UnitedHealth Group has announced a sudden leadership change, appointing Stephen J. Hemsley as the new chief executive following the unexpected resignation of Andrew Witty, who cited “personal reasons” for stepping down. Hemsley, who previously held the role from 2006 to 2017, will also maintain his position as board chairman, while Witty transitions to the role of senior adviser.
This decision comes in the wake of significant challenges facing the company, including public scrutiny regarding practices within the health insurance industry, which have contributed to a steep decline in its stock prices. On Tuesday, shares of UnitedHealth fell more than 17%, closing at $311.38, a stark contrast to their recent peak of $630.73 in November.
Compounding these issues, the company has decided to suspend its annual outlook for 2025, citing a need to reassess amid unexpectedly high medical costs for new Medicare Advantage beneficiaries. UnitedHealth expects to revitalize growth in 2026.
Furthermore, the leadership transition follows a tragic incident last December, in which UnitedHealthcare CEO Brian Thompson was fatally shot in what police described as a “premeditated, preplanned targeted attack.” The accused, 27-year-old Luigi Mangione, has been arrested and is facing multiple charges, including murder, with the potential for a death sentence if found guilty on federal charges.
UnitedHealth remains under investigation by the Justice Department, which reflects ongoing concerns over the broader health insurance landscape. The company’s evolving leadership and the recent recommendations signal a significant period of adjustment, which may pave the way for future growth and stability.
This situation highlights a critical juncture for UnitedHealth as it navigates through operational scrutiny and seeks to regain investor confidence in the upcoming years.