The American insurance industry has become a target of public criticism. UnitedHealth Group Incorporated (UNH.US) CEO promises to improve customer service.
17/01/2025
GMT Eight
In the financial report conference call, UnitedHealth Group Incorporated (UNH.US) CEO Andrew Witty addressed the issue of customer satisfaction that long-term investors are highly concerned about. He said, "The company's mission is to strive to enhance the medical experience for everyone. This not only means reducing costs and making services more affordable, but also making it easier for people to access, no longer tedious, complex, or confusing. We recognize that there is still a lot of work to be done in this area."
Witty said, "Fundamentally, medical costs in the United States are higher because the prices for surgeries, visits, or prescriptions here are higher than in other countries. Another example is the high drug prices in the United States, leading to costs paid by American consumers, employers, and public institutions being much higher than in other countries.... Addressing this issue requires efforts from all parts of the system and policy makers."
The American insurance industry is in turmoil. The wildfires in California have brought property insurance business into focus, and the recent news of the shooting of UnitedHealth Group Incorporated's insurance department CEO Brian Thompson has made headlines in the healthcare insurance industry. Since the fatal shooting incident in early December last year, UnitedHealth Group Incorporated's stock price has not recovered, dropping by nearly 20%, and the market value has evaporated by $100 billion.
Recently, US President-elect Donald Trump has once again put the insurance industry in the spotlight. He promised to "eliminate middlemen [in the pharmaceutical industry]" - such as UnitedHealth Group Incorporated's drug benefit department, OptumRx. In addition, this healthcare giant's disappointing medical loss ratio and fourth-quarter revenue announcement on Thursday has also raised concerns among investors.
At the time of writing, UnitedHealth Group Incorporated fell by 0.16% in pre-market trading, and the stock closed down 6% on Thursday.