Andrew Witty is stepping down as UnitedHeath Group CEO for personal reasons, the company said Tuesday. He will be replaced by Stephen Hemsley, a longtime UnitedHeath Group executive who was CEO for about a decade and currently chairs the health insurer’s board of directors.
The transition at the top came as the company also suspended its 2025 earnings guidance, citing medical spending that is “expected to be higher than anticipated.”
“We are grateful for Andrew’s stewardship of UnitedHealth Group (UNH-0.13%), especially during some of the most challenging times any company has ever faced,” Hemsley said in a statement. “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 said Tuesday that it nixed its 2025 outlook as medical costs of many Medicare Advantage beneficiaries new to UnitedHealthcare were higher than anticipated. The company predicted a return to profitability in 2026.
Shares of UnitedHealth Group fell almost 13.5% in Tuesday morning trading. The stock is down almost 35% so far this year.
UnitedHealth became a symbol for public frustration with the healthcare system after Brian Thompson, CEO of the company’s UnitedHealthcare subsidiary, was assassinated in New York City last year.
In a conference call with investors Tuesday morning, Hemsley addressed some of the challenges the company is facing.
“To all stakeholders, including employees and shareholders, I’m deeply disappointed in and apologize for the performance setbacks we have encountered from both external and internal challenges,” Hemsley said. “Many of the issues standing in the way of achieving our goals, as well as our opportunities, are largely within our control. I am optimistic about our future as these issues are within our capacity to resolve.”
Hemsley also said the company is making “meaningful progress” in addressing the shortcomings of a healthcare system that he said is “frustratingly disconnected” through integrated and holistic value-based care approaches.
“Our strategy and structure are the right ones,” Hemlsey said, vowing that the company would press forward with changes.
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