UnitedHealth Group Inc ( UNH )  re-elected all current directors on Wednesday. The board authorized the payment of a cash dividend of $2.21 per share, up from the prior dividend of $2.10, to be paid June 24 to common stock shareholders of record as of the close of business June 16.

In May, UnitedHealth Group’s CEO , Andrew Witty, resigned for personal reasons. Stephen Hemsley, who previously held the CEO title from 2006 to 2017, succeeded him. The company also suspended its 2025 outlook.

In an SEC filing on Wednesday, UnitedHealth ( UNH ) said it canceled the performance-based restricted stock units granted to Witty,

Year to date, UnitedHealth Group’s stock has plunged almost 40%, with the majority coming after the disappointing fourth-quarter 2024 earnings.

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UnitedHealth’s aggressive growth strategy under Witty exposed the healthcare giant to mounting regulatory scrutiny, soaring costs, and a shifting Medicare landscape.

UnitedHealth ( UNH ) plans to enlist independent experts to examine its Medicare billing practices, which were criticized following a Wall Street Journal investigation last year.

Hemsley is stepping forward to acknowledge the fallout and chart a new course, promising a comprehensive review of some of the company's most controversial practices.

The Wall Street Journal noted in its report on the company's annual shareholder meeting on Monday that Hemsley apologized for UnitedHealth's ( UNH ) recent performance and cited a need to rethink many internal processes.

He said the company has factored recent results into its 2025 Medicare bids and emphasized a "fresh perspective" on issues that have drawn widespread criticism.

Under Witty, UnitedHealth ( UNH ) scaled up its dominance in Medicare Advantage, the privately managed alternative to traditional Medicare.

Former employees said UnitedHealth's ( UNH ) profit margins on Medicare enrollees were roughly double those of traditional Medicare insurers.

That advantage stemmed partly from federal rules that limit the premium revenue pure insurers can keep. Additionally, the government pays more for patients with certain chronic diagnoses—a system UnitedHealth ( UNH ) capitalized on by gathering such data at high rates.

However, changes announced by the Medicare agency in 2023 altered the rules, reducing or eliminating extra payments for many diagnoses. The changes, phased in starting this year, were expected to have a major financial impact.

An internal analysis viewed by the WSJ indicated the new rules would significantly reduce the number of reimbursable chronic diagnoses for nearly 900,000 patients.

Despite this, UnitedHealth ( UNH ) continued betting on Medicare growth for 2025, even in high-risk patient segments, while rivals pulled back following profit hits in 2024 tied to rising costs.

Hemsley said the company would also examine its pharmacy services and managed care policies, including prior authorization—a process that has faced growing criticism from physicians and patients.

Price Action: UNH stock was flat at $301.29 at the last check on Wednesday.

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