Consumers’ harsh reactions to insurer exec death reflects negative sentiment toward health insurers

The news: UnitedHealthcare CEO Brian Thompson was fatally shot outside a Manhattan hotel in what authorities are calling a premeditated, targeted attack. No motive has been officially declared by law enforcement.

The attack occurred just before UnitedHealth Group’s annual investor conference, which was canceled.

The alleged targeting: We don’t have complete certainty as to the motivations behind the attack. However, new developments indicate that the crime could be tied to UnitedHealthcare’s worsening reputation as a company that prioritizes profits over its members.

For one, shell casings were found at the scene with the words “deny,” “defend,” and “depose” written on them. The words could allude to alleged tactics insurers are accused of using to avoid paying claims among other questionable business practices. And comments from Thompson’s wife to NBC News confirmed that her husband had previously received threats.

In fact, a longtime UnitedHealth executive who is no longer with the company said leadership frequently received threats from people with grievances about its coverage policies, per STAT.

The bigger picture: Consumers’ response to the attack on social media centered on the outsized influence health insurers hold over decisions relating to their care and treatment.

Many expressed their disdain and distrust of the health insurance industry, fueled by anger over how often insurers deny needed care. In particular, consumers called out:

Coverage denials. Claim denials can have financial and medical consequences. 47% of insured adults who experienced care delays due to a coverage denial said their health problem worsened as a result, per the Commonwealth Fund. And a considerable amount of people are having to deal with denials. Nearly 60% of insured adults said they’d experienced a problem using their health insurance in the past 12 months, including denied claims, provider network problems, and prior authorization issues, according to 2023 survey data from KFF.

Negative experiences. Consumers’ experience with health insurance depends on how frequently they need to use it. Some 81% of insured adults rated their health insurance good or excellent, per KFF. For those in fair or poor health—who thus have more interactions with their insurer—that figure drops to 68%.

Yes, and: Lawmakers have also called out health insurers for prioritizing profits over patients.

In October, a Senate panel released a report highlighting insurers’ refusal to pay for policyholders’ claims, in particular post-acute care for senior members on Medicare Advantage (MA) plans.

• The report found that under UnitedHealthcare’s prior authorization system, the denial rate for post-acute care rose to 22.7% in 2022, up from 10.9% in 2020.
• For context, UnitedHealthcare enrolls more MA members than any other health insurer.

Our take: The public doesn't believe that health insurers act in patients' best interest. Further, the overwhelming response to Thompson’s attack on social media shows that consumers have a firm grip on issues like coverage denials and are fed up with having to fight tooth and nail to get their healthcare paid for.

All told, health insurers have a severe reputational issue on their hands that they’d be wise to address.

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