UnitedHealth Group CEO Andrew Witty has stepped down immediately for "personal reasons," the company announced Tuesday (May 13). Stephen Hemsley, the board chairman and former CEO, will take over the role. Witty, who led the company for four years, will remain as a senior adviser to Hemsley.

The leadership change comes during challenging times for UnitedHealth. The company has faced significant setbacks, including the murder of UnitedHealthcare CEO Brian Thompson last year, which brought public scrutiny to the health insurance industry. Witty acknowledged in a New York Times essay that the U.S. health system "is not perfect" and that coverage decisions "are not well understood."

UnitedHealth is also dealing with financial difficulties. The company suspended its 2025 financial outlook, citing unexpectedly high medical costs from new Medicare Advantage enrollees. The stock has fallen significantly, with a 22% drop in a single day last month and an additional 17% decline since then, resulting in a $70 billion loss in market value.

Hemsley, who previously transformed UnitedHealth into a $400 billion healthcare conglomerate, is seen as a stabilizing force. Michele Hooper, lead independent director, expressed confidence in Hemsley's ability to guide the company through this period as stated by UnitedHealth Group.

The company expects to return to growth in 2026. Meanwhile, UnitedHealth faces a shareholder lawsuit alleging the company concealed the financial impact of changes following Thompson's murder. The lawsuit claims UnitedHealth shifted away from aggressive claim denial practices without informing shareholders, leading to financial vulnerability.

Bill Handel