UnitedHealth Braces for Scrutiny Amid Record Profits and Cyberattack Fallout

MINNETONKA, Minn. — UnitedHealth Group, the nation’s largest health insurer, is preparing to release its fourth-quarter earnings report this week, expected to show billions in profits despite rising medical costs and the fallout from a massive cyberattack earlier this year. The announcement comes as the company mourns the death of Brian Thompson, CEO of its UnitedHealthcare division, and faces heightened scrutiny over its business practices.

The company, led by CEO Andrew Witty, is projected to report earnings of $6.72 per share, a 9% increase from the same period in 2023. Revenues are expected to surpass $102 billion, an 8% year-over-year growth. However, the financial success is shadowed by challenges, including rising costs for Medicare Advantage plans and the lingering effects of a February cyberattack on its Change Healthcare subsidiary.

The cyberattack, one of the largest in U.S. corporate history, disrupted billing and payment systems nationwide, leaving healthcare providers unable to process insurance claims. UnitedHealth estimates the total impact of the attack at over $2.2 billion for 2024. Despite this, the company has continued to post strong quarterly profits, including $6.06 billion in net income during the third quarter.

UnitedHealthcare, which serves more than 50 million customers, including 7.8 million Medicare Advantage enrollees, has faced criticism for denying medical care and other practices. Industry critics and some members of Congress have called for reforms, adding pressure on the company to address these concerns.

In the wake of Thompson’s death, UnitedHealth has removed executive photos and biographies from its website, maintaining a low profile ahead of the earnings release. The company has also canceled public events, including its December investor day, following a shooting incident in New York.

Wall Street analysts are closely watching how UnitedHealth navigates rising medical costs, particularly in its Medicare Advantage business, which has seen increased expenses this year. The company’s diversified portfolio, including its Optum healthcare services division, has helped offset some of these challenges.

As UnitedHealth prepares to address investors and the public, the focus will be on how it balances profitability with the need to address systemic issues in the healthcare industry.