UnitedHealth Ousts CEO Andrew Witty Amid Crisis, Cyberattack Fallout, and Financial Turmoil

In a move that underscores the growing turmoil engulfing UnitedHealth Group, the health care giant announced that CEO Andrew Witty has resigned “for personal reasons” and has been immediately replaced by former CEO and current chairman Stephen J. Hemsley. The leadership shake-up deepens what has already been a disastrous year for one of the world’s largest health care companies. Shares in UnitedHealth dropped more than 16% by late morning Tuesday, reflecting investor anxiety over the company’s ongoing operational, financial, and reputational crises.

Witty’s abrupt departure comes in the wake of a series of high-profile challenges. At the top of the list is the devastating cyberattack on Change Healthcare, a UnitedHealth subsidiary that processes health care payments. The breach, which occurred in early 2024, crippled large segments of the U.S. health care system, disrupting services for hospitals, pharmacies, and insurers. It is estimated that up to 100 million people were affected, prompting multiple investigations and congressional hearings.

In May, Andrew Witty testified before the Senate Finance Committee about the fallout, but critics say his efforts to reassure lawmakers and the public fell flat. The crisis has harmed UnitedHealth’s credibility and exposed the fragility of the systems underpinning the nation’s health care infrastructure. Witty’s resignation, while officially attributed to personal reasons, is widely seen as a consequence of the company’s mounting troubles.

Adding to UnitedHealth’s woes was the shocking murder of Brian Thompson, the CEO of UnitedHealthcare — the company’s insurance arm — who was fatally shot in New York City in December. The suspect, Luigi Mangione, faces federal charges and the possibility of the death penalty. The incident ignited widespread outrage over the high cost of health care and denied claims, with some viewing Mangione as a vigilante figure. A controversial online fundraiser for his legal defence has raised over $1 million.

US Prosecutors Seek Death Penalty for Luigi Mangione in UnitedHealthcare CEO’s Murder

UnitedHealth has also been hit hard financially. Like many large insurers, the company is grappling with escalating costs in its Medicare Advantage business. Once a reliable profit engine, Medicare Advantage is now a source of strain as patients, primarily seniors, are using more care than expected. UnitedHealth acknowledged this pressure on Tuesday, saying care activity has “continued to accelerate,” forcing the company to suspend its 2025 financial outlook.

This marks the second time in less than a year that a major health insurer has seen its CEO depart amid mounting Medicare losses. CVS Health, which owns Aetna, replaced CEO Karen Lynch in October under similar circumstances.

Andrew Witty, who became CEO in 2020 after a long career in global health, had tried to respond to the backlash with public appeals for reform. In a December op-ed for The New York Times, Andrew Witty wrote, “We understand and share the desire to build a health care system that works better for everyone.” But as criticism and costs intensified, it became clear that words alone weren’t enough.

With Hemsley back at the helm, UnitedHealth enters a new chapter — one defined by crisis management, damage control, and an urgent need to restore confidence in one of America’s most powerful health care institutions.