Andrew Witty, CEO of the Unitedhealth Group, attested during the hearing of the Senate Financing Committee with the title “Hacking America's Health Care: Evaluation of the Cyber attack for the healthcare system and what next” on May 1, 2024 in the Dirksen building in Washington, DC.
Tom Williams | CQ-Roll Call, Inc. | Getty pictures
Unitedhealth Group On Tuesday, CEO Andrew Witty's surprise exit announced and made his forecast from 2025, with the shares of the health giant stumble for more than 10% in the morning trade.
Witty resigns immediately for “personal reasons”, said the company. He will act as the senior consultant of his successor Stephen Hemsley, who worked as a CEO of the Unitedhealth Group from 2006 to 2017 after entering the company for the first time in 1997.
“We are grateful for Andrew's administration of the Unitedhealth Group, especially in some of the most demanding times with which a company was ever faced with,” said Hemsley in a press release.
The company said that his decision to obtain its guidelines was partly due to higher medical costs that withdrew other insurance stocks. Shares of CVS health fell by more than 4% and Surcharge fell over 6%while Humana Also to push more than 6% and Cigna lost over 2%.
Witty became Unitedhealth in 2021, after having previously operated the British pharmaceutical Glaxosmithmline for almost a decade. Last year he supervised a turbulent for the company that dealt with government investigations, a historical cyber attack, a higher medical costs and the electricity of public setback after the murder of Brian Thompson, the CEO of the insurance department of the Unitedhealthcare.
Witty publicly recognized in December that the US health system is “incorrect” and needs reforms, but also defended Unitedhealthcare.
The Unitedhealth Group participated on Tuesday, which had partially exposed to the outlook, since the medical costs for new participants in the company's private Medicare plans remained higher than expected. The company also said that “the supply activities continued to accelerate and at the same time expanded more types of services than in the first quarter.”
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Only a few weeks after the Unitedhealth Group has reduced its annual profit forecast and warns of increased medical costs for so-called Medicare advantage plans. These higher expenses set the entire insurance industry last year because more seniors return to hospitals to undergo a procedure that they had late during the Covid 19 pandemic, such as common and hip replacement.
The company in April also recorded its first decline in profits since 2008 and the following decline in stock At that time, market capitalization deleted almost 190 billion US dollars.
But investors may have the return of Hemsley, which supervised the conversion of the company into a $ 400 billion $ 400 billion, which supervised all from the largest private insurer to one of the largest pharmacy beefiz managers as well as from medical groups and sensitive health data from millions of Americans.
“The Unitedhealth Group has to grow enormous opportunities because we continue to help improve health care and develop our potential-and return to our long-term growth target of 13 to 16 percent,” said Hemsley.
According to the publication, the company expects growth in 2026.
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