UnitedHealth Group CEO steps down, company suspends 2025 outlook
UnitedHealth CEO Andrew Witty testifies before the Senate Finance Committee on Capitol Hill on May 1, 2024 in Washington, DC. In February hackers stole health and personal data of what UnitedHealth says is "potentially a substantial proportion" of pa
MINNETONKA, Minn. (FOX 9) - UnitedHealth Group CEO Andrew Witty is stepping down from his position with the United States' largest health insurer. Meanwhile, the company suspended its 2025 full-year financial outlook due to higher-than-expected medical costs.
Andrew Witty steps down as UnitedHealth Group CEO
The backstory:
Witty stepped down as CEO for "personal reasons," according to a statement from UnitedHealth Group on Tuesday. Stephen J. Hemsley has been appointed CEO "effective immediately."
"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.
Hemsley served as CEO from 2006-2017, and will remain chair of UnitedHealth Group's Board of Directors. Witty will serve as a senior adviser to Hemsley.
Witty joined UnitedHealth Group in 2018 after serving as the CEO of drugmaker GlaxoSmithKline. Witty was named CEO at UHG in February 2021. Under Witty's leadership, UnitedHealth Group became one of the country's largest companies, with total revenue topping $400 billion in 2024.
UnitedHealth shares also skyrocketed under Witty, but over the past five months the company's stock performance reversed. This coincided with the fatal shooting of executive Brian Thompson in December 2024. Since then, UnitedHealth Group has wrestled with the attention on Luigi Mangione, who is charged with Thompson's killing, and the resentment toward health insurers, The Associated Press notes.
What they're saying:
"We are grateful for Andrew’s stewardship of UnitedHealth Group, especially during some of the most challenging times any company has ever faced," Hemsley said. "The Board and I have greatly valued his leadership and compassion as chief executive and as a director and wish him and his family the best.
"UnitedHealth Group has tremendous opportunities to grow as we continue to help improve health care and to perform to our potential — and, in so doing, return to our long-term growth objective of 13 to 16 percent," Hemsley continued.
UnitedHealth Group suspends 2025 outlook
Dig deeper:
UnitedHealth Group on Tuesday also announced it has suspended its 2025 outlook as "care activity continued to accelerate while also broadening to more types of benefit offerings than seen in the first quarter, and the medical costs of many Medicare Advantage beneficiaries new to UnitedHealthcare remained higher than expected."
The company says it expects to return to growth in 2026.