UnitedHealth to unveil 2025 outlook amid exec’s tragic death

USA – UnitedHealth Group, the largest health insurer in the United States, is set to release its fourth-quarter and full-year 2024 financial results on Thursday.

This report comes amid significant challenges, including the murder of executive Brian Thompson and the lingering financial impacts of a major cyberattack earlier in the year.

The company’s investor day, initially scheduled for December 4, was canceled following the tragic death of Brian Thompson, CEO of UnitedHealthcare, outside a New York hotel.

Thompson’s death has drawn attention to the company, with critics on social media and in Congress scrutinizing health insurance practices, including denials of medical care.

Since the incident, UnitedHealth and other major insurers have kept a low public profile, removing executive biographies and pictures from their websites.

Despite these events, UnitedHealth Group is expected to report another multi-billion-dollar profit.

In a December 3 press release, the company projected a 2025 profit of US $29.50 to US $30 per share, aligning with Wall Street expectations.

Thursday’s earnings report will also mark the first public address by CEO Andrew Witty and the executive team since the canceled investor day.

UnitedHealth’s diverse portfolio of health insurance and medical services has enabled the company to maintain robust profits despite rising medical costs and operational disruptions.

In the third quarter of 2024, the company reported a net income of US $6.06 billion, or US $6.51 per share.

Analysts expect fourth-quarter earnings to rise by more than 9% to US $6.72 per share, with projected revenues exceeding US $102 billion, an 8% increase from the same period last year.

However, challenges persist. Rising medical costs, particularly within the Medicare Advantage program, have strained UnitedHealthcare’s operations.

The insurer serves over 50 million customers, including 7.8 million enrolled in its Medicare Advantage plans, a privatized insurance option for seniors.

This year, the program has faced significant cost increases, mirroring broader trends in the health insurance industry.

Adding to the financial strain, UnitedHealth is still grappling with the aftermath of a February cyberattack on its Change Healthcare subsidiary.

The attack disrupted the company’s extensive billing and payment systems, leaving healthcare providers unable to obtain insurance approvals for patient services.

UnitedHealth estimates the total impact of the attack across its businesses at over US $2.2 billion for 2024, with final figures expected in Thursday’s report.

Despite these setbacks, UnitedHealth’s third-quarter profits of over US $6 billion underscore the strength of its diversified operations.

The company’s subsidiaries, including OptumRx, one of the largest pharmacy benefit managers in the country, have helped offset the financial toll of the cyberattack and rising healthcare costs.