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UnitedHealth Group CEO Andrew Witty has unexpectedly resigned, citing personal reasons. The announcement, made Tuesday, coincided with the company’s withdrawal of its 2025 financial outlook due to unexpectedly high medical costs. This marks the company’s first missed quarterly earnings in over a decade and sent shares tumbling nearly 10% in pre-market trading to $341.04.
Stephen Hemsley, who served as CEO from 2006 to 2017, will immediately return to the helm while also retaining his role as chairman of the board. Hemsley expressed disappointment and apologized for the company’s recent performance setbacks, attributing them to both internal and external challenges. He also expressed gratitude for Witty’s leadership, particularly during recent difficult times.
The company cited higher-than-anticipated medical costs for new Medicare Advantage beneficiaries as the reason for suspending its 2025 outlook. These costs significantly exceeded projections outlined in the company’s first-quarter results.
Witty’s departure comes just months after the death of former UnitedHealthcare CEO Brian Thompson, who was tragically shot and killed in December 2024. Thompson led UnitedHealthcare, the insurance arm of UnitedHealth Group, from April 2021 until his death.
The incident sparked national outrage and fueled public criticism of the healthcare industry, with many expressing frustration over rising costs and denied claims. Following Thompson’s death, Witty penned an op-ed acknowledging the flaws in the current healthcare system and the public’s resulting frustration.