A United Healthcare sign is displayed on an office building in Phoenix, Arizona, on July 19, 2023.
Patrick T. Fallon | AFP | Getty Images
UnitedHealthcare on Thursday appointed veteran Tim Noel as its new CEO after former CEO Brian Thompson was targeted and killed in Manhattan in December. Nominated.
Noel was the Director of Medicare and Retirement for UnitedHealthcare, the largest private health insurance company in the United States. united health groupis the nation’s largest healthcare conglomerate based on sales and market capitalization of more than $480 billion.
Noel, who first joined the company in 2007, said, “His proven track record and strong commitment to improving the way health care works for consumers, physicians, employers, governments and other partners makes him uniquely suited to this role. “We have created an experience unlike any other,” UnitedHealth Group said. statement.
The company is still reeling from Thompson’s murder, which unleashed a torrent of pent-up anger and resentment against the insurance industry, reignited calls for reform and reignited the debate over health care in the United States.
Amid concerns about their physical safety, companies across the industry have tightened security for their executives, removing many of their photos and personal information from their websites. That includes UnitedHealth Group, which appears to no longer have a page for executives.
Luigi Mangione, the man charged in the Thompson shooting, is currently being held without bail in Brooklyn, New York. Mangione, 26, has been charged with murder and terrorism, but has maintained his innocence.
Mr. Noel oversaw parts of UnitedHealthcare’s business, including Medicare Advantage plans, which were responsible for soaring costs for insurers.
Medicare Advantage, the privately operated health insurance plan contracted by Medicare, has long been an important source of growth and profit for the insurance industry. But medical costs for Medicare Advantage patients have soared over the past year as more seniors return to hospitals for procedures they had put off during the coronavirus pandemic.
UnitedHealthcare’s Medicare and Retirement division serves one-fifth of Medicare beneficiaries, or about 13.7 million patients, according to a company fact sheet.
UnitedHealth Group CEO Andrew Whitty said on an earnings call last week that the profit-driven U.S. health care system “works better” and “has less disruption, less complexity, and lower costs.” We need to bring it down.”
Whitty said the system’s members benefit from higher prices, noting that while lower prices and improved service are good for customers and patients, “it’s a revenue loss for organizations that rely on high medical billing.” It pointed out that there is a possibility that it could threaten the source. However, Witty declined to say how much UnitedHealth Group benefits from that model.
In its first quarterly results since the killing, UnitedHealth Group reported fourth-quarter earnings that fell short of Wall Street expectations due to a weak insurance business.
The company’s 2024 sales will rise 8% to $400.3 billion, and it expects sales to increase again this year, in the range of $450 billion to $455 billion.
—CNBC’s Bertha Coombs contributed to this report.
