MINNETONKA, MN — UnitedHealth Group announced on May 13, 2025, that Stephen J. Hemsley has been reappointed as Chief Executive Officer, effective immediately, following the resignation of Andrew Witty for personal reasons. Hemsley previously served as CEO from 2006 to 2017 and has been the company’s Chairman of the Board since stepping down. Witty will remain with the company as a senior adviser to Hemsley during the transition.
Hemsley’s return comes at a critical juncture for UnitedHealth Group, as the company faces multiple challenges, including regulatory scrutiny, financial instability, and reputational damage. The U.S. Department of Justice is investigating UnitedHealth’s Medicare billing practices, focusing on whether the company improperly recorded diagnoses to receive higher payments. Former employees have been questioned by prosecutors from the healthcare-fraud unit, with involvement from the FBI and the Department of Health and Human Services’ Office of Inspector General. The probe examines practices such as testing patients and deploying nurses to collect data for more lucrative diagnoses.
Financially, UnitedHealth has been under pressure, with shares declining nearly 40% in 2025. The company suspended its 2025 financial outlook due to unexpectedly high medical costs, particularly among new Medicare Advantage beneficiaries. This move reflects immediate and pressing challenges within the healthcare landscape.
The company has also faced significant reputational challenges, including the fatal shooting of Brian Thompson, CEO of UnitedHealthcare, in December 2024. The incident, described as a targeted terrorist act, led to increased security measures for executives and heightened scrutiny of the company’s operations.
In response to these challenges, Hemsley has initiated a series of leadership changes, including appointing Mike Cotton as the new head of the Medicaid insurance segment. These adjustments reflect the company’s ongoing strategy to build an executive team with broad experience across its various businesses.
Hemsley, 72, brings a wealth of experience to the role, having previously led UnitedHealth through significant growth and transformation. Under his leadership, the company expanded its services and became a major force in managed care, data analytics, and pharmacy services.
As part of his compensation package, Hemsley will receive a $1 million annual salary and a one-time $60 million equity award, set to vest over three years. This generous package underscores UnitedHealth’s commitment to leadership continuity amid executive transitions.
Hemsley’s return is seen as a stabilizing move, with investors hopeful that his leadership will guide UnitedHealth through its current challenges and back to a trajectory of growth and stability.
