The killing of CEO Brian Thompson in New York City last month set off a wave of vitriol and resentment against the insurance industry and health care system at large. Thompson ran UnitedHealth’s insurance division, UnitedHealthcare, which is the largest in the industry.
Witty spoke briefly about the slain CEO at the top of an earnings call Thursday, praising his legacy.
“He devoted his time to helping make the health system work better for all of the people we're privileged to serve,” Witty said.
- During the call, UnitedHealth announced more than $400 billion in revenue and almost $14.5 billion in net profits last year.
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Witty said the health system “needs to be less confusing, less complex and less costly,” and said costs need to come down.
“Fundamentally, health care costs more in the U.S. because the price of a single procedure, visit or prescription is higher here than it is in other countries. The core fact is that price, more than utilization, drives system costs higher,” Witty said.
But he said the main culprits for high costs were drug manufacturers, pointing specifically to GLP-1 prices. Witty noted the drugs cost about a tenth as much in Europe as they do in the U.S.
UnitedHealth owns pharmacy benefit manager Optum Rx, which is supposed to negotiate discounts on drugs in the form of rebates and pass them on to consumers. PBMs have been facing scrutiny from lawmakers and federal regulators, but Witty said they play a “vital role” in holding down costs, which is why they are being attacked by drug companies.
Optum Rx will pass through 100 percent of drug rebates back to consumers and employers by 2028, Witty said. “This will help make it more transparent who is really responsible for drug pricing in this country: The drug companies themselves,” he said.
He also took a thinly veiled swipe at hospitals, saying there are "participants in the system who benefit” from high prices.
Patients would benefit from lower-cost sites of service — something Congress is looking to implement for Medicare — but hospitals vehemently oppose it. Witty said such a move would “threaten revenue streams for organizations that depend on charging more for care.”
