are probably going have to start thinking about right now and just interested in how you thought process right now and.

I guess just given the timing of when you need to submit those filings, I would assume that that's probably a decision that even though there's a lot of uncertainty right now, you guys are probably going to have to start thinking about right now and just interested in how your thought process is right now on that.

David Wichmann: I guess just given the timing of when you need to submit those filings, I would assume that that's probably a decision that even though there's a lot of uncertainty right now, you guys are probably going to have to start thinking about right now and just interested in how your thought process is right now on that. What you can count on is we'll make no snap reactions to this situation in terms of making strategic decisions about going into markets. We have given this considerable thought leading up to this crisis and through it all. Dirk, would you want to comment? Yeah, sure. Thanks, Dave. Yeah, we began to look at participating in more exchanges prior to the COVID-19 crisis.

David Wichmann: What you can count on is we'll make no snap reactions to this situation in terms of making strategic decisions about going into markets. We have given this considerable thought leading up to this crisis and through it all. Decker, would you want to comment?

Oh, what you can kind of this will make no snap reactions to this situation in terms of making strategic decisions about loop going into markets, but we haven't given this considerable thought leading up to this crisis and through it all there would you want to comment yes sure. Thanks, Dave Yeah, we began to look at participating in more exciting in works.

Wyatt Decker: Yeah, sure. Thanks, Dave. Yeah, we began to look at participating in more exchanges prior to the COVID-19 crisis. We're still in the process of going through market by market, evaluating the relative efficiency of our network, our ability to compete, and states where we would like to extend Medicaid. To be honest with you, we'll have a more hardened view of our individual exchange intentions on the Q2 Earnings Call. Okay. Next question, please.

Changes prior to the Cobot 19 crisis, and so but we're still in the process of going through market by market evaluating the relative efficiency of our network our ability to compete and states. We would like to extend Medicaid you asked me the will have a more hardened view of our industry individual exchange and intentions on the second.

David Wichmann: So we're still in the process of going through market by market, evaluating the relative efficiency of our network, our ability to compete, and states where we would like to extend Medicaid. To be honest with you, we'll have a more hardened view of our individual exchange intentions on the second quarter earnings call. Okay. Next question, please. We'll go next to Ricky Goldwasser with Morgan Stanley. Please go ahead. Yeah, hi. Good morning. So one follow-up question and a real question. So first of all, I understood obviously that it's very difficult to predict now when procedures are going to come back.

Quarter earnings call.

Okay next question please.

Operator: We'll go next to Ricky Goldwasser with xMorgan Stanley. Please go ahead.

And we'll go next to Ricky Goldwasser with a goal Morgan Stanley. Please go ahead.

Ricky Goldwasser: Yeah, hi. Good morning. One follow-up question and a real question. First of all, I understood obviously that it's very difficult to predict now when procedures are going to come back. When you think about the capacity of the system to catch up on elective procedures, if we're going to see things coming back in the fall or this is just kind of like a Q2 phenomenon, how much capacity is there to catch up by end of year versus what might spill over to second quarter? The follow-up question was on the pricing.

Yeah, Hi, good morning, [noise] so.

One follow up question [laughter] real question.

So first of all I understood, obviously, it's very difficult to predict now let's see.

When procedures are going to come back, but when you think about the capacity of [laughter] to catch up on in that gets procedures.

David Wichmann: But when you think about the capacity of the system to catch up on elective procedures, if we're going to see things coming back in the fall or this is just kind of like a Q2 phenomenon, how much capacity is there to catch up by end of year versus what might spill over to second quarter? And the follow-up question was on the pricing. Your membership guidance provided in the Q4 assumed some level of mid-year renewals. So any color about pricing for mid-year in light of all the puts and takes of the situation? Yeah. Sure. I'll give the second question to Dirk. The first, we just don't know exactly when elective deferrals will come online and what the overall capacities are broadly for them to come online given the circumstances.

HM.

Yes, we're going to see things coming back into fall or this is just kind of again I took your phenomena, how much capacity east there to catch up by end of year versus what might spill phase two second quarter.

And at the phone question was on pricing and what your membership guidance provided indifferent acutely seem some some that'll make hearing meals. So any color about pricing from mid year in light of all the puts and takes.

Your membership guidance provided in the Q4 assumed some level of mid-year renewals. Any color about pricing for mid-year in light of all the puts and takes of the situation?

