Unitedhealth Raises Eyebrows With Latest Move Amid Outrage

The largest health insurance provider in the U.S., UnitedHealth Group (UNH) , has been embroiled in massive controversy since then-UnitedHealthcare CEO Brian Thompson was shot and killed in front of a Hilton hotel in midtown Manhattan in December.

The suspect in the killing, Luigi Mangione, allegedly left behind bullet shell casings at the scene that had the words “deny,” “defend” and “depose” written on them.

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Those three words are often used to describe tactics health insurance companies use to avoid paying claims.

Related: UnitedHealth CEO finally addresses outrage

The tragic incident had a major domino effect, sparking widespread conversation on social media about the many controversial policies and practices that health insurance companies across the country have adopted.

Many people nationwide expressed outrage over the health insurance industry’s long history of denying insurance claims, even for people who are terminally ill.

Mangione, who is currently in federal custody at Brooklyn's Metropolitan Detention Center, even gained a fanbase as many people sided with him on his frustration with the health care industry.

Luigi Mangione, suspect in the killing of UnitedHealthcare CEO Brian Thompson in New York City, arrives at a heliport with members of the NYPD on December 19, 2024 in New York City.

Spencer Platt/Getty Images

Amid the outrage, a group of UnitedHealth Group’s shareholders grew fearful of the backlash and sent a proposal to the health care giant last month demanding a report on the macroeconomic risks associated with “the company’s practices that limit or delay access to healthcare.”

“At the board’s discretion, shareholders recommend the report evaluate how company practices impact access to healthcare and patient outcomes, including analyses of how often prior authorization requirements or denials of coverage lead to delay or abandonment of medical treatment and serious adverse events for patients,” read the proposal.

UnitedHealth Group issues harsh response to the proposal

However, UnitedHealth Group is apparently attempting to block the proposal, which is expected to be voted on by shareholders at the company’s annual meeting this year.

In a recent filing with the Securities and Exchange Commission, UnitedHealth Group requested to exclude the proposal from proxy statements (a document that companies send to shareholders to request their votes), claiming that the proposal is "materially misleading.”

“The proposal fails to define a number of key terms and phrases central to understanding the parameters of the requested report,” said the company in the SEC filing. “The terms ‘public health-related costs’ and ‘macroeconomic risks,’ each of which is integral to the proposal’s request, are subject to a number of interpretations.”

People demonstrate against the healthcare industry stand outside Federal Criminal Court as Luigi Mangione, suspect in the killing of UnitedHealthcare CEO Brian Thompson, appears during an arraignment hearing on December 23, 2024 in New York City. 

CHARLY TRIBALLEAU/Getty Images

The company also stated in the filing that its practices have no impact on health care costs and macroeconomic risks.

“It is also unclear what the proposal is referring to by its assertion that the public healthcare costs and macroeconomic risks are ‘created by’ the company’s practices,” said UnitedHealth Group. “The company’s products and services enable consumers to access care and payment for that care, which stands in stark contrast to the ‘creation’ of health-related costs and macroeconomic risks.”

UnitedHealth Group also said that most of the time, it does not determine what medical costs it covers.

Related: Blue Cross Blue Shield halts strict coverage policy after outrage

“For the overwhelming majority of the company’s insured members, the decision of what medical costs are covered by the company’s insurance plans is not determined by the company,” according to a statement. “For example, for the company’s Medicaid and Medicare plans, coverage level decisions are made by a state or local governmental entity or the Centers for Medicare and Medicaid Services (“CMS”), and for the vast majority of members of the company’s commercial plans, these decisions are made by private sector employers.”

UnitedHealth Group claimed that the proposal seeks to “micromanage the company by limiting management’s discretion with respect to the pricing and parameters” of its business.

UnitedHealth Group CEO admits health care system issues

The move from UnitedHealth Group comes after it revealed in its fourth-quarter earnings report for 2024, released on Jan. 16, that it earned revenues of $400.3 billion during the fourth quarter, which is an 8% year-over-year increase.

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During an earnings call on Jan. 16, UnitedHealth Group CEO Andrew Witty acknowledged that health care costs are high and called for nationwide health care improvements that would make it “less confusing” and more affordable.

“The health system needs to function better,” said Witty. “Through decades of federal and state policymaking and private sector innovation, we have a variety of programs, structures, and processes. There are strong merits to that variety as they can be more tailored to meet the specific needs of individuals at various stages of life and health status and provide extra help for those who need it. It avoids a one-size-fits-all approach, but it needs to be less confusing, less complex, and less costly.”

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