💰 UnitedHealth's $3.3B Accounting Magic Trick, Scientists Prove Junk Food Makes You Fat (Shocking!), Illinois Fires All Robot Therapists

Hey all,

Happy hump day! UnitedHealth’s latest scandal is yet another reminder of how vulnerable major health insurers really are. As costs rise and public and regulatory patience for pure value extraction wears thin, these companies are running out of room to grow—because their business model has never been about creating value, only siphoning it off.

Enjoy the rundown!

Jacob Brody (Co-Founder & CEO, ZorroRX)

(Bloomberg) UnitedHealth’s Use of Asset Sales to Meet Earnings Targets 

UnitedHealth quietly boosted its 2024 earnings by $3.3 billion through late-year asset sales to private equity firms like Warburg Pincus and KKR, allowing it to narrowly beat Wall Street expectations and continue its long-standing streak of earnings outperformance. While permissible under accounting rules, the inclusion of these one-time gains in operating income and adjusted EPS — especially as the company excluded a $7.1 billion loss from a Brazil exit — has drawn scrutiny from analysts who say the moves obscure weakening core performance amid rising medical costs and regulatory pressure. Apparently cutting costs wasn’t enough—UnitedHealth had to pull a financial Houdini and make $3.3 billion in profits appear just in time for earnings season. Full Article.

(PNAS) Obesity and Economic Development: Diet vs. Activity

This open-access study published in PNAS confirms that rising obesity rates in wealthier nations are driven more by increased caloric intake—particularly from ultraprocessed foods—than by decreased physical activity or energy expenditure. Drawing from data across 34 global populations, the research shows that even industrialized groups have high total and activity energy expenditures, undermining the idea that sedentary lifestyles alone explain obesity trends. Shocking absolutely no one, it turns out that what we eat might actually matter more than how often we pretend to go to the gym. Full Article

(Endpoints News) Illinois Bill Threatens AI Therapists

Illinois is poised to become the first U.S. state to ban AI from directly providing mental health therapy under the Wellness and Oversight for Psychological Resources Act, prompting startups to pivot or exit the market. The bill—awaiting the governor’s signature—prohibits AI from diagnosing, treating, or detecting mental states without licensed clinician oversight, sparking debate among health tech companies who support patient safety but fear the law’s broad language could stifle innovation and limit access amid a therapist shortage. Some startups plan to rebrand as self-help apps or restrict features in Illinois. Full Article