On July 19, 2023, signage from health insurer UnitedHealthcare (UHC) is displayed on an office building in Phoenix, Arizona.
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UnitedHealthcare on Thursday appointed corporate veteran Tim Noel as its new CEO following the targeted killing of its former top executive, Brian Thompson, in Manhattan in December.
Noel was head of Medicare and pensions at UnitedHealthcare, the largest private health insurer in the US. It is the insurance branch of UnitedHealth Groupthe nation's largest healthcare conglomerate by revenue and a market capitalization of more than $480 billion.
Noel, who first joined the company in 2007, “brings unparalleled experience to this role with a proven track record and a strong commitment to improving the way healthcare works for consumers, doctors, employers, governments and our other partners,” UnitedHealth Group said in a statement.
The company is still reeling from Thompson's killing, which unleashed a flood of pent-up anger and resentment toward the insurance industry, renewed calls for reform and reignited a debate over health care in the US.
Due to concerns about physical security, companies across the industry have increased security for their executives and removed their photos and much of their personal information from their websites. That includes UnitedHealth Group, which no longer appears to have an executive leadership page.
Luigi Mangione, who was charged in the fatal shooting, is currently being held without bond in Brooklyn, New York. Mangione, 26, is accused of murder and terrorism, among other things, to which he has pleaded not guilty.
Noel oversaw some of UnitedHealthcare's business, including Medicare Advantage plans, which have been the source of skyrocketing costs for insurers.
Medicare Advantage, a private health insurance contract under Medicare, has long been a major source of growth and profit for the insurance industry. But Medicare Advantage patients' medical costs have risen over the past year as more seniors return to hospitals to undergo procedures they put off during the Covid-19 pandemic.
UnitedHealthcare's Medicare and pension division serves one-fifth of Medicare beneficiaries, or nearly 13.7 million patients, according to a company fact sheet.
UnitedHealth Group CEO Andrew Witty said on an earnings call last week that America's for-profit health care system needs to “function better” and be “less confusing, less complex and less expensive.”
Witty said system members benefit from high prices, noting that lower prices and improved services may be good for customers and patients but “could threaten revenue streams for organizations that rely on higher costs for care.” However, Witty did not elaborate on the extent to which UnitedHealth Group benefits from that model.
In its first quarterly results since the killing, UnitedHealth Group reported fourth-quarter revenue that missed Wall Street expectations due to weakness in its insurance business.
The company's 2024 revenue rose 8% to $400.3 billion, and expects revenue to rise again this year to a range of $450 billion to $455 billion.
— CNBC's Bertha Coombs contributed to this report