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UnitedHealth financial troubles mount

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It's not just about William McGuire (photo) anymore. Now it appears that stock options drama will have a much greater impact, forcing the company to restate earnings all the way back to 1994. True, the outgoing UnitedHealth CEO agreed to reprice his personal stock options, cutting about $200 million in value from his staggering $1.78 billion haul. Incoming CEO Stephen Hemsley has agreed to forfeit $190 million on options he holds, as well. In a recent release commenting on the repricing, McGuire's attorneys bragged that the company had grown 8400 percent during his tenure, which apparently makes the stock option skulduggery OK. I don't know about you, but I think McGuire's management track record has little to do with whether his options were improperly backdated, or what--if anything--should be done to punish him. But then again, I'm not on his payroll.

UnitedHealth had previously estimated that stock option-related charges would cut $286 million from reported earnings for 2003 through 2005. Now, executives say that that losses will be "significantly higher," though they haven't yet named a figure. In an apparent response to these ongoing troubles, the company's CFO has been moved out of his job into as-yet-unspecified new duties.

To get the latest details on the options scandal:
- check out this Wall Street Journal piece (sub. req.)
- read this Associated Press article
- see Dr. McGuire's statement

Related Articles:
UnitedHealth CEO ousted. Report
UnitedHealth CEO denies actions hurt patients. Report

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United healthcare owns the GOLDEN RULE company which is used to pre-screen people applying for insurance. For example if you are an above average size woman , aged 35 ( let us say 5 feet 2 inches and 210 pounds with absolutely NO MEDICAL PROBLEMS),UHC will deny insurance through GoldenRule.(other insurance companies will quote a ridiculously high premium and kill the applicant with a severe vasovagal attack! In my office I would be taken to court if I told one of my employees that she is too obese to be employed! The federal law shields insurance companies from the iron hand of regulators. The federal governemnt is infiltrated by the lobbyists of the big Pharma and big insurance companies. I do not blame McGuirre for using the lenient government regulations to become fabulously rich. He did what was good for him and his company. However, he has no business to talk like a patient advocate. What we need is severe regulation of the spawning health insurance sector with large punitive damages and mandatory 20-year jail terms with hard labor for offending officers of healthcare industry. These punishments should also extend to the mid-level managers to improve governance. This industry should be watched closely as their actions have consistently put them in the same category as snake oil salesmen, Mafiosi and the ruthless drug dealers and the 9-11 highjackers. A lot of house and Senate members have been elected chanting the mantra of affordable healthcare. I even saw a tear in Sen. Schumer's eyes when he addressed this issue in his victory speech today! Let us see what these chaps will do in the coming years!

If you have a large claim against UnitedHealth Care they will not just kill your policy, That would not be legal. What they do is stop offering that policy in the county in which you live. It may be offered on the county next tyo yours but this gets rid of you. A ggodly number of doctors in central Kansas will longer accept or bill (out of network) any insurance that is connected UnitedHealth Care.

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