UnitedHealth Group

UNH typically has some pricing power, as health insurance is not easily substituted and customers value continuity of care. In practice, it raises premiums on group plans and adjusts Medicare Advantage bids before each cycle.

However, 2025 highlighted limits: medical cost growth (especially from new Medicare Advantage members) significantly outpaced pricing estimates, forcing profit guidance cuts. This shows UNH can be squeezed if healthcare utilization spikes unexpectedly.

Generally, though, its government-funded business (Medicare/Medicaid contracts) is mostly fixed-bid pricing, while its commercial segments allow price increases. Margins are healthy for an insurer, though not as wide as tech monopolies.

We rate pricing power moderate: UNH can raise rates on commercial business and adjusts rates yearly, but large spikes in medical expenses or rate restrictions (e.g. regulated Medicare bid increases) can temporarily outpace pricing adjustments (as seen in recent quarters).

UNH’s track record of margin stability (with occasional disruptions) suggests mid-level pricing power.