UnitedHealth CEO Andrew Witty Resigns, Stephen Hemsley Returns Amid Rising Costs

UnitedHealth Group abruptly replaced CEO Andrew Witty, who stepped down immediately citing personal reasons, amid mounting financial and operational challenges. Stephen J. Hemsley, the company's former CEO and current chairman, was appointed to lead the company, aiming to stabilize investor confidence after shares plunged more than 16%. UnitedHealth has faced a turbulent year marked by a massive cyberattack affecting up to 190 million people, the murder of UnitedHealthcare CEO Brian Thompson, and surging medical costs, particularly in Medicare Advantage programs due to increased hospital care demand post-COVID. The company has suspended its 2025 financial forecast as it grapples with unexpectedly high medical expenses and broader care activity across benefit types, which has strained profitability. Despite the turmoil, Hemsley's return is seen as a potential stabilizing force, given his previous success in expanding UnitedHealth into a healthcare powerhouse. The industry-wide pressure on health insurers reflects growing consumer backlash and operational difficulties within the U.S. healthcare system.