UnitedHealth names Mike Cotton CEO of Medicaid insurance unit

UnitedHealth names Mike Cotton CEO of Medicaid insurance unit

UnitedHealth Group Inc. (UNH) has appointed Mike Cotton as the new CEO of its Medicaid insurance unit. This appointment comes amidst a period of significant market volatility and policy uncertainty in the healthcare sector. The move follows the recent withdrawal of 2025 earnings guidance by UnitedHealth and the resignation of CEO Andrew Witty [1].

Cotton, who previously served as the President of UnitedHealth's Medicare and Medicaid business, will take over the reins from Witty, who stepped down for personal reasons. The new appointment is seen as a strategic move to bolster UnitedHealth's position in the Medicaid market, which is a key business area for the company.

The appointment of Cotton coincides with a turbulent period for managed care insurers. UnitedHealth's market cap plunged by 40.9% in the second quarter, making it the largest U.S. insurer with a market cap of $283 billion [1]. Similarly, Centene Corp. (CNC) saw its market cap drop by 40.37% following the withdrawal of its 2025 guidance [1].

The broader insurance industry has shown resilience despite the challenges faced by managed care insurers. At the end of the second quarter, the S&P 500 insurance index climbed 19.55% year over year, surpassing the S&P 500's 15.16% gain during the same period [1].

The appointment of Cotton is expected to bring stability to UnitedHealth's Medicaid operations and help navigate the complexities of the current policy environment. The company's focus on Medicaid is particularly significant given the potential impact of President Donald Trump's proposed One Big Beautiful Bill Act, which could significantly affect Medicaid access [1].

References:
[1] https://www.benzinga.com/trading-ideas/movers/25/07/46280387/unitedhealth-centene-hit-hard-by-guidance-shock-trumps-medicaid-push