In a surprise shake-up, UnitedHealth Group CEO Andrew Witty has stepped down, and the company has suspended its 2025 financial outlook. The announcement, made Tuesday morning, sent UnitedHealth shares down more than 10%, with ripple effects across the healthcare sector.
Andrew Witty’s resignation is effective immediately. He cited “personal reasons” for his departure. He will stay on in an advisory role, while Stephen Hemsley, UnitedHealth’s former CEO from 2006 to 2017, returns to take over leadership.
“We are grateful for Andrew’s stewardship of UnitedHealth Group, especially during some of the most challenging times any company has ever faced,” said Hemsley in a statement.
A Tumultuous Tenure
Witty had been CEO since 2021, stepping into the role after leading GlaxoSmithKline for nearly a decade. His final year at UnitedHealth was marred by:
- A historic cyberattack on Change Healthcare
- Federal investigations into business practices
- Escalating medical costs across Medicare Advantage plans
- The public fallout after the 2024 murder of UnitedHealthcare CEO Brian Thompson
In December, Witty acknowledged flaws in the U.S. healthcare system but defended UnitedHealth’s model during heightened scrutiny.
Why UnitedHealth Suspended Its Forecast
The company cited higher-than-expected medical costs as the reason for pulling its 2025 guidance. The main culprit? More seniors are now returning to hospitals for delayed procedures like joint replacements post-COVID, leading to surging Medicare Advantage expenses.
UnitedHealth also said care activity was broadening across more benefit types than expected, putting further strain on profit projections.
This isn’t a one-off issue. The entire insurance sector is under pressure:
- CVS Health shares fell nearly 3%
- Elevance Health dropped more than 3%
- Humana lost over 2%
- Cigna slipped more than 1%
Stock Slide and Investor Fallout
In April, UnitedHealth posted its first earnings miss since 2008, erasing nearly $190 billion in market value. Tuesday’s announcement triggered another round of market anxiety.
UNH stock was down more than 10% by mid-morning Tuesday.
Despite the plunge, analysts note that Hemsley’s return may stabilize investor sentiment. Under his previous leadership, UnitedHealth expanded into a $400 billion healthcare powerhouse, controlling everything from private insurance and pharmacy benefits to physician networks and patient data.
What’s Next for UnitedHealth?
According to Tuesday’s press release, the company expects to return to long-term growth in 2026, targeting its traditional 13–16% range. But short-term uncertainty remains high.
For patients, partners, and shareholders, the focus now shifts to:
- How Hemsley will navigate rising healthcare costs
- Whether regulatory scrutiny will intensify
- How the company will rebuild market trust after a rocky 18 months
