Connect with us

Published

on

UnitedHealth investors on Monday approved a pay package that includes $60 million in stock to its new CEO even as the company is plagued by financial losses, reported criminal fraud accusations and the shocking murder of a top executive.

Stephen Hemsley, who previously served as UnitedHealths chief executive for about a decade until 2017, returned to the top job last month after the healthcare giant reported its first earnings miss since 2008.

Along with the $60 million award, which vests in three years, Hemsley will earn a $1 million annual salary.

“Steve Hemsley’s compensation is positioned at the median for CEOs of comparable companies and is substantially aligned with the interests of all company shareholders,” a UnitedHealth spokesperson told The Post in a statement.

Helmsley’s expected windfall comes after Andrew Witty stepped down last month following four years at the helm.

The company’s market capitalization has more than halved since its November peak, losing over $250 billion.

“We will take actions necessary to deliver the performance we are capable of while providing exceptional services and outcomes for customers, consumers, and care providers,” the healthcare giant said in a statement.

In December, the company was rocked in December by the execution-style killing in midtown Manhattan of Brian Thompson, who led its insurance branch. Accused killer Luigi Mangione has pleaded not guilty. His trial is set to begin in 2026.

Shareholders sued UnitedHealth last month for allegedly concealing how backlash from the killing was damaging its business.

In a proposed class action filed last month in Manhattan federal court, shareholders said the insurer defrauded them after Thompson’s assassination by shifting away from strategies that led to higher-than-average claims denials, without revealing the impact on profitability.

UnitedHealth is also facing investigations from the Department of Justice for possible criminal Medicare fraud, according to The Wall Street Journal.

“We have not been notified by the Department of Justice of the supposed criminal investigation reported, without official attribution, in the Wall Street Journal on May 14th,” a UnitedHealth spokesperson told The Post, calling the Journal’s reporting “deeply irresponsible.”

Shares were little changed on Monday after falling about 40% this year.

The stock plunged 22% on April 17, wiping out about $119 billion of market value, after the insurer cut its 2025 forecast for adjusted profit per share to between $26 and $26.50 from between $29.50 and $30.

At Monday’s annual shareholder meeting, Hemsley apologized for the companys performance and told investors that management is determined to earn back your trust and your confidence.

The company will conduct a review of its policies and practices related to risk assessment, managed care and pharmacy services, which will be looked over by independent experts, Hemsley said.

Investors were left stunned by UnitedHealths dismal earnings and forecast, especially after former CEO Andrew Witty had given such an upbeat outlook just a few months earlier.

But Witty a British executive without a background in the US insurance industry took an optimistic tone with shareholders even as problems stacked up behind the scenes, employees told the Journal.

He was more removed than previous chief executives, running the Minnesota-based company while living in Buckinghamshire, outside London, and flying back and forth to Washington and Minnesota via jet, according to property records and UnitedHealths proxy documents.

He never moved into the special CEO office at UnitedHealths Minnesota headquarters, where Hemsley had once worked from, according to the Journal.

Witty also shifted monthly executive meetings which had been in-person under Hemsley and so intense they were called colonoscopies online, former executives told the Journal.

He was more casual in the office, wearing tracksuit-style tops and bright colorful sneakers instead of a suit and tie, according to the report.

Some of his top hires were former colleagues from GSK, the London-based pharmaceutical company, and lacked experience in the US insurance industry, the Journal said.

UnitedHealth profits soared under Witty for a time, but his changes also left UnitedHealth more prone to risks, which backfired when Medicare payment rules changed.

The government pays Medicare insurers more for sicker patients with certain diagnoses, and UnitedHealth was recording those lucrative illnesses at high rates, according to a Journal investigation.

In 2023, however, the government limited or ended lucrative payments on many diagnoses. The new rules took effect the following year.

Continue Reading

Business

US government shuts down after last-ditch funding votes fail

Published

on

By

US government shutdown to begin within hours

The US government has shut down for the first time in almost seven years after last-ditch Senate votes on funding plans fell short.