Oh, that's changing.

David Wichmann: Yeah. Sure. I'll give the second question to Decker. The first, we just don't know exactly when elective deferrals will come online and what the overall capacities are broadly for them to come online given the circumstances. I think you just think about the evolution of this disease, how fast it came on in the United States, which is where 95% of our revenues are across our company.

Yeah.

Sure I'll give the second question to during the first we just don't know exactly when elected deferrals will come online and what the overall capacities are.

Broadly for for them to come on line given the circumstances I think you just think about the evolution of this disease, how fast it came on in the United States, which is where 95% of our revenues are across our company, but think about the evolution of that and then think about the tail.

David Wichmann: I think you just think about the evolution of this disease, how fast it came on in the United States, which is where 95% of our revenues are across our company. But think about the evolution of that, and then think about the tail, and then the possibility of it coming back or not, and the timing of a vaccine, and a number of other things that need to be taken into consideration. They just create an uncertain future to get specific around things, our ability to respond to questions like you just asked. So I apologize that we can't, but it's just very difficult for us to give you the responses to those kinds of details. Dirk, do you want to talk about mid-years? Yeah.

Think about the evolution of that, and then think about the tail, and then the possibility of it coming back or not, and the timing of a vaccine, and a number of other things that need to be taken into consideration. They just create an uncertain future to get specific around things, our ability to respond to questions like you just asked. I apologize that we can't, but it's just very difficult for us to give you the responses to those kinds of details. Decker, do you want to talk about mid-years?

And then the possibility of a coming back or not.

And the timing of the vaccine in a number of other things that need to be taken into consideration that they just create a an uncertain future to get specific around things you know our ability to respond to questions I like you just like it just asked so I apologize if we can't but it is very difficult for us to give you that the.

Responses to those kinds of details.

Dirty when talking about mid years, Yeah, well you know the like I said to begin with the majority of our member one months to start off with a repricing for a than you know for the majority of our member months for 2021 are gonna be priced disruptive. After September so we'll have a little bit better view now you know many of the mid or your review renewals says.

Wyatt Decker: Yeah. Well, like I said to begin with, the majority of our member months to start off with, or we're pricing for the majority of our member months for 2021, are going to be priced after September. We'll have a little bit better view. Now, many of the mid-year renewals have sort of gone out the door. That's sort of the scenario we're in.

David Wichmann: Well, like I said to begin with, the majority of our member months to start off with, or we're pricing for the majority of our member months for 2021, are going to be priced after September. So we'll have a little bit better view. Now, many of the mid-year renewals have sort of gone out the door. So that's sort of the scenario we're in.

Sort of going out the door. So that's sort of the scenario we're in.

Let's say it just as it relates to our care delivery practices, you know we've been evolving our the ways in which we provide care and ensuring that you know a chronic members who have also deferred treatment that they have the option to get treatment through these tele health capacities that way in which we're working on optumrx to make sure that they are compliant with there.

David Wichmann: And the last thing I'd just say as it relates to our care delivery practices, we've been evolving the ways in which we provide care and ensuring that our chronic members who have also deferred treatment, that they have the option to get treatment through these telehealth capacities, the way in which we're working at OptumRx to make sure that they are compliant with their pharmacy solutions, and the way in which general pharmacies are available in community mental health centers and federally qualified health centers to ensure that those patients who have high needs are attended to as well. So there's evolutions that are going on underneath what's happened here to make sure that we're opening up capacities in new and different ways.

The last thing I'd just say as it relates to our care delivery practices, we've been evolving the ways in which we provide care and ensuring that our chronic members who have also deferred treatment, that they have the option to get treatment through these telehealth capacities, the way in which we're working at OptumRx to make sure that they are compliant with their pharmacy solutions, and the way in which general pharmacies are available in community mental health centers and federally qualified health centers to ensure that those patients who have high needs are attended to as well.

Pharmacy solutions and the way in which Genoa pharmacies are available and community mental health centers and federally qualified health centers to ensure that are those.

Patients who have high needs are tended to as well. So there's evolutions that are going on underneath.

There's evolutions that are going on underneath what's happened here to make sure that we're opening up capacities in new and different ways. Then the only other thing I would say is that when we get to the other side of COVID-19, our operations are all standing ready to respond to the demand that might be there. Our ambulatory surgical care centers will be available immediately to respond to the demands, the pent-up demands that will exist for joint replacements and the number of other things that they do so well.

