UnitedHealth CEO Blames Hospitals, Doctors, Pharma for Soaring Health Care Costs

UnitedHealth Group's CEO, Andrew Witty, has pointed the finger at hospitals, doctors, and pharmaceutical companies for the soaring health care costs in the U.S. In a recent earnings call, Witty acknowledged the nation's health care system is confusing and must improve, citing high prices of medical services as the "root cause" of the nation's health care woes. He specifically mentioned the high prices of GLP-1 medications used for diabetes and weight loss, with one such drug costing $900 in the U.S. but only $90 in Europe.

Witty's remarks come as the Minnesota-based health insurance and medical services company announced earnings that fell short of analysts' projections for the final three months of 2024. The company's revenue grew nearly 7% to $100.8 billion for the fourth quarter from the same period a year prior, while its earnings inched up less than 2% to $5.5 billion. Adjusted quarterly earnings came in at $6.81 per share, missing analysts' expectations of $6.73 per share on $101.6 billion in revenue, according to FactSet.

Witty also addressed consumers' vocal complaints about claims denials and delayed care. He stated that less than one half of 1% of claims are ultimately rejected because they are deemed not to be safe or effective treatment options. However, he acknowledged that other claims are "held up in the process," saying that the "overwhelming majority of those claims which are held up are held up because they were either sent to the wrong company, they didn’t have the right information on them, the patient didn’t have the right benefits."

Witty's comments highlight the complex nature of the U.S. health care system and the need for improvement in various aspects, including pricing transparency, efficient claims processing, and better communication between providers and insurers. As the U.S. continues to grapple with rising health care costs, it is essential to address the root causes and work towards a more efficient and affordable system for all Americans.