Shareholders Call on United Healthcare Group to Issue a Report on the Public Health Costs of Delayed or Denied Access to Treatment
January 14th, 2025
Image by Tung Nguyen from Pixabay
NEW YORK, NY, WEDNESDAY, JANUARY 8, 2024 – Shareholders of UnitedHealth Group ($UNH) today announced that they had filed a proposal for the 2025 proxy requesting that the Board of Directors prepare a report on the public health-related costs and macroeconomic risks created by the company’s practices that limit or delay access to healthcare.
Specifically, shareholders recommend that the report evaluate how company practices impact access to healthcare and patient outcomes, including analyses of how often prior authorization requirements or denials of coverage lead to delay or abandonment of medical treatment, and serious adverse events for patients.
The proponents are institutional investors who have been engaging UNH and other companies in the healthcare sector for many years around questions of access and affordability. As investors with diversified holdings, they argue that while UNH’s policies may boost short-term revenue, its vertically integrated business model and escalating costs disempower patients, create long-term reputational and legal risks for the company and pose broader risks to the economy that, by extension, threaten investors’ total portfolios.
Said Timnit Ghermay of the Congregation des Soeurs des Saints Noms de Jesus et de Marie who led the filing of the proposal, “UNH has been in the media and legislative spotlight for some time given its market dominance, aggressive marketing of Medicare Advantage and questionable use of AI algorithms to deny care to patients. As the tragic murder of UNH’s Brian Thompson made evident, public outrage over the exorbitant costs and restricted access to healthcare has reached a dangerous level in our country. Our proposal suggests some introspection by UNH that will help the company and all its stakeholders thrive.”
As the 4th largest company in the U.S. owning not only insurers but also providers, the power and influence of UNH over the U.S. economy cannot be overstated. It is estimated that over 5 percent of U.S. gross domestic product flows through the company’s systems daily touching millions of Americans. This power, and the profits UNH generates, have attracted the scrutiny of legislators who are calling for the company to be split up and reformed. According to STAT, “Lawmakers and regulators have sharply criticized the company for excessive profiteering within its Medicare Advantage business. It is being sued for allegedly using an error-prone algorithm to systematically deny care to older Americans…It is facing a federal antitrust investigation and a Justice Department lawsuit seeking to block its proposed acquisition of the home health provider Amedisys.”
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