- - UnitedHealth CEO vows to rebate Obamacare profits to customers

Ken Alltucker, USA TODAYJanuary 21, 2026 at 8:32 PM

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UnitedHealth Group CEO Stephen Hemsley vowed to rebate Affordable Care Act profits to customers in 2026.

The Minnesota-based insurance giant, which provides insurance coverage to about 1 million individuals enrolled in Obamacare plans in 30 states, will rebate 2026 profits to these customers, Hemsley said.

Hemsley is one of five insurance company CEOs scheduled to appear Jan. 22 before a House committee probing insurance affordability. The hearing comes as the expiration of COVID-19-era tax credits sent ACA insurance costs soaring for millions of Americans enrolled in these plans.

"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," Hemsley said in prepared remarks released Wednesday, Jan. 21, by the House health subcommittee.

More: Will health savings accounts replace ACA subsidies for some Americans?

Costs soar for millions after ACA subsidies expire

Without the enhanced tax credits that expired at the end of 2025, average costs for 22 million Americans who get subsidized ACA insurance more than doubled in January according to KFF, a health policy nonprofit.

The House of Representatives on Jan. 8 voted to extend the enhanced subsidies an additional three years. The bill is less likely to clear the Senate, which previously voted to reject the enhanced subsidies. The nonpartisan Congressional Budget Office estimated the House legislation to extend the subsidies another three years would add $80.6 billion to the federal budget deficit by 2035.

Some consumers told USA TODAY they are struggling to afford their rising expenses for ACA insurance plans, trimming household costs or dropping coverage. The CBO estimated 3.8 million Americans are expected to lose health insurance through 2035 because of the expiration of the enhanced subsidies.

Rebate details still being worked out, UnitedHealth says

In his prepared remarks, Hemsley urged Congress to broaden consumer choice by making catastrophic ACA plans eligible for tax credits, a move he said would give younger and healthier consumers options to obtain affordable coverage.

He also said Congress should standardize health insurance broker compensation for ACA plans. ACA broker compensation isn't standardized now, which creates "incentives for brokers to steer consumers toward plans that pay higher commissions rather than those that best meet an individual’s needs," Hemsley said in his prepared remarks.

In a statement, UnitedHealth Group said while the company is still working on the details about ACA rebates, "we intend to return this money to ACA members."

The ACA requires health insurance companies to spend a minimum of 80% of monthly health insurance premiums on medical care and quality improvement. In other words, administrative costs and profit can't exceed 20% of monthly premiums. Under the so-called 80/20 rule, insurance plans must rebate consumers if they don't meet this threshold.

Other CEOs scheduled to appear at Thursday's House health subcommittee hearing include CVS Health's David Joyner, Ascendiun's Paul Markovich, Elevance Health's Gail Boudreaux and Cigna Group's David Cordani.

This article originally appeared on USA TODAY: UnitedHealth Group CEO vows to rebate Affordable Care Act profits

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