UnitedHealth Group abruptly replaces CEO Andrew Witty, deepening a terrible year

Former UnitedHealth CEO Andrew Witty appeared before the Senate Finance Committee in May 2024 to address a significant data breach at his company’s Change Healthcare. Following this incident, UnitedHealth’s issues have escalated, leading to Witty’s resignation for personal reasons on Tuesday. In his place, Stephen J. Hemsley, the former CEO and current chairman of the company, has taken over. UnitedHealth’s stocks dropped over 16% on Tuesday morning, reflecting the company’s deepening challenges. The conglomerate, which includes Change Healthcare and UnitedHealthcare, has been plagued by financial troubles and public scrutiny. Additionally, the recent cyberattack on the U.S. healthcare system and the tragic killing of UnitedHealthcare’s CEO have added to the company’s woes. Luigi Mangione, the alleged shooter in the CEO’s case, is facing federal charges and has pleaded not guilty. The escalating financial problems in the Medicare Advantage sector have also impacted UnitedHealth and other major health insurers, leading to leadership changes in the industry. UnitedHealth has halted its 2025 outlook due to increased medical costs in its Medicare Advantage business, indicating a challenging road ahead for the company.