Latest news with #UnitedHealthcare
Fast Company
8 hours ago
- Business
- Fast Company
Meta spent $27 million protecting Mark Zuckerberg last year, more than any other CEO
The targeted murder of United Healthcare CEO Brian Thompson last December put the business world on alert. Companies beyond the insurance and healthcare industries began ramping up security for founders and CEOs, worried that Thompson's death (and some of the public's reaction to it), along with rising cyberattacks and death threats, could increase real-world risks for any business leader. That has led to a substantial increase in security spending, and a new study from the Financial Times finds that no company is spending more to protect its CEO than Meta. Security spending was up more than 10% last year at the parent company of Facebook, Instagram, and WhatsApp, with $27 million spent to protect Mark Zuckerberg—$3 million more than in 2023. 'We believe that Mr. Zuckerberg's role puts him in a unique position: He is synonymous with Meta and, as a result, negative sentiment regarding our company is directly associated with, and often transferred to, Mr. Zuckerberg,' the company says in its 2025 proxy statement. Google parent Alphabet and Amazon also saw increases of more than 10% in protection costs last year. Altogether, the 10 major tech firms spent more than $45 million to protect their leaders. Meta's spending dwarfed all others. The next highest was Alphabet, which allocated $6.8 million to protect Sundar Pichai. Coinbase spent nearly as much, dedicating $6.2 million to guard CEO Brian Armstrong. The big question on many minds, though, is how much is being spent to protect Elon Musk, arguably the most polarizing of the tech CEOs. The answer isn't entirely clear. Only one of his companies, Tesla, is public, and it disclosed spending $500,000 to protect Musk last year (down from $2.4 million in 2023). SpaceX and xAI are private and did not disclose figures. Musk also owns his own security company, Foundation Security—described as a mini Secret Service, run in part by a former Army special forces weapons sergeant. While some companies have boosted spending, others have scaled back, perhaps due to one-time expenses in previous years. Here's what other corporations reported: Nvidia: $3.5 million to protect CEO Jensen Huang, up from $2.2 million in 2023 Apple: $1.4 million for Tim Cook, down from $2.4 million in 2023 Amazon: $1.1 million for CEO Andy Jassy, and $1.6 million for Jeff Bezos, an amount consistent for at least 15 years Palo Alto Networks: $1.6 million for CEO Nikesh Arora, down from $3.5 million in 2023 JPMorgan: $882,000 for CEO Jamie Dimon, up slightly from $866,000 in 2023 Some companies declined to break out their security costs but offered hints. Fox, for example, said it was spending more to protect CEO Lachlan Murdoch as partisanship grows. Lockheed Martin now requires its CEO to fly exclusively on private corporate jets. And Alex Karp, CEO of AI and military intelligence company Palantir, always travels with at least four bodyguards. For some executives, the threat is very real, and not always tied to corporate activities. Musk, for example, told shareholders last year: 'We actually did have two homicidal maniacs in the last roughly seven months come to aspirationally try to kill me.' The number of businesses protecting their CEOs continues to rise. Intelligence firm Equilar found that 34.4% of companies in the S&P 500 offered executive security last year, compared to just 28.2% in 2023. Median spending rose 6% overall, with an average of $105,749.
