Will Brian Thompson’s Murder Lead to Patient Revolt Against the Health Insurers?
THE WILDCARD
Brian Thompson, the CEO of UnitedHealthcare, was tragically murdered in a targeted attack in New York City on December 4, 2024
In the immediate aftermath of Thompson's murder, UnitedHealth Group's stock experienced a notable drop. On the day of the assassination, the stock opened at $611.02 and closed at $610.79, showing a slight decline. However, the following day saw a more substantial drop of 5.2%, reflecting the market's reaction to the negative publicity and uncertainty surrounding the company's leadership.
The murder has also brought to light the simmering anger and frustration many Americans feel towards the healthcare system, particularly regarding denied claims and perceived injustices in healthcare coverage. This public outrage could lead to increased scrutiny and regulatory pressure on insurance companies, potentially affecting their operations and profitability in the long term.
Would this wildcard event just be a PR crisis, or have long-lasting implications? The tragic murder of Brian Thompson has had immediate negative effects on UnitedHealth Group's stock and has highlighted deep-seated issues within the healthcare system. The broader insurance sector may face increased volatility as investors react to ongoing developments and potential regulatory changes. If patient anger continues to rise, putting pressure on regulators or leading to significant grassroots movements to fight against “evils,” regulators may start scrutinizing health insurers’ expense ratio, or probing insurers’ use of big data/AI in claim review, or penalize insurers for any wrongdoings, the ripple effect can be significant. After all, the opioid crisis is still fresh in memory. Drug makers were the culprits then, but drug stores and PBMs were regarded as accomplices and fell along with drug companies. The question becomes–if health insurers’ stock price falls, who are the collateral damages of this patient anger?