Hundreds of thousands of federal workers deemed not essential for protecting people or property – such as law enforcement personnel – could be furloughed or laid off after the shutdown began at midnight (5am UK time).

Critical services, including social security payments and the postal service, will keep operating but may suffer from worker shortages, while national parks and museums could be among the sectors that close completely.

Explained: What is a shutdown and who does it impact?

It comes after rival Democrats and Republicans refused to budge in their stand-off over healthcare spending.

A Democrat-led proposal to keep the government funded went down by 53 votes to 47 in the Senate, before the Republicans’ one notched up 55 in favour – five short of the threshold needed to avert a shutdown.

Unlike legislation, a simple majority isn’t enough to pass a government funding bill.

Following the votes in Washington DC on Tuesday night, the White House’s budget office confirmed the shutdown would happen and said affected agencies “should now execute their plans”.

It blamed the Democrats, describing their position as “untenable”. The opposition party wants to reverse cuts to the government’s health insurance programme, Medicaid, which were passed earlier this summer.

Senate majority leader John Thune, a Republican, accused the Democrats of taking federal workers “hostage”.

His Democrat counterpart, Senate minority leader Chuck Schumer, said the Republicans’ funding package “does absolutely nothing to solve the biggest health care crisis in America”.

Republican senators blamed the Democrats for not keeping the government open. Pic: Reuters
Image:
Republican senators blamed the Democrats for not keeping the government open. Pic: Reuters

Trump threatens layoffs

President Donald Trump was defiant ahead of the votes, and warned he could make “irreversible” cuts “that are bad” for the Democrats if the shutdown went ahead.

He threatened to cut “vast numbers of people out” and “programmes that they (the Democrats) like”.

“We’ll be laying off a lot of people,” he told reporters in the Oval Office on Tuesday.

Tens of thousands of government employees have already been laid off this year, driven by the “DOGE” initiative spearheaded by Elon Musk upon Mr Trump’s return to the White House.

Donald Trump spoke in the Oval Office ahead of the shutdown. Pic: Reuters
Image:
Donald Trump spoke in the Oval Office ahead of the shutdown. Pic: Reuters

The last shutdown was in Mr Trump’s first term, from December 2018 to January 2019, when he demanded money for his US-Mexico border wall. At 35 days, it was the longest on record.

Mr Thune has expressed hope the latest shutdown will come to a much quicker conclusion, telling reporters: “We can reopen tomorrow – all it takes is a handful of Democrats to join Republicans to pass the clean, nonpartisan funding bill that’s in front of us.”

Before this week, the government had shut down 15 times since 1981. Most only last a few days.

The Senate will hold further votes on the Republican and Democrat stopgap funding bills on Wednesday. The former would fund the government through to 21 November.

Analysis: This shutdown is a huge deal – and it’s hard to predict when it might end

This is a huge deal.

This shutdown happened because the Senate is deadlocked on two competing funding bills, one proposed by Republicans and one by Democrats.

Neither got the requisite amount of votes.

But this is not just about the politicians – real people will feel the impact of this shutdown.

National parks like the Grand Canyon, like Yosemite, will go unstaffed – some might close indefinitely.

Flights could get cancelled. The National Mall in DC, the iconic stretch between the Capitol – where these politicians work – and the Lincoln Memorial, could be chained up.

Trump has threatened mass layoffs of federal workers, who he says “will be Democrats”. It’s a scary time for them.

Trump is trying to spin this to his political advantage. He claims, falsely, that Democrats are trying to fund free healthcare for “illegal aliens”.

Democrats are pushing to improve government help on affordable healthcare, but this would not extend to undocumented immigrants.

Republicans say Democrats have sacrificed the interests of the American people to have a public showdown with the president.

It would be folly to predict how long this stand-off will last.

What happens now?

Immigration enforcement, air-traffic control, military operations, social security and law enforcement are among the services that will not be brought to a halt.

However, should employees miss out on payslips as a result of a prolonged shutdown, they could be impacted by staffing shortages. For example, delays at airports.

Cultural institutions deemed non-essential, like national parks and museums, will be more directly impacted from the very beginning, with large cuts to the workforce.

