Digital transformation is at the forefront of an overarching strategy to elevate the customer experience for officials at UnitedHealth Group.
“At the core of the company … it’s all about improving the healthcare system for everybody,” CEO Andrew Witty said to investors Thursday (Jan. 16) during the company’s fourth-quarter and full-year earnings call.
Witty first pointed to the claims process, where complaints typically involve the amount of time involved.
“The overwhelming majority of claims are held up because they were sent to the wrong company or patients didn’t have the right benefits,” he said, pointing to technology as a possible solution.
Prioritizing the Customer Experience
Witty also said improving the customer experience is a priority.
“We’re making breakthroughs in terms of how we’re operating,” he said, noting that mobile app usage was up 66% year over year.
At Optum Rx, the pharmacy benefit manager of UnitedHeath, 750 new clients enrolled, representing 1.6 million new American customers, Witty said. Onboarding costs were 33% less due to digital technology.
Digital Engagement Key For UnitedHealth
Echoing Witty’s digital engagement theme, Chief Technology Officer Sandeep Dadlani noted there were 10% fewer call center calls year-over-year.
“Our AI, digital automation and our modernization agenda has focused largely on removing administrative menial tasks in the system and improving the customer experience,” Dadlani told investors.
The CTO added that in 2025, the company is aiming to give customers more compelling experiences and digitizing paperwork across the healthcare experience to help clinicians and healthcare providers.
UnitedHealth Group reported a strong 2024 performance. Revenue increased by 8% year-over-year to $400.3 billion, fueled by significant growth in both UnitedHealthcare, which added 2.1 million consumers, and Optum’s value-based care patient base, which grew by 600,000. The company is forecasting revenue between $450–455 billion in 2025.
Evaluating the Healthcare System
Witty acknowledged the health system doesn’t work as well as it should.
“The healthcare system needs to function better,” Witty said. “It needs to be less confusing, less complex and less costly. … The resources available to pay for healthcare are limited, while the demand for healthcare is unlimited. … We have incredible opportunities to improve our system performance, both from a care and cost perspective.”
Improving healthcare means addressing healthcare costs, Witty added.
“Costs are higher in the U.S. than in other countries,” he said. The core fact is price, more than utilization, drives system costs higher … There are participants in the system who benefit from these high prices. Pharmacy benefit managers play a vital role in holding these prices down.”
Witty said that pharmacy benefit managers (PBMs) negotiate lower drug prices from manufacturers, and that OptumRX had passed on 98% of those rebates to its customers last year.
Witty also added that the company is “committed” to passing on 100% of those rebates by 2028.
In October, two U.S. senators called for the Federal Trade Commission to expand their investigation on PBMs.
Sens. Sherrod Brown of Ohio and Ron Wyden of Oregon urged a new investigation into controversial “co-manufacturing” agreements, saying that the agreements allow PBMs to extend their control over the drug supply chain, raising concerns about higher drug prices and limited options for consumers.
“PBMs, such as CVS Caremark and Express Scripts, act as intermediaries between drug manufacturers and insurers, negotiating prices, creating pharmacy networks and determining reimbursement rates, PYMNTS wrote at the time. “While these companies claim that their large scale helps lower drug prices for patients, recent developments suggest they may also be engaging in practices that could stifle competition and drive up costs.”
Source: UnitedHealth Bets on Digital Innovation to Improve Care | PYMNTS.com
