Andrew Witty, the UK-born UnitedHealth Group CEO who built the company into a $400 billion healthcare behemoth, abruptly resigned on May 13, 2025. It was the abrupt ending to a record-breaking growth phase and unprecedented instability. His resignation, attributed to “personal reasons,” was revealed amidst raging healthcare inflation, a record-setting cyberattack, and public outcry over systemic healthcare failures. The article tracks Witty’s career, legacy in US healthcare, and controversies over his resignation.
Table of Contents
The Sudden Resignation: A Timeline of Recent Events
UnitedHealth revealed Witty’s departure on 13th May 2025 and the withdrawal of its 2025 financial projections. Shares fell by 10% at first due to fears over growing Medicare costs and management uncertainty. Chief Executive Officer 2006-2017 Stephen Hemsley moved in as the new leader, promising to restore growth until 2026.
Key Factors Behind the Exit:
- Rising Medicare costs: Higher-than-expected medical spending, especially in Medicare Advantage plans, led UnitedHealth to report lower profits for the first time since 2008.
- Cybersecurity crisis: A cyberattack on subsidiary Change Healthcare in February 2024 disrupted claims for 190 million patients and prompted a federal audit.
- Public backlash: The December 2024 assassination of UnitedHealthcare CEO Brian Thompson sparked nationwide outrage over the insurer’s denial and claims practices.
- Pressure on leadership: Investors have criticized Witty’s handling of these crises, sending shares down 38% since Thompson’s death.
From Pharma to Healthcare Giant: Witty’s Career Journey
Early Career and GlaxoSmithKline Tenure
Witty started his career in 1985 as a management trainee with Glaxo UK. In 2008, he was made CEO at GSK, where he encouraged low-cost access to drugs in poor nations and patent-sharing programs. 1 However, his appointment had been opposed by academics, partly because of a China bribery scandal in 2013 and demands that the company be broken up.
UnitedHealth Group: Expansion and Controversy
Witty joined UnitedHealth in 2017, leading its Optum division before becoming CEO in 2021. Under his leadership:
- Revenue surged 55% to $400 billion by 2024.
- Optum grew into a tech-driven care provider, employing 10% of U.S. physicians.
- The company faced backlash for using algorithms to deny Medicare Advantage claims, as revealed in a STAT investigation.
Challenges and Controversies
1. The Brian Thompson Fallout
The December 2024 murder of the Thompsons outraged the public. An online video showing Witty rationalizing UnitedHealth’s attempts to prevent “unnecessary healthcare” brought online death threats. Critics pointed to UnitedHealthcare’s twice-the-industry-average rate of denials and blamed healthcare bankruptcies.
2. Regulatory Scrutiny
- U.S. Department of Justice antitrust investigation: A class action lawsuit filed in May 2024 alleged that Witty and colleagues engaged in insider trading in advance of a U.S. Department of Justice investigation into Optum’s acquisition of Change Healthcare.
- Medicare billing practices: The company was scrutinized for its risk adjustment coding, which affected revenue projections.
3. Financial Struggles
UnitedHealth lowered its profit forecast in April 2025, blaming Medicare costs as “unusual and unacceptable.” Witty conceded mistakes in adjusting to the CMS adjustment in reimbursement, saying, “We are not doing as well as we need to be doing.”
Quotes and Perspectives
- Witty on Healthcare Reform (2024):
“We know the system does not work as well as it should… No one would design a system like the one we have.” 5 - Stephen Hemsley’s Vision:
“We expect to return to our long-term growth objective of 13–16% by 2026.” 7 - Investor Criticism:
“Leadership must be held accountable,” said Kevin Gade of Bahl & Gaynor, reflecting shareholder frustration 12.
Legacy and Lessons for U.S. Healthcare
Witty’s tenure underscores the complexities of leading a healthcare company in an era of rising costs and public distrust. While he expanded UnitedHealth’s reach, his downfall highlights systemic problems:
| Achievements | Controversies |
| Revenue growth to $400B 6 | Medicare Advantage claim denials 4 |
| Optum’s tech-driven care model | Insider trading allegations 1 |
| Affordable drug initiatives at GSK 1 | Cybersecurity failures 12 |
Conclusion: A Pivotal Moment for UnitedHealth
Andrew Witty’s exit is a watershed for UnitedHealth. With Hemsley trying to steady the ship, the health care sector is confronted with the urgent challenges of affordability, transparency and ethical leadership. Witty’s legacy—a combination of innovation and controversy—is a lesson for leaders working within the broken American health care ecosystem.
Frequently Asked Questions
Q1: Why did Andrew Witty step down as CEO of UnitedHealth Group?
Andrew Witty has stepped down as UnitedHealth Group CEO due to personal reasons. His resignation follows the backdrop of serious troubles facing the company in the form of compounded healthcare spending, an extensive cyberattack, and leadership instability.
Q2: Who took over as CEO after Witty’s departure?
UnitedHealth Group’s former CEO and current chairman, Stephen Hemsley, has come back to head the company. Hemsley was CEO between 2006 and 2017 and is credited with expanding UnitedHealth into a health care giant.
Q3: What challenges is UnitedHealth Group currently facing?
UnitedHealth Group is grappling with several issues, including:
- Rising medical costs, particularly within its Medicare Advantage segment.
- A significant cyberattack on its Change Healthcare unit, disrupting services for millions.
- Leadership instability following the murder of UnitedHealthcare CEO Brian Thompson in late 2024.
- Suspension of its 2025 financial forecast, leading to a decline in investor confidence.
Q4: How has the company’s stock reacted to these developments?
Once Witty’s departure was made public and the 2025 financial guidance was pulled, the UnitedHealth Group stock price plummeted. The company’s worth has fallen significantly, reflecting investor concern regarding the existing issues.
Q5: What impact does this have on the U.S. healthcare system?
The recent turmoil at UnitedHealth Group has far-reaching implications for the U.S. healthcare system, including issues of rising healthcare costs, the necessity of robust cybersecurity initiatives, and the necessity of stable leadership for large healthcare systems.
For further details, refer to STAT News and UnitedHealth’s press release.
