May 13 (UPI) — UnitedHealth Group announced Tuesday CEO Andrew Witty will step down, citing “personal reasons.”
Witty will leave the role of CEO and be replaced by Stephen J. Hemsley, effective immediately.
“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 without providing further details on his decision to step away from the role.
Witty will continue to serve as a senior adviser to Hemsley, who served as CEO of UnitedHealth Group from 2006 to 2017 and will also remain chair of the board, the company said.
“Steve Hemsley brings a combination of strategic vision and deep operational focus that are highly valuable to our company,” UnitedHealth Group lead independent director Michele Hooper said.
Hemsley first joined UnitedHealth Group as CEO in 1997 and then became president in 1999, before being named board chairperson in 2017.
“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. “The board and I have greatly valued his leadership and compassion as chief executive and as a director and wish him and his family the best.”
UnitedHealthcare, a subsidiary of UnitedHealth Group, named Tim Noel the CEO of its in January after its former CEO Brian Thompson was shot and killed in Manhattan in December 2024. Police arrested Maryland resident Luigi Mangione for allegedly having gunned down Thompson, to which Mangione has since pleaded not guilty and awaits his next hearing in December.
The company reports it has suspended its outlook for 2025 due in part to the higher-than-expected medical costs of several Medicare Advantage beneficiaries, and also because of a rise in care activity that has been widened to include more in the way of benefit offerings than found in the first quarter.
A class action lawsuit was filed against UnitedHealth Group last week “on behalf of persons or entities who purchased publicly traded UnitedHealth securities between December 3, 2024 and April 16, 2025,” which alleges the company violated the Securities Exchange Act of 1934 in regard to its announced 2024 outlook, which the suit purports to have contained false fiscal guidance.
As of 10:18 a.m., UnitedHealth Group stock has dropped 12.97% in price since the opening bell.