UnitedHealth Group, the largest health insurer in the U.S., is facing major changes. CEO Andrew Witty has stepped down for personal reasons, and the company has pulled its full-year financial outlook due to unexpectedly high medical costs.
Chairman Stephen Hemsley, who previously served as CEO from 2006 to 2017, has returned to the role immediately. Witty will stay on temporarily as a senior adviser.
UnitedHealth has been going through a rough patch since December. That’s when executive Brian Thompson was tragically killed outside a New York City hotel — an incident not related to the company’s financials, but one that shook its leadership and seemed to rattle investor confidence. Since that attack, shares of UnitedHealth have fallen sharply — dropping 38% overall and more than 16% just on Tuesday, hitting levels not seen in nearly five years.
In a conference call, Hemsley acknowledged the company’s recent struggles, saying, “I’m deeply disappointed in and apologize for the performance setbacks.” He added that most of the issues are fixable and within the company’s control. “We’ll handle them with humility, rigor, and urgency,” he said.
Andrew Witty, 60, joined UnitedHealth in 2018 after leading British pharmaceutical giant GlaxoSmithKline for nearly a decade. He became CEO of UnitedHealth in early 2021, succeeding Dave Wichmann. Under his leadership, the company’s revenue soared to over $400 billion in 2023 — a 55% jump from before he took over. Shares of the company also rose 60.5% during his time as CEO.
Still, recent events have created serious headwinds. Last month, Luigi Mangione was indicted in the murder of Thompson, sparking national interest and anger directed at the health insurance industry. The case has left other executives anxious about safety and leadership stability.
Financially, UnitedHealth is also under pressure. Last month, it lowered its forecast for 2025 after missing quarterly earnings for the first time in over ten years. Now, it’s completely withdrawn its financial forecast, blaming higher-than-expected medical expenses — especially from new Medicare Advantage customers.
UnitedHealth currently provides health insurance to over 50 million Americans. Beyond insurance, its business includes Optum, which offers healthcare services and tech support, and a pharmacy benefits division. It’s also the largest provider of Medicare Advantage plans, covering more than 8 million older adults.