Globe and Mail
11 hours ago
- Business
- Globe and Mail
Retail Earnings Season to Commence
Pre-market futures are flat-to-lower this morning, after a mostly down Friday — buoyed on the Dow mostly by the positive trade on UnitedHealthcare UNH, in which Warren Buffett's Berkshire Hathaway ( BRK.B ) has taken a big stake. The Dow is up again: +30 points, while the S&P 500 and Nasdaq are down -2 points and -16 points, respectively. This is the week of the earnings season cycle where major retailers begin to release their results. This week alone, we'll hear from Walmart WMT, Costco COST, Target TGT, The TJX Companies TJX and Home Depot HD on quarterly earnings. It's the final leg of earnings season, in a general sense, to hear from the retailers who tend to stagger their earnings quarters to take advantage of holiday sales into January. What to Expect from the Stock Market Today August Homebuilder Confidence comes out later this morning, after the opening bell. Expectations are for another tick-up to 34 from the prior month's 33, which in turn was up from 32 — the lightest post-Covid print for homebuilding. We expect this all comes down to interest rates, and this revolves around the Fed funds rate, which has still not come down at all in 2025. Once cuts begin at the Federal Reserve, we might expect to at last see some relief in housing. After the close this afternoon, we expect earnings results from two key growing tech firms: Palo Alto Networks PANW, which provides enterprise security, and Fabrinet FN, which is a tech assembly firm. Palo Alto is expected to gain +17.3% on earnings and +14.2% on revenues in its fiscal Q4. Fabrinet looks to bring +9.5% earnings growth and +17.2% on the top line. What to Expect from the Stock Market This Week We're not chock-full of economic data for this week, but we've got a fair share. Housing Starts and Building Permits will come out Tuesday, followed by the minutes of the most recent Fed meeting on Wednesday. Thursday is the biggest day of data for the week: Weekly Jobless Claims, Philly Fed, flash Services & Manufacturing from S&P and ISM, Existing Homes Sales and Leading Economic Indicators (LEI) all hit the tape that day. Importantly, Fed Chair Jerome Powell is expected to deliver a speech at the Jackson Hole Economic Symposium this Friday, where the theme is "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy.' This will be the first update on the Fed Chair's outlook on the economy since the most recent Fed meeting (of which we'll see the minutes a couple days prior), and as such may be insightful for future rate-cut prognostication. Free Report: Profiting from the 2nd Wave of AI Explosion The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives. Investors who bought shares like Nvidia at the right time have had a shot at huge gains. But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies. Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI's next leap forward. Access AI Boom 2.0 now, absolutely free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Target Corporation (TGT): Free Stock Analysis Report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report Fabrinet (FN): Free Stock Analysis Report
Globe and Mail
11 hours ago
- Business
- Globe and Mail
Retailers Start to Report Earnings This Week
Pre-market futures are flat-to-lower this morning, after a mostly down Friday — buoyed on the Dow mostly by the positive trade on UnitedHealthcare UNH, in which Warren Buffett's Berkshire Hathaway ( BRK.B ) has taken a big stake. The Dow is up again: +30 points, while the S&P 500 and Nasdaq are down -2 points and -16 points, respectively. This is the week of the earnings season cycle where major retailers begin to release their results. This week alone, we'll hear from Walmart WMT, Costco COST, Target TGT, The TJX Companies TJX and Home Depot (HD) on quarterly earnings. It's the final leg of earnings season, in a general sense, to hear from the retailers who tend to stagger their earnings quarters to take advantage of holiday sales into January. What to Expect from the Stock Market Today August Homebuilder Confidence comes out later this morning, after the opening bell. Expectations are for another tick-up to 34 from the prior month's 33, which in turn was up from 32 — the lightest post-Covid print for homebuilding. We expect this all comes down to interest rates, and this revolves around the Fed funds rate, which has still not come down at all in 2025. Once cuts begin at the Federal Reserve, we might expect to at last see some relief in housing. After the close this afternoon, we expect earnings results from two key growing tech firms: Palo Alto Networks PANW, which provides enterprise security, and Fabrinet FN, which is a tech assembly firm. Palo Alto is expected to gain +17.3% on earnings and +14.2% on revenues in its fiscal Q4. Fabrinet looks to bring +9.5% earnings growth and +17.2% on the top line. What to Expect from the Stock Market This Week We're not chock-full of economic data for this week, but we've got a fair share. Housing Starts and Building Permits will come out Tuesday, followed by the minutes of the most recent Fed meeting on Wednesday. Thursday is the biggest day of data for the week: Weekly Jobless Claims, Philly Fed, flash Services & Manufacturing from S&P and ISM, Existing