UnitedHealth Group CEO Andrew Witty said the US healthcare system needs to be simplified, made less complex and less costly. The statement comes after the murder of Brian Thompson, the head of its insurance unit, which sparked outrage among Americans frustrated with their dealings with health insurers.
Witty stated that his company is working to address patient frustrations, including reducing prior authorization approvals before accessing medical treatment in Medicare business for those aged 65 or older or with disabilities. The goal is to make the system less “frustrating” and more efficient.
UnitedHealth reported fourth-quarter results that showed persistent challenges in the health insurance sector. Medical costs came in above Wall Street estimates, driven by high demand for healthcare services from older adults and sick patients in Medicaid plans. The company’s medical cost ratio was 87.6%, exceeding analysts’ expectations.
Despite this, Chief Financial Officer John Rex expressed confidence about state Medicaid payments reflecting medical use in 2025. UnitedHealth maintained its adjusted profit forecast of $29.50 to $30.00 per share and expects a medical cost ratio of 86% to 87%.
The company’s performance was impacted by lower-than-expected premiums, but its earnings topped Wall Street estimates on an adjusted basis. The murder of Brian Thompson has highlighted the need for reform in the healthcare system, with Witty emphasizing the importance of finding solutions to reduce complexity and increase efficiency.
Source: https://www.reuters.com/business/healthcare-pharmaceuticals/unitedhealth-beats-profit-estimates-lower-than-expected-costs-2025-01-16