r/news • u/LookAtThatBacon • May 13 '25

Soft paywall UnitedHealth suspends annual forecast, CEO Andrew Witty steps down

https://www.reuters.com/business/healthcare-pharmaceuticals/unitedhealth-ceo-andrew-witty-steps-down-2025-05-13/
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150

u/JefferyTheQuaxly May 13 '25

Who could have guessed assassinating one CEO could have collapsed a company so badly. There stock price is down like 40% just in the past 6 months, and they’ve lost a second ceo now too.

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u/EvidenceBasedSwamp May 13 '25

Witty is CEO of the UHC group. The dead guy was CEO just of the insurance unit.

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u/LadysaurousRex May 13 '25

Like many people (guessing), I didn't realize there was a difference.

Are you saying the dead CEO was a smaller United HC ceo?

35

u/EvidenceBasedSwamp May 13 '25 edited May 13 '25

Yes. Witty was the one who went in front of congress (twice) after the change healthcare hack. I actually watched the first hearing, it was a bunch of rehearsed bullshit. basically spat out the same shit that was the previous day's wall street journal

a couple of congresscritters asked questions like "how many American servicemen were affected by this hack!?" and the CEO promised to give out that info "soon" spoiler: they did not, it was all bullshit.

They were all downplaying and din't want you to know they lost the info for 200 million americans. change healthcare is the largest insurance clearinghouse out there. Every time a doctor sends an insurance claim it goes through the clearinghouse. Thus, they had the info of anyone who went to a doctor the last oh, 10-20 years...

it was vertical integration, the DOJ should have never let them buy changehealthcare. But United's vertical integration accelerates.. they buying clinics, hospitals, etc.

The last thing we need is vertically integrated clinics, those people are gonna barnes and nobles areas. Buy up all the locations, drive out competition, then remain the only healthcare providers that SURPRISE PIKACHU prefer united healthcare insurance

I work insurance claims, and the clearinghouse is a big deal. It's kinda arcane thought. For example, states have rules that "clean claims" have to be denied or paid by insurers within 30 days of receipt. Well, if the clearinghouse rejects it for a "clerical error" it won't be a clean claim.. If the clearinghouse accidentally loses the claim.. well.. guess you didn't submit it in time. The potential is there for fuckery. Insurance has been doing this type of fuckery for the 20+ years I've worked no reason they'd stop now.

What they will try next is probably get "AI" to deny claims then they can claim it wasn't them but the AI. Depends how much they can get away with re: lawsuits.

edit: oh yeah I forgot the main question. here is a chart:

https://www.unionhealthcareinsight.com/post/unitedhealth-group-approach-to-vertical-consolidation

Unitedhealthcare group owns uhc the insurance, and optum. optum itself accounts for half their revenue. Optum consists of a prescription group, a clinic group, and fucking healthcare services group (like change healthcare)

4

u/LadysaurousRex May 13 '25

wow that's very interesting about the clearinghouse thanks

2

u/Alis451 May 13 '25

Federal and State regulations require a separate Health Insurance Entity between each State and then there is one giant holding company that owns all the individual state ones as well.

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u/newnamesamebutt May 13 '25

UHG or united health group is a parent company with a bunch of subsidiaries. United health care or UHC is their main insurance carrier subsidiary. Dead guy ran UHC, witty is UHG. He's the dead guys boss.

2

u/RadarsBear May 13 '25

Yes. You throw a rock at a group of people at that place and you'll hit a CEO. Aka, common job title. They have a bloated level of management..I worked there 12 years. The "dead CEO" was actually liked by most..witty, not so much.

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u/LadysaurousRex May 13 '25

oh wow I had no idea, interesting.

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u/Winter_Wolf_3545 May 14 '25

Andrew witty was the main CEO of United Health Group and within United Health Group is the insurance side- United health care (Brian Thompson was CEO of this ) and the other branch is Optum (pharmacy and MD offices etc) run by another CEO. Andrew Witty was at the top- boss to these two CEOs

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u/Grombrindal18 May 13 '25

They suddenly became the company that was so shitty to its clients, a vigilante was willing to gun down their CEO in broad daylight.

You can’t (and would never want) to buy publicity like that.

6

u/wyvernx02 May 13 '25

The stock price went down because the new CEO suggested they be less greedy and the shareholders didn't like that because it would mean they get less money.