UnitedHealth Group Stock Takes a Hit Amid Backlash Over Insurance Practices
The healthcare sector was abuzz with activity today, but not for the right reasons. Shares of UnitedHealth Group (NYSE: UNH) plummeted for the second consecutive day, shedding 5.1% of their value. This downward spiral comes on the heels of a 5.2% decline on Thursday. The broader market, however, rallied on the back of a strong jobs report.
Investors Reckon with Backlash Against UnitedHealth
The catalyst behind this sell-off appears to be the intense backlash against the company’s insurance practices. The murder of UnitedHealthcare CEO Brian Thompson on Wednesday morning sparked widespread outrage across social media and online forums. Many are decrying the company’s denial rate, which stands at a staggering 32% – more than double the industry average.
Congressman Weighs In on Insurance Crisis
Dean Phillips, the congressman representing UnitedHealth’s home district in Minnesota, acknowledged the insurance crisis in a post on X. He pinned the blame on Congress and the influence of money in politics, calling for change. As the nation’s attention remains fixed on this issue, investors are grappling with the potential fallout.
Uncertainty Looms for Health Insurance Industry
The repercussions of this event are far from clear. Will there be ESG-related calls for institutional investors to divest from UnitedHealth and its peers? Or will regulatory changes impact profits at these companies? One thing is certain – the health insurance industry is under intense scrutiny.
UnitedHealth Forecasts Steady Growth Amid Rising Costs
In its latest filing, UnitedHealth forecast adjusted earnings of $29.50 to $30 in 2025, up from its 2024 forecast. This suggests the company expects steady bottom-line growth despite rising costs from an aging population.
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