UnitedHealth stock tumbles as CEO resigns, 2025 outlook pulled

GAINING CLARITY: The significant challenges faced by UnitedHealth Group and its subsidiary, Optum culminated in the abrupt resignation of CEO Andrew Witty. Issues include surging medical costs, plummeting stock, and the suspension of the company’s annual forecast. ▼

These financial woes are compounded by legal issues, including a lawsuit alleging wrongful denials of post-acute care under Medicare Advantage plans, potentially involving the use of AI tools like nH Predict to deny services for nursing home patients.


UnitedHealth Group CEO Andrew Witty abruptly stepped down from the health insurance and care conglomerate on Tuesday, citing personal reasons, capping the end of a tumultuous four-year tenure that included the killing of the company’s top insurance executive.

UnitedHealth named its board chair and former chief executive, Stephen Hemsley, as the company’s new leader. Hemsley — who was UnitedHealth’s CEO from 2006 to 2017 and is one of the most powerful people at the company — will remain the company’s chair.

UnitedHealth also announced it was suspending its 2025 profit outlook, saying “care activity continued to accelerate” and that “the medical costs of many Medicare Advantage beneficiaries new to UnitedHealthcare remained higher than expected.”

Keep Reading

Herman, B., & Joseph, A. (2025, May 13). UnitedHealth stock tumbles as CEO resigns, 2025 outlook pulled. STAT. https://www.statnews.com/2025/05/13/stephen-hemsley-andrew-witty-unitedhealth-ceo-guidance/

News Coverage

Porter, J. W. (2025, May 27). Medicare disadvantaged. McKnight’s Long-Term Care News. https://www.mcknights.com/blogs/guest-columns/medicare-disadvantaged/

Weaver, C., Mathews, A. W., & Images, S. M. (2025, May 15). Exclusive | UnitedHealth Group is under criminal investigation for possible Medicare fraud. WSJ. https://www.wsj.com/us-news/unitedhealth-medicare-fraud-investigation-df80667f

Stulick, A., (2025, May 13). Leadership shakeup for UnitedHealth and Nursing Home I-SNP partner Optum after controversial 2024. Skilled Nursing News. https://skillednursingnews.com/2025/05/leadership-shakeup-for-unitedhealth-and-nursing-home-i-snp-partner-optum-after-controversial-2024/

Johnson, Z. (2025, May 16). UnitedHealth under criminal investigation for possible fraud in Medicare Advantage line: WSJ – McKnight’s Long-Term Care News. McKnight’s Long-Term Care News. https://www.mcknights.com/news/unitedhealth-under-criminal-investigation-for-possible-fraud-in-medicare-advantage-line-wsj/

Herman, B., & Bannow, T. (2025, April 17). UnitedHealth cuts profit outlook by $3 billion as more Medicare patients get care. STAT. https://www.statnews.com/2025/04/17/unitedhealth-first-quarter-earnings-2025-cut-profits-3-billion-medicare-patients/

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