UnitedHealth Group Thursday announced veteran internal executive Tim Noel will become chief executive of the company’s health insurance business, UnitedHealthcare, the nation’s largest health insurer.
“Tim joined UnitedHealth Group in 2007, and most recently served as chief executive officer of UnitedHealthcare Medicare & Retirement,” UnitedHealth Group announced in a brief statement Thursday afternoon. “He brings unparalleled experience to this role with a proven track record and strong commitment to improving how health care works for consumers, physicians, employers, governments and our other partners.”
Aside from last week’s 2024 fourth quarter and annual earnings, it’s the first major public announcement since the December 4 shooting death of UnitedHealthcare chief executive Brian Thompson. His death unleashed a barrage of scrutiny on health insurer denials of medical care and certain other business practices from social media trolls and industry critics including some in Congress who say they’d like to see reform.
Thompson was among several executives who ran UnitedHealth Group businesses with the title of CEO. UnitedHealth includes the health insurance company UnitedHealthcare that included Thompson as well as the Optum medical care services business and its many subsidiaries including OptumRx, one of the nation’s largest pharmacy benefit managers.
The selection of Noel comes at a critical time for UnitedHealthcare. The company, like other health insurers last year, grappled with rising medical costs in its health plans. Thus, UnitedHealth’s earnings report last week showed the company is spending more on medical care as the company’s annual medical care ratio, or MCR, which is the percentage of premium revenue that goes toward medical costs, rose dramatically. “The full year medical care ratio was 85.5% compared to 83.2% in 2023,” the company said last week.
Health insurance company profits began to soar not long after the coronavirus hit the U.S. in 2020 because people weren’t seeking care amid lockdowns, office closures and doctor appointment windows that were limited. When people don’t go to the doctor, a claim isn’t filed with the health plan so the insurance company makes more money.
UnitedHealth’s net income for 2024 was the lowest annual income in five years. The company reported net income of $22.3 billion last year, had net income of $20.6 billion in 2022 after making $17.3 billion in 2021 and $15.4 billion in 2020. Before the pandemic UnitedHealth made $13.8 billion in 2019.
At UnitedHealthcare, full-year revenue grew 6% to $298.2 billion as the company grew its customers served in its “domestic commercial benefits” grew by 2.4 million in 2024. UnitedHealthcare provides health benefits to more than 50 million people.
