Medica closes HQ as Minn. insurers bolster worker safety after UnitedHealthcare CEO's murder - Insurance News | InsuranceNewsNet

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December 6, 2024 Newswires
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Medica closes HQ as Minn. insurers bolster worker safety after UnitedHealthcare CEO's murder

Christopher Snowbeck, Star TribuneThe Minneapolis Star Tribune

As New York authorities continued their manhunt for the killer of UnitedHealthcare CEO Brian Thompson, Minnetonka-based Medica has temporarily closed its headquarters as anger at health insurers has swelled online this week.

A Medica spokesman said safety concerns following Wednesday's shooting in New York City prompted the health plan to close its offices through Dec. 13, as insurers and other industries across the country take steps to reduce the visibility of top executives.

Company headquarters are remaining open at Minneapolis-based UCare, but the insurer's front door is now locked.

"Of course Brian Thompson's murder -- and the ensuing vitriol on social media -- sent shockwaves throughout our industry," UCare said in a statement. "We have no reason to believe there is any danger specifically to our team. At the same time, there is a general feeling of vulnerability and concern."

Investigators in Thompson's killing found the word "deny" written on one of the bullet casings found at the crime scene, potentially referring to denied health insurance claims. The executive's widow told NBC News this week Thompson had received threats possibly linked to coverage denials.

Police have not speculated publicly about a motive for Thompson's killing, but they've said the killer appears to have intentionally targeted the UnitedHealthcare chief executive as he was entering a building for an annual investor conference. Authorities have released multiple sets of photos of a person sought for questioning in the homicide investigation.

A statement from UnitedHealthcare said the company is taking steps to ensure worker safety.

"We are partnering with local law enforcement to ensure a safe work environment and reinforce security guidelines and building access policies," the statement from parent company UnitedHealth Group said.

Medica is a regional health insurer with headquarters in Minnetonka, the same Twin Cities suburb where United has its top corporate offices.

There's a long history of links between the organizations, including executives moving between the neighboring companies.

Medica was founded in 1991 when Physicians Health Plan -- the original HMO customer in the 1970s and 1980s for UnitedHealthcare's management services -- merged with another health plan. It's an independent nonprofit insurer, but for many years it continued to hire United for back-office services.

Medica and UnitedHealthcare have taken down web pages with information about top executives, a move taken by other health insurers across the country, according to 404 Media, a technology news publication.

Beyond closing headquarters, Medica has temporarily shut down its offices in Duluth, Fargo, Madison and Omaha.

"We considered the workplace safety of our employees in making that decision," a Medica spokesman said via e-mail Thursday evening. "The step was taken out of an abundance of caution."

The Twin Cities is a big health insurance town.

Medica employs about 3,000 people overall, with most workers in Minnesota, while UCare employs about 1,700 people here. Eagan-based Blue Cross and Blue Shield of Minnesota employs about 3,000 people.

At least 19,000 Minnesotans work at UnitedHealth Group, the parent company of UnitedHealthcare, and thousands more work in the health plan division of Bloomington-based HealthPartners.

At UCare, officials say they're evaluating already comprehensive security policies and precautions to see where they could be strengthened while meeting with industry groups to discuss best practices.

The suburb of Minnetonka, in particular, has a large concentration of health insurance workers between Medica and UnitedHealth Group.

U.S. Rep. Dean Phillips, the Congressman whose district includes the community, took to social media Friday to suggest workers at insurance companies are taking grief for much larger structure problems in the nation's health care system.

"UnitedHealth is based in my district and employs 1000 s of my constituents," Phillips wrote on X. "Like other insurers, they play by rules allowing the industry to net >$100 billion/year while patients go bankrupt from medical debt. The real culprit is Congress and money in politics, and it's time for change."

On Thursday night, UnitedHealth Group issued its first public statement since CEO Andrew Witty abruptly closed the company's New York investor conference on Wednesday. The company requested privacy for Thompson's family as they mourn.

"While our hearts are broken, we have been touched by the huge outpouring of kindness and support in the hours since this horrific crime took place," the statement said. "So many patients, consumers, health care professionals, associations, government officials and other caring people have taken time out of their day to reach out. We are thankful, even as we grieve."

This is a developing story. Check back for updates.

(C)2024 The Minnesota Star Tribune. Visit startribune.com. Distributed by Tribune Content Agency, LLC

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