Associated Press Business Writer Michelle Chapman
UnitedHealth CEO Andrew Witty has stepped down for personal reasons, and the country’s largest health insurance company has suspended its full-year financial outlook due to higher than expected health costs.
According to the Minnesota Company, Chairman Stephen Hemsley will become CEO and will soon be effective.
Hemsley was CEO of UnitedHealth Group from 2006 to 2017. He remains chairman of the company’s board of directors. Witness will serve as Senior Advisor to Hemsley.
“Leading the people at UnitedHealth Group has been a huge honor as they work to improve their health system every day.
Witty joined the company in 2018 after serving as CEO of British drug maker Glaxosmithkline for about nine years. He was appointed CEO of UnitedHealth in February 2021, replacing Dave Wichmann.
UnitedHealth has become one of the largest companies in the country under Witty’s leadership. Total revenue exceeded $400 billion last year, up 55% from UnitedHealth, a $257 billion increase before Witty became CEO.
The UnitedHealth stock was high under the witty bottom, increasing 60.5% as it worked as the company’s top job.
However, its inventory performance has reversed sharply over the past five months, coinciding with the fatal shooting of company executive Brian Thompson in front of a hotel in New York City late last year.
The company is paying attention to Luigi Mangione, who was charged with federal murder last month in the murder of Thompson.
The incident rattles security-worried corporate executives whilst capturing the American imagination and causing a cascade of res and online vitriol against US health insurance companies.
UnitedHealth cut its 2025 forecast last month after turning first-quarter revenue into Miss in over a decade. UnitedHealth shares, which have plummeted 38% since the fatal December 4th of Midtown Manhattan’s Thompson’s fatal Ambush, fell more than 8% before opening bell Tuesday.
UnitedHealth said Tuesday that it has suspended its 2025 outlook for UnitedHealthCare as medical costs for new Medicare Advantage beneficiaries are higher than expected.
Over 50 million people are enrolled in health insurance under UnitedHealth Group Inc. There is also an increase in the benefits managers of large pharmacies that operate prescription drug coverage, and the Optum segment, which provides care and provides technical support.
UnitedHealthCare is the nation’s largest provider of Medicare Advantage Plans with over 8 million customers. These are personally implemented in federal compensation programs primarily for people over the age of 65.
AP health writer Tom Murphy contributed to this report.
Original issue: May 13, 2025 7:51am EDT
