UnitedHealth promises to return ObamaCare profits to customers

UnitedHealth Group (UHG), the largest national health care provider in the U.S., is planning to return profits it makes in the Affordable Care Act (ACA) marketplace to consumers in 2026.

CEO and Chair Stephen Hemsley is expected to announce the idea when he appears before a House Committee on Energy and Commerce subcommittee on Thursday, according to a copy of his prepared testimony.

“Though UnitedHealthcare is a relatively small participant in the individual ACA market, we will voluntarily eliminate and rebate our profits this year for these coverages, as Congress continues to work toward more long-term solutions,” his anticipated remarks state.

A spokesperson said Wednesday the details were still being worked out, but the company “intends to return this money to ACA members.”

“We look forward to continuing to work with CMS and Congress as they consider policy options to strengthen the stability, affordability, and sustainability of these plans for consumers,” the spokesperson continued in a statement to The Hill.

About 1 million of UnitedHealth’s customers are enrolled in the Affordable Care Act’s marketplace, making it one of the smaller actors.

Hemsley is one of several health insurance executives summoned by House Republicans to testify on Thursday for a series of hearings focused on “rising costs, the current state of health care affordability, and the role played by large health insurers.”

Executives from CVS Health, Cigna Healthcare, Elevance Health and Blue Shield of California were also invited.

While not specifically focused on the ACA, the hearings occur against the backdrop of ongoing debate over ObamaCare subsidies, which are meant to lower monthly premiums for tens of millions of low- and middle-income Americans.

Enhanced premium ACA tax credits expired Dec. 31, resulting in higher out-of-pocket costs and a drop in enrollment. 

The House passed legislation earlier this month to extend the expired subsidies for three years, but the Senate has so far refused to take it up.  

Hemsley is expected to suggest several other policy solutions the company believes would improve the ACA marketplace for consumers, including expanding eligibility for the lowest-cost plans and standardizing broker compensation.

He will also emphasize the price of hospital visits, specialty services such as diagnostic testing, and prescription drugs as major factors that are driving premiums higher, according to his prepared remarks.