What you know, what's what's happened here to make sure that we're opening up capacities in new and different ways and then the only other thing I would say is that when we get to the other side of Coca 19 art operations are all standing ready.

David Wichmann: And then the only other thing I would say is that when we get to the other side of COVID-19, our operations are all standing ready to respond to the demand that might be there. So our ambulatory surgical care centers will be available immediately to respond to the demands, the pent-up demands that will exist for joint replacements and the number of other things that they do so well. So part of what we're doing is making sure that when we get to the other side, we're ready. Not only ready to respond to the immediate demands, but also we're ready to adjust and evolve our business strategies to respond to the things that we've learned through this crisis. Thank you. Next question, please. And next is Charles Rhyee with Cowen. Please go ahead. Yeah. Thanks. Same question.

To respond to the demand that might be there. So our ambulatory surgical sir care centers will be available immediately.

To respond to the demands that pent up demand that will exist.

For.

You know joint replacements, and you know the number of other things that they do so well so part of what we're doing is making sure that when we get to the other side we're ready.

Part of what we're doing is making sure that when we get to the other side, we're ready. Not only ready to respond to the immediate demands, but also we're ready to adjust and evolve our business strategies to respond to the things that we've learned through this crisis. Thank you. Next question, please.

Not only ready to respond to the immediate demands, but also we're ready to adjust.

And evolve our business strategies to respond to the things that we've learned through this crisis.

Thank you next question please.

And next is Charles Rhyee with Cowen. Please go ahead.

Operator: Next is Charles Rhyee with Cowen. Please go ahead.

Yeah. Thanks. Same question.

Yeah. Thanks. This thing question. So I know you guys have been hesitant.

David Wichmann: So I know you guys have been hesitant to put sort of hard numbers around how you expect elective procedures to sort of rebound back, particularly in the back half of this year. But Johnson & Johnson on its earnings call yesterday noted that there was a slide in the presentation. Elective procedure volumes to be down about 55% to 80% in Q2, but Q3 also down about 40% with a rebound really above baseline coming in Q4 of around 15%. This seems sort of more conservative in terms of a rebound than you're kind of noting. Maybe can you kind of give us some of your thoughts on what's behind your assumptions or your thoughts on how they're looking at the situation perhaps? John, I know you said that this is not like other situations.

David Wichmann: So I know you guys have been hesitant to put sort of hard numbers around how you expect elective procedures to sort of rebound back, particularly in the back half of this year. Johnson & Johnson on its earnings call yesterday noted that there was a slide in the presentation. Elective procedure volumes to be down about 55% to 80% in Q2, but Q3 also down about 40% with a rebound really above baseline coming in Q4 of around 15%. This seems sort of more conservative in terms of a rebound than you're kind of noting.

So hard numbers around how you expect.

I'd like to seizures, just sort of rebound back <unk>, particularly the back after this year, but.

Johnson and Johnson on its on his call yesterday noted that.

There was a side on the presentation I'd like to procedure volumes to be down about 65, 80% second quarter, a third quarter sales are down about 40% with a rebound really above baseline in the coming in for Q.

Around 15% does this seems a sort of more conservative in terms of a rebound and then you'll kind of noting or maybe you can you kind of give us some of your thoughts on what's behind your assumptions and or your thoughts on how they're looking out the situation, perhaps and and then you know John I know you said that just is not.

Maybe can you kind of give us some of your thoughts on what's behind your assumptions or your thoughts on how they're looking at the situation perhaps? John, I know you said that this is not like other situations. Obviously, natural disasters, things bounce back fairly quickly because the demand hasn't really gone away. Is maybe looking at something like the financial crisis a better proxy than for how we might think about elective procedures kind of coming back?

Like other situations, obviously natural disasters things bounce back fairly quickly because demand hasn't really gone away.

David Wichmann: Obviously, natural disasters, things bounce back fairly quickly because the demand hasn't really gone away. Is maybe looking at something like the financial crisis a better proxy than for how we might think about elective procedures kind of coming back? Thanks. Sure. Hey, thanks, Charles. So a couple of thoughts on that. I won't opine on anyone else's, any other companies' comments they put out there, but let me just kind of try to give you a few of our comments. I think one of the very important things to keep in mind in this extremely different situation are the codependencies and the interplays across a business like us in terms of all the things you're describing.

