January 21, 2026
UnitedHealth Group’s CEO, Stephen Hemsley, has announced plans to reimburse customers for benefits tied to the Affordable Care Act (ACA) in 2026.
The insurance company, based in Minnesota, serves roughly 1 million individuals enrolled in Obamacare across 30 states. Hemsley mentioned that they would distribute profits back to these customers next year.
On January 22, Hemsley is set to join four other insurance executives before a House committee that is investigating insurance affordability. This hearing comes amidst rising costs for ACA coverage as temporary COVID-19 tax credits are set to expire.
“While UnitedHealthcare isn’t a major player in the individual ACA market, we are committed to voluntarily reimbursing these benefits this year while Congress seeks longer-term solutions,” he noted in a statement released on January 21 by the House Health Subcommittee.
Costs Rise Significantly After ACA Subsidies End
The health policy nonprofit KFF reports that the average cost for the 22 million Americans receiving subsidized ACA insurance would more than double come January, following the expiration of the enhanced tax credits at the end of 2025.
On January 8, the House approved a measure to extend these enhanced subsidies for another three years, though it’s unlikely to pass in the Senate, which has already turned down efforts to expand aid. The Congressional Budget Office estimates such an extension could raise the federal budget deficit by $80.6 billion by 2035.
Some consumers have shared with USA TODAY that they are struggling with the increased costs of their ACA plans, leading them to cut back on spending or reduce coverage. The CBO anticipates that approximately 3.8 million Americans might lose their health insurance by 2035 as the enhanced subsidies fade.
UnitedHealth Working on Rebate Details
In his remarks, Hemsley urged Congress to enhance consumer choice by allowing tax deductions for catastrophic ACA plans, which he feels could help younger, healthier individuals access more affordable premiums.
He also called for standardized compensation for health insurance brokers dealing with ACA plans, as the current lack of standards tends to push brokers to recommend plans that generate higher commissions rather than what best suits the consumer’s needs.
UnitedHealth has stated that while specifics regarding rebates are still being finalized, they plan to return the funds to ACA members.
The ACA mandates that health insurers allocate at least 80% of their monthly premiums to medical care and quality improvements. That means that administrative costs and profits must not exceed 20%. According to this “80/20 rule,” insurers are required to issue rebates to consumers if they don’t meet this threshold.
Other executives expected to testify at the hearing include David Joyner from CVS Health, Paul Markovich of Ascendian, Gail Boudreau from Elevance Health, and David Cordani of Cigna Group.
