The news: UnitedHealth Group CEO Andrew Witty is stepping down for personal reasons after holding the position for just over four years. Stephen J. Hemsley, who served as the company’s CEO from 2016 to 2017, will take over with Witty moving to an advisory role.

How we got here: The last year-plus for UnitedHealth under Witty has been tumultuous.

• Most noteworthy was the killing of UnitedHealthcare (UnitedHealth’s health insurance division) CEO Brian Thompson last December.
• The Justice Department is investigating UnitedHealth on multiple fronts—over potentially fraudulent Medicare billing practices and whether the company has gotten too big and has too much influence over healthcare decision-making.
• Meanwhile, a ransomware attack on UnitedHealth subsidiary Change Healthcare in February 2024 ended up as the largest healthcare data breach to date, exposing health data of some 190 million people. Witty acknowledged during a Senate hearing after the attack that the company didn’t have basic cybersecurity protections in place.

Yes, and: UnitedHealth also said yesterday it’s suspending its 2025 forecast due to increased medical costs as members get more care, particularly in the Medicare Advantage market.

The decision comes on the heels of UnitedHealth’s stock having its worst day in 27 years on April 17 after the company missed Q1 earnings. Witty that day called UnitedHealth’s performance “unacceptable,” with higher care utilization among members again a top challenge.

The bottom line: We won’t speculate if Witty’s departure was voluntary or forced, but what we do know is that UnitedHealth’s “problems” are mostly tied to not meeting Wall Street’s expectations rather than being an embattled company.

• It’s the biggest healthcare player in the US, bringing in $400 billion in revenues last year and $14.4 billion in profits.

What we’re watching for: Hemsley’s focus off the bat will be straightening out UnitedHealth’s Medicare Advantage business—a goal that CVS Health is making progress toward after parting ways with its CEO last fall.

But we’re also keeping an eye on how Hemsley instructs his leadership team to improve the company’s public reputation, considering the criticism UnitedHealth has received for denying care in the aftermath of Thompson’s killing. Witty’s tone was generally defensive of UnitedHealth’s business practices, but Hemsley might want to take a different tack given such low levels of consumer trust in the company and the broader health insurance industry.

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