UnitedHealth Group (NYSE: UNH) has announced a leadership transition with the appointment of Stephen J. Hemsley as its Chief Executive Officer, effective immediately. This comes after Andrew Witty's decision to step down as CEO for personal reasons. Hemsley, who previously served as the company's CEO from 2006-2017, will remain as the Chairman of the company's board of directors, while Witty will serve as a senior adviser to Hemsley.
The company has also suspended its 2025 outlook due to medical expenditures being expected to be higher than anticipated. The medical costs of many Medicare Advantage beneficiaries new to UnitedHealthcare remained higher than expected, leading to the suspension of the outlook.
Furthermore, the company expects to return to growth in 2026. This follows a period where care activity continued to accelerate and broaden to more types of benefit offerings than seen in the first quarter.
UnitedHealth Group will host a conference call with investors at 8:00 a.m. Eastern Time on May 13. The company will also host a live webcast of the conference call and provide a webcast replay until May 27, 2025.
UnitedHealth Group (NYSE: UNH) is a health care and well-being company with two distinct and complementary businesses. Optum delivers care aided by technology and data, while UnitedHealthcare offers a full range of health benefits.
Following these announcements, the company's shares moved -17.79%, and are now trading at a price of $311.38. For more information, read the company's full 8-K submission here.
