UnitedHealth sees Obamacare and Medicare costs, then growth

UnitedHealth Group Inc said on Thursday implementing Obamacare and private Medicare funding cuts will eat into 2014 profit but the government-paid insurance business will drive growth as more people sign up. UnitedHealth, the largest U.S. health insurer, reported fourth-quarter profit a beat higher than analyst expectations, but its shares and those of major competitors fell anyway as investors focused on costs. UnitedHealth shares fell 2.5 percent to $73.05 while WellPoint, Aetna, Cigna and Humana also fell. UnitedHealth said that funding cuts for private Medicare would negatively effect 2014 and that it was still in discussions with the government on the 2015 funding levels.