Former CEO Stephen Hemsley to Steer UnitedHealth as Andrew Witty Steps Aside

UnitedHealth Group shook up its leadership on May 13, announcing that longtime executive Andrew Witty will resign as CEO for “personal reasons,” with former chief executive Stephen J. Hemsley—who helmed the insurer from 2006 to 2017—returning to the role. The company, grappling with unexpected Medicare Advantage costs and a rocky 2024, says it’s targeting a rebound in 2026 under Hemsley’s steady hand.

A Leadership Reunion

Stepping down after four years at the helm, Witty won’t be disappearing completely: he’ll stay on as a senior adviser to Hemsley, who also remains chair of UnitedHealth’s board. In a statement, Hemsley praised his successor’s tenure, noting, “We are grateful for Andrew’s stewardship … especially during some of the most challenging times any company has ever faced.”

Witty echoed those sentiments, calling his time leading UnitedHealth “a tremendous honor” and expressing admiration for the team’s efforts “to improve the health system.”

Pausing the 2025 Outlook

The transition comes alongside UnitedHealth’s decision to suspend its financial outlook for 2025. The insurer attributed the move to higher-than-expected medical costs among new Medicare Advantage members—an issue that sent its stock tumbling over 10% in morning trading on May 13. As of 1:15 p.m. ET, shares sat below $320, down more than 15% on the week.

Hemsley, eyeing the path ahead, reaffirmed the company’s long-term growth goal of 13 to 16 percent once cost pressures ease.

Investigations and Data Breach Fallout

This isn’t UnitedHealth’s first public test in recent months. In February, shares slid after the Wall Street Journal reported that the U.S. Justice Department had opened a civil fraud investigation into the company’s Medicare billing practices—specifically, its recording of diagnoses that trigger extra payments for Medicare Advantage plans.

Adding to the turmoil, February 2024 saw the largest-ever health care data breach when hackers infiltrated UnitedHealth’s Change Healthcare unit, stealing records for nearly 190 million people—almost double the initial estimate. The cyberattack left hospitals and physicians unable to process claims for weeks.

Tragedy and Industry Outcry

UnitedHealth’s 2024 woes culminated in December with the murder of Brian Thompson, CEO of its UnitedHealthcare division. Thompson’s killing sparked a nationwide manhunt and the arrest of 26-year-old Luigi Mangione, who has pleaded not guilty. The tragedy reignited debate over America’s health insurance system, with critics like former CIGNA executive Wendell Potter arguing that “the system is rigged against Americans who need care … largely because of the role that Wall Street plays in our health care system” USA TODAY.

In a New York Times op-ed, Witty confronted the grief and threats faced by colleagues after Thompson’s death, acknowledging that “the U.S. health system is flawed and requires reform,” while defending UnitedHealthcare’s broader mission.

What’s Next?

With Stephen Hemsley back at the helm, UnitedHealth is banking on experienced leadership to navigate legal probes, restore investor confidence, and rein in medical costs. The industry will be watching closely as the insurer works to regain its footing and deliver on its promise of renewed growth by 2026.