Andrew Witty: Hey, Kevin, thanks so much for the question. So first off, as I mentioned earlier, the pressure is really coming from those three sources, the senior trend phenomenon that we talked a lot about, the very specific Optum piece around behavioral and then the growth in the book. And within that, very much to complex care patient, which, as I’m going to repeat again, is an extremely positive element of our growth going forward. That’s going to be an extraordinarily important foundation stone for the future of the company. We’re going to continue to lean into that growth, first and foremost. We do expect to see margins continue to strengthen, particularly as you roll through into ‘24. You’re absolutely right. We believe we’ve caught this in our pricing for next year.
But more importantly, the longer time we have to look after folks and wrap around care, we can deliver much better outcomes for them, as we talked about earlier and we can also make the economic proposition better. It really builds much more sustainable capability. So all of that will kick in, as well as we roll through subsequent quarters and years. This is going to be a continuing building pressure. I feel very good about that range we’ve laid out for OptumHealth over the next several years. And actually, I think if I had the choice on a slightly suppressed margin in Q2 or the very significant growth that we’ve taken in. I’ll take the growth all day long. And I’ll take that growth, because it’s going to underpin years of growth going forward.
Appreciate the question, Kevin. Next question?
Operator: We’ll go next to Gary Taylor with Cowen.
Gary Taylor: Hi, good morning. I just want to talk about some of the — or ask about some of the levers and offset, because it is a little counterintuitive to hear the commentary intra-quarter about higher MLR and then seeing your largest profit segment, OptumHealth, with lower margin. So this quarter, obviously, investment income was far stronger The Street was looking for, at least versus our model G&A, was better. But I know moving into the back half, I think you believe there’s more time potentially to pull some of those G&A levers. So could you just talk about investment income, G&A or what other offsets there might be in the back half? And how much of that is carrying forward into your ‘24 thinking at this point?
Andrew Witty: Yes. Very much appreciate the question. Let me ask John to make some comments to that. John?
John Rex: Good morning, Gary, it’s John. So yes, you’re right. Those investment income has frankly, been growing strongly over the past number of quarters and continues to grow. Some of that is the backdrop of the rising interest rate environment, as you know, very well. Some of that is also a result of very active management by our treasury teams in terms of deploying more and more cash balances into interest-bearing accounts and such as they’ve been working hard at that over the past few quarters and advancing the productivity of that cash. That’s after coming off of a period of many years of a zero interest rate environment. So a lot of elements in that. In any given quarter, we can experience some gains from our — in our investment portfolio.
So that can be gained from — anything from our regular fixed income investments to anything from our diverse venture holdings. And so those come in — they come in at different points in time. And perhaps sometimes they’re a little bit less predictable, but kind of are typically in a similar zone frankly, not outside. I don’t expect those, kind of, things, I don’t count on those kind of things, frankly, every quarter. That’s not the thing we look at. But there are elements that we’ve seen over time in kind of the zones that we’re experiencing even now, too. So, yes, thanks, Gary.