It is maybe looking at something like the financial crisis, a better proxy then well how we might think about elective procedures kind of coming back. Thanks.

John Rex: Thanks. Sure. Hey, thanks, Charles. A couple of thoughts on that. I won't opine on anyone else's, any other companies' comments they put out there, but let me just kind of try to give you a few of our comments. I think one of the very important things to keep in mind in this extremely different situation are the codependencies and the irplays across a business like us in terms of all the things you're describing.

Sure Hey, Thanks Charles.

A couple of thoughts and then I'm going to pine on anyone else's any other companies I comment they put out there, but let me just kind of try to give you a few our comments I think one of the.

Very important things to keep in mind and this.

Extremely different situation are the co dependencies, and the interplays across a business like us when you're in terms of all the things you're describing.

And so when you talk about there's a lot we don't right no right now and I were actually not going to try to make calls and some of those keep in mind that there are factors that that move differently in a diverse enterprise like this.

David Wichmann: And so when we talk about, there's a lot we don't know right now, and we're actually not going to try to make calls on some of those. Keep in mind that there are factors that move differently in a diverse enterprise like this: intensity levels, durations of the virus impact, also the duration and intensity of the deferral of elective procedures. So there are factors in there as you go across the range of options that we consider, the multivariable factors that we look at when considering our outlook, that interplay. And so that informs kind of how we think about how we just think about trying to consider different ways that things would play out.

And so when we talk about, there's a lot we don't know right now, and we're actually not going to try to make calls on some of those. Keep in mind that there are factors that move differently in a diverse enterprise like this: intensity levels, durations of the virus impact, also the duration and intensity of the deferral of elective procedures. There are factors in there as you go across the range of options that we consider, the multivariable factors that we look at when considering our outlook, that interplay.

Intensity levels of duration.

Of of the virus impact also the duration intensity of the of the deferral of elective procedures. So there are factors in there as you go across the range of options that we consider the multivariable factors that we look at when considering our outlook that interplay and so that informs kind of how we think about how we.

That informs kind of how we think about how we just think about trying to consider different ways that things would play out. Certainly, Dave did mention that, yes, and I mentioned also that we have seen declines in procedural volumes, and we saw those starting kind of late in March, and those continued into April.

He just think about trying to <unk>.

Consider different different different ways that things would play out I'm certainly Dave did mentioned that you, yes, and I mentioned also that we did you know we have seen declines in in a procedural volumes and do we see we saw those starting kind of late in March.

David Wichmann: Certainly, Dave did mention that, yes, and I mentioned also that we have seen declines in procedural volumes, and we saw those starting kind of late in March, and those continued into April. But trying to use some of these other examples, even as you mentioned the financial crisis as a measure, from our perspective, aren't necessarily still measures that we think are all that instructive because we haven't seen a cessation in activity before like this. And the reasons for the cessation in activity are very, very different. And the duration of those also quite different. So I don't know that I'd even go to that one as kind of the instructive measure for us. Great. Thank you, John. All right. Thank you. Next question, please. And we'll go next to Dave Windley with Jefferies. Please go ahead. Hi. Good morning.

And and those continued into April.

Trying to use some of these other examples, even as you mentioned the financial crisis as a measure, from our perspective, aren't necessarily still measures that we think are all that instructive because we haven't seen a cessation in activity before like this. The reasons for the cessation in activity are very, very different. The duration of those also quite different. I don't know that I'd even go to that one as kind of the instructive measure for us.

But.

Trying to use some of these other examples even as you mentioned, a though the financial crisis as a.

As a measure.

You know from from our perspective aren't necessarily still measures that we think are all that instructive.

Because we haven't seen a cessation in activity before like that.

And the reasons for this and station and activity are very very different and the duration of those also quite different so I don't know that I'd, even go to that one as kind of as the instructive on measure for us.

Charles Rhyee: Great. Thank you, John.

Great. Thank you John Thank you Ashley please.

John Rex: All right. Thank you. Next question, please.

And we'll go next to Dave Windley with Jefferies. Please go ahead.

Charles Rhyee: We'll go next to Dave Windley with Jefferies. Please go ahead.

