Andrew Witty, former CEO of UnitedHealth, testified before the Senate Finance Committee in May 2024 and experienced a huge data breach in his company's change in health care. UnitedHealth's business and reputation problems have continued since then, with Witty resigning on Tuesday for personal reasons. (Photo by Kent Nishimura/Getty Images) Kent Nishimura/Getty Images/Getty Images North America Closed subtitles
UnitedHealth Group suddenly replaced CEO Andrew Witty as comprehensive problems faced by companies and industries deepened on Tuesday.
United Health said the witty resigned “for personal reasons.” Stephen J. Hemsley, the company's former CEO and current chairman, replaced immediately. A United Health spokesperson declined to comment further.
By early Tuesday morning, UnitedHealth stock plunged more than 16%.
The massive health care group is one of the largest companies in the world and has recently been one of the most publicly plagued companies. It has Change Healthcare, a payment processor used by hospitals, doctors and pharmacists. Last year, a massive cyber attack paralyzed the entire U.S. health care system, affecting about 100 million people.
Killing that shocked the country
It also owns UnitedHealthCare, the largest health insurer in the United States, whose CEO Brian Thompson was shot dead in Manhattan in December.
The killing sparked widespread consumer opposition to high costs and denied U.S. health care claims. The so-called shooter Luigi Mangione faces the death penalty and pleads not guilty to four federal charges.
Anger against health insurance companies is so common that some people see Mangione as a vigilant folk hero. Legal expenses for an online fundraising campaign raised more than $1 million.
Since December, Witty has tried to address some anger about his company and his industry. He is New York Times Special editor for December.
Financial problems in Big Healthcare are intensifying
But in the end, it was UnitedHealth's financial problems that worsened, seemingly ending Witty's four-year term. The company and its competitors have been facing rising costs in the Medicare Advantage business that allows private insurers to charge government payments to manage care for older people. These plans were once widely seen as money-makers for large health insurance companies.
But now, issues related to Medicare seem to have cost several major healthcare CEOs. CVS Health, owner of Aetna and one of UnitedHealth's top competitors, suddenly replaced its CEO Karen Lynch in October.
UnitedHealth also said Tuesday it is suspending its 2025 outlook, "as nursing activities continue to accelerate." UnitedHealth also said medical expenses in its Medicare Advantage business were "higher than expected".
In other words: UnitedHealth ensures that doctors have more seniors than expected through its large health insurance business, which increases the cost of care provided by the company.