UnitedHealth Group Alleged Fraud

UnitedHealth Group is under investigation by the U.S. Department of Justice for alleged criminal healthcare fraud. The federal probe is focusing largely on UHG’s business practices surrounding Medicare Advantage, although the nature of the allegations remains unclear.

Shares in the company tumbled 16% when the probe was revealed, hitting a five-year low on Thursday. While details of the probe remain limited, the news has heightened investor concerns. Shares in the UnitedHealth Group tumbled after it was reported that the largest health insurer in the US is under investigation over possible criminal fraud.

Earlier this week, the vast healthcare firm announced its CEO, Andrew Witty, was stepping down for personal reasons as it suspended its full-year financial outlook due to higher-than-expected medical costs.

It has been a punishing period for UnitedHealth, starting in December when its executive Brian Thompson was targeted and killed outside a New York City hotel. 

Medicare is a US government-run health insurance program for older and disabled people, Medicare Advantage is a program under which private health insurers contract with the Medicare program to provide health benefits.

Common Sales Pitch Unit-linked Insurance Policy

The most common life insurance sales pitches that you should be wary of:

This product is like a mutual fund
In the last one-and-a-half years, several life insurance companies have launched ‘new fund offers (NFO)’ for small-cap and mid-cap fund options attached to their unit-linked insurance policies (Ulip), However, the term ‘insurance’ was conspicuous by its absence in several advertisements, leaving scope for lay individuals to misinterpret these products as mutual funds. Regulators started barring insurers from issuing advertisements without references to the embedded life cover element. 

An endowment policy offers FD-like secure returns, plus tax benefits
For risk-averse investors, they are lured to guaranteed returns with the prospect of such returns as being tax-free. Often, it’s senior citizens who fall prey to such sales pitches by bank officials, only to realize at the time of renewal that the product involves recurring premium payment commitment over 5-10 years or more. Also, elderly individuals end up paying for the life cover' mortality charges when it is unnecessary as they do not have dependents.

The returns under guaranteed traditional policies range between 4 percent and 7 percent over the long term. Exiting early if you find the policy to be unsuitable later comes at a cost - loss of part of your premiums.

In fact, insurance is not at all about income or return but protection. And the protection element in such policies is much lower. Instead, look at buying adequate term insurance covers, which are available at affordable premiums.

Life insurance policy offers triple benefit of life cover, tax savings and investments
The oldest and most common sales pitch, particularly deployed during the tax planning months appeals to salaried employees who are in a hurry to make tax-saver investments during this period. It is best to not treat tax planning as an isolated exercise. It should be part of your overall financial plan that is drawn up at the beginning of the year. Invest every month and through the year, instead of completing the task closer to the deadline.

Buy a guaranteed policy to avoid the market volatility risks
With life insurance companies increasing their focus on non-linked, non-participating, guaranteed endowment policies, such products are being promoted heavily due to the assured maturity proceeds they are promised.

This is in contrast with Ulips where returns are market-linked. Moreover, while participating endowment policies, too, yield secure returns, they do not offer a fixed maturity amount as the final corpus depends on annual and terminal bonuses declared during the tenure.

While policyholders with lower risk appetite might find guaranteed payouts to be a source of comfort, the fact remains that they stand to earn only 4-7 percent annualized returns despite staying invested over the long term.

Look EAST

People spend most of their time on autopilot. This means people will often perform activities almost without thinking. Knowing this, behavioral economists developed the EAST framework as a method to assist us in performing desired behaviors without the need for a person to really think about it.

Developed in 2012, the EAST framework outlines four characteristics to successfully drive behavior change. The four characteristics are: Easy, Attractive, Social and Timely.

(E)asy - To help people successfully complete their tasks, an important characteristic is to make them easy, without obstacles. One technique is to have a default option. People tend to subscribe to the default option because it is the easiest choice to make. By making the desired behavior the default option, people will more likely adopt the desired behavior. Another technique is to ensure that messages are simple and easy to read, as difficult messages are more likely to be ignored.

For example: moving the fruit and vegetables to the entrance of a supermarket, making it easy for customers to purchase healthier food options.
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(A)ttractive - People are more likely to adopt things that are known, and especially if they are desirable or attractive. Consider the use of advertisements: good advertisements stand out and use creative details that make you interested in whatever it is they are promoting. They could also use incentives, such as attractive prices or rewards.

For example, offering prizes to those who are able to answer questions correctly at the end of a presentation, encouraging audiences to pay attention to you.

‍(S)ocial - Humans are social beings, so we tend to be influenced by other people's opinions or actions and often look for approval. By highlighting that a behavior is common, popular, or already adopted by someone famous, individuals are more likely to adopt the same behavior.

For example, sharing statistics to show the average cost of electricity usage in an Australian household, encouraging those who use more to reduce their electricity consumption.

‍(T)imely - To ensure people perform a desired behavior, choosing the correct time is important. Most people follow habitual routines, and changing habits is not easy. However, these habits can be broken through major disruptions and changes that affect performing the habitual behavior.

An example of making a desired behavior timely is to ask customers to fill out a customer service form immediately after receiving service, increasing the likelihood that the customer will fill out the form. It is also important to note that humans are often more influenced by immediate effects rather than future ones. Therefore, highlighting immediate benefits to a change can also increase the likelihood of a behavior being adopted.
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When using EAST
When changing behavior using EAST, more than one characteristic can be used together. For example, your bank may request that you take a “short, 2-minute survey” immediately after using their services, providing you with a direct link to the survey you can access on your phone. This email uses two characteristics: Easy and Timely. It is timely because the request was made immediately after using their services when you are not busy nor can be distracted by other priorities. They have also made it easy as they have provided a direct link, removing any obstacles that you may face accessing the survey.