Dave Windley: Hi. Good morning. Thank you for taking my questions. My question's on capital deployment. I wondered if you might comment on how the crisis is impacting your thinking around that, with maybe two opposing specific thoughts. One being your comments around conservation of liquidity at the corporate level, but then also the thought around, say, larger health systems being more capable of responding to a crisis like this, and the strain on some providers perhaps presenting some consolidation opportunities.

Hi, Good morning, Thank you for taking my questions I Wonder if my questions on capital deployment.

David Wichmann: Thank you for taking my questions. My question's on capital deployment. I wondered if you might comment on how the crisis is impacting your thinking around that, with maybe two opposing specific thoughts. One being your comments around conservation of liquidity at the corporate level, but then also the thought around, say, larger health systems being more capable of responding to a crisis like this, and the strain on some providers perhaps presenting some consolidation opportunities. So wondering if you might comment on capital deployment. John? Sure. So I think our long-term capital deployment strategies remain our long-term capital deployment strategies, absolutely, in terms of how we think about allocation of our capital into our businesses, into new organic growth opportunities, M&A opportunities, and as we think about things like dividend and share repurchase also. And clearly, you saw we responded.

Wondering if he might comment on how on the crisis is impacting your thinking around that with with maybe two opposing specific thoughts one being your your comments around conservation of liquidity at the corporate level, but then also the thought around.

Say larger health systems being more capable of responding to a crisis like this and the strain on some providers, perhaps presenting some consolidation opportunities. So wondering if you might comment on capital deployment.

Wondering if you might comment on capital deployment. John?

John.

John Rex: Sure. I think our long-term capital deployment strategies remain our long-term capital deployment strategies, absolutely, in terms of how we think about allocation of our capital into our businesses, into new organic growth opportunities, M&A opportunities, and as we think about things like dividend and share repurchase also. Clearly, you saw we responded. We were in the fortunate position of being able to respond to what we saw as some instability in the financial markets in March by increasing our cash position in order to fortify that.

Sure.

So I think our long term capital deployment strategies remain our long term capital deployment strategy is absolutely in terms of how we how we think about allocation of capital into our businesses into a new or new organic growth opportunities M&A opportunities and we think about things like dividends share repurchase also.

So I'm clearly you saw we responded we are in the fortunate position of being able to respond to what we saw as the some instability in the financial markets in in March by by by increasing our cash position.

David Wichmann: We were in the fortunate position of being able to respond to what we saw as some instability in the financial markets in March by increasing our cash position in order to fortify that. In part, kind of given the role that we play in being reliable partners for the broad healthcare delivery community, so that part being important. You can be sure that as we think about things in kind of the very near term, we're respectful of markets, that is, financial markets, and how they're behaving. We'll continue to be respectful of those and understand kind of that they are functioning and functioning fluidly as we consider those elements. That may impact timing of how we think about different capital allocation activities.

In order to fortify that and in part to kind of given the role that we play.

In part, kind of given the role that we play in being reliable partners for the broad healthcare delivery community, so that part being important. You can be sure that as we think about things in kind of the very near term, we're respectful of markets, that is, financial markets, and how they're behaving. We'll continue to be respectful of those and understand kind of that they are functioning and functioning fluidly as we consider those elements. That may impact timing of how we think about different capital allocation activities.

And end up being reliable partners for the broad health care delivered community and so that part being important you can be sure that as we think about things in kind of the very near term were respectful of markets that its financial markets and how they're behaving and we'll continue to be respectful of those and understand kind of.

They are functioning and functioning fluid Lee as we can as we consider those those elements.

Either and and that May impact timing of how we think about different callout capital allocation activities.

We're going to be super respectful of that because the important role that we play in the health system and our obligations to be.

David Wichmann: We're going to be super respectful of that because of the important role that we play in the health system and our obligations to provide health security for the people we serve and to be ready, able, and reliable partners for the healthcare delivery community broadly. Thank you. Thank you. My comments would be that this is an exceptionally well-capitalized company. It's been maintained, with the capital structure has been maintained very consistently with high integrity. I think it's one of the strengths of an organization going into this situation to have the capital structure that we have today and the financial backing broadly. Next question, please. Next question is from Lance Wilkes with Bernstein. Please go ahead. Yeah. Good morning. I appreciate all that you guys are doing. I thought it was a great job outlining the number of things that you're contributing to the system.

We're going to be super respectful of that because of the important role that we play in the health system and our obligations to provide health security for the people we serve and to be ready, able, and reliable partners for the healthcare delivery community broadly. Thank you. Thank you.

