Leadership Change and Financial Outlook
CEO resigns for personal reasons; Chairman steps in as CEO immediately, retaining his board chairman role. Witty transitions to a senior adviser position.
The company suspends its full-year financial outlook due to unexpectedly high medical costs for new beneficiaries, marking its first quarterly earnings miss in over a decade.
Challenges and Market Performance
UnitedHealth's stock fell 38% following the indictment of for the murder of executive Brian Thompson, contributing to a sharp reversal in stock performance from a 60.5% increase under Witty's leadership.
The company, which insures over 50 million people and is the largest provider of Medicare Advantage plans, faces increased scrutiny and public resentment towards U.S. health insurers amidst the high-profile murder case.