UnitedHealth Group is pushing back against a shareholder proposal calling for reports on the broader economic impact of its practices that delay or deny healthcare. The proposal, filed by members of the Interfaith Center on Corporate Responsibility (ICCR), aims to highlight the financial risks of limiting patient access to care.
ICCR, a coalition of institutional investors, filed a non-binding proposal urging UnitedHealth Group to report on the “macroeconomic costs” of its healthcare decisions. The motion argues that denied or delayed care could ultimately harm both public health and large investors' portfolios. UnitedHealth Group filed a challenge with the Securities and Exchange Commission (SEC) in January, claiming the proposal's terms were too vague to be included in proxy statements.
ICCR represents pensions, foundations, and institutional investors concerned about long-term financial impacts. In recent years, shareholder activism has increasingly pressured large corporations to disclose how their policies affect public health and the broader economy. This motion marks a significant first, directly targeting a major health insurer over the external costs of delayed and denied healthcare.
UnitedHealth Group, the largest U.S. health insurer and employer of doctors, processes 5% of the country’s GDP daily. Critics argue that its use of prior authorizations—requiring insurer approval before treatments—leads to delays in care and financial strain, ultimately impacting both the workforce and the broader economy. The motion further suggests that these delays could negatively affect the overall performance of financial markets, posing a risk to investors' returns.
The proposal filed by the ICCR shows concerns from investors about the long-term financial implications of UnitedHealth Group's practices. Meg Jones-Monteiro, senior director of health equity at ICCR, emphasized, “The investors we work with are interested in long-term value creation.” Reflecting on the unique nature of the motion, Shirley Westcott, senior vice president at Alliance Advisors, noted, “I have not seen anything like this before.” The investors behind the proposal further expressed their concerns, stating, “Shareholders fear UHG’s practices may impair the value of their portfolios.”
Delayed and denied healthcare by UnitedHealth Group, especially through practices like prior authorizations, could have a direct financial impact on shareholders. By limiting access to care, the company risks not only the well-being of patients but also the stability of investments tied to its large-scale operations. If these practices continue, they could ultimately harm the value of portfolios for investors concerned with long-term returns.
UnitedHealth Group is fighting a new shareholder challenge that connects delays in healthcare to financial risks. Regardless of whether the SEC approves the proposal, the debate over how companies are held accountable for their healthcare practices is growing stronger.
The SEC could mandate inclusion of the proposal in proxy materials, requiring UnitedHealth to allow shareholders to vote on it at their next annual meeting.
State insurance commissioners monitor care denial patterns and could launch independent investigations based on findings from any required reporting.
Healthcare providers may need to restructure their administrative workflows to document and report economic impacts of delayed care approvals.