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| Andrew Witty, the former CEO of UnitedHealth, appeared before the Senate Finance Committee in May 2024 to address a major data breach involving Change Healthcare, a subsidiary of his company. Since that time, UnitedHealth has faced growing challenges to its operations and reputation. On Tuesday, Witty stepped down, citing "personal reasons" for his resignation. (Photo by Kent Nishimura/Getty Images) |
UnitedHealth Group Inc. (NYSE: UNH) announced the immediate resignation of CEO Andrew Witty on Tuesday, May 13, 2025, citing “personal reasons,” and suspended its 2025 financial forecast due to higher-than-expected medical costs.
The abrupt leadership change sent shares of the healthcare giant tumbling nearly 17% in premarket trading, reaching a five-year low of $322.90.
Stephen Hemsley, the company’s former CEO and current board chairman, will reassume the CEO role effective immediately.
Hemsley, who led UnitedHealth from 2006 to 2017, stated the decision to withdraw guidance stemmed from accelerated medical care utilization, particularly in Medicare Advantage plans, which exceeded projections. Witty will transition to a senior advisory role under Hemsley.
The Minnesota-based insurer attributed the forecast suspension to “unanticipated changes” in its Optum division and rising expenses tied to new Medicare Advantage enrollees.
The announcement compounded existing challenges for UnitedHealth, including a cyberattack in early 2024 that disrupted U.S. healthcare systems and the December 2024 murder of UnitedHealthcare CEO Brian Thompson, which sparked public outcry over insurance practices.
Witty’s tenure, which began in 2021, included navigating the company through its first earnings miss since 2008 in April 2025, driven by Medicare cost pressures.
Shares of rival insurers Humana (HUM), CVS Health (CVS), and Elevance Health (ELV) fell 4–6% following the news.
UnitedHealth expects to resume growth in 2026 but faces ongoing scrutiny from federal regulators and a shareholder lawsuit alleging it concealed fallout from Thompson’s death.
The company’s market capitalization, which stood at $343.58 billion as of Monday, is projected to decline sharply amid the stock selloff.
Hemsley emphasized a return to “long-term growth targets of 13–16%” while acknowledging “disappointing performance setbacks”.
The leadership shift marks the latest upheaval in a sector grappling with rising care demand and reimbursement uncertainties.