United Health boss defends first results since CEO’s murder

The CEO of UnitedHealth Group defended his role in the US healthcare system as the company released its first financial results since the killing of one of its top executives.

Sir Andrew Witty spoke to analysts as the company reported mixed results, just weeks after the Brian Thompson shooting focused attention on the industry.

Some customers reacted to the killing by sharing stories accusing the company of rejecting requests to pay for medical care.

Sir Andrew said UnitedHealth had helped drive down costs, blaming pharmaceutical companies and healthcare providers for the high prices.

But Mr. Witty also said America’s largely private health care system needs to be “less confusing, less complex and less expensive,” acknowledging frustrations with the health care approval review process .

“These are key areas that we need to work on to improve,” he said, adding that he has seen a “very increased energy” to address concerns.

He also said the company was committed to passing on 100% of savings made during drug price negotiations to its customers. This is already up to 98%, he says.

Sir Andrew, born in the United Kingdom, is the chief executive of one of the largest companies in the United States.

UnitedHealth provides health insurance to more than 49 million people and helps negotiate drug prices. It also has contracts with the government.

On Thursday, it reported revenue of more than $400 billion for last year – a record – up 8% from 2023. It said it expected revenue to rise by more by 12% to reach $450 billion in 2025.

But its business faces both financial and political pressures.

Profits fell last year by more than a third, from about $22.3 billion in 2023 to about $14.4 billion.

Its medical care ratio – which measures the share of collected premiums that goes towards health care – increased from 83.2% in 2023 to 85.5% last year.

She blamed the dynamic in part on less generous reimbursement rates set by the government, which executives hoped would be revised by the Trump administration.

One of its units suffered a major hack last year, affecting around 100 million people.

Regulators have accused other parts of the company of artificially inflating prices, something UnitedHealth denies.

The company also faces allegations in a class-action lawsuit that it knowingly deployed error-prone software to review claims, ignoring the problems because of the benefits to its bottom line. The company said the software does not make claims decisions.

The company’s shares fell more than 4% after the earnings release, which also prompted a sell-off in shares of other healthcare companies.

Mr. Thompson, who headed the firm’s insurance arm, was shot dead in Manhattan on December 4. A suspect is charged with her murder.