UnitedHealth Group has announced the immediate resignation of its CEO, Andrew Witty, citing “personal reasons” for his departure. This announcement was made on Tuesday, signaling a significant leadership change within the health insurance giant. Witty, who has led the company for the past four years, will be succeeded by Stephen Hemsley, the current chairman of the board and former CEO from 2006 to 2017.
Despite stepping down as CEO, Witty will continue to serve the company in a limited capacity as a senior adviser to Hemsley. In a statement regarding Witty’s resignation, Hemsley expressed gratitude for Witty’s “stewardship of UnitedHealth Group, especially during some of the most challenging times any company has ever faced.” He acknowledged Witty’s compassionate leadership as both chief executive and director, wishing him and his family well in the future.
Witty’s tenure has not been without its challenges. He played a pivotal role in guiding the company through the aftermath of a tragic incident—the murder of UnitedHealthcare CEO Brian Thompson last year. Thompson’s fatal shooting outside a New York hotel ignited significant public outrage towards the health insurance industry. In response to these events, Witty publicly stated in a New York Times essay that the U.S. health system “is not perfect,” addressing the complex nature of coverage decisions that “are not well understood” by the public.
Throughout his leadership, Witty defended UnitedHealthcare, acknowledging the company’s role in the confusion surrounding care decisions. His candid acknowledgment of the industry’s shortcomings reflects a broader trend of accountability within health care leadership.
On the same day as Witty’s resignation, UnitedHealth Group (UNH) announced the suspension of its financial outlook for the year, attributing this decision to higher-than-expected costs associated with Medicare Advantage. The company anticipates a return to growth by 2026. In a call with analysts following its most recent earnings report, Witty described the company’s overall performance as “frankly unusual and unacceptable,” which led to a sharp decline in stock value. On that day, shares plummeted more than 20%, marking the largest single-day drop in nearly three decades. On Tuesday, the stock continued to slide, falling nearly 11% in premarket trading.
The leadership change at UnitedHealth Group marks a pivotal moment for the company as it navigates ongoing challenges in the health insurance landscape. With Hemsley stepping back into a leadership role, stakeholders will be watching closely to see how the company adapts to the evolving health care environment and addresses the pressing issues that have emerged during Witty’s tenure.
