UnitedHealth Group CEO Andrew Witty steps down, company suspends annual forecast

Core Points - UnitedHealth Group announced the unexpected departure of CEO Andrew Witty, leading to a nearly 10% drop in shares during premarket trading [1][3] - The company suspended its 2025 forecast due to rising medical costs affecting new enrollees in private Medicare plans, which have been higher than anticipated [5][6] - Stephen Hemsley, the former CEO, will succeed Witty and has expressed confidence in the company's growth potential, aiming for a return to long-term growth objectives of 13 to 16 percent by 2026 [6][7] Company Overview - Andrew Witty stepped down for "personal reasons" and will serve as a senior advisor to his successor, Stephen Hemsley, who previously led the company from 2006 to 2017 [2][4] - Witty's tenure included significant challenges such as government investigations, a cyberattack, and increased medical costs, which have impacted the entire insurance industry [4][5] - The company experienced its first earnings miss since 2008 in April, resulting in a market capitalization loss of nearly $190 billion [6] Industry Context - Rising medical costs have affected not only UnitedHealth Group but also other insurance companies, with CVS Health, Elevance Health, Humana, and Cigna all experiencing stock declines [3][5] - The increase in medical expenses is attributed to more seniors returning to hospitals for delayed procedures post-COVID-19 pandemic [5]