UnitedHealth's Big Steps to Fix Trust Issues

Key Changes and Action Plans

UnitedHealth Group has released initial findings from an independent audit of its business practices, outlining plans to make significant changes in three key areas. The company has implemented 23 action plans, with 65% expected to be completed by the end of 2025 and the remaining by March 2026.

Regaining Public Trust

This announcement comes as private insurers strive to rebuild public trust, amidst widespread dissatisfaction with insurers and the healthcare system. Critics argue that insurers create barriers for patients seeking and affording care. UnitedHealth, which owns UnitedHealthcare—the largest insurer in the U.S.—is at the forefront of these challenges.

Leadership and Transparency

The audit was initiated by Steve Hemsley, the new CEO who took over in May following the sudden departure of Andrew Witty. Hemsley emphasizes that the audit underscores the company's commitment to greater transparency, asserting that patients and providers deserve clarity on how the company operates.

Audit Findings and Recommendations

Two firms conducted the audit:

• FTI Consulting: Examined UnitedHealthcare's Medicare Advantage programs, focusing on member health ratings and care management policies.
• The Analysis Group: Assessed Optum Rx, the company's pharmacy benefit manager, particularly its negotiation of prescription discounts with drugmakers.

Key Findings:

• Optum Rx: Needs to improve dispute resolution with drugmakers. UnitedHealth plans to establish a formal policy for this.
• FTI Consulting: Found that UnitedHealth outperforms peers in some areas but identified issues like slow decision-making and documentation problems.

Financial and Operational Challenges

UnitedHealth's shares have dropped over 35% this year, attributed to rising medical costs, leadership changes, and investigations into its Medicare Advantage business. The company faced additional setbacks last year, including a major cyberattack and public backlash following the murder of former CEO Brian Thompson.