UnitedHealth Group Inc. plans to provide rebates to its Obamacare plan members in 2026, according to CEO Stephen Hemsley. This comes as Americans are facing higher healthcare costs after Congress allowed COVID-19-era tax credits for federally subsidized Obamacare plans to expire, leading to a doubling of sign-ups.

The company will voluntarily eliminate and rebate its profits for ACA coverages this year, aiming to support stability, affordability, and sustainability of plans for consumers. Congress has yet to extend Obamacare tax credits, leaving millions of Americans with higher out-of-pocket costs as premium costs are expected to increase.

UnitedHealth is working with the Trump administration on the details of the rebates. The House’s health subcommittee will hold a hearing where executives from rival companies like Cigna Group and CVS Health will speak. UnitedHealthcare is offering ACA marketplace plans in 30 states for 2026, with an expected reduction in ACA enrollment by about two-thirds.

UnitedHealth shares increased by about 2.5% in morning trading, reflecting positive investor sentiment towards the company’s actions in providing rebates to its Obamacare plan members.

Read more at Yahoo Finance: UnitedHealth to offer rebates to its Obamacare customers