Right helped security for the people, we served and to be ready and able and reliable partner spread that keep that health care delivery community broadly.

Thank you.

Thank you my comments would be that it's it this is exceptionally well capitalized company, it's up and you know maintained.

John Rex: My comments would be that this is an exceptionally well-capitalized company. It's been maintained, with the capital structure has been maintained very consistently with high integrity. I think it's one of the strengths of an organization going into this situation to have the capital structure that we have today and the financial backing broadly. Next question, please.

The capital structure to maintain very consistently with high integrity.

And I think it's a.

One of the the strengths of an organization going into the situation to have.

You know the capital structure that we have today and the you know financial backing broadly.

Next question please.

Operator: Next question is from Lance Wilkes with Bernstein. Please go ahead.

Next question is from Lance Wilkes with Bernstein. Please go ahead.

Lance Wilkes: Yeah. Good morning. I appreciate all that you guys are doing. I thought it was a great job outlining the number of things that you're contributing to the system. Just wanted to ask a couple of questions, really more OptumHealth, OptumCare related. It's just one variant of the same question. For right now, could you describe how you're standing up telehealth enablement and virtual care delivery within the services?

Yeah, Good morning, and Oh I. Appreciate all the you guys are doing I thought it was a great job outlining the number of things you are contributing to the system I just wanted to ask a couple of questions really more optumhealth optum cheer related.

David Wichmann: Just wanted to ask a couple of questions, really more OptumHealth, OptumCare related. It's just one variant of the same question. For right now, could you describe how you're standing up telehealth enablement and virtual care delivery within the services? And then before you get to kind of post-COVID, as you're thinking about that transition period, as you're ramping back, as the economy is ramping back in the service, have you guys come up with perhaps how you will scale back, meaning are you going to be doing temperatures, masks for patients, things like that, to try to get a sense of how quickly you can start to ramp back in the ASC business and some of the other physician businesses? Great. Thank you, Lance. And appreciate your comments about the company's performance during this timeframe. Dr. Wyatt Decker? Yes. Thank you, Lance, for your question.

It's just one very into the same question.

Right now I'm could you describe how you're standing up tele health enablement and virtual care delivery within the services and then as you before you get sort of kind of post coded as you're thinking about that transition period as you're ramping back as the economy is ramping back.

Then before you get to kind of post-COVID, as you're thinking about that transition period, as you're ramping back, as the economy is ramping back in the service, have you guys come up with perhaps how you will scale back, meaning are you going to be doing temperatures, masks for patients, things like that, to try to get a sense of how quickly you can start to ramp back in the ASC business and some of the other physician businesses?

In the service have you guys.

Come up with perhaps how you will scale back meaning you know are you gonna be doing temperatures master patients things like that to try to get a sense of.

How how quickly you can start to ramp back in the us see business and some of the other position businesses.

Operator: Great. Thank you, Lance. Appreciate your comments about the company's performance during this timeframe. Dr. Wyatt Decker?

Great. Thank you Lance I appreciate your comments about the Companys performance during this timeframe what Dr. White Decker.

Wyatt Decker: Yes. Thank you, Lance, for your question. On the digital health and telemedicine side, we have both our internal capabilities, which we're leveraging extensively, including telepsychiatry. That's the nation's largest telepsychiatry platform. We're also working with partners, collaborators, and vendors and have over half a dozen national partners who are assisting us to stand up solutions quickly.

Yes. Thank you last for your question and a on the digital health and Tele Medicine side, we have both our internal capabilities, which were leveraging extensively including a tell us psychiatry, that's the nations largest tell a psychiatry platform.

David Wichmann: On the digital health and telemedicine side, we have both our internal capabilities, which we're leveraging extensively, including telepsychiatry. That's the nation's largest telepsychiatry platform. We're also working with partners, collaborators, and vendors and have over half a dozen national partners who are assisting us to stand up solutions quickly. I would also add that we believe that telemedicine is not all created equal, and we're very focused on keeping the personal and intimate nature of healthcare alive and well. One of the ways we're doing that is by making sure, whenever possible, that our OptumCare patients can reach out to their already established provider using telemedicine, which is a very different experience than a random or unknown provider, as an example. So we'll continue to leverage this.

We're also working with partners collaborators and vendors and and have a over half a dozen a national partners, who are assisting us to stand up solutions quickly.

