UnitedHealth to reset insurance business as Medicare leader takes the helm
Robert “Bobby” Hunter announced his appointment as UnitedHealthcare president in a LinkedIn post.
UnitedHealth Group is reshuffling its leadership as it tries to reverse a downturn in its insurance business and improve profitability.
Robert “Bobby” Hunter announced his appointment as UnitedHealthcare president in a September 28 LinkedIn post, an unusual way for one of the nation’s largest companies to publicize a leadership change. Four days earlier, the company issued a press release naming former Target executive Jodee Kozlak to a newly created chief administrative officer position.
The appointments come alongside other recent leadership changes in the company’s commercial business as its insurance arm works to improve profitability while navigating higher medical costs and shifting demand.
“My focus will be on helping to accelerate our modernization agenda”, said Hunter on LinkedIn. The 15-year UnitedHealth veteran most recently led the company’s government programs, overseeing the company’s Medicaid and Medicare businesses.
The leadership shifts come as UnitedHealth tries to improve its operations after a difficult period for its insurance business. The company’s Medicare Advantage business has struggled as members have used more care than expected and federal reimbursement models have changed, reducing the revenue insurers can get for some diagnoses.
UnitedHealth has also faced scrutiny over its Medicare Advantage billing practices. A January Senate report said that the company used aggressive strategies to increase payments, while a June dispute with Rhode Island’s attorney general over UnitedHealthcare’s contract with Brown University Health highlighted the potential consequences of network changes for patients.
As it works to restore profitability, UnitedHealth has left some markets, changed benefits, and moved toward more cost-efficient plans with narrower provider networks. The insurer’s senior membership has fallen by 880,000, or about 10%, to 7.6 million in the first half of this year.
Still, the business is starting to show better economics as it restructures. The company’s second quarter operating margin nearly doubled to 4.6%, compared to 2.4% a year earlier, indicating that the company is making more operating profit from each dollar of revenue despite membership contraction.
Hunter is confronting these tradeoffs as he begins his presidential tenure. UnitedHealth announced its 2027 Medicare Advantage plans on October 1. A company spokesperson said 66% of members will have access to both HMO and PPO plans next year, down from 70% in 2026, according to Reuters.
UnitedHealth is not alone – Aetna and Humana are also pulling back from some Medicare Advantage markets. While this strategy lets insurers cut costs, it also means beneficiaries in affected areas could lose access to preferred healthcare providers unless they pay more for out-of-network care or switch insurance plans.
“We can’t ignore the realities facing the healthcare system,” Hunter told Reuters. “Funding pressures, rising medical costs, rising drug costs, and increased utilization are affecting every part of healthcare.”
The challenges extend beyond UnitedHealth’s insurance products, as Kozlak’s appointment suggests a broader effort to streamline company operations. In a press release, UnitedHealth said she would help drive “enterprise modernization and alignment efforts” across areas including people, procurement, real estate, and corporate security.
The company reported $223 billion in revenue in the first half of 2026, up just over 1% from the same time last year. UnitedHealth’s share price closed at $379.30 on October 9, up 13% since the beginning of the year.
For new leadership, the challenge will be to ensure these efforts keep shrinking costs without making healthcare access harder.
