UnitedHealth Group (UNH) reported its first earnings call since the shooting of its insurance executive last month. CEO Brian Thompson was killed outside an investor day meeting in New York City on December 4. The company missed revenue expectations, sending shares down nearly 3% Thursday.
UnitedHealthcare’s full-year revenues for 2024 reached $400 billion, a 8% increase from the previous year. However, the company fell short of Wall Street consensus, reporting $100.8 billion in revenue instead. Medical costs were also higher than expected, with a medical loss ratio of 87.6%, exceeding the consensus estimate of 86.1%.
CEO Andrew Witty addressed public concerns over rejected claims and industry criticism following the shooting. He stated that less than 1% of claims are rejected for medical reasons and expressed his commitment to reducing process-related rejections through better real-time tools, including artificial intelligence.
Witty also acknowledged concerns over UnitedHealth’s use of AI algorithm in a class-action lawsuit. The company denies allegations of using its tool to automatically determine claims, emphasizing that the healthcare system should feel no different from other everyday interactions.
Analysts are now shifting focus to 2025 outlook, stating that it has set “reasonably prudent targets.”
Source: https://finance.yahoo.com/news/united-health-group-ceo-addresses-public-outrage-over-claims-denials-in-q4-earnings-182410409.html