UnitedHealth promises to return ACA profits to members as CEO addresses Congress
UnitedHealth Group revealed that it plans to return all profits it makes from plans sold on Affordable Care Act (ACA) exchanges back to its members. While the details are still unknown, the company made the pledge in a written testimony to Congress.
A speech on the matter will be made tomorrow by CEO Stephen Hemsley, addressing the House of Representatives Committee on Energy and Commerce. The prepared statement was released early to both the committee members and the public, but Hemsley will still need to deliver it and face questioning.
Members of the energy and commerce committee are expected to raise concerns related to rising insurance premiums and medical coverage rates for Americans, especially in light of extended subsidies for ACA plans recently expiring.
The statement from Hemsley is 20 pages long and contains charts, detailing everything from emergency room pricing to the cost of drugs, and how that impacts both insurers and Americans.
The plan to refund ACA insurance profits doesn’t show up until page 14, in a section on “policy solutions."
“We appreciate that there are bipartisan discussions underway in Congress to determine how to extend the enhanced ACA premium tax credits and improve the program in ways to address a range of issues, including affordability and fraud, waste and abuse,” Hemsley wrote.
Notably, roughly 1 million of UnitedHealth’s members are enrolled in a plan sold through the ACA. The company provides insurance to over 50 million people worldwide.
“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,” he added.
Hemsley then went on to say he looks forward to UnitedHealth working with regulators in the future to lower the cost of health insurance premiums.
More catastrophic plans
For now, Hemsley also offered additional solutions, including expanding eligibility for low-cost catastrophic plans and allowing premium tax credits to apply to them to increase affordable coverage options.
The CEO, on behalf of the insurance giant, also also recommended standardizing broker compensation in the ACA market to prevent commission-driven plan steering—which is when a broker recommends a plan based on profitability and not on its suitability to the member.
As for how it will deliver profit refunds to members, a spokesperson for UnitedHealth told multiple media outlets that the details are still being worked out on how this rebate will be delivered.
Notably, the U.S. House of Representatives passed a three-year extension to ACA tax credits that made subsidies possible. But, the measure is unlikely to pass the Senate, let alone make it to President Donald Trump’s desk.
There are no other notable proposals in Congress to directly address the spike in insurance premiums in 2026, much of which is associated by the lapse of the subsidies.
Hemsley will address the House energy and commerce committee on Jan. 22.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.