Homes Sales and Leading Economic Indicators (LEI) all hit the tape that day. Importantly, Fed Chair Jerome Powell is expected to deliver a speech at the Jackson Hole Economic Symposium this Friday, where the theme is "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy.' This will be the first update on the Fed Chair's outlook on the economy since the most recent Fed meeting (of which we'll see the minutes a couple days prior), and as such may be insightful for future rate-cut prognostication. Questions or comments about this article and/or author? Click here>> Free Report: Profiting from the 2nd Wave of AI Explosion The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives. Investors who bought shares like Nvidia at the right time have had a shot at huge gains. But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies. Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI's next leap forward. Access AI Boom 2.0 now, absolutely free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Target Corporation (TGT): Free Stock Analysis Report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report Fabrinet (FN): Free Stock Analysis Report
Yahoo
4 days ago
- Business
- Yahoo
As insurers axe Medicare plans, here's what advisors should know
Medicare Advantage enrollment has surged over the past two decades, but insurers' enthusiasm for the program is waning as they shift from expansion to profitability, cutting benefits and leaving unprofitable markets amid rising costs and lower government payments. Experts warn the changes could significantly impact older Americans who rely on Medicare Advantage — the private coverage sometimes called Medicare Part C — with considerable implications for retirement planning. Major insurers, including Humana, CVS Health Aetna and UnitedHealthcare, have all announced plans to scale back their Medicare Advantage operations in 2025 and 2026. Last May, CVS CFO Tom Cowhey said that the insurer could drop 1 in 10 — or roughly 600,000 — of its Medicare Advantage members by the end of 2025 in an effort to improve margins. READ MORE:A health care planning checklist for financial advisorsNew report reveals employees are underprepared for retirement and healthcare costsRetiree health care costs are climbing: What advisors need to knowLong-term care costs can derail retirement plans. Here's how to manage them "The goal for next year is margin over membership," Cowhey said. "Could we lose up to 10% of our existing Medicare members next year? That's entirely possible. And that's OK, because we need to get this business back on track." Humana has followed suit, announcing plans earlier this year to drop approximately 550,000 Medicare Advantage members by the end of 2025. UnitedHealthcare, which until recently has pushed to expand its Medicare Advantage membership, announced plans last month to drop more than 600,000 members by the end of 2026. "We are seeing higher-than-expected medical cost increases, particularly in outpatient care," UnitedHealthcare CEO Tim Noel said on the company's second-quarter earnings call. "The American health system's long-standing cost problem is accelerating." Together, Humana, CVS Health Aetna and UnitedHealthcare provide coverage to 58% of all Medicare Advantage beneficiaries, nearly 20 million people in total, according to KFF, a nonprofit health policy research, polling and news organization. Medicare Advantage plans gained popularity through $0 monthly premiums and expanded benefits compared to traditional Medicare. The program appealed to healthy beneficiaries and, until recently, delivered strong profits for insurers through generous government payments and upcoding practices. But rising medical costs and tighter oversight are pressuring margins, prompting some insurers to rethink their approach. Medicare experts like Melinda Caughill, the co-founder of 65 Incorporated, say that the shift could have major implications for financial advisors and the retirees they serve. Two possibilities for Medicare Advantage members Advisors should understand the two paths that could shape the experience of retirees enrolled in Medicare Advantage plans. For beneficiaries who remain on Medicare Advantage plans going forward, they're likely to see fewer benefits, higher costs in the form of premiums and copays and greater prior authorization requirements. "Prior Authorization means your doctor is not in charge of your health care needs," Caughill said. "Your doctor just advocates for you to an insurance company. Ultimately, the insurance company decides what you get or what you don't get." Medicare Advantage insurers made nearly 50 million prior authorization determinations in 2023, according to KFF. The Centers for Medicare and Medicaid Services, meanwhile, conducted fewer than 400,000 prior authorization reviews for traditional Medicare beneficiaries in that same time period. Nearly all Medicare Advantage enrollees (99%) must get prior authorization for certain services — typically high-cost care like inpatient hospital stays, skilled nursing facility care and chemotherapy. Once retirees enroll in a Medicare Advantage plan, leaving it isn't always simple. In most cases, beneficiaries can only switch back to traditional Medicare during specific enrollment periods, and doing so often means losing