The UNITEDHEALTH GROUP CEO Andrew Whitey withdrew from its role for “personal reasons” on Tuesday, and the company stopped its directions in 2025. Former CEO Stephen Hemsley took over the helm.
UNITEDHEALT shares have sank more than 14% in Tuesday’s trade, celebrating the last negative day of the company in the last two years.
UNITEDHEALT is struck in many ways: increased costs, political pressure on its size and control by the Federal Committee on Trade and the Ministry of Justice. Congress also placed the spotlights on its market force as a major pharmacy manager (PBM). In addition, the company faces questions about the use of artificial intelligence in the processing of claims and a major attack on cybersecurity against its subsidiary for healthcare.
The company also suffered significant public reactions after the murder of former CEO Brian Thompson in December, and investors are suing the company to reduce the impact of this tragedy. Questions about the refusals of claims and the fury of the overall practices of the insurance industry were aimed at United Has after the murder.
Hamsley pointed out that he would focus on repairing the increased pressure of the company’s costs and the negative environment in which the company finds it.
“I am deeply disappointed and apologize for the failures of the performance that we have encountered from both external and internal challenges. Many of the problems that have ceased to the path of achieving our goals, as well as our capabilities, are largely under our control,” he said when calling with investors at the beginning of Tuesday.
CEO John Rex, who has been in the role of 2024, said the company is currently considering the pressure of Medicare Advantage costs, new members of United Hayraalthcare and the potential to increase costs beyond these buckets of covered persons. This includes commercial space and Medicaid and is the result of the increased use of health services throughout the board.
However, the company repeated its goal to return to profitability in 2026, long -term, it will be 13% to 16% growth, according to Hemsley in a statement on Tuesday. UNITEDHEALT reported revenue of $ 400 billion in 2024.
UNITEDHEALT is one of the largest player at Medicare Advantage, with 29% of the market in 2024. The company was once preferred as a potentially the first three-dollar health company on a market cap before losing steam after the cyberattack.
Experts and internal faces had mixed news reactions. Some believe this is the right move for the company, while others have wondered if the disintegration of the health giant is in the cards.