UnitedHealth to Provide Rebates to Obamacare Customers

• Average Obamacare premium costs will more than double to $1,904 in 2026 from $888 in 2025 after enhanced tax credits expired, leaving millions facing higher out-of-pocket costs
• UnitedHealth is working with the Trump administration on rebate details and will offer ACA marketplace plans in 30 states for 2026
• The company expects its ACA enrollment to decrease by approximately two-thirds despite the voluntary profit elimination and rebate initiative

UnitedHealth to Rebate Obamacare Profits Amid Subsidy Expiration Crisis

Key Developments:

UnitedHealth Group announced it will voluntarily rebate all profits from its Affordable Care Act (ACA/Obamacare) plans to members in 2026, CEO Stephen Hemsley disclosed in prepared testimony released January 21. The move comes as Congress deadlocks on extending pandemic-era enhanced tax credits that expired, leaving millions facing dramatically higher healthcare costs.

Market Impact:

The expiration of COVID-19-era subsidies—originally introduced by the American Rescue Plan and extended through the Inflation Reduction Act—has triggered steep cost increases. Average premium costs are projected to surge to $1,904 in 2026 from $888 in 2025, according to KFF health policy analysis. The enhanced credits had approximately doubled Obamacare enrollment during their availability.

Company Specifics:

UnitedHealth currently offers ACA marketplace plans across 30 states but expects enrollment to plunge by roughly two-thirds for plan year 2026. The company is coordinating rebate details with the Trump administration. President Trump has indicated support only for subsidy extensions providing funds directly to consumers.

Industry Context:

Hemsley's testimony preceded a Thursday House health subcommittee hearing featuring executives from competitors Cigna Group, CVS Health, and Elevance Health. UnitedHealth emphasized support for "broadening consumer choice" and urged Congress to develop long-term solutions for plan stability, affordability, and sustainability.

The profit rebate represents an unprecedented voluntary measure by a major insurer as the healthcare sector navigates political uncertainty around ACA subsidies, with significant implications for both industry profitability and consumer affordability in the individual insurance market.