UnitedHealth Shares Decline Amid CEO's Death and Public Outcry
Shares of UnitedHealth Group Inc. fell by 2.5% following the fatal shooting of the company’s executive, Brian Thompson. This incident has brought to light widespread public outrage towards the health insurance industry. Social media platforms have become a venue for millions to express their dissatisfaction with insurance companies over denied care and unpaid medical bills.
Healthcare consultant Brian Klepper remarked on the industry’s vulnerable position, stating, “There is clearly a real sense of dissatisfaction and distrust toward the industry on social media. This is not a healthy environment for an industry to evolve.”
The precise motive behind Thompson's killing remains unknown. New York police are searching for a man believed to be connected to the murder and have examined a hostel in Manhattan where he is thought to have stayed. Investigators discovered a bullet casing and a live round near the crime scene, bearing the words “delay” and “deny.” These phrases resonate with common consumer complaints regarding insurance companies.
Although there is no evidence linking the murder directly to UnitedHealth's business practices, the incident has heightened concerns about potential violence against insurance executives. Security measures are being reviewed, with recommendations for enhanced surveillance in executive offices, panic buttons, and the establishment of bulletproof rooms.
According to Paul Sarnese, former president of the International Healthcare Security and Safety Association, healthcare workers have faced increasing threats since the Covid-19 pandemic. A Gallup survey conducted last fall revealed that 68% of participants rated the services of health insurance companies as "just fair" or "poor."
The murder has also influenced policy decisions within the industry. Elevance Health Inc. reversed a policy change in response to social media backlash, with a spokesperson confirming that the company would continue to cover medically necessary anesthesia services.
In response to the incident, Centene Corp. CEO Sarah London canceled a conference appearance and moved the company’s investor day to an online format. Industry officials, including America’s Health Insurance Plans President and CEO Mike Tuffin, defended the role of insurers and condemned any threats against industry professionals.
UnitedHealth has faced scrutiny and criticism over its business practices. A Senate report published earlier this year highlighted an increase in denial of claims, and the Department of Justice initiated an antitrust investigation into the company. Additionally, the U.S. government attempted to block UnitedHealth’s acquisition of Amedisys Inc., and the company's Change Healthcare technology division experienced a data breach affecting millions of people.