UnitedHealth Group is shuffling executives in its top management ranks following the unexpected retirement of Steve Nelson, who has been the top executive at the company’s UnitedHealthcare health insurance business.
The move, disclosed on Friday morning, means new leadership effective immediately at both UnitedHealthcare and Optum. Nelson, who is 61 years old, has been replaced by Dirk McMahon, 59, who has been president and chief operating officer at Optum, UnitedHealth’s fast-growing healthcare services business.
At UnitedHealthcare, Nelson oversaw the company’s fast-growing commercial and government-subsidized health insurance businesses, including Medicare Advantage, which provides private coverage to about 5 million seniors.
“We are deeply grateful to Steve Nelson for his 15 years of service,” UnitedHealth Group chief executive officer David Wichmann said in a company statement. “Each day over those years Steve brought a sharp focus on our members, the providers who care for them and our colleagues who support them – all with the highest level of integrity. We are a better company as a result of his service, and he is leaving at a time of strength in the business.”
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Nelson became the subject of Bernie Sanders’ ire after Sanders, who is running for the Democratic party’s nomination for President, Tweeted what he called a message to UnitedHealthcare and Nelson. Sanders supports a single payer version of Medicare for All that would end the private insurer’s role in providing healthcare coverage in the U.S. “When we are in the White House your greed is going to end,” Sanders Tweeted following a Washington Post story quoting UnitedHealth executives from an employee meeting.
Daniel Schumacher, who is currently president and chief operating officer of UnitedHealthcare, will become president and chief operating officer of Optum, which is a business generating more than $100 billion in annual sales and recently reached a settlement with the Federal Trade Commission that clears the way to buy DaVita Medical Group. Optum operates doctor practices, surgery centers, urgent care centers and the OptumRx pharmacy benefit management business.
“Schumacher’s new role includes oversight of OptumInsight, the company’s data, analytics and technology business, Optum Technology and Optum operations,” UnitedHealth Group said in a statement Friday. “Schumacher has held numerous senior positions across UnitedHealth Group since joining the company in 1999.”
Date: July 02, 2019