On the Call: UnitedHealthcare CFO Dan Schumacher

UnitedHealth Group Inc. said Thursday health care use is growing at a modest rate, and the insurer expects that trend to pick up progressively through 2012.

The Minnetonka, Minn., company saw an increase of more than 6 percent in its largest expense, medical costs, in the first quarter. This was driven mostly by increases in the prices charged for care. But executives also said patient utilization, the other main factor behind cost growth, is rising in certain sections of care.

Analysts have paid close attention to health care use trends, because sluggish utilization growth has helped insurers turn in strong performances over the past several quarters. In this year's first quarter, UnitedHealth earnings climbed 3 percent to $1.39 billion, or $1.31 per share, in the three months that ended March 31. Revenue grew 7 percent to $27.28 billion.

Daniel J. Schumacher, chief financial officer for UnitedHealthcare, the insurer's largest segment, talked about utilization during a conference call with analysts.

QUESTION: Can you talk about the specifics you are seeing in utilization growth?

RESPONSE: As you look across both the platform, as well as by categories, we saw that increase pretty consistently across Medicare, Medicaid and commercial (insurance). Then, as you look at the categories ... outpatient is the place we see most increase and on the inpatient side actually continue to see that very restrained. Our hospital bed days are flat to down in each of our businesses across the platform.