UnitedHealth CEO says U.S. health system ‘needs to function better’

The CEO of UnitedHealth Group said Thursday that shortcomings of America’s health care system must be addressed.

On the company’s first earnings call since the fatal shooting of UnitedHealth executive Brian Thompson, CEO Andrew Witty said that while the U.S. provides world-leading care in many respects, there are systemic flaws that are working to drive up health costs for people in the country. 

“The health system needs to function better,” he said, adding that the “variety” of state, federal and private sector structures and programs have created a “confusing,” “complex” and “costly” health care landscape. 

Witty began the call expressing gratitude for the condolences received in the wake of Thompson’s death.

“Many of you knew Brian personally,” Witty said, referring to the investors on the call. “You knew how much he meant to all of us and how he devoted his time to help make the health system work better for all of the people we’re privileged to serve.”

The suspect charged in Thompson’s killing, Luigi Mangione, is currently being held without bond in Brooklyn. He faces capital murder charges, to which he has pleaded not guilty. 

While past UnitedHealth earnings calls have featured general remarks about the company’s desire to deliver improved outcomes for its customers, Witty’s comments Thursday acknowledged the broader debate about the state of U.S. health care that has emerged in the wake of Thompson’s shooting. 

Witty’s remarks came as United Health reported record 2024 revenues. Shortly before Thompson was killed, its stock price was at an all-time high.

Prior to addressing the company’s financial performance, Witty discussed some of the shortcomings of the profit-driven model of U.S. health care head on.

“Participants in the system,” he said, derive benefit from high health care costs. While lower prices and improved services can be good for consumers and patients, Witty said, they can “threaten revenue streams for organizations that depend on charging more for care.”

Witty did not discuss to what extent UnitedHealth itself was a beneficiary of such circumstances. 

When it comes to drug costs, for example, he said U.S. health care participants “pay disproportionately more than people in other countries,” citing the cost of the weight loss drug GLP, which he said costs approximately one-tenth less in Europe. 

Witty directly blamed drug companies for discrepancies like those, while stating that UnitedHealth’s pharmacy-benefit managers (PBM), who help negotiate retail drug prices and who have come under increasing public pressure for their role in setting drug prices, continue to work to pass savings on to customers. 

UnitedHealth’s improved PBM performance “will help make more transparent who is really responsible for drug pricing in this country: the drug companies themselves,” Witty said, without elaborating.

A representative for the Pharmaceutical Research and Manufacturers of America, or PhRMA, which represents drug companies, did not immediately respond to a request for comment.

For the quarter, UnitedHealth reported worse-than-expected results, sending its shares down more than 4% Thursday.  

“Health care in every country is complex and the solutions are not simple, but you should expect this company to continue to work at it,” Witty stated.