United Health boss defends firm in first profits results since CEO killing
The CEO of UnitedHealth throng has defended its role in America’s health structure as the business posted its first profits results since the murder of one of its top executives.
Sir Andrew Witty spoke to analysts as the firm reported mixed results, just weeks after the shooting of Brian Thompson brought attention to the industry.
Some customers responded to the killing by sharing stories accusing the business of rejecting requests to pay for medical worry.
Sir Andrew said UnitedHealth had helped lower costs, blaming drug firms and health providers for high prices.
But Mr Witty also said the largely private health structure in the US needed to be “less confusing, less complicated and less costly”, acknowledging frustrations with the procedure for reviewing requests to approve healthcare.
“Those are key areas for us to work at to enhance,” he said, adding that he saw “much-heightened vigor” to address the concerns.
He also said the business was committed to passing on 100% of the funds it wins during drug worth negotiations to customers. It already passes on 98%, he said.
Sir Andrew, who was born in the UK, is chief executive of one of the biggest companies in the US.
UnitedHealth provides medical insurance for more than 49 million people and helps discuss drug prices. It also has contracts with the government.
On Thursday it reported more than $400bn in turnover for last year – a record – up 8% from 2023. It said it was expecting revenues to rise more than 12% to $450bn in 2025.
But its business is facing both monetary and political pressure.
Profits fell last year by more than a third, from roughly $22.3bn in 2023 to about $14.4bn.
Its medical worry ratio – which tracks how much of the premiums it collects are paid out for healthcare – rose from 83.2% in 2023 to 85.5% last year.
It has blamed the dynamic in part on less charitable reimbursement rates set by the government, which executives said they hoped would be revisited by the Trump administration.
One of its units suffered a major hack last year, affecting an estimated 100 million people.
Regulators have accused other parts of the business of artificially inflating prices, claims UnitedHealth denies.
The business is also facing allegations in a class-action lawsuit that it knowingly deployed error-prone software to review claims, ignoring the issues because of the benefits to its net income. The business has said the software does not make claims decisions.
Shares in the firm fell more than 4% after the results, which also prompted sell-off in shares at other health companies.
Mr Thompson, who led the firm’s insurance arm, was shot dead in Manhattan on 4 December. A suspect is charged with his murder.