UnitedHealth pushes back against shareholder transparency proposal
A coalition of UnitedHealth Group’s shareholders attempted to force the company to produce a report on "practices that limit or delay access to healthcare” in an effort to improve transparency and care delivery. Now, ahead of its annual investor conference, UnitedHealth is attempting to put an end to the discussion.
According to a media report from January, The Sisters of the Holy Names of Jesus and Mary of Quebec put forward the motion, alongside Trillium Asset Management. At the time, this earned support from Center for Health & Democracy, a public health advocacy group, as well as the Interfaith Center on Corporate Responsibility.
Together, the groups called for an analysis of the prior authorization process, which is used to determine when and how care delivery is covered by insurance for patients enrolled in Medicare Advantage. Additionally, the cohort asked the company to investigate how claims denials impact the health of patients.
Reuters was the first to report the news. According to that coverage, the goal of the shareholder rebellion was to bring the issue up for discussion at the yet-to-be-scheduled annual investor meeting, even if the demands were not brought up for a formal vote.
However, it appears UnitedHealth is aiming to squash the proposal altogether. In a Jan. 31 filing with the Securities Exchange Commission (SEC), the insurer argued for its exclusion from the agenda, claiming that public health costs and “macroeconomic risks” are subjective.
“The Proposal further requests an evaluation of how company practices impact access to healthcare and patient outcomes” but fails to explain how “access to healthcare” or “patient outcomes” should be measured,” UnitedHealth wrote in the filing. “Access to healthcare” is an extremely broad concept. If taken literally, one could argue that requiring members to pay anything at all for healthcare services limits access to healthcare.”
The company went on to confirm that it follows all regulations by state and local authorities and submits to regular audits from the Centers for Medicare & Medicaid Services (CMS). It argued that the results of these audits may be enough to satisfy the stated goals of the inquiry.
“The Proposal is silent on whether these standards should be utilized or if others are expected to be considered,” the company added.
The investors claim the details they’re seeking are relevant to making a determination about the value of the company and their investment in its stock. The decision of whether the shareholder motion will make it to the docket of the annual meeting is ultimately left up to the SEC.
However, it is possible UnitedHealth will be able to satisfy the group either way, meaning the issue will not be discussed publicly regardless of the SEC’s ruling.
HealthExec reached out to UnitedHealth for comment but never received a reply.
The motion from investors follows the murder of UnitedHealthcare CEO Brian Thompson, who was shot and killed in New York City. A Maryland man, Luigi Mangione, has been charged with the crime and remains behind bars, awaiting trial.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.