UnitedHealth Group Appoints Stephen Hemsley as CEO, Suspends 2025 Outlook

UnitedHealth Group (NYSE: UNH) announced a major leadership transition as Stephen J. Hemsley returns as Chief Executive Officer, effective immediately. The move comes after Andrew Witty stepped down for personal reasons. Hemsley, who led the company from 2006 to 2017, will also retain his position as Chairman of the Board. Witty will continue to support the organization as a senior adviser.
The company also suspended its 2025 financial outlook, citing higher-than-expected medical expenditures. Accelerated care activity and elevated costs related to newly enrolled Medicare Advantage members are driving the revision. UnitedHealth now anticipates a return to its long-term 13% to 16% growth target in 2026.
Lead independent director Michele Hooper stated, “Steve Hemsley brings a combination of strategic vision and deep operational focus that are highly valuable to our company.”

UnitedHealth Group Announces Executive Leadership Changes

UnitedHealth Group has appointed Heather Cianfrocco, currently CEO of Optum, to the enterprise-wide role of Executive Vice President, Governance, Compliance and Information Security, effective May 6, 2025. Dr. Patrick Conway, current CEO of Optum Rx and a member of the company since 2020, will succeed Cianfrocco as CEO of Optum. These leadership transitions reflect UnitedHealth Group’s commitment to strategic leadership development and alignment with its long-term mission.

UnitedHealth Group Reports Q1 2025 Results, Lowers Full-Year Outlook Amid Care Cost Pressures

UnitedHealth Group posted first quarter 2025 earnings of $6.85 per share, or $7.20 per share on an adjusted basis, as it reported $109.6 billion in revenue, a $9.8 billion increase year over year. The company also revised its full-year 2025 earnings guidance downward due to higher-than-anticipated costs and changing patient dynamics.

The updated forecast now projects full-year net earnings between $24.65 and $25.15 per share, with adjusted earnings expected in the range of $26 to $26.50 per share. This compares to prior estimates set in December 2024.

The revision is driven by two key developments:
- An unexpected spike in care activity within UnitedHealthcare’s Medicare Advantage population, particularly in outpatient and physician services, exceeding planned levels.
- Shifts in Optum Health’s member profile and reimbursement expectations, due in part to limited engagement by beneficiaries from plans exiting markets and broader impacts of Medicare funding cuts initiated under the previous administration.

Despite these challenges, UnitedHealth Group highlighted strong growth in member volume, with 780,000 additional consumers served year to date by UnitedHealthcare, and continued expansion in value-based care at Optum Health, which remains on track to reach 650,000 new patients in 2025.

CEO Andrew Witty acknowledged performance shortfalls but emphasized corrective measures are underway, with the goal of returning to the company’s long-term earnings growth target of 13% to 16%.

United Health Foundation Expands Medication Access in Rural Tennessee with Cherokee Health Systems

The United Health Foundation has partnered with Cherokee Health Systems (CHS) through a $2.6 million, three-year grant to improve access to health care for older adults in rural Tennessee. The initiative enhances a prescription delivery service that reaches patients facing transportation and financial challenges, with 500 already enrolled and a target of 2,500 by 2027.

Patients receive home deliveries from a team of clinical pharmacists and care coordinators, along with virtual consultations and chronic disease education. The program, led by CHS pharmacists Dr. Stacy White and Dr. Kim Halcomb, has proven impactful, ensuring medication adherence and reducing gaps in care.

This partnership aligns with efforts to address Tennessee’s low senior health ranking and is part of UnitedHealth Group’s broader mission to make health care more accessible, especially for underserved communities.

Optum Rx and TennCare Launch First-of-Its-Kind Diaper Benefit Through Pharmacies

Optum Rx and TennCare, Tennessee’s Medicaid program, shared results from their innovative pharmacy-based diaper benefit, which has already processed over 100,000 diaper claims since launching in August 2024.

The program provides 100 free diapers per month for TennCare and CoverKids members under age 2, with no prescription or copay required. Parents or guardians simply present the child’s (or mother’s) pharmacy ID card at a participating Tennessee pharmacy.

Within six months, 46,383 members were reached and over 106,000 diaper claims were fulfilled. This initiative aims to promote early childhood health by preventing diaper rash and infections while also easing daycare access for working parents.

Optum Rx CEO and pediatrician Dr. Patrick Conway highlighted the program’s role in improving child and family well-being, while reinforcing the importance of pharmacies in delivering accessible care. The diaper benefit complements other Optum Rx programs like Bridge to Healthy Baby, which provides maternal care kits and mental health resources.

Learn more at [Optum Rx or TennCare websites].

Optum Rx is streamlining access to prescription drugs by reducing up to 25% of reauthorizations, benefiting patients with chronic conditions. This initiative initially applies to 80 drugs, with plans to expand.

The company continues efforts to lower drug costs through programs like Optum Savings IQ, which helped consumers save $1.3 billion in 2024, and digital tools like Price Edge and PreCheck MyScript, generating significant savings.

Optum remains focused on affordability and accessibility while maintaining safety and clinical quality standards.

UnitedHealth Group Incorporated Announcement: UNH Investors Are Encouraged to Contact The Rosen Law Firm About Ongoing Investigation of Breaches of Fiduciary Duties by the Directors and Officers – UNH

UnitedHealth Group has recently navigated a series of significant events impacting its operations and leadership. On January 23, 2025, the company appointed Tim Noel, previously head of its Medicare and Retirement division, as the new CEO of UnitedHealthcare. This leadership change follows the tragic death of former CEO Brian Thompson in December 2024.

In addition to leadership transitions, UnitedHealth Group is addressing the aftermath of a cyberattack on its subsidiary, Change Healthcare. The breach, which occurred in February 2024, compromised sensitive information of approximately 190 million individuals, including insurance details and medical records. The company estimates the financial impact of the attack to be around $3.09 billion, encompassing both direct costs and business interruptions.

On the regulatory front, the U.S. Centers for Medicare and Medicaid Services (CMS) has withdrawn its appeal concerning the star ratings of UnitedHealth's Medicare Advantage plans. This decision upholds a prior ruling that mandated CMS to recalculate these ratings, a move that could influence the company's standing in the Medicare market.

As of January 28, 2025, UnitedHealth Group's stock is trading at $541.57, reflecting a slight decrease of 0.36% from the previous close.

These developments underscore a period of significant change for UnitedHealth Group, as it adapts to leadership shifts, addresses cybersecurity challenges, and navigates regulatory decisions.

UnitedHealth Group (UNH) reported its 2024 financial results, showcasing strong growth and operational performance. Revenues for the year totaled $400.3 billion, an 8% increase from 2023, driven by expanded service delivery across its Optum and UnitedHealthcare businesses. Adjusted earnings per share reached $27.66, up from $25.12 in the prior year, while cash flows from operations were $24.2 billion, or 1.6 times net income. The company also served an additional 2.1 million domestic UnitedHealthcare members and 600,000 more value-based care patients through Optum.

Optum's revenues grew by 12% to $253 billion, with strong contributions from Optum Health and Optum Rx. UnitedHealthcare's revenues rose by 6% to $298.2 billion, reflecting growth in domestic commercial benefits and services tailored to underserved populations. The company returned over $16 billion to shareholders through dividends and share repurchases and reaffirmed its 2025 outlook, projecting revenues between $450 and $455 billion, adjusted earnings per share of $29.50 to $30.00, and cash flows from operations of $32 to $33 billion. This performance underscores UnitedHealth Group's commitment to enhancing healthcare affordability and accessibility.