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UnitedHealthcare names Tim Noel as new CEO after Brian Thompson’s murder

UnitedHealthcare names Tim Noel as new CEO after Brian Thompson’s murder

UnitedHealthcare signage is installed on an office building in Phoenix, Arizona on July 19, 2023.

Patrick T. Fallon | Afp | Getty Images

UnitedHealthcare named company veteran Tim Noel as its new CEO on Thursday following the targeted killing of former top executive Brian Thompson in Manhattan in December.

Noel was head of Medicare and Retirement at UnitedHealthcare, the largest private health insurer in the United States United Health Groupthe largest healthcare company in the country by revenue and a market capitalization of more than $480 billion.

Noel, who first joined the company in 2007, “brings unparalleled experience to this role, a proven track record and a strong commitment to improving healthcare for consumers, physicians, employers, governments and our other partners,” said the UnitedHealth Group said in a statement.

The company is still reeling from Thompson’s killing, which unleashed a torrent of pent-up anger and resentment toward the insurance industry, sparked renewed calls for reform and reignited a debate over U.S. health care

Amid concerns about physical security, companies across the industry have increased the security of their executives and removed their photos and much of their personal information from their websites. This also includes UnitedHealth Group, which apparently no longer has a management side.

Luigi Mangione, who was charged in the fatal shooting of Thompson, is currently being held without bail in Brooklyn, New York. The 26-year-old Mangione is charged with murder and terrorism, among other things, to which he has pleaded not guilty.

Noel ran part of UnitedHealthcare’s business, which included Medicare Advantage plans that have resulted in skyrocketing costs for insurers.

Medicare Advantage, a privately owned health insurance plan under Medicare plans, has long been an important source of growth and profit for the insurance industry. But medical costs for Medicare Advantage patients have skyrocketed over the past year as more seniors return to hospitals to undergo procedures they had put off during the Covid-19 pandemic.

UnitedHealthcare’s Medicare and Pensions division serves one-fifth of Medicare beneficiaries, or nearly 13.7 million patients, according to a company fact sheet.

UnitedHealth Group CEO Andrew Witty said in an earnings call last week that the for-profit U.S. health care system needs to “work better” and be “less confusing, less complex and less costly.”

Witty said members of the system benefited from high prices, noting that lower prices and improved services can be good for customers and patients but “can threaten the revenue streams of organizations that rely on paying more for care.” demand”. However, Witty did not address the extent to which UnitedHealth Group benefits from this model.

In its first quarterly results since the murder, UnitedHealth Group reported fourth-quarter revenue that fell short of Wall Street expectations due to weakness in its insurance business.

The company’s revenue rose 8% to $400.3 billion in 2024 and sales are expected to rise again this year to $450 billion to $455 billion.

— CNBC’s Bertha Coombs contributed to this report.

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