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Posted on 05/13/2025 7:20:46 AM PDT by NautiNurse
[Snip]
UnitedHealth Group’s shares plunged over 10% in premarket trading on Tuesday after the sudden announcement of CEO Andrew Witty’s departure and the suspension of its 2025 financial forecast. The company cited “personal reasons” for Witty’s exit but offered no further details. Stephen Hemsley, UnitedHealth’s longtime leader who previously served as CEO for over a decade, is returning to helm the company during this turbulent period.
[Snip]
The market response was swift. UnitedHealth’s stock ($UNH) has now dropped nearly 45% in the past month, wiping out around $300 billion in market value. On April 17, shares fell 22% — its worst single-day decline since 1998 — after the company lowered its full-year profit guidance. UnitedHealth also announced that it would suspend its 2025 forecast, pointing to rising medical expenses and unexpectedly high costs among new Medicare Advantage members. The company added that care activity was not only increasing but also broadening across a wider range of services than anticipated.
(Excerpt) Read more at financialexpress.com ...
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Many of these medicare HMO’s are in trouble.
The short sellers are out there, gunning UH down. Perhaps this hit was due to Trump lowering meds prices.
United Health has double trouble. Not only have the feds tightened controls over Medicare Advantage plans, but United Health is under federal investigation for inflating diagnoses to reap additional reimbursement.
“Personal reasons.” I hope his insurance covers it. /sarcasm off
Not good.
Maybe he doesn’t want to get shot.
A company is always at risk, and will never survive long-term when its revenue is controlled by the government.
Investing in UNH is like investing in a state-run company in China.
I suspect the stock tumble today is due to Witty’s sudden departure, following the 1Q earnings miss and lower 2025 earnings guidance...with a sprinkle of fed investigation.
Dangerous game apparently
The old standby excuse: To spend more time with his family.
Unless one will be spending a few years in the penitentiary.
I think HMOs were the ‘fall guy’ for Obamacare. HMOs would carry the health care load until they failed which would cause the public to demand Government run healthcare. After all, real democracies like Europe countries have Government health care. It’s all part of the path Obama started….
“I’m deeply disappointed in and apologize for the performance setbacks we have encountered from both external and internal challenges,” [Chairman of the Board & new CEO] Helmsley said on a Tuesday morning call for investors.
That will surely jar investor confidence.
For years, the Medicare HMOs were given carte blanche fee increases when they reported costs to the feds, without demonstrating improved health outcomes.
Or they could pay the insurance claims and maybe not get shot.
That is a really lame excuse. How many new Medicare Advantage members did they take on? Was it an exceptionally large number? One would think that the number of existing UH members retiring and going on Medicare Advantage would be fairly constant. As would transferees from other health systems into UH.
And why would the new Medicare Advantage members have higher than normal costs? Wouldn't new retirees going on Medicare Advantage and transferees have the same health problems as their current members do? I cannot imagine a sudden surge of retirees and transferees who are any sicker than the normal crowd.
On the surface, it sound like an illogical excuse.
Insurance business model; denial, delay, discount. That’s how insurance companies handle claims.
Best to take what United Health reports as financial sleight of hand bovine scatology.
They were denying many claims, lying about it. Some of these claims were absolutely covered in their manual.
I never had UHC, I had another company that operated in the same way.
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