UnitedHealth Group is going through a rough patch right now. The company’s CEO, Andrew Witty, has stepped down without much warning, citing “personal reasons” for his exit. The news hit investors hard — the company’s stock dropped by over 11% shortly after the announcement.
UnitedHealth is one of the biggest health insurance companies in the U.S., but it’s been facing several challenges in recent months. Medical costs are rising fast, government changes to Medicare Advantage plans are making things more difficult, and the tragic death of Brian Thompson, who was the head of the insurance division, has added to the stress.
Taking over the CEO role once again is Stephen Hemsley. He led the company from 2006 to 2017 and has been serving as chairman since. Hemsley said he’s confident the company can bounce back, and that they expect to see growth again starting in 2026.
Why Did the Stock Drop So Much?
One of the biggest reasons is that UnitedHealth has completely withdrawn its financial forecast for 2025. Just a few weeks ago, they had already cut their earnings estimate, and now removing the outlook altogether has made investors lose even more trust.
According to the company’s CFO, John Rex, the cost of care is going up because more people — especially seniors under Medicare Advantage plans — are needing more and more medical attention. Many new members are also showing more serious health issues than expected.
In the first quarter of the year, the company collected nearly $78 billion in premiums (an 11% increase), but spent $65.75 billion on medical care (up by 11.7%). That’s a tight gap, and not great news for a health insurer. Their medical cost ratio jumped to 84.8%, which means they’re spending more of what they earn on care than usual.
Other Problems: Cyberattack and Trust Issues
Earlier this year, UnitedHealth faced a massive cyberattack that affected millions of people across the U.S. On top of that, there’s also an investigation going on regarding how the company handles Medicare billing. All these things have made it harder for the company to keep investor confidence.
While Andrew Witty’s exit came as a surprise, experts say it’s not totally unexpected given how much the company has struggled recently. For the last few quarters, the company has failed to meet its own expectations, which has upset investors.
Is There Hope for a Turnaround?
Stephen Hemsley, now back as CEO, believes many of the current problems are fixable. He says UnitedHealth still has strong potential and expects the company to get back on track by 2026.
But even with this positive talk, investors are cautious. They want to know if UnitedHealth really has a plan — and if the leadership can be trusted to carry it out. For now, the future remains uncertain, and people will be watching closely to see what happens next.