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UnitedHealth Group CEO Andrew Witty announced his immediate resignation on Tuesday, citing “personal reasons.” His departure comes as the health care giant grapples with surging costs in its Medicare Advantage business and a retreat in its 2025 financial outlook. Witty will remain on board as a senior adviser, while former CEO and current board chairman Stephen Hemsley assumes the top role.

Witty’s Four‑Year Leadership and Recent Challenges

Since taking the helm in 2021, Witty steered UnitedHealth Group (UNH) through turbulent times. He guided the company after the December 2024 murder of UnitedHealthcare CEO Brian Thompson, an event that sparked public outrage over high costs and denied claims. In a December New York Times op‑ed, Witty acknowledged widespread frustration with the U.S. health system and pledged reforms.

However, mounting financial pressures proved harder to contain. In April, UnitedHealthcare—the insurer arm Witty oversaw—reported unexpected jumps in Medicare Advantage medical costs. The company suspended its full‑year financial outlook, warning that care activity was accelerating beyond projections. On the same day, UNH stock plunged nearly 11% in premarket trading.

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Stock Fallout and Industry Ripples

Tuesday’s news sent shares tumbling over 16% by late morning, marking one of UnitedHealth’s steepest one‑day drops in years. The company’s suspension of its 2025 guidance followed Witty’s own admission in an earnings‑call that the quarter’s performance was “unusual and unacceptable,” which had already driven UNH stock down more than 20% in April—its largest single‑day slide in almost three decades.

UnitedHealth’s struggles echo a broader industry shift. Competitors like CVS Health (owner of Aetna) also ousted leaders amid Medicare Advantage headwinds. Rising medical utilization by seniors—those whose coverage is managed through private Medicare plans—has turned what was once a lucrative segment into a costly burden.

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Hemsley Returns as CEO

Stephen J. Hemsley, UnitedHealth’s board chairman and CEO from 2006 to 2017, will step back into the CEO role. Hemsley praised Witty’s “stewardship” during challenging times and extended well wishes to him and his family. As Hemsley re‑assumes leadership, investors will look to see how he navigates the suspended outlook, addresses Medicare Advantage cost overruns, and restores confidence in UNH stock and its peers.

Witty’s Legacy and Industry Backdrop

• Crisis Management: Witty guided the company after the tragic death of Brian Thompson, pledging transparency and reform.
• Public Accountability: He publicly acknowledged flaws in coverage decisions, sharing responsibility with UnitedHealthcare for complex benefit rules.
• Cyberattack Aftermath: The 2023 Change Healthcare cyberattack under UHG’s ownership disrupted care for millions, adding pressure on leadership.

While Andrew Witty steps back, Stephen Hemsley faces immediate tasks: rebuilding investor trust, revising financial forecasts, and confronting higher‑than‑expected medical claims in Medicare Advantage. The health care sector watches closely—both for Hemsley’s strategic response and how UNH’s peers manage similar headwinds.

📢 For ongoing coverage of UnitedHealth Group CEO Andrew Witty’s transition, UNH stock movements, and deep dives into Medicare Advantage trends, follow TNN. We’ll keep you informed on UnitedHealth’s next moves and their ripple effects across the health care industry. 🚨