Company Expresses Sorrow, UnitedHealth Group Unveils Earnings Thursday
UnitedHealth Group, the country's largest health insurance company, is preparing for this week's fallout following another staggering profit of billions in the fourth quarter. The year concluded on a somber note with the December 4 shooting death of UnitedHealthcare CEO Brian Thompson, sparking a wave of scrutiny. Critics, including some in Congress, voiced concerns over insurance denials and certain business practices, calling for reform.
Amidst the heightened scrutiny, most health insurers, including UnitedHealth, have remained silent, issuing few press releases and removing executive details from online platforms. Despite the challenges, Thursday will mark the first public appearance by UnitedHealth executives, led by CEO Andrew Witty, since December 4.
In the aftermath of Thompson's unfortunate demise, UnitedHealth Group is a conglomerate of several entities, including the insurance provider UnitedHealthcare and the medical care services business Optum. Thompson was among the CEOs responsible for managing these businesses.
Thursday's financial report will undoubtedly reflect a profit, despite the escalating medical costs for seniors insured by Medicare Advantage plans and the expenses incurred from one of the nation's largest cyberattacks on a U.S. company.
In February, a catastrophic cyberattack on Change Healthcare, a UnitedHealth subsidiary, wreaked havoc, leaving medical care providers across the country without the ability to get insurance approvals for patient services. The cyberattack resulted in the shutdown of parts of Change Healthcare's electronic system.
UnitedHealth Group has projected the total loss due to this cyberattack to be over $2.2 billion for 2024. Though the attack impacted the company's profits, it didn't deter UnitedHealth from reporting billions in earnings every quarter this year.
Wall Street analysts, however, are concerned about the continued impact of rising medical costs on UnitedHealthcare. Like the broader health insurance industry, medical care costs have surged, particularly for UnitedHealth's Medicare Advantage customers, totaling over 50 million.
Financial analysts are expecting UnitedHealth's fourth quarter earnings to exceed $6.72 per share and revenue to break the $102 billion mark, representing an 8% increase from the previous year. However, the company's revenue missed expectations, coming in at approximately $100.8 billion.
Brian Thompson, the former CEO of UnitedHealthcare who was tragically killed in December, was also involved in managing UnitedHealth Group's other operations, such as Optum and OptumRx.
Despite the significant cyberattack on UnitedHealth Group's subsidiary Change Healthcare, causing a loss of over $2.2 billion in 2024, UnitedHealth Group, led by CEO Andrew Witty, continues to report billions in earnings every quarter.