The popular Smithsonian, for example, has said it only has enough funding to stay open for a week.

Continue Reading

Business

The show might not go on: Broadway stars ready to strike

Published

on

By

The show might not go on: Broadway stars ready to strike

Broadway actors are preparing to exit the stage in a strike that would shutter more than 30 productions ahead of its peak season.

Actors’ Equity, a union representing 900 performers and stage managers in New York’s iconic theatre scene, said a walkout was on the cards due to a dispute over healthcare.

It’s negotiating with the Broadway League, a trade body representing theatre owners, producers, and operators. A previous three-year contract expired earlier this week.

The union wants the league to increase its contribution to its healthcare fund, which is expected to fall into a deficit before next May. The rate of contributions has remained unchanged for more than a decade.

Actors’ Equity president Brooke Shields said: “Asking our employers to care for our bodies, and to pay their fair share toward our health insurance is not only reasonable and necessary, it’s an investment they should want to make toward the long-term success of their businesses.”

She added: “There are no Broadway shows without healthy Broadway actors and stage managers. And there are no
healthy actors and stage managers without safe workplaces and stable health insurance.”

The Broadway League said it was “continuing good-faith negotiations” to “reach a fair agreement” that works for “shows, casts, crews, and the millions of people from around the world who come to experience Broadway.”

Read more from Sky News:
Boyzone announce reunion
JK Rowling hits out at Emma Watson

Should Broadway fall victim to strike action, it would follow in the footsteps of Hollywood – where writers walked out in 2023, curtailing a number of major productions – and the US video game industry in 2025, with concerns around the use of AI a key driver.

Actors’ Equity has not carried out a major strike since 1968, when a three-day dispute shut down 19 shows. An intervention from the New York City mayor helped both sides come to a deal.

Continue Reading

UK

All GP surgeries in England must offer online booking from today

Published

on

By

All GP surgeries in England must offer online booking from today

All GP surgeries in England are required to offer online appointment bookings from today.

Practices must keep their websites and app services available from at least 8am to 6.30pm, Monday through Friday, for non-urgent appointments, medication queries and admin requests.

Many surgeries are already offering online bookings and consultations, but services are typically less effective in working-class areas.

The Department of Health and Social Care says there is a lack of consistency, as some surgeries that offer online services are choosing to switch the function off during busier periods.

The British Medical Association (BMA) has argued safeguards have not been put in place, nor have extra staff been brought in to manage what it anticipates will be a “barrage of online requests.”

The BMA has said GPs are considering a range of actions after voting to enter a dispute with the government over the plan.

Health Secretary Wes Streeting has urged the BMA to embrace the plan, saying the union’s resistance is “a real disservice to so many GPs” who have already introduced the service.

Health Secretary Wes Streeting says booking a GP appointment should be as easy as booking a takeaway. Pic: PA
Image:
Health Secretary Wes Streeting says booking a GP appointment should be as easy as booking a takeaway. Pic: PA

‘As easy as booking a takeaway’

The minister said the government will help practices that need assistance to implement the plan, “but we’ve got to modernise”.

Mr Streeting told the Labour Party conference: “Many GPs already offer this service because they’ve changed with the times.

“Why shouldn’t be booking a GP appointment be as easy as booking a delivery, a taxi, or a takeaway? And our policy comes alongside a billion pounds of extra funding for general practice and 2,000 extra GPs.

“Yet the BMA threatens to oppose it in 2025. Well, I’ll give you this warning; if we give in to the forces of conservatism, they will turn the NHS into a museum of 20th century healthcare.”

Read more from Sky News:
Starmer will take ‘no more lectures’ from Farage
Streeting says Labour ‘need Angela Rayner back’

The measure is part of the broader government pledge to transform the NHS.

Sir Keir Starmer has revealed plans to establish a nationwide “online hospital” by 2027, enabling patients to receive treatment and care from home.

The government said the initiative could provide up to 8.5 million additional NHS appointments within its first three years.

Available via the NHS app, it will allow patients to schedule in-person procedures at local hospitals, surgical hubs or diagnostic centres, reducing delays.

Continue Reading

Trending