Andrew Witty just stepped down as CEO of UnitedHealth. UnitedHealth’s stock price has dropped 40 percent in the last few months. Now, Allison Bell reports for Think Advisor that financial professionals say that UnitedHealth likely is likely to raise premiums and other Medicare enrollee out-of-pocket costs in 2026.
UnitedHealth profits tremendously from its Medicare Advantage business. Through Medicare, it administers managed care benefits to nearly 10 million older adults and people with disabilities and profits handsomely. But, it had projected even greater profits from its Medicare book of business than it was able to achieve.
Shifting more costs on to enrollees in Medicare Advantage will help increase UnitedHealth’s Medicare Advantage profits. And, with UnitedHealth Chairman Stephen Helmsley back as the CEO of UnitedHealth, it appears the company is looking to do whatever it takes to generate more revenue.
The UnitedHealth party line is that more people are getting more health care services than expected, forcing it to raise prices. But, why? On a shareholder call, UnitedHealth did not try to explain why or by how much.
Moreover, how is it that UnitedHealth collects 22 percent more on average per enrollee than traditional Medicare spends per enrollee and still needs to raise costs in Medicare Advantage? It profited $6.29 billion in the first quarter of 2025.
Given UnitedHealth’s high costs for delivering care, it’s time the government stopped the Medicare Advantage program altogether. The whole premise of Medicare Advantage, according to the insurers, was that it would deliver the same benefits as traditional Medicare at lower cost. Not only does it cost $84 billion more than traditional Medicare on an apples to apples basis, this year alone, but people in Medicare Advantage are struggling to get needed care, facing limited networks and inappropriate delays and denials of care.
Perhaps the craziest claim Hemsley made on the call is that UnitedHealth will get on top of costs by engaging with enrollees to make sure they are getting the right care. UnitedHealth enrollees would be better served if the company spoke with specialists and addressed roadblocks in their attempts to treat enrollees.
If UnitedHealth is unsatisfied with the billions in profits it’s already generating from its 9.9 million Medicare Advantage enrollees, it should be a warning sign to Congress that the Medicare Advantage program is broken.
Here’s more from Just Care:
- UnitedHealth’s stock price dropped significantly; more care denials likely
- Senator Grassley takes on UnitedHealth Medicare Advantage overpayments
- Does UnitedHealth use flawed AI to deny care in Medicare Advantage?
- UnitedHealth care delays, denies and grows ever bigger
- Five things to think about when choosing between traditional Medicare and a Medicare Advantage plan
