UnitedHealth Group surprised investors today by reporting lower medical costs and higher earnings than they expected and then raising its profit outlook.

Why it matters: The health insurance industry has been dogged lately by high patient usage, especially in Medicare Advantage, which has compromised profit margins.

Driving the news: The nation's largest insurer reported its medical cost ratio — the percentage of premiums that went to pay patient expenses — was 83.9% in the first quarter.

• That key metric was down from 84.8% from a year earlier, and lower than analysts were projecting.
• CFO Wayne DeVeydt cited "pricing discipline, strong medical cost management" and a better-than-expected flu season as positive factors.
• "We are seeing early signs of improved alignment between pricing and medical cost trends," he added on an earnings call.

The impact: The stock — which dropped about 35% in 2025 — rose 7% today.

The big picture: UnitedHealth's results suggest the Medicare Advantage squeeze that's rattled the industry may be starting to ease.

• While utilization remains elevated, it's now tracking in line with pricing — an early sign insurers may be regaining control of margins after a bruising repricing cycle.

That helped lift shares of other insurers, too. Humana, which had been down nearly 18% since the start of the year, rose 5% today.

What we're watching: Humana reports earnings later this month.

"[President Trump] never asked me to predetermine, commit, fix, decide on any interest rate decision in any of our discussions, nor would I ever agree to do so."

Go deeper: Trump's nominee to lead the Fed committed to keeping monetary policy independent from politics at his confirmation hearing this afternoon, Axios' Neil Irwin writes.

📦 UPS and FedEx have begun requesting tariff refunds from the government. It would still likely take months before any money could be distributed to customers. (CNBC)

✈️ United Airlines slashed its 2026 earnings outlook as it deals with a surge in jet fuel prices due to the Iran war. (CNBC)

🏛️ Steak 'n Shake has named a chief "Make America Healthy Again" officer, the latest sign of how Robert F. Kennedy Jr.'s movement is influencing major food brands. (Axios)

☕️ Starbucks announced plans to invest $100 million and bring 2,000 jobs to Nashville as it builds a major corporate hub to anchor its Southeast expansion. (Axios)

Safe sex is getting more expensive due to the Iran war.

State of play: Malaysia-based Karex — the world's largest condom maker — is facing supply chain disruptions and rising costs stemming from the war.

• CEO Goh Miah Kiat told Reuters that the company — whose customers include the Trojan and Durex brands — plans to raise prices by at least 20%–30%.
• "The situation is definitely very fragile, prices are expensive. ... We have no choice but to transfer the costs right now to the customers," Goh said.

Friction point: Supply chain bottlenecks are throttling shipments of energy and petrochemicals in the Middle East.

• "Karex has seen costs increase for everything from synthetic rubber and nitrile used in manufacturing condoms to packaging materials and lubricants such as aluminum foils and silicone oil," Reuters reports.

💭 Nathan's thought bubble: Talk about unintended consequences.