UnitedHealth Pledges ACA Profit Rebates Amid Subsidy Debate – But Retail Sees Rally Toward $400

• CEO Stephen Hemsley released a prepared testimony ahead of his appearance before the Energy and Commerce Subcommittee on Health later this week.
• Hemsley called on lawmakers to pursue broader reforms to health savings accounts, care delivery rules, patent laws, and drug pricing to improve healthcare affordability.
• UnitedHealth negotiated nearly $300 billion in discounts in 2025, Hemsley said.

UnitedHealth Group Inc. (UNH) plans to refund profits from its Affordable Care Act (ACA) plans, famously known as Obamacare, to customers in 2026, a move that comes as Congress debates whether to extend enhanced tax credits that support those plans.

The announcement was made by chief executive officer Stephen Hemsley in a prepared testimony released ahead of his appearance before the United States House of Representatives Committee on Energy & Commerce, Subcommittee on Health, later this week.

Earlier this month, the U.S. House of Representatives voted to extend ACA subsidies for another three years. The measure passed 230–196, with support from 213 Democrats and 17 Republicans, renewing Obamacare tax credits that had expired at the end of 2025. The bill now heads to the Senate for further consideration.

Insurers have faced mounting pressure from President Donald Trump, who has opposed extending the additional ACA subsidies.

“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,” Hemsley’s statement read.

Thin Margins

UnitedHealth executives have previously described ACA margins as thin. Chief Financial Officer Wayne DeVeydt said in November that the business was expected to generate “low single-digit” margins. The company also raised ACA premiums by an average of 25% for 2026.

Hemsley urged lawmakers to consider broader reforms, including changes to health savings accounts, site-of-care rules, patent laws, and drug pricing, to help make healthcare more affordable and sustainable over time.

In the prepared testimony, Hemsley emphasized broader cost pressures across the U.S. healthcare system, noting that healthcare spending per person has surged over the past 25 years, driven by rising hospital prices, prescription drug costs, and specialty care. He highlighted UnitedHealth’s efforts to mitigate those pressures, including negotiating nearly $300 billion in discounts last year.

At the time of writing, UNH stock was up 2.4% while shares of insurers with heavier exposure to ACA coverage dropped sharply, with Centene Corp shares sliding 2.4% and Oscar Health stock falling 7%.

Potentially Masterful Move

Baird sees UnitedHealth's plan to rebate its ACA profit to customers as a “potentially masterful move”.  If the company’s announcement leads the government to implement health exchange profit rebate measures, “this could be a masterful chess move in placing potential pressure on competitor HIX plans who heavily rely on these profits in 2026,” the brokerage added.

How Did Stocktwits Users React?

Retail sentiment for UNH changed to ‘neutral’ from ‘extremely bearish’ a day earlier. One Stocktwits user highlighted the company’s strength.

Another user sees a move beyond the $350 and $367 levels, leading to a rally toward $400. The stock is currently trading at $345.8.

Over the past year, UNH shares have declined by around 33%.

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