UnitedHealth's new CEO: Stephen Hemsley steps in as Andrew Witty resigns
In a surprising turn of events, UnitedHealth Group has appointed Stephen Hemsley as CEO, succeeding Andrew Witty, who stepped down for personal reasons.
UnitedHealth Group on Tuesday made a surprising announcement about appointing a new CEO. The sudden move was taken in the wake of the December shooting death of the CEO of its UnitedHealthcare subsidiary.
Reasons behind Andrew Witty's departure
Stephen J. Hemsley was named the new CEO with immediate effect after Andrew Witty resigned as CEO for “personal reasons.”
The firm has been under fire for issues in the insurance sector, and in the last year, its stock price has fallen precipitously.
Background of Stephen J. Hemsley
Hemsley will continue to serve as the chairman of the company's board of directors. He served as the firm CEO from 2006 to 2017. According to a press release from the company, Witty will serve as Hemsley's senior adviser.
UnitedHealth Group issues statement as stocks decline
According to a statement from UnitedHealth Group, it has halted its 2025 annual outlook because it expanded to include “more types of benefit offerings than seen in the first quarter” and because “the medical costs of many Medicare Advantage beneficiaries new to UnitedHealthcare remained higher than expected.”
“The company expects to return to growth in 2026,” the firm added.
Impact of leadership change on UnitedHealth
The suspension follows weeks after UnitedHealth posted first-quarter earnings that fell short of expectations and lowered its full-year profit outlook.
On April 17, which is seen as the company's worst day since 1998, its shares plummeted 22%, and the Dow tumbled along with it due to the performance and lower outlook.
Meanwhile, CNBC reported that UnitedHealth Group's stock fell 8% in premarket trading after the announcement.
Also Read: Luigi Mangione indicted in Brian Thompson murder, faces death penalty if convicted
Brian Thompson's killing
Brian Thompson, the CEO of United Healthcare, was shot and killed in midtown Manhattan in December 2024 when he was making his way to an investors' conference. Police classified the shooting as a "premeditated, preplanned targeted attack."
The 27-year-old Luigi Mangione was taken into custody following a five-day manhunt at an Altoona, Pennsylvania, McDonald's.
In relation to the incident, he faced federal and state indictments in Pennsylvania and New York. He entered a not guilty plea to the federal stalking and murder accusations as well as the murder and terrorism allegations in New York. Mangione might receive the death penalty if found guilty of federal charges.
