UnitedHealthcare, one of the largest healthcare insurance providers in the United States, has become the victim of intense scrutiny following the assassination of its CEO, Brian Thompson. As a division of the UnitedHealth Group, the firm is a leader in providing healthcare services spanning employer-sponsored plans, Medicare, Medicaid and much more. This loss occurred during a tumultuous period for the firm, navigating antitrust lawsuits and public criticism for prioritising profits over patient care and refusing to pay out insurance claims.
On December 4th, 2024, Brian Thompson was standing outside the Hilton Midtown Hotel in New York, where a masked assailant fatally shot him. While the motive remains unclear, authorities have described the incident as a targeted attack. Thompson, who became CEO in 2021, played a pivotal role in the company’s growth, expanding UnitedHealthcare’s clientele to over 50 million and bringing in $371.6 billion in annual revenue for 2023.
Thompson’s death has sparked a national conversation, highlighting public frustrations with the U.S. healthcare system. Many critics have pointed to high insurance premiums, denied coverage claims, and overall systemic inefficiencies, with UnitedHealthcare frequently finding itself at the centre of these controversies.
UnitedHealthcare and its parent company, UnitedHealth Group, are embroiled in a high-profile antitrust lawsuit. The case alleges monopolistic practices through Optum, the data-driven healthcare solutions arm of UnitedHealth Group. The lawsuit claims the company has leveraged market dominance to stifle competition and exploit healthcare data to gain an unfair advantage. This legal battle underscores broader concerns about the role of massive corporations in the U.S. healthcare system and the concentration of power among a few dominant players.
In addition, UnitedHealth Group is facing legal challenges concerning its expansion efforts. On November 12, 2024, the U.S. Department of Justice, along with the Attorneys General of Maryland, Illinois, New Jersey, and New York, filed a civil antitrust lawsuit to block UnitedHealth's proposed $3.3 billion acquisition of Amedisys Inc., a rival home health and hospice services provider. The lawsuit alleges that the merger would eliminate competition between two of the largest providers in the industry, potentially harming patients and reducing employment opportunities for nurses.
UnitedHealthcare has faced mounting criticism over its claims processing practices. Policyholders have reported delays or outright denials of coverage for medically necessary treatments, leaving individuals to bear significant financial and emotional burdens.
One of the most contentious issues involves UnitedHealthcare’s alleged use of automated algorithms to deny claims in bulk, often without thorough and manual review. People argue this approach disproportionately affects vulnerable populations, such as those with chronic illnesses or low incomes, exacerbating existing healthcare disparities already present across the United States. The Commonwealth Fund found that twenty-five million people are uninsured in the U.S. and that one in four working adults is “uninsured, facing high out-of-pocket costs and deductibles relative to their income.”
From the other perspective, healthcare providers have also expressed frustration over complex reimbursement processes, which create administrative burdens and delay payments. These practices, critics contend, undermine the core purpose of health insurance: to provide timely access to care.
The convergence of these issues has created a significant challenge for UnitedHealthcare to navigate while recovering from the aftermath of its CEO’s assassination. As the firm confronts these issues, its actions will be closely monitored by various stakeholders, who are all waiting to see how exactly UnitedHealthcare will respond to such drastic change.