UnitedHealth Faces 23% Stock Drop Amid Earnings Shock

UnitedHealth Group, the largest health insurer in the U.S., is facing a series of challenges, including a dramatic stock drop exceeding $100 billion in value following disappointing earnings and a downgraded outlook for 2025, attributed to higher-than-expected Medicare costs. The company missed profit forecasts for the first time in over a decade, causing industry-wide declines among health insurance stocks. Internally, UnitedHealth acknowledges problems with customer service and prior authorizations, and new leadership is promising more transparent communication and streamlined processes for patients. The murder of UnitedHealthcare CEO Brian Thompson has intensified public scrutiny and outrage over insurer profits and care denials, spurring UnitedHealth to overhaul its customer relations and address longstanding criticisms. The company is also navigating ongoing DOJ investigations into antitrust practices while trying to repair its public image. UnitedHealth executives emphasize their commitment to correcting course and regaining public trust as they adapt to these significant operational and reputational pressures.