Yahoo Finance Yahoo Finance Sign in Search query Search for news or symbols Yahoo Finance Health insurance industry 'laying low' in aftermath of UnitedHealthcare CEO shooting Anjalee Khemlani Anjalee Khemlani · Senior Reporter Updated Fri, December 13, 2024 at 4:48 PM GMT+6 8 min read In This Article: UNH -3.33% CVS -4.21% OSCR -5.01% Infrared Saunas 2024 (See Prices) Infrared Sauna | Search Ads Ad Health insurance industry officials remain uncharacteristically reserved in the aftermath of the fatal shooting of UnitedHealthcare (UNH) CEO Brian Thompson on Dec. 4. A week after the attack, the industry continues to grapple with how to handle the flood of anger on social media pointed at the healthcare industry and insurance refusals to pay for care. Major health insurers, like UnitedHealthcare and Elevance (ELV), responded by pulling down online profiles of executives while most offered notes of sympathy toward Thompson's family and UnitedHealth Group. But unlike the industry's practice of responding to criticism from policymakers, few executives and lobbying firms have been willing to speak about the insurance practices that are fueling social media vitriol. UnitedHealth Group CEO Andrew Witty criticized the healthcare system as outdated and fragmented in a recent opinion piece for the New York Times, published on Friday. In the article, Witty also reflected on the tragic death of Brian Thompson. Yahoo Finance spoke to more than a dozen current and former executives and experts in the industry — most on the condition of anonymity for fear of being targeted — about the impact of the shooting and why the industry has not been out in force to address the public sentiment. "Everyone is laying low because no one wants to be the poster child for hate [online]," a mid-level insurance executive said. "Nobody wants to get shot," another current health insurance executive said. NEW YORK, UNITED STATES - DECEMBER 4: Police officers investigate the scene where UnitedHealthcare CEO Brian Thompson was fatally shot in Midtown Manhattan near a hotel on 54th Street between 6th and 7th Avenues on December 04, 2024 in New York, United States. UnitedHealthcare CEO Brian Thompson, 50, was fatally shot in what authorities are calling a 'brazen, targeted attack' outside the Hilton Hotel in Midtown Manhattan. The masked gunman, who waited several minutes before ambushing Thompson, fired multiple times, striking him in the back and right calf. Thompson was rushed to Roosevelt Hospital but succumbed to his injuries. The suspect fled the scene and remains at large. A $10,000 reward has been offered for information leading to his arrest. (Photo by Kyle Mazza/Anadolu via Getty Images) Police officers investigate the scene where UnitedHealthcare CEO Brian Thompson was fatally shot in Midtown Manhattan near a hotel on 54th Street between 6th and 7th Avenues on Dec. 4, 2024, in New York. (Kyle Mazza/Anadolu via Getty Images) · Anadolu via Getty Images Conversations among executives at insurers have focused in the near term on safety and security. In the past, physical and violent attacks have largely been confined to health and social welfare facilities. It's the first time that insurance executives have faced the same threat. "The dynamics of social media have caused, rightly so, executives and executive teams to say, 'Let's not be the ones above the foxhole,'" a former health insurance executive told Yahoo Finance. The fear in the industry was reignited Wednesday when the New York Police Department found "wanted" posters of other healthcare executives posted around New York City, according to reports, and warned that the attack on Thompson and heightened public response could inspire similar acts. "It would be an understatement to say we are operating in unprecedented times," Centene CEO Sarah London said on Thursday at the company's virtual investor day. The event was moved online after the UnitedHealthcare attack. Ongoing public battle NYPD is still investigating why the UnitedHealthcare executive was targeted. The suspect, Luigi Mangione, who was charged in connection with the killing, had several health issues that he posted about online. But a motive is not yet clear. The attack opened the floodgates for the public's frustration over prior authorization and claim denials. Denials have been on the rise as the industry turns to technology to help make the process run more quickly. On the way to a court hearing in Pennsylvania this week, Mangione appeared to call out the industry for being tone-deaf. "It's ... an insult to the intelligence of the American people and their lived experience," he said, according to several reports. HOLLIDAYSBURG, PENNSYLVANIA - DECEMBER 10: Thomas Dickey (C-R), attorney for suspected shooter Luigi Mangione speaks to press in front of the Blair County Courthouse after an extradition hearing December 10, 2024 in Hollidaysburg, Pennsylvania. Mangione has been arraigned on weapons and false identification charges related to the fatal shooting of United Healthcare CEO Brian Thompson in New York City. Mangione is incarcerated in the State Correctional Institution in Huntingdon, Pennsylvania awaiting extradition to New York. (Photo by Jeff Swensen/Getty Images) Thomas Dickey (C-R), attorney for suspected shooter Luigi Mangione speaks to press in front of the Blair County Courthouse after an extradition hearing Dec. 10, 2024, in Hollidaysburg, Pa. (Jeff Swensen/Getty Images) · Jeff Swensen via Getty Images For years, the health industry has engaged in finger-pointing, with insurers and their lobbying groups blaming hospitals and drug companies for high prices, while the hospitals and drug companies redirect the blame to insurers. Insurers remain convinced they are doing the right thing for the healthcare industry. The industry views prior authorization and claim denials as the only way to control costs and potential fraud in the health system. If a doctor files a claim to authorize chemotherapy, for example, the insurer might deny it based on parameters set through artificial intelligence or a staff-managed system. Insurance companies may determine treatment is not appropriate or the cheapest first option and deny coverage until a doctor files the right code or selects a treatment within the company's parameters. This system has created frustration among doctors, who blame insurers for interfering in medical care and potentially disrupting a patient's ability to get treatment. There have been examples over the years of insurers handling the denials callously to avoid having to pay out the claim. Only 0.2% of denied claims are appealed by patients. UNITED STATES - MAY 1: Andrew Witty, CEO, UnitedHealth Group, testifies during the Senate Finance Committee hearing titled Andrew Witty, CEO, UnitedHealth Group, testifies during the Senate Finance Committee hearing, on Wednesday, May 1, 2024. (Tom Williams/CQ-Roll Call, Inc via Getty Images) · Tom Williams via Getty Images In a leaked video, Andrew Witty, CEO of UnitedHealth Group, the parent company of UnitedHealthcare, said that the company will continue to defend its business practices. "We guard against the pressures that exist for unsafe care or for unnecessary care to be delivered in a way that makes the whole system too complex and ultimately unsustainable," Witty said in the video. "So we are going to continue to make that case, we are going to continue to do the work we do." The company also gave employees talking points to defend its work. Witty wrote a memo to employees asserting that daily operations are "done at the highest possible standard of quality." UnitedHealthcare has come under fire in recent years for its reliance on artificial intelligence to process claims. It has been deemed to have the highest claim denial rate at 32%, compared to the industry average of around 17%, according to Centers for Medicare and Medicaid data, which may not accurately reflect the general public but gives an idea of how each company manages denials.