UnitedHealth Group introduced a brand new chief government officer on Tuesday, a sudden and shocking change that got here in the course of the tumultuous aftermath of the deadly taking pictures in December of its UnitedHealthcare subsidiary’s CEO.
The corporate has been the supply of criticism over issues within the insurance coverage business and has seen its inventory worth plummet previously 12 months. The Justice Division has investigated its enterprise practices.
Stephen J. Hemsley was appointed as the brand new CEO efficient instantly after Andrew Witty determined to step down as CEO for unspecified “private causes.”
Hemsley served as the corporate CEO from 2006 to 2017, and can stay chairman of the corporate’s Board of Administrators. In the meantime, Witty will function a senior adviser to Hemsley, the corporate stated in a information launch.
The corporate stated in an announcement that it has suspended its annual outlook for 2025, as a result of it broadened to incorporate “extra varieties of profit choices than seen within the first quarter” and since “the medical prices of many Medicare Benefit beneficiaries new to UnitedHealthcare remained larger than anticipated.”
“The corporate expects to return to development in 2026,” the assertion added.
In December 2024, the CEO of United Healthcare, Brian Thompson, was fatally shot in what police described as a “premeditated, preplanned focused assault” in midtown Manhattan as he was strolling to an traders’ convention.
Luigi Mangione, now 27, was arrested after a five-day manhunt at a McDonald’s in Altoona, Pennsylvania.
He was hit with federal and state expenses in New York and Pennsylvania in reference to the taking pictures. He has pleaded not responsible to the homicide and terrorism expenses in New York, and not responsible to federal stalking and homicide expenses. If convicted of federal expenses, Mangione may very well be sentenced to demise.
UnitedHealth Group‘s shares have been down about 10% Tuesday morning. The inventory, which is a part of the 30-company Dow Jones Industrial Common, fell about 25% this 12 months heading into morning commerce.
