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UnitedHealth shares drop amid executive's death and public backlash

Published 06/12/2024, 15:34
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Shares of UnitedHealth Group Inc (NYSE:UNH). fell by 2.5% following the shooting death of the company's executive, Brian Thompson, which has brought to light widespread public anger toward the health insurance industry. Social media platforms have become a hotbed for this discontent, as millions express their frustration with insurers over denied care and unpaid medical bills.

Brian Klepper, a healthcare consultant, noted the industry's precarious position, saying, "There’s clearly a sense of real discontent and distrust of the industry revealed in social media. That’s not a healthy environment for an industry to prosper.”

The exact motive for Thompson's killing remains unknown. New York police are seeking a man in connection with the shooting and have searched a Manhattan hostel where he is believed to have stayed. Investigators found a shell casing and a live round near the crime scene, inscribed with the words "delay" and "depose," which resonate with common consumer complaints about insurance companies.

Despite no direct evidence linking the shooting to UnitedHealth's business practices, the incident has raised concerns about the potential for violence against insurance executives. Security measures are being scrutinized, with suggestions for enhanced surveillance and installation of panic buttons and bullet-resistant rooms in executive suites.

Healthcare workers have faced increased threats since the Covid-19 pandemic, according to Paul Sarnese, former president of the International Association for Healthcare Security and Safety. A Gallup poll last fall reported that 68% of respondents rated health insurer services as "only fair" or "poor."

The shooting has also influenced policy decisions within the industry. Elevance Health Inc. reversed a policy change after a backlash on social media, with a spokesperson clarifying that the company will continue to pay for medically necessary anesthesia services.

In response to the incident, Centene (NYSE:CNC) Corp. CEO Sarah London canceled a conference appearance and moved the company's investor day online. Industry officials, including Mike Tuffin, president and CEO of America’s Health Insurance Plans, have defended the role of insurers and condemned any threats against industry professionals.

UnitedHealth has faced scrutiny and criticism for its business practices, including a Senate report earlier this year highlighting increased claim denials and a Department of Justice antitrust investigation into the company. Additionally, the US government sued to block UnitedHealth's acquisition of Amedisys Inc (NASDAQ:AMED)., and the company's Change Healthcare (NASDAQ:CHNG) technology business experienced a data breach affecting millions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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