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The fallout from the fatal shooting of United Healthcare CEO Brain Thompson has sent the value of shares of major insurance companies plummeting.
Thompson was shot and killed by a masked gunman, suspected to be 26-year-old Luigi Mangione, a week ago in what is believed to be a targeted attack apparently based in part on complaints from the US health insurance system.
The horrific nature of the shooting has highlighted the worst parts of health insurance companies’ policies, leading to a small anti-health insurance company movement online.
Some of the largest healthcare insurance companies such as United Healthcare, Cigna, Centene Corp, CVS Health Corp, and Humana Inc. All have seen their stock values fall over the past week – suggesting that the impact of the fire on the healthcare industry is clear.
On Wednesday, the day of the shooting, United Healthcare stock opened at $610.79. Exactly one week later, the price reached $537.82, a decline of approximately 13 percent.
Cigna and CVS Health Corp., two of the nation’s largest private health insurers, saw declines of 12 percent and 11 percent, respectively.
Centene was down 5 percent, while Humana was down 3 percent.
This appears to be a reaction to “renewed rhetoric” around insurance companies, Jared Holz, a health care equity strategist at Mizuho Financial Group, told CNBC.
“I think investors’ reaction is, ‘Do we want to own this class of stock if there’s this renewed negative focus now on the industry?'” Holz said.
Mangione, who faces weapons charges in Pennsylvania and a murder charge in New York, reportedly wrote a “manifesto” that appeared to reference murder and condemn insurance companies for putting profits before people.
“What are you doing? You are deceiving the CEO at the annual anti-parasitic bean conference. This action is targeted and precise and does not endanger innocent people,” the police said.
Mangione allegedly waited outside a midtown Manhattan hotel where Thompson was staying to attend a conference before the attack.
Mangione fled, leading police on a manhunt that lasted several days, according to investigators.
But while law enforcement officials tried to make sense of the tragic shooting, people online often supported Mangione as she sought retaliation against insurance companies for their unfair practices. A small movement has inspired people to share their negative experiences about health insurance companies denying coverage to sick or injured children, adults, or the elderly.
Stock values are now paying the price.
“The anti-insurance sentiment expressed by the public after this event suggests that UnitedHealth and perhaps the industry may need to adjust how it approaches coverage decisions,” Julie Utterback, a Morningstar analyst, said. He said Forbes.
“Otherwise, they may face public wrath, which we hope will come in a more civil form – such as increased regulation – than happened this week.”