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Key Takeaways

• UnitedHealth Group has a new chief executive, Stephen Hemsley, after Andrew Witty stepped aside "for personal reasons."

• The health insurer also suspended its full-year outlook as Medicare Advantage costs remained higher than expected.

• Shares sank 13% Tuesday morning, with other health insurer stocks also declining.

Shares of UnitedHealth Group (UNH) sank sharply on Tuesday, leading Dow Jones Industrial Average and S&P 500 decliners as the health insurance giant replaced its CEO and suspended its 2025 outlook.

The company said Andrew Witty decided "to step down as CEO for personal reasons," and that former CEO and current board chair Stephen Hemsley has been appointed as his replacement, effective immediately. Hemsley held the CEO role from 2006 to 2017.

In addition, UnitedHealth suspended its full-year outlook "as care activity continued to accelerate while also broadening to more types of benefit offerings than seen in the first quarter, and the medical costs of many Medicare Advantage beneficiaries new to UnitedHealthcare remained higher than expected."

The suspension comes weeks after UnitedHealth cut its full-year profit forecast while reported first-quarter results below expectations. The performance and reduced forecast led to a 22% share decline on April 17— the company's worst day since 1998—that brought the Dow down with it.

UnitedHealth shares dropped 13% shortly after markets opened Tuesday, hitting their lowest point since early 2021. The warning about healthcare costs dragged other insurer stocks, with Humana (HUM), CVS Health (CVS), and Elevance Health (ELV) also among the biggest S&P decliners.

UPDATE—This article has been updated with the latest share price information.

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