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By Annika Kim Constantino
UnitedHealth Group announced Tuesday that CEO Andrew Witty has stepped down effective immediately, citing personal reasons. In a surprise move, the health-care giant also suspended its 2025 financial forecast, prompting a sharp drop in its stock—more than 10% in morning trading.
Witty will remain with the company in an advisory role, supporting his successor, Stephen Hemsley, who previously served as CEO from 2006 to 2017 and first joined UnitedHealth in 1997.
“We are grateful for Andrew’s leadership, particularly through some of the most challenging times any company has faced,” Hemsley said in a company statement.
The company attributed the suspension of its guidance partly to rising medical costs, which also weighed down other health insurance stocks. Shares of CVS Health fell over 4%, Elevance Health dropped more than 6%, Humana declined over 6%, and Cigna slipped more than 2%.
Witty took the helm at UnitedHealth in 2021 after a decade leading GlaxoSmithKline. His tenure was marked by significant challenges, including government probes, a massive cyberattack, soaring medical expenses, and public criticism following the murder of Brian Thompson, the CEO of UnitedHealthcare, the company’s insurance arm.
In December, Witty acknowledged systemic issues in the U.S. health-care system, calling for reform while also defending the company’s practices.
UnitedHealth said Tuesday that medical costs for new enrollees in its private Medicare plans remain higher than projected. The company noted that “care activity continued to accelerate and expanded to a broader range of benefit offerings than seen in the first quarter.”
The announcement follows UnitedHealth’s recent cut to its annual profit forecast, citing persistent cost pressures in Medicare Advantage plans. Health insurers broadly have struggled as more seniors return for deferred procedures—like hip and joint replacements—delayed during the COVID-19 pandemic.
In April, the company posted its first earnings miss since 2008, wiping out nearly $190 billion in market value.
Despite the turbulence, Hemsley’s return may reassure investors. He previously led UnitedHealth’s transformation into a $400 billion health-care powerhouse, overseeing operations from insurance and pharmacy benefits to physician networks and health data systems.
“UnitedHealth Group has tremendous opportunities for growth,” Hemsley said Tuesday. “As we continue improving health care and executing our strategy, we aim to return to our long-term growth target of 13% to 16%.”
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