Nonetheless, as previously noted, it is important to note that the EAST framework is not often used by itself. It is mostly used in combination with other strategies that require deeper research about the behavior and the target audience.

“The EAST framework is like a seasoning, like salt that you sprinkle over food. It increases the chances of tasting delicious, but it isn’t the main element of the dish.”

To conclude , the EAST framework offers a method of changing behavior by making the behavior Easy, Attractive, Social and Timely. Each characteristic can be used independently when implementing policy or other programs to change behavior, or can be used in conjunction with one another. However, it is worth noting that the EAST framework is not often used on its own to change behavior. It should be used in combination with other strategies that require deeper research about the behavior and its target audience.

Lead People - Not Process

Change is inevitable, but success isn’t. Too many leaders focus on the mechanics of change and ignore the most critical factor: people. Change doesn’t fail because of flawed processes. It fails because employees resist, leaders fail to communicate, and organizations neglect the human element. Focus on people, not process. 

1. Clarity: A Vision People Can Rally Behind
People don’t resist change—they resist uncertainty. Leaders often assume employees will fall in line if they simply announce a change. But without a clear vision, people fill the gaps with fear and speculation. Change must start with clarity. Why is this happening? How will it affect individuals? What does success look like? A well-articulated vision provides direction, fosters trust, and creates alignment across the organization.

2. Communication: More Than Just Announcements
Most change initiatives fail because leaders treat communication as a one-time event rather than an ongoing dialogue. Sending out an email or holding a town hall isn’t enough. Change requires consistent, transparent, and two-way communication. Employees need to feel heard, not just informed. Create forums for discussion, address concerns openly, and reinforce the message regularly. The more involved people feel, the more committed they become.

3. Commitment: Leaders Must Model the Change
Nothing kills change faster than leaders who don’t walk the talk. If executives or managers aren’t fully committed, employees won’t be either. Change is driven from the top down—leaders must embody the transformation they expect from others. This means demonstrating the new behaviors, making tough decisions, and holding themselves accountable. People don’t follow words; they follow actions.

4. Capability: Equipping People for Success
Resistance isn’t always about attitude; sometimes, it’s about ability. Organizations often assume employees will “figure it out,” but without the right training and support, frustration builds. If people don’t feel equipped to succeed in the new environment, they will default to old habits. Invest in training, mentorship, and resources to ensure employees have the skills and confidence to embrace change.

5. Culture: Embedding Change Into the DNA
Change isn’t a one-time event—it’s a shift in culture. Too often, organizations focus on short-term implementation but fail to integrate change into daily operations. Sustained transformation happens when new behaviors become the norm. Recognize and reward early adopters, embed new practices into company values, and create mechanisms for continuous improvement. When change is woven into the culture, it stops being an initiative and becomes the way things are done.

Lead With People, Not Process
Process alone doesn’t drive change—people do. The most meticulously planned strategies will fail if employees aren’t engaged, equipped, and empowered. Leaders who prioritize clarity, communication, commitment, capability, and culture will not only implement change effectively but will create organizations that are adaptable, resilient, and built for the future.

WeightWatchers Filed For Bankruptcy

WeightWatchers has filed for bankruptcy in the US as it struggles with debt and fierce competition from fat-loss jabs like Ozempic and Mounjaro. The legal process will see $1.15bn (£860mn) of the 60-year-old diet brand's debt written off while it agrees new terms for paying back its lenders.

WeightWatchers began as weekly weight-loss support group meeting with 400 attendees, and eventually gained millions of members across the globe. But demand for its programs has dropped while the popularity of weight-loss drugs such as Wegovy and Zepbound has risen - although the brand does sell weight medications as part of its programs.

The brand reported a net loss of $346m (£260m) last year, while its subscription revenues fell 5.6% compared with the year before. On Tuesday, it reported that subscription revenues in the first three months of 2025 were down 9.3% - although its clinical business, which includes weight-loss medication, saw revenues up more than 57%.

The brand's total liabilities of $1.88bn are greater than the value of its assets. It said it "expects [the] reorganization plan to be confirmed in approximately 40 days and to emerge as a publicly traded company."

WeightWatchers renamed itself "WW" in 2018 as it shifted to focus on promoting health beyond weight-loss.

Subway, the biggest fast-food chain in the United States by store count, is rapidly downsizing. The company shut down over 600 stores nationwide last year, reducing the number of its United States locations to 19,502. This is the least number of Subway locations the chain has had in the US in more than 20 years.

Subway has since 2016 closed more than 7,600 stores in the US. Just in 2024, the company posted a net loss of 631 restaurants. Subway now has fewer than 20,000 stores open in the US for the first time in more than two decades.

Some of the closures were abrupt, and workers were given no chance to get ready. And in Oregon, for one, 23 Subway restaurants closed, leaving 200 employees, who said they received no prior warning, without jobs.

Many things are going wrong for Subway:

Changing Customer Preferences - People are moving away from only eating meat and potatoes with gravy. Today’s consumers are demanding more variety, healthier menu items, and convenience. Subway’s made-to-order sandwiches have been innovative, but the chain has lagged behind rivals selling new and trendy menu items like plant-based choices or
grab-and-go meals.

Competition From Other Chains - Subway is up against stiff competition from fast-food giants including McDonald’s and Starbucks. They have spent heavily to modernize and innovate, and that has made it difficult for Subway to keep pace.

For Franchisees Franchisees have complained about increased expenses, fierce competition and aging stores. Many are barely remaining solvent, which contributes to the increasing number of closures.

Real Estate Shifts - There is less demand for physical storefronts as more of us order online or through delivery apps. In this new world, Subway’s previous approach to opening stores near each other has not been as effective an advantage.