A group of shareholders requested UnitedHealth Group management analyze how its business practices affect access to care and public health.
In a proposal published Jan. 8, the Interfaith Center on Corporate Responsibility requested UnitedHealth Group prepare a report on "public health-related costs and macroeconomic risks created by the company's practices that limit or delay access to healthcare."
The shareholder proposal comes amid public scrutiny of UnitedHealthcare and insurers at large following the killing of UnitedHealthcare CEO Brian Thompson.
UnitedHealth Group's prior authorization policies and other business practices could "increase short-term revenue while risking company brand name," the Interfaith Center argued in a supporting statement for the proposal.
In a statement, Timnit Ghermay, director of the Northwest Coalition for Responsible Investment, said the murder of Mr. Thompson demonstrates "public outrage over the exorbitant costs and restricted access to healthcare has reached a dangerous level in our country."
"Our proposal suggests some introspection by [UnitedHealth] that will help the company and all its stakeholders thrive," Ms. Ghermany said.
Companies must put shareholder proposals to a vote in its annual proxy statement, unless they meet conditions to be excluded, according to the Securities and Exchange Commission. Company management can recommend shareholders vote against proposals.
In a Dec. 13 statement, UnitedHealth Group said it pays around 90% of medical claims when they are submitted.
"Importantly, of those that require further review, around 0.5% are due to medical or clinical reasons. Highly inaccurate and grossly misleading information has been circulated about our company’s treatment of insurance claims," the company said.
The Interfaith Center is a coalition of more than 300 institutional investors. The group advocates for corporations to address the social and environmental effects of their business. In December, the group asked pharmaceutical companies to conduct a formal human rights due diligence process to "determine whether the companies were doing everything they could to increase the access and affordability of their medicines."
UnitedHealth Group has more than 5,000 institutional investors, according to Fintel. The company's largest investors are the Vanguard Group and BlackRock, according to the company's 2024 proxy report. The two financial institutions own around 17% of the company's shares.
Becker's has reached out to UnitedHealth Group for comment and will update this article if more information becomes available.