UnitedHealth CEO suddenly steps down for 'personal reasons -

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14 May, USA

UnitedHealth CEO Andrew Witty has abruptly stepped down citing “personal reasons,” amid soaring medical costs and financial uncertainty.

Andrew Witty, CEO of UnitedHealth Group, has unexpectedly stepped down for “personal reasons” amid some serious challenges for the company.

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On May 13, 2025, UnitedHealth announced that it was withdrawing its 2025 financial outlook because medical costs were rising due to increased medical utilization, with Medicare Advantage especially impacted.

Stephen Hemsley, who was the CEO from 2006 to 2017 and is currently the chairman of the board, was selected as the interim CEO. The decision to immediately return Hemsley was made to reassure investors due to a 17.8% decline in UnitedHealth’s stock, which fell to $311.38, the lowest in nearly five years.

The company’s recent difficulties include increased medical costs that are higher than expected, particularly from new Medicare Advantage members. Moreover, there is the tragic murder of UnitedHealthcare CEO Brian Thompson in December 2024.

The move comes at a time of escalating crises for the healthcare giant — including the recent fatal shooting of Brian Thompson, the CEO of UnitedHealthcare, UnitedHealth’s insurance subsidiary.

Thompson was shot and killed outside a hotel in New York City. These acts heightened scrutiny and skepticism directed toward the health insurer’s operations, contributing to investors’ jitters.

Luigi Mangione, 27, faces the death penalty after he was indicted on federal charges in connection with Thompson’s killing.

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The lawsuit, brought last week in Manhattan federal court, accuses UnitedHealth of misleading shareholders about the financial effect on the company of its strategic transformation, initiated after backlash following Thompson’s death.

Shareholders in the suit allege that after the Dec. 4 shooting, UnitedHealth secretly began to retreat from hardball claims denial strategies that had been fueling profits in the past, without informing shareholders of the risk of cash.

This hidden shift placed the company in danger, precipitating a sharp sell-off after UnitedHealth’s lowering of its 2025 earnings estimate, it was claimed.

The company previously reported revenue of over $400 billion for the year 2024 under the Witty watch, despite the challenges, but the combination of financial pressures and turnover in leadership has led to a significant loss of market value, with a roughly 47% decline in stock price since April.

As Hemsley takes over the reins as CEO, UnitedHealth is also left to contend with regulatory scrutiny, work to rebuild trust with investors, and deal with some operational challenges.

The company expects a return to growth in 2026, but the brother is contended with more delays, opportunities for enhancements, and the ability to navigate forward.

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