Science
UnitedHealth’s Revenues Rise, in First Earnings Report Since CEO’s Killing
UnitedHealth Group reported on Thursday that it earned less than expected this past quarter, citing higher medical costs and pressure on its insurance division at a time when the company is still reeling from the shocking murder of a top executive last month.
Revenues for UnitedHealth Group amounted to $100.8 billion for the fourth quarter, below what analysts had predicted but still 6.8 percent higher than in the same quarter the year before. The company’s full-year revenue for 2024 rose to $400.3 billion. For UnitedHealthcare, the insurance division, full-year revenue increased to $298.2 billion, up 6 percent from 2023.
The results were the company’s first since Brian Thompson, the chief executive of UnitedHealthcare, was gunned down in front of a Midtown Manhattan hotel.
The murder unleashed public outrage aimed at big health insurers, over lack of access to health care and denials of coverage and insurance claims.
Some shareholders have urged UnitedHealth to issue a report on its practices that “limit or delay access to health care.”
Andrew Witty, UnitedHealth Group’s chief executive, said on a call with analysts on Thursday that frustrations about claims, including delays in receiving care and coverage, were “key areas for us to work hard at to improve.”
A successor to Mr. Thompson has not been named yet. Mr. Witty did not share details about filling the post, nor did he directly address the recent shareholder campaign.
But he and other executives discussed the loss of Mr. Thompson at the top of the call.
“He devoted his time to helping make the health system work better for all of the people we’re privileged to serve,” Mr. Witty said.
UnitedHealth’s results, which disappointed Wall Street, in many ways reflected broader trends and lingering issues for the industry. For several quarters, U.S. health insurers have taken hits to their earnings from high medical expenses and a tightening of government payment policies.
John Rex, the company’s chief financial officer, pointed to cutbacks in government rates in the payment system for Medicare Advantage program, the private insurance arm of the federal coverage for people 65 and over. UnitedHealth has substantial business in these Medicare private plans.
Medicare Advantage performance has declined throughout the industry recently, partly because of regulatory changes meant to prevent overcharging and following increased health spending among some older populations.
Mr. Witty also said there were costs associated with changes in Medicaid, the federal-state insurance program for the poor.
The company’s medical cost ratio, a measure of the cost of providing care, came in higher than expected in the most recent quarter, which could add fuel to investors’ concerns that increased costs for delivery of care might linger, said John Boylan, an analyst at Edward Jones, an investment firm.
UnitedHealth, however, kept its full-year guidance for 2025 intact, unaltered by recent pressure. Analysts at Morgan Stanley said in a research note that the company had set “reasonably prudent targets” for this year.
“Overall, our view is that United is well positioned to navigate the evolving health care landscape due to its diversified business model,” Mr. Boylan said.
UnitedHealth’s stock fell 6 percent on Thursday as investors digested the weaker-than-expected results. UnitedHealth’s results, often seen as a bellwether for performance across the industry, pushed down shares of its rivals, including CVS Health, which is the parent of the insurer Aetna.
UnitedHealth Group also owns Optum Rx, one of the country’s largest pharmacy benefit managers, which employers and government programs hire to oversee their prescription-drug benefits.
Optum Rx has faced scrutiny from regulators over concerns that it has raised drug prices, prioritizing its own interests above those of patients, employers and taxpayers. Just this week, the Federal Trade Commission released a report detailing how P.B.M.s could be inflating drug costs.
The agency criticized Optum Rx and two other major benefit managers — CVS Health’s Caremark and Cigna’s Express Scripts — for raising prices on generic drugs for cancer, heart disease and other illnesses as high as 1,000 percent of national average costs.
Mr. Witty, the UnitedHealth Group chief executive, defended Optum’s practices, stressing that 98 percent of the rebates were passed to customers. By 2028, he said, all rebates would be passed on. Drug prices in the United States, Mr. Witty argued, are “de novo set too high relative to any other price in the world,” and shifted the blame to drug companies.
“The P.B.M. acts on behalf of the ultimate payer — the employer, the union, the state,” Mr. Witty told analysts.
Mr. Witty did not address investigations by the Justice Department or lawsuits seeking to block its proposed acquisition of Amedsys, a large home care and hospice company.
