United Healthcare
UnitedHealth Group announced a new CEO on Tuesday, a sudden and surprising change following the fatal shooting of the head of its UnitedHealthcare subsidiary in December.
Andrew Witty has stepped down from the leadership of UnitedHealth for “personal reasons,” the company said. Stephen J. Hemsley, who served as CEO from 2006 to 2017, will return to the role and remain chairman of the board. Witty will serve as a senior advisor to Hemsley, the company said in a news release.
United Healthcare has been the focus of intense criticism for its health insurance industry practices, and its stock price has plummeted last year. The Justice Department has investigated its business practices.
United Healthcare shares fell more than 17% on Tuesday. The stock, part of the 30-company Dow Jones Industrial Average, closed at $311.38, well below its recent high of $630.73 in November.
The company also said it has suspended its annual outlook for 2025, citing “higher-than-expected benefits provisioning than was seen in the first quarter” and “higher-than-expected medical costs for many Medicare Advantage beneficiaries new to United Healthcare.”
