UnitedHealth Group (UNH) said Tuesday it has named Stephen Hemsley as chief executive, effective immediately, succeeding Andrew Witty, who has decided to step down as CEO for personal reasons.
Hemsley will remain board chairman, while Witty will serve as a senior adviser to Hemsley, the company said.
UnitedHealth also said it has suspended its full-year outlook. "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," it said in a statement.
The company said it expects to return to growth next year.
UnitedHealth shares were down 6.5% in recent premarket activity.
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