UPDATE 1-UnitedHealth CEO vows to earn back shareholder trust

UnitedHealth Group's new CEO Steve Hemsley on Monday vowed to earn back shareholder trust after its recent earnings shortfall, saying the company was examining its approaches to medical cost trends and how it forecasts future performance. Hemsley replaced Andrew Witty as chief executive in May, following the healthcare company's first earnings miss since 2008. Along with the appointment, UnitedHealth suspended its earnings outlook, as it weighed higher-than-expected costs in its Medicare Advantage unit for adults 65 and older and people with disabilities.

"We are well aware we have not fulfilled your expectations or our own. We apologize for that performance, and we're humbly determined to earn back your trust and your confidence," Hemsley said at the company's annual shareholder meeting. Hemsley said the company will factor in higher cost of care into its private insurance plans and next year's Medicare Advantage plans.

He also said UnitedHealth will review its practices across its businesses. UnitedHealth Group operates pharmacy benefit manager Optum Rx and health insurer UnitedHealthcare.

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