UnitedHealthcare Announces New CEO After Tragic Loss
UnitedHealth Group (UNH) has appointed Tim Noel as the new CEO of its health insurance division, UnitedHealthcare. Noel succeeds Brian Thompson, who was tragically murdered in New York City last month.
With nearly two decades at UnitedHealth, Noel most recently led the company's Medicare business. UnitedHealth Group praised Noel's "unparalleled experience" and commitment to improving healthcare for consumers and other stakeholders.
Noel assumes leadership of a $298 billion revenue unit at a challenging time for UnitedHealth Group. The company recently reported disappointing earnings, missing estimates for the first time in recent years. Insurers have faced challenges in predicting costs amid an aging population and post-pandemic surge in healthcare utilization.
UnitedHealth has implemented artificial intelligence to streamline claims processing, but this has led to frustration among patients who experience claim denials. The backlash following Thompson's death has highlighted these issues.
Despite these challenges, UnitedHealth reported $400 billion in full-year revenue for 2024, an 8% year-over-year increase. The company also logged $14 billion in profits, despite the impact of the Change Healthcare cyberattack.
However, the company's medical costs were higher than expected, with a medical loss ratio of 87.6% against a consensus estimate of 86.1%.
Stay tuned for updates on UnitedHealth Group's earnings, analysis, and industry news on Yahoo Finance.