Andrew Witty, CEO of UnitedHealth Group, has stepped down from his role for “personal reasons,” the company announced Tuesday. Stephen Hemsley, who served as UnitedHealth CEO from 2006 to 2017, will return to the position and remain board chairman. Witty will transition to a senior adviser role under Hemsley.
The leadership change comes at a challenging time for UnitedHealth. The company has faced increased scrutiny over its practices in the health insurance industry, coinciding with a significant decline in its stock price. UnitedHealth’s shares fell more than 17% on Tuesday, closing at $311.38, a steep drop from its recent high of $630.73 in November.
UnitedHealth has also suspended its annual outlook for 2025, citing the inclusion of “more types of benefit offerings than seen in the first quarter” and unexpected medical costs associated with new Medicare Advantage beneficiaries. The company expects to return to growth in 2026.
Leadership change at UnitedHealth
In December of last year, United Healthcare CEO Brian Thompson was tragically killed in what police described as a “premeditated, preplanned targeted attack” in midtown Manhattan. The suspect, Luigi Mangione, was arrested after a five-day manhunt and faces federal and state charges in connection with the shooting. Witty helped steer the company following Thompson’s murder.
In a New York Times essay, he acknowledged that the US health system “is not perfect” and that coverage decisions “are not well understood.” He also defended UnitedHealthcare, though he acknowledged that it shares some of the responsibility for the lack of understanding about decisions on care. Last month, in a call with analysts following its most recent earnings report, Witty described the company’s “overall performance as frankly unusual and unacceptable.” Shares fell more than 20% that day, marking the biggest single-day drop in nearly three decades. The stock fell nearly 11% in premarket trading on Tuesday.
UnitedHealth’s leadership and shareholders are now looking to navigate these challenges under the renewed leadership of Stephen J. Hemsley, with hopes for stabilization and growth in the coming years.