I would also add that a we believe that tele medicine is not all created equal and we're very focused on keeping the personal and intimate nature of health care alive, and well one of the wage for doing that as by making sure whenever possible that are optum care patients have reach out.

I would also add that we believe that telemedicine is not all created equal, and we're very focused on keeping the personal and intimate nature of healthcare alive and well. One of the ways we're doing that is by making sure, whenever possible, that our OptumCare patients can reach out to their already established provider using telemedicine, which is a very different experience than a random or unknown provider, as an example. We'll continue to leverage this.

They're already established provider you can tell a medicine, which is very different experienced random are unknown provider as an example, or so so we'll continue to leverage. This we're also leveraging the internet of things caring for people in their home and AI enabled a symptom checkers.

David Wichmann: We're also leveraging the Internet of Things, caring for people in their home, and AI-enabled symptom checkers as other examples of how we're really dramatically accelerating our digital health solutions. Then to your second part of your question around the other side of this and how do we adapt, obviously, that's something that is evolving. We will, of course, work and have been working hand in glove with local, state, and federal recommendations and authorities on when is it safe to resume elective and scheduled care and procedures. We will also, as Dave mentioned, are taking great care of our healthcare workforce so that they are able to resume activities really quickly, which we expect to be a differentiator. Then the final thing I'd say is that when you look at OptumHealth, one of the remarkable things is what a resilient and diversified healthcare business it is.

We're also leveraging the Internet of Things, caring for people in their home, and AI-enabled symptom checkers as other examples of how we're really dramatically accelerating our digital health solutions. Then to your second part of your question around the other side of this and how do we adapt, obviously, that's something that is evolving. We will, of course, work and have been working hand in glove with local, state, and federal recommendations and authorities on when is it safe to resume elective and scheduled care and procedures.

As other examples on how we're really dramatically accelerating our digital health solutions and then I have to your second part of your question around the other side of this and how do we how do we adapt obviously that's something that is a is evolving we will of course work and have been a work hand in glove.

Local state and federal recommendations and authorities on one is it safe to resume elective and scheduled care and procedures or we will also as Dave mentioned, our are taking great care of our healthcare workforce. So that they are able to reach.

We will also, as Dave mentioned, are taking great care of our healthcare workforce so that they are able to resume activities really quickly, which we expect to be a differentiator. Then the final thing I'd say is that when you look at OptumHealth, one of the remarkable things is what a resilient and diversified healthcare business it is. We're in 43 states. We have ambulatory surgery centers. We have primary care. We have specialty care.

Zoom activities.

Really quickly, which we expect to be a differentiator and then the final thing I'd say is that when you look at Optum health one of the remarkable things is what a resilient and diversified healthcare business. It is so we're in 43 states. We have ambulatory care surgical centers. We have primary care you have specialty care and because the co.

David Wichmann: So we're in 43 states. We have ambulatory surgery centers. We have primary care. We have specialty care. And because the COVID epidemic and pandemic is playing out differently across the United States, we feel we're really well-positioned and have been able to keep our workforce busy contributing to the communities they serve while we adapt to the changing environment. Thank you. One of the things we did was, as part of all this, is we created a leveraging that swabbing testing capability so it allows for kind of a self-administration in a clinical setting. We also, alongside that, developed a new set of testing protocols, procedures, and applied technologies for the health workforce.

The COVID epidemic and pandemic is playing out differently across the United States, we feel we're really well-positioned and have been able to keep our workforce busy contributing to the communities they serve while we adapt to the changing environment. Thank you.

David epidemic in a pandemic is playing out differently across United States. We feel we're we're really well positioned and have been able to keep our workforce busy contributing to the communities. They serve.

While we adapt to this changing environment. Thank you.

David Wichmann: One of the things we did was, as part of all this, is we created a leveraging that swabbing testing capability so it allows for kind of a self-administration in a clinical setting. We also, alongside that, developed a new set of testing protocols, procedures, and applied technologies for the health workforce.

What are the things we did was a as part of all sizes, we created a.

Leveraging that Swabbing, you know testing capabilities, so that allows for.

Have a self administration in a clinical setting.

We also alongside that developed a new test set of testing protocols.

Procedures and applied technologies for the health workforce and part of it was to ensure that that workforce is a safe to apply their services.

