Shares of major health insurance companies, including UnitedHealth Group, continued their downward trajectory on Friday, two days after the fatal shooting of Brian Thompson, the CEO of UnitedHealth’s health insurance unit, outside a Manhattan hotel. Authorities are still searching for the gunman, and the motive behind the attack remains unclear.
Thompson’s death has sparked widespread outrage on social media, with many users expressing frustration over the challenges of navigating the U.S. health insurance system, especially when medical expenses are not covered or claims for care are denied. This incident has amplified existing criticisms of the industry, particularly regarding its handling of insurance claims and coverage decisions.
Julie Utterback, a Morningstar analyst, commented on the growing public dissatisfaction, noting that the incident suggests that companies like UnitedHealth and potentially the wider industry may need to reassess their approach to coverage decisions. Shares of UnitedHealth fell 4.8% on Friday, following a 5% drop on Thursday. Other major health insurers, including Elevance, Centene, CVS Health, and Cigna, also saw declines of 1% to 3% in afternoon trading.
At the scene of the shooting, police found shell casings with the words “deny,” “defend,” and “depose” carved into them—terms reminiscent of Jay Feinman’s 2010 book, Delay, Deny, Defend: Why Insurance Companies Don’t Pay Claims and What You Can Do About It. These phrases have become symbols of the frustration many Americans feel toward the health insurance industry, particularly regarding claim denials and coverage disputes.
Social media platforms have been flooded with personal stories from users who shared their experiences of being denied necessary care or having coverage rejected. Many posts have been critical of the companies, with some mocking the industry’s bureaucracy, as seen in viral videos with messages such as “thoughts and prayers require prior authorization.”
In the wake of the shooting, both UnitedHealth and CVS Health have taken steps to reassess security risks for their top executives, with both companies removing photos of their leadership teams from their websites.
Analyst Utterback noted that potential changes in coverage decisions could come as a result of either internal company initiatives or external pressures. These changes could carry significant financial risks for insurers, as the industry has already been grappling with increased healthcare costs. The surge in demand for healthcare services under government-backed Medicare plans for older adults and Medicaid changes has led to a rise in patient numbers and healthcare expenses, adding further strain on insurance providers.
