UnitedHealth Group CEO Steps Down; Company Withdraws 2025 Outlook Amid Rising Costs

UnitedHealth Group, the largest health insurer in the United States, announced Tuesday that CEO Andrew Witty is stepping down for personal reasons, the Associated Press reports.

At the same time, the company has suspended its financial outlook for 2025, citing unexpectedly high medical costs, particularly among new Medicare Advantage enrollees.

The company’s board chairman, Stephen Hemsley, will assume the CEO role immediately. Hemsley previously led UnitedHealth from 2006 to 2017 and will continue to serve as board chairman. Witty will remain with the company in an advisory capacity.

“Leading the people of UnitedHealth Group has been a tremendous honor as they work every day to improve the health system, and they will continue to inspire me,” Witty said in a statement.

Witty took the helm in 2021 after joining UnitedHealth in 2018 from GlaxoSmithKline, where he served as CEO. During his tenure, UnitedHealth’s annual revenue surged by over 55%, topping $400 billion in 2023. The company’s stock price also saw significant gains, rising more than 60% at its peak under his leadership.

However, recent months have seen a sharp reversal. Since December 2024, UnitedHealth shares have dropped approximately 38%, with an additional 9% decline following Tuesday’s announcements. The downturn began after the fatal shooting of UnitedHealth executive Brian Thompson in Manhattan, a high-profile incident that drew national attention and triggered wider scrutiny of the healthcare industry. Luigi Mangione, a suspect in the case, was indicted last month on a federal murder charge.

In addition to the leadership transition, UnitedHealth is facing financial pressure. Last month, the company reported its first quarterly earnings miss in over a decade. On Tuesday, executives cited rising medical costs associated with Medicare Advantage plans as the reason for withdrawing the company’s 2025 guidance.

“To all stakeholders, including employees and shareholders, I’m deeply disappointed in and apologize for the performance setbacks we have encountered,” Hemsley said during a conference call.

He acknowledged both internal and external challenges but expressed confidence in the company’s ability to rebound.

“We will approach them with humility, rigor and urgency,” he added.

UnitedHealth Group covers more than 50 million individuals through its insurance plans and also operates a major pharmacy benefit manager. Its Optum segment continues to expand, providing healthcare services and technical infrastructure.

The company remains the nation’s largest provider of Medicare Advantage plans, with over 8 million members. These privately administered plans have become a central part of UnitedHealth’s strategy, though the latest cost overruns highlight the risks associated with rapid expansion.