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UnitedHealth Group The actions sank at their lowest level in more than four years after the insurance group said that former executive president Stephen Hemsley returned to the helm when his current boss Andrew Witty resigned.
The largest American health insurance company according to the income on Tuesday that Witty was immediately the main work for “personal reasons”, since it suspended its annual perspective. The actions of Unitedhealth fell 16 percent in the afternoon trade on Wall Street, reaching its lowest level since November 2020.
Witty, who was appointed executive director in 2021, has supervised the group for a tumultuous period. UnitedHealth reduced its earning forecast less than a month ago. He is also dealing with the sequelae of the murder last year of Brian Thompson, who was the CEO of his diffusion insurance division. Witty was also CEO or Glaxosmithkline from 2008 to 2017.
Hemsley, executive president of Unitedhealth, was CEO from 2006 to 2017 and had senior heroes charges in the group since the end of the 1990s. He will continue to be the chair of the Board.
“I am deeply disappointed and I apologize for the performance setbacks that we have found with both external and internal challenges,” Hemsley said in an investor call on Tuesday.
He did not give additional information about why Witty left, but said that the outgoing leader would continue to be a main advisor.
In addition to its insurance business, UnitedHealth manages medical practices in the United States. The company in mid -April cut its annual gains forecast after an increase in the demand for medical services of older customers who were “well above” of expectations. The cut also reflected a “higher than expected” coup of reductions to expenses in older patients by the previous Biden administration.
Since December, UnitedHealth has “broad regulatory conerns” and questions about its coverage decisions, Morningstar said in a research report on Tuesday. “The murky perspective for 2025 and suite executive inject more uncertainty into the situation,” said the firm.
UnitedHealth, which covers about 50 million Americans, is also dealing with an antimonopoly investigation of the United States on its state as the country’s largest health insurer.
The shaking in Unitedhealth coincides with the efforts of the Trump administration to reduce drug prices in the United States.
President Donald Trump said Monday that he expected to achieve that in facilitating the access of Americans to medicines directly from pharmaceutical groups, without going through intermediaries. UnitedHealth is among the largest managers of pharmacy benefits in the United States, acting on the intermediaries of the pharmaceutical industry.
The actions of United Peers Cigna and CVS sank after Trump’s announcement.
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