Rising Costs, Denied Claims and a Tragedy: Health Insurers Stumble

Shares of health insurers continue to decline following the shocking fatal shooting of Brian Thompson, CEO of UnitedHealth Group Incorporated’s UNH UnitedHealthcare division. The targeted attack occurred outside the New York Hilton Midtown early Wednesday, just hours before Thompson was scheduled to speak at the company’s annual investor conference. The incident has fueled concerns over growing public resentment toward health insurers, contributing to the sector's declining stock performance.While UnitedHealth has declined 10% since Wednesday, rivals like Centene Corporation CNC, CVS Health Corporation CVS and Elevance Health, Inc. ELV have tumbled 5%, 4.7% and 4.5%, respectively. The Zacks Health Maintenance Organization industry declined 8.5% during this time.UnitedHealth and Centene currently have a Zacks Rank #3 (Hold) each, reflecting a neutral outlook. Meanwhile, Elevance Health has a Zacks Rank #4 (Sell) now, and CVS Health carries a Zacks Rank #5 (Strong Sell), indicating more bearish sentiment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Stock Price Comparison - UNH, CNC, CVS & ELV Image Source: Zacks Investment ResearchPublic outrage against health insurers has become apparent through a surge of social media discussions highlighting frustrations with navigating the U.S. health insurance system. Authorities continue to investigate the motive behind the fatal shooting, with the shooter still at large. Police reportedly revealed that the words “deny,” “defend,” and “depose” were inscribed on shell casings found at the scene. These are possibly referencing accusations that insurers deny coverage to protect profits.Social media platforms have been inundated with unsympathetic messages and posts from users sharing personal stories of coverage rejections and denied care, amplifying public dissatisfaction. In response to the incident, some health insurance companies are reevaluating security protocols for their executives, including removing leadership photos from websites.The tragedy is expected to prompt heightened security measures for top industry leaders. It also underscores deep-seated customer dissatisfaction, which could lead to increased scrutiny of insurers' practices around medical claim denials. Analysts and investors are now focused on how the incoming Trump administration will address challenges in the health insurance sector as it navigates through rising medical costs and increasing demand for healthcare.The health insurance industry has seen rising medical costs due to several key factors. The resumption of elective procedures, particularly among seniors, has led to higher utilization of medical resources. In addition, inflation has driven up the costs of medical supplies, equipment and services. The growing prevalence of chronic diseases and the aging population are also contributing to higher expenses, placing additional pressure on the healthcare system.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report CVS Health Corporation (CVS): Free Stock Analysis Report Centene Corporation (CNC): Free Stock Analysis Report Elevance Health, Inc. (ELV): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks