Dave Wichmann is to take over UnitedHealth Group Inc. (NYSE: UNH) after CEO Stephen Hemsley is stepping down from running the company for more than a decade. UnitedHealth Group is the nation’s largest health insurer and Minnesota’s largest publicly traded company.
UnitedHealth’s workforce grew from 58,000 to more than 260,000 during Hemsley’s duration and revenues increased from $71.5 billion to $200 billion.
Hemsley was chief operating officer before appointed as CEO and guided UnitedHealth’s reorganization into the health insurance business, UnitedHealthcare and Optum, which is a health services business. UnitedHealthcare has grown enormously through the Medicare program which introduced prescription drug benefits through private health plans in 2006. When the Affordable Care Act started pushing subsidies into the market where individuals buy health insurance, Hemsley took responsibility for the losses and the company’s financial performance wasn’t hurt that badly.
UnitedHealth Group reached the $50 billion mark in quarterly revenue due to the growth at Optum.
Wichmann joined the company in 1998 and served as chief financial officer as well as president. He has directed operations and technology efforts that has led to external development, acquisitions, and integration activities at UnitedHealth. He also leads activities in Brazil where the company acquired a majority stake in the nation’s largest health insurance companies.