"Quite a backlash"—Shark Tank investor Kevin O'Leary warns the healthcare industry after UnitedHealthcare CEO's murder

In a CNN interview on December 12, 2024, investor and Shark Tank personality Kevin O'Leary addressed whether health insurance companies would implement meaningful reforms in response to the public backlash after the murder of UnitedHealthcare CEO Brian Thompson.

When asked if their incentives are to grow their profits, sometimes at the expense of people’s health, and whether he trusts them to meaningfully reform, O’Leary underscored the severity of the situation, stating,

“I think they have to. I mean, this is quite a backlash. This is the power of social media.”

O’Leary pointed to broader frustration with health insurance appeal processes and noted that the industry would need to respond in a way that acknowledges public concerns. He referenced previous corporate responses to public backlash, explaining that companies must take steps beyond security measures to address customer dissatisfaction.

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Shark Tank investor Kevin O'Leary on the impact of public outrage

Public reaction and the role of social media

O'Leary highlighted how public frustration has intensified, emphasizing the role of social media in shaping corporate responses. He compared the situation to previous incidents where companies faced widespread criticism and financial consequences.

"Corporations saw this first in the Anheuser-Busch Bud Light case, where they lost $6 billion in market cap in six weeks. They'd never seen that before," he stated.

O’Leary pointed to this as an example of how companies have had to adjust their approach in response to public sentiment. The Shark Tank investor then explained that healthcare affects everyone, which makes the backlash particularly significant.

“This is occurring because people are frustrated with the appeal process in all health insurance,” O’Leary noted.

He indicated that the industry’s handling of claim approvals and denials has contributed to the growing dissatisfaction. O’Leary suggested that executives within the healthcare sector must recognize the broader implications of this response.

“And so what the executives have to do with UnitedHealth and, frankly, the whole industry is appeal to reality and say, look, it's on us now. We understand you're unhappy.”

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Potential industry changes in response to public concerns

O’Leary explained that the healthcare industry must take action to improve customer trust. He stated that companies should address concerns in a way that acknowledges the impact of their policies on individuals and families.

"We have families too, we're people, we have children," O’Leary stated.

The Shark Tank investor highlighted executives should communicate an understanding of public concerns. He added that companies must focus on making the appeal process more efficient. He also emphasized the importance of ensuring that valid insurance claims are handled correctly.

“When you appeal a case, it's not a delay situation. And if you have a valid claim, you get paid out. That’s what insurance is supposed to do.”

The Shark Tank investor suggested that automation could be part of the solution, stating,

"We’re going to automate this process and make it better or do whatever they have to do.”

He pointed to the need for operational changes that address the frustrations of policyholders.

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Security measures versus structural reforms

O’Leary noted that while companies may implement security measures, they should also focus on addressing the underlying issues that have led to public dissatisfaction.

"Putting a fence around headquarters, hiring more security guards—that's all bad imagery," he stated.

The Shark Tank investor explained that the industry should prioritize improving the appeal process and ensuring that policyholders receive proper coverage.

"It's all bad, and it's not the right answer," he added, referring to security-focused responses.

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Shark Tank airs on ABC on Fridays at 8 PM ET, and viewers can also stream full episodes on Hulu.