UnitedHealth CEO Andrew Witty is resigning from his position for personal reasons, the insurance company announced on Tuesday.
UnitedHealth also said that it would suspend its 2025 financial outlook due to higher-than-expected medical costs. The move to withhold guidance followed its first quarterly earnings miss in more than a decade.
The company did not immediately respond to a request for comment.
“Leading the people of UnitedHealth Group has been a tremendous honor as they work every day to improve the health system, and they will continue to inspire me,” Witty said in a statement.
Witty was named UnitedHealth’s CEO in February 2021.
Stephen Hemsley was appointed as CEO “effective immediately,” the health care giant said Tuesday. Hemsley previously served as UnitedHealth CEO from 2006 to 2017. He will retain his role as chairman of the company’s board.
Shares of the Minnesota-based company have plunged since the death of former CEO Brian Thompson, who was shot and killed outside a hotel in midtown Manhattan in December. Thompson served as CEO of UnitedHealthcare, the insurance arm of UnitedHealth Group, from April 2021 to his death.
The company’s shares fell $37.71, or nearly 10%, to $341.04, ahead of the start of trade. UnitedHealth is valued at $343.57 billion as of May 2025, according to CompaniesMarketCap.
UnitedHealth said Tuesday that it suspended its 2025 outlook as medical costs of many Medicare Advantage beneficiaries new to UnitedHealthcare were higher than expected. The heightened amount of care was “far above the planned 2025 increase” UnitedHealth Group said in its 2025 first quarter results.
“To all stakeholders, including employees and shareholders, I’m deeply disappointed in and apologize for the performance setbacks we have encountered from both external and internal challenges,” Hemsley said during a conference call.
In December 2024, the death of Thompson plunged the heath insurance company into the national spotlight. The fatal shooting brought to the fore Americans’ discontent with the health care industry writ large. Many took to social media to air their frustrations about rising medical costs and claims being denied.
“We are grateful for Andrew’s stewardship of UnitedHealth Group, especially during some of the most challenging times any company has ever faced,” Hemsley said in the company statement.
Witty openly acknowledged the flaws of the health care system in an op-ed written for the New York Times in December 2024, following the death of Thompson.
“We know the health system does not work as well as it should, and we understand people’s frustrations with it,” Witty wrote. “No one would design a system like the one we have.”
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