David Wichmann: Part of it was to ensure that that workforce is safe to apply their services, but also that we were able to ensure that they were as fully available as possible, which I know is top of mind for each and every one of them. That technology, those protocols, that process that was developed likely finds its way not only into a clinical setting, but also could find its way into other essential business settings as well as a normal course of business going forward. We could see applying those types of concepts across OptumCare, but frankly, across the industry. We have time for one more question, please. And we'll go next to Frank Morgan with RBC Capital Markets. Please go ahead. Thank you. You've had a lot of success with engaging physicians to taking risk.

Part of it was to ensure that that workforce is safe to apply their services, but also that we were able to ensure that they were as fully available as possible, which I know is top of mind for each and every one of them. That technology, those protocols, that process that was developed likely finds its way not only into a clinical setting, but also could find its way into other essential business settings as well as a normal course of business going forward.

But also that we were able to ensure that they were as fully available as possible, which I know is a on the top of mind for each and every one of them.

So that that technology those protocols that process. So that was developed a likely finds its way not only into it clinical setting, but also could find its way into you know other essential.

And settings as well as a normal course of business going forward. So we could see you know applying those types of concepts across.

We could see applying those types of concepts across OptumCare, but frankly, across the industry. We have time for one more question, please.

Them care, but frankly across the industry, we have time for one more question. Please.

And we'll go next to Frank Morgan with RBC capital markets. Please go ahead.

Operator: We'll go next to Frank Morgan with RBC Capital Markets. Please go ahead.

Frank Morgan: Thank you. You've had a lot of success with engaging physicians to taking risk. I'm just curious, how do you think this long-term impact of the pandemic will affect the interest from physicians in participating in the risk model? Thanks. I think as it relates to this one, at least so far, they probably have performed just fine. Obviously, it'll remind a number of them about how important it is to align with certain partners that have a strong financial standing.

Thank you you've had a lot of success with engaging physicians to taking risk and I'm. Just curious how do you think this long term impact.

David Wichmann: And I'm just curious, how do you think this long-term impact of the pandemic will affect the interest from physicians in participating in the risk model? Thanks. I think as it relates to this one, at least so far, they probably have performed just fine. Obviously, it'll remind a number of them about how important it is to align with certain partners that have a strong financial standing. And I would characterize UnitedHealth Group, in particular, Optum and OptumCare as being those kinds of entities. So I hope what they do is they seek a greater sense of alignment towards with partners or choose their partners based upon the strengths of them in multiple different dimensions. And I think Wyatt has done a great job of building that business in a multidimensional way with a great number of strengths. So hopefully, we'll see greater alignment to UnitedHealth Group.

Pandemic will affect the interest from physicians in participating in the midst model. Thanks.

I think as it relates to this one at least so far they probably have performed just fine obviously, it will remind a number of them about how important it is to align with.

You know certain partners that have a strong financial standing and I would characterize unitedhealth group in particular, optum and optumcare as being a those kinds of entities. So I hope that they do as they seek a greater sense of alignment towards.

I would characterize UnitedHealth Group, in particular, Optum and OptumCare as being those kinds of entities. I hope what they do is they seek a greater sense of alignment towards with partners or choose their partners based upon the strengths of them in multiple different dimensions. I think Wyatt has done a great job of building that business in a multidimensional way with a great number of strengths. Hopefully, we'll see greater alignment to UnitedHealth Group.

With with partners are choosing partners based upon.

The strength of them in multiple different dimensions, and I think you know why it has done a great job building.

Business on a multi dimensional way with a great numbers strengths. So hopefully, we'll see greater alignment to United Health Group.

Thank you for your question then thank you all for your time in your questions today as we've shared with you were going to continue to apply the full breadth of our resources technologies innovations and compassion to support our members are patients provider partners. Our team in the broader health system as we see our way through this global health crisis together, please be safe each and every one.

David Wichmann: Thank you for your question. Thank you all for your time and your questions today. As we've shared with you, we're going to continue to apply the full breadth of our resources, technologies, innovations, and compassion to support our members, our patients, provider partners, our team, and the broader health system as we see our way through this global health crisis together. Please be safe, each and every one of you, and thank you for your time today. This will conclude today's program. Thanks for your participation. You may now disconnect. Have a great day.

Have you and thank you for your time today.

And this will conclude today's program. Thanks for your participation you may now disconnect have a great day.

[music].

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