UnitedHealthcare CEO Murder Adds Tragic Twist to Parent Company’s Turbulent Year
UnitedHealthcare, headquartered in Minnesota, has had a challenging year filled with controversy. The recent tragic death of Brian Thompson, CEO of UnitedHealthcare’s insurance arm, adds to the company’s troubles. Investigators are working to uncover the motive behind Thompson’s killing, amidst a turbulent year for the health insurance giant.
In early February, a software attack on Change Healthcare, a subsidiary of UnitedHealth Group Inc., led to significant disruptions. The breach resulted in unfilled prescriptions and long wait times at pharmacies, ultimately costing the company $872 million.
Later in May, a federal lawsuit was filed by the City of Hollywood Firefighter’s Pension Fund. The suit alleged that Thompson, along with UnitedHealth Group Inc. Chairman Stephen Hemsley, engaged in insider trading. It was revealed that Thompson sold over $15 million of his UnitedHealth shares before news of a Department of Justice antitrust investigation into the company’s acquisition of Change Healthcare became public. The lawsuit claimed that this led to a considerable devaluation of shareholder wealth, totaling nearly $25 billion.
In July, protestors assembled at UnitedHealthcare’s Minnetonka headquarters, resulting in 11 arrests. Demonstrators accused the company of a pattern of denying care through prior authorization and claims denials. However, no connection has been established between Thompson’s death and the protest.
The same month, HealthPartners announced its departure from UnitedHealthcare’s Medicare Advantage network due to high claim denial rates.
Subsidiary Optum, which offers various healthcare services, made the decision to lay off workers in several states in September. The chain of events culminated last month when the U.S. Dep…
