UnitedHealth Group (UNH) , the largest health insurance provider in the U.S., ended 2024 on a devastating note.
The company, which owns UnitedHealthcare and Optum, has been embroiled in massive controversy after UnitedHealthcare CEO Brian Thompson was shot and killed in front of a Hilton hotel in midtown Manhattan last month.
Those three words are often used to describe tactics health insurance companies use to avoid paying claims.
The incident has sparked widespread conversation on social media about the many controversial policies and practices adopted by health insurance companies across the country.
Many people expressed frustration over the health insurance industry’s long history of denying insurance claims, even for people who are terminally ill.
UnitedHealthcare’s policies and practices were even put under a microscope, and consumers became more outraged after they discovered that the company was allegedly using artificial intelligence to deny health insurance claims.
UnitedHealth Group CEO flags healthcare industry problem
Now, amid the backlash, which appears to have not died down, UnitedHealth Group CEO Andrew Witty finally addressed Thompson’s death and the consumer outrage towards the health care industry.
Demonstrators stand outside the federal court after Luigi Mangione, suspect in the killing of UnitedHealthcare CEO Brian Thompson, during an arraignment hearing on December 19, 2024 in New York City. Anadolu/Getty Images
During an earnings call on Jan. 16, Witty expressed gratitude for the condolences and support he and his colleagues received after Thompson’s death.
“Many of you knew Brian personally,” said Witty. “You knew how much he meant to all of us and how he devoted his time to helping make the health system work better for all of the people we're privileged to serve. He would dive in with passion and caring to find solutions to improve experiences, whether for an individual consumer, an employer, or a public health agency.”
Witty also called for nationwide health care improvements that would make it “less confusing” and more affordable.
“The health system needs to function better,” said Witty. “Through decades of federal and state policymaking and private sector innovation, we have a variety of programs, structures, and processes. There are strong merits to that variety as they can be more tailored to meet the specific needs of individuals at various stages of life and health status and provide extra help for those who need it. It avoids a one-size-fits-all approach, but it needs to be less confusing, less complex, and less costly.”
The CEO then highlighted that the company would be “enhancing digital tools,” which involves using AI to help consumers find the best healthcare options and speed up processes at the company.
“We are eager to work with policy leaders to use standardization and technology to speed up turnaround times for approval of procedures and services for Medicare Advantage patients and to materially reduce the overall number of prior authorizations used for certain MA services,” Witty said.
Witty also acknowledged that health care costs are high but stated that those high costs benefit some companies in the industry.
“Fundamentally, health care costs more in the U.S. because the price of a single procedure, visit, or prescription is higher here than it is in other countries,” said Witty. “The core fact is that price, more than utilization, drive system costs higher. Tackling that problem will require all parts of the system and policymakers to come together. Yet, there are participants in the system who benefit from these high prices. Lower-cost equivalent quality sites of service, for example, can be good for consumers and patients but threaten revenue streams for organizations that depend on charging more for care.”
UnitedHealth Group announces massive profits
Amid the controversy, UnitedHealth Group recently revealed that it saw “diversified growth” in its business during the fourth quarter of 2024.
In its fourth-quarter earnings report released on Jan. 16, UnitedHealth Group revealed revenues of $400.3 billion during the fourth quarter, an 8% year-over-year increase.
Specifically, UnitedHealthcare saw its revenues increase by 6% year over year during the quarter to $74.1 billion as the number of its domestic customers rose by 2.1 million. Optum’s revenues grew by 12% year over year to $65.1 billion.
Andrew Witty, chief executive officer of UnitedHealth Group Inc., arrives during a Senate Finance Committee hearing in Washington, DC, US, on Wednesday, May 1, 2024. Bloomberg/Getty Images
UnitedHealth’s stock price has significantly declined nearly 15% since the December shooting, from $611 to $509.70 on Friday.
During the earnings call, Witty said the company has a strong outlook for 2025.
“We're invigorated by the path ahead,” said Witty. “There are so many areas that can be enhanced, reworked, reengineered, or even scrapped to make the health system work better, as we know it needs to. That is both our responsibility and it's our passion. We begin 2025 with a strong outlook for the year as we continue to deliver on our commitments and excel for those we serve in all of our key growth pillars.”