access to certain supplemental coverage options. Medigap policies, which help cover out-of-pocket costs under original Medicare, may require medical underwriting if purchased after the initial enrollment window — making it more expensive or, in some cases, even impossible for older or less healthy individuals to qualify. For many retirees, that creates a barrier to exiting a Medicare Advantage plan once they're already in it. For the small number of members who are dropped from their plans, Caughill calls the next step the "nuclear option." "When you are dropped from a Medicare Advantage policy based on no action or choice of your own, you get a Medicare do-over, meaning you can get a Medigap policy with no medical underwriting," Caughill said. While Medigap plans aren't strictly necessary, they can help cover costs that traditional Medicare doesn't. "You can get original Medicare by itself, but then that means you'll pay 20% of every bill with no spending limit in sight. But astonishingly, the number of people who wind up doing that when they're really sick is so huge that the government wrote a study on it, because they'd rather pay 20% of everything and at least get the care they need than remain on Medicare Advantage," Caughill said. "So people need to understand that these decisions are very often long-lasting. You can't just all of a sudden say, 'Ooh, here comes open enrollment, Oct. 15 through Dec. 7, and now we'll fix everything.' It's a lot more complicated than that. It's a lot more permanent than that." Why some advisors urge clients to avoid Medicare Advantage For many financial advisors guiding older clients, the advice is clear: Steer clear of Medicare Advantage from the outset. Carolyn McClanahan, a physician and founder of Life Planning Partners in Jacksonville, Florida, tells clients to think twice before signing up. The allure of Medicare Advantage often comes from lower upfront costs and extra perks — things like gym memberships or dental coverage. "When you are healthy, you don't have any problem with [Medicare Advantage] because you don't need to access health care often. The insurers are happy with that crowd because they are making money," McClanahan said. The picture changes dramatically when health issues arise. Along with prior authorization requirements, insurers often narrow their networks further as expenses rise, making it harder for patients to find doctors. "Once you get sick and have to experience the limitations of [Medicare Advantage], you wish you were on traditional Medicare," McClanahan said. "But because you are sick, you will have a problem with the underwriting to get back on a Medigap policy." Caughill said it's crucial that advisors educate themselves on Medicare and incorporate it into their retirement planning. "I'm constantly on a soapbox with financial advisors to try to get them to care," Caughill said. "Because at some point, a financial advisor who doesn't care, who doesn't consider Medicare, … will have conversations with their best clients in 10 or 15 years [and say], 'Oh, you have all these unexpected medical costs now, and this skilled nursing facility stay is not covered. What are we going to do?'" "I get it. We all want to do just what we signed up for. But Medicare is, unfortunately, a prevalent part of retirement," she said. "You can't do retirement planning without considering the number one cost in retirement, which is health care, which in this country is Medicare."
Fast Company
4 days ago
- Health
- Fast Company
Man charged with cyberstalking family member of slain UnitedHealthcare CEO Brian Thompson
A New York man has been charged with cyberstalking a family member of UnitedHealthcare CEO Brian Thompson, allegedly leaving threatening voicemails that expressed glee about the insurance executive's killing, federal prosecutors said Wednesday. Shane Daley, 40, is accused of placing multiple calls to Thompson's family member after the shooting, justifying the killing and saying that the person deserved to die in a similar manner, according to a criminal complaint. Daley, of Galway, New York, a small town north of Albany, was arrested and had an initial court appearance Wednesday. He was released with GPS monitoring and is scheduled back in court Thursday afternoon, a spokesperson for the U.S. attorney's office in Albany said. Daley's attorney, Samuel Breslin, said they are reviewing the allegations and evidence. In a statement, Acting United States Attorney John A. Sarcone said that 'Brian Thompson was gunned down in midtown Manhattan. Daley, as alleged, gleefully welcomed this tragedy and did all that he could to increase the Thompson family's pain and suffering.' Thompson was fatally shot outside a hotel in New York City in December by a man who was angered over what he viewed as corporate greed, according to prosecutors. The suspect, Luigi Mangione, has pleaded not guilty. The killing of Thompson, who led one of the biggest health insurers in the U.S., resulted in a vast outpouring of public frustration with the country's health care system. Many Americans reacted to the shooting by relaying personal stories about difficult experiences with insurance companies. Mangione himself has been lionized as a sort of vigilante hero by those who are critical of the insurance industry.