Beyond rising medical costs and increasing use of health care services, UnitedHealth executives pointed to the widespread ransomware attack in 2024 that weighed on the company’s full-year profits. The cyberattack forced the shutdown of the company’s sprawling billing and payment system, Change Healthcare. The company has estimated that the data breach of health and privacy information affected more than 100 million people, and said this week that a review of personal information involved in the incident was “substantially complete.”
Luigi Mangione, 26, has been charged with multiple state and federal counts of murder as well as weapons and stalking offenses. He has pleaded not guilty.
UnitedHealth and the police have said that neither he nor his parents had medical insurance through UnitedHealth.
Science
Washington state resident dies of new H5N5 form of bird flu
The first person infected with the H5N5 bird flu has died, according to health officials in Washington.
The person, who lived in Grays Harbor County, had been hospitalized earlier this month in Kings County, where Seattle is located.
Officials from the Washington State Department of Health did not release the person’s name, age or gender. According to a news release from Grays Harbor County health officials last week, the person was considered “older” and had underlying health conditions. Their symptoms included a high fever, confusion and trouble breathing.
The person had a backyard flock consisting of mixed domestic poultry.
Testing by the health department found virus in the “environment of the flock … making exposure to the domestic poultry, their environment, or wild birds the most likely source of exposure for this patient.”
Officials at the state’s health department said they were monitoring other people who were exposed to the flock and environment.
This particular strain of bird flu, H5N5, had never been seen in a person before. It appeared first in 2023, infecting birds and mammals in eastern Canada.
According to research published last year on the novel strain, some infected animals carried a key mutation in the virus that allows it to transfer more easily between mammals.
Epidemiologists and virologists worry that avian influenza could generate a pandemic if allowed to spread and mutate. For instance, the H5N1 virus circulating in dairy cattle in North America is one mutation away from being able to spread easily between people.
Every time a bird flu virus infects a person, concerns grow that it could change, becoming more transmissible or more deadly. For instance, if a sickened person also has another flu virus replicating in their body, there’s concern the viruses could exchange genetic material. Just by having an opportunity to replicate and evolve millions of times in the human body, it could acquire deadly mutations.
Health officials say the risk to the public remains low and that no other people involved have tested positive for avian influenza. They say there is no evidence of transmission of the virus between people, but they are monitoring anyone who was in close contact with the patient.
Science
CDC replaces website on vaccines and autism with false and misleading statements
The U.S. Centers for Disease Control and Prevention has altered its website on autism and vaccines, removing unequivocal statements that immunizations don’t cause the neurodevelopmental disorder and replacing them with inaccurate and misleading information about the links between the shots and autism.
Until Wednesday, the CDC page, “Autism and Vaccines,” began: “Studies have shown that there is no link between receiving vaccines and developing autism spectrum disorder (ASD).”
This was followed, in large font, by the blunt statement: “Vaccines do not cause autism.”
The rest of the page summarized some of the CDC’s own studies into autism and vaccine ingredients, none of which found any causal links between the two.
On Wednesday, the page was altered so that it now begins: “The claim ‘vaccines do not cause autism’ is not an evidence-based claim because studies have not ruled out the possibility that infant vaccines cause autism.”
The words “Vaccines do not cause autism” still appear near the top, but with an asterisk that leads to a note at the bottom.
“The header ‘Vaccines do not cause autism’ has not been removed due to an agreement with the chair of the U.S. Senate Health, Education, Labor, and Pensions Committee that it would remain on the CDC website,” the site states.
The chair of that committee, Sen. Bill Cassidy (R-La.), cast the deciding vote to advance Robert F. Kennedy Jr.’s appointment as Health and Human Services secretary, in exchange for Kennedy’s promise that he wouldn’t erode public confidence in vaccines.
“What parents need to hear right now is vaccines for measles, polio, hepatitis B and other childhood diseases are safe and effective and will not cause autism. Any statement to the contrary is wrong, irresponsible, and actively makes Americans sicker,” Cassidy said in a post on X on Thursday afternoon. “Families are getting sick and people are dying from vaccine-preventable deaths, and that tragedy needs to stop.” Cassidy’s office did not immediately respond to further requests for comment Thursday.
“Studies supporting a link have been ignored by health authorities,” HHS spokesman Andrew Dixon said in an email. “We are updating the CDC’s website to reflect gold standard, evidence-based science.”
