Andrew Witty, CEO of UnitedHealth Group, has decided to step down for personal reasons, effective immediately, according to a May 13 news release.
Here are 10 things for outpatient leaders to know about UnitedHealth’s CEO turnover:
1. Stephen Hemsley, who served as the company’s CEO from 2006 to 2017, will become the UnitedHealth Group CEO.
2. Mr. Hemsley will remain chairman of the company’s board of directors and Mr. Witty will serve as a senior adviser to Mr. Hemsley.
3. Mr. Hemsley first joined UnitedHealth Group as COO in 1997 and became president in 1999.
4. UnitedHealth has also suspended its 2025 outlook, citing accelerating care activity and a broadening of types of benefits offered in the first quarter of 2025. It also said the medical costs of many Medicare Advantage beneficiaries new to UnitedHealthcare were higher than expected.
5. UnitedHealth said it plans to return to growth in 2026.
6. Care utilization rates in the first quarter were twice as high as expected among UnitedGroup’s Medicare Advantage membership, especially for outpatient and physician services.
7. The company’s medical loss ratio was 84.8% in the first quarter, compared to 84.3% the year prior. The full-year medical loss ratio is expected to be 87.5%. Days claims payable were 45.5 in the first quarter compared to 47.1 a year ago.
8. The group cited “unanticipated changes in the profile of Optum Health members,” in reference to a high number of Medicare Advantage beneficiaries transitioning to outpatient care.
9. In February, The Wall Street Journal reported that the Justice Department is investigating UnitedHealth’s MA billing practices amid the allegations that the company inflated charges to maximize reimbursements. UnitedHealth has denied the existence of such an investigation.
10. As of March 31, UnitedHealth’s total U.S. membership stands at 50.1 million. Commercial membership includes 30 million people. There are nearly 7.6 million Medicaid members, 8.2 million Medicare Advantage members, and 4.3 million members with Medicare supplement plans. Medicare Part D membership is 2.8 million.
The company employs more than 381,000 people around the globe, including more than 274,000 in the U.S.
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