The news was met with outrage and alarm by scientists and advocates.
“Can we trust what’s coming from CDC anymore? I don’t know the answer to that question,” said Dr. Sean O’Leary, chair of the infectious disease committee at the American Academy of Pediatrics, adding that the website change reflects a “tragic moment” for U.S. public health.
“We are appalled to find that the content on the CDC webpage ‘Autism and Vaccines’ has been changed and distorted, and is now filled with anti-vaccine rhetoric and outright lies about vaccines and autism,” the nonprofit Autism Science Foundation said in a statement. “The CDC’s previous science- and evidence-based website has been replaced with misinformation and now actually contradicts the best available science.”
Alison Singer, the organization’s co-founder and president, expressed further frustration.
“Just like we no longer study whether the Earth is flat, at some point with regard to autism and vaccines, you have to call it and say ‘enough is enough,’” Singer said. “We don’t have an unlimited amount of money with which to study autism, and if we keep asking the same questions, we will never find the true causes of autism.”
The current CDC page now says the rise in autism diagnoses correlates with an increase in the number of vaccines given to infants. Multiple researchers have argued that the rise in autism spectrum disorder diagnoses is better explained by an expanding diagnostic definition of the disorder, along with better monitoring and diagnosis for more children.
“This issue has been studied exhaustively, and it has been shown over and over again that vaccines do not cause autism,” said Colin Killick, executive director of the Autistic Self-Advocacy Network. “This administration continues to lie about autism in ways that endanger both our community and the broader population.”
Science
California regulators approve rules to curb methane leaks and prevent fires at landfills
In one of the most important state environmental decisions this year, California air regulators adopted new rules designed to reduce methane leaks and better respond to disastrous underground fires at landfills statewide.
California Air Resources Board members voted 12-0 on Thursday to approve a batch of new regulations for the state’s nearly 200 large landfills, designed to minimize the release of methane, a powerful greenhouse gas produced by decomposing organic waste. Landfills are California’s second-largest source of methane emissions, following only the state’s large dairy cow and livestock herds.
The new requirements will force landfill operators to install additional pollution controls; more comprehensively investigate methane leaks on parts of landfills that are inaccessible with on-the-ground monitoring using new technology like drones and satellites; and fix equipment breakdowns much faster. Landfill operators also will be required to repair leaks identified through California’s new satellite-detection program.
The regulation is expected to prevent the release of 17,000 metric tons of methane annually — an amount capable of warming the atmosphere as much as 110,000 gas-fired cars driven for a year.
It also will curtail other harmful landfill pollution, such as lung-aggravating sulfur and cancer-causing benzene. Landfill operators will be required to keep better track of high temperatures and take steps to minimize the fire risks that heat could create.
There are underground fires burning in at least two landfills in Southern California — smoldering chemical reactions that are incinerating buried garbage, releasing toxic fumes and spewing liquid waste. Regulators found explosive levels of methane emanating from many other landfills across the state.
During the three-hour Air Resources Board hearing preceding the vote, several Californians who live near Chiquita Canyon Landfill — one of the known sites where garbage is burning deep underground — implored the board to act to prevent disasters in other communities across the state.
“If these rules were already updated, maybe my family wouldn’t be sick,” said Steven Howse, a 27-year resident of Val Verde. “My house wouldn’t be for sale. My close friend and neighbor would still live next door to me. And I wouldn’t be pleading with you right now. You have the power to change this.”
Landfill operators, including companies and local governments, voiced their concern about the costs and labor needed to comply with the regulation.
“We want to make sure that the rule is implementable for our communities, not unnecessarily burdensome,” said John Kennedy, a senior policy advocate for Rural County Representatives of California, a nonprofit organization representing 40 of the state’s 58 counties, many of which own and operate landfills. “While we support the overarching goals of the rule, we remain deeply concerned about specific measures including in the regulation.”
Lauren Sanchez, who was appointed chair of the California Air Resources Board in October, recently attended the United Nations’ COP30 climate conference in Brazil with Gov. Gavin Newsom. What she learned at the summit, she said, made clear to her that California’s methane emissions have international consequences, and that the state has an imperative to reduce them.
“The science is clear, acting now to reduce emissions of methane and other short-lived climate pollutants is the best way to immediately slow the pace of climate change,” Sanchez said.
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