Top U.S. health insurance executives testify before Congress on rising healthcare costs

Lawmakers question major health insurance leaders

U.S. health insurance leaders faced tough questions about why medical care is so expensive for families today. On Jan. 22, 2026, the House Energy and Commerce Committee met with the chief executive officers of five major insurance companies.

The group included Stephen Hemsley from UnitedHealth Group and David Joyner from CVS Health. Gail Boudreaux of Elevance Health, David Cordani of Cigna, and Paul Markovich of Ascension also provided testimony.

Lawmakers want to know if these big companies are making too much money while many American patients struggle to pay bills.

UnitedHealth Group will return profits to customers

Following these questions, UnitedHealth Group’s chief executive officer, Stephen Hemsley, addressed the high cost of the individual insurance market. He announced that the company will give back some money to ease the burden on families.

They plan to rebate profits made from their Affordable Care Act plans to their customers in 2026. Hemsley told lawmakers that while they are a small part of this market, they want to help find long-term solutions.

This decision highlights the company’s reaction to growing public and political pressure.

Medical costs surge across the nation

While companies like UnitedHealth Group offer rebates, the broader trend shows that healthcare spending in the United States continues to grow rapidly. National health spending increased by 7.2 percent in 2024 to reach a total of $5.3 trillion.

This large number means that healthcare now accounts for 18% of the U.S. economy. Lawmakers are worried that if these costs continue to rise, it will be hard for the government to pay for programs.

Executives argue they must pay doctors and hospitals more.

Family insurance premiums reach record highs

This massive national spending trickles down to individuals, as most people in America get their health insurance through their jobs or their family’s employer.

In 2025, the average cost for a family insurance plan rose by 6 percent for these workers. This increase brought the total cost of a family plan to nearly $27,000 per year.

Many families find it hard to pay these high prices while also buying food and paying rent. The insurance executives say they are working on ways to lower these record costs.

Hospital spending drives up healthcare prices

A primary factor contributing to these record-high premiums is the rising cost of hospital services nationwide. In 2024, spending on hospital services grew by 8.9 percent to reach $1.6 trillion.

This growth was nearly three times faster than the rate seen just two years earlier in 2022. Because hospitals charge more for surgeries and overnight stays, insurance companies say they must charge more for their plans.

Lawmakers are looking at ways to make hospital billing more transparent for all medical patients.

Pharmacy costs continue to climb rapidly

In addition to hospital bills, the cost of medicine is another prominent reason insurance executives were called to speak with Congress. In 2025, the amount of money spent on prescription drugs increased by 9.0 percent for many people.

Experts believe these pharmacy costs will increase by another 11 percent by the start of 2026. Insurance companies use pharmacy benefit managers to try to negotiate lower prices.

However, many lawmakers believe these middlemen might actually be driving up prices for sick people.

Marketplace insurance rates face major hikes

Rising pharmacy and hospital costs are also impacting people who buy their own insurance through the government marketplace. For 2026, some insurance companies are requesting a 15 percent increase in average premiums.

This is the most significant increase in these types of insurance rates since 2018. Many people are worried because a special government program that helped pay for insurance expired at the end of 2025.

Without that extra help, the amount of money people pay out of their own pockets will go up.

Tax credit expiration impacts monthly costs

The end of the special tax credit in December 2025 is the main reason for the sharp increase in monthly payments. This change is expected to raise the average monthly payment for many people by 75 percent.

For many families, this means they will have to pay hundreds of dollars more each month to keep their health coverage. Insurance executives told Congress that when prices rise this much, many healthy people might drop their coverage.

Doctors and clinics see spending growth

While premiums rise, the money spent on doctor visits and medical clinics is also increasing steadily. In 2024, spending on these services grew by 8.1 percent to $1.1 trillion.

During the testimony, the chief executive officers explained that they want to use more technology to help doctors share information.

They believe that better coordination among medical offices can help reduce errors and save significant money. This strategy aims to improve health outcomes while reducing total costs.

Large claims increase insurance company risks

Beyond routine doctor visits, insurance companies are seeing more cases where a single patient’s care costs a considerable amount. The number of claims exceeding $100,000 has been rising rapidly over the last few years.

These expensive cases are usually for dire illnesses like cancer or for babies in special hospital nurseries.

Executives told Congress that just 1 percent of all the people they cover are responsible for 28 percent of all the money spent on medical care and services.

Employer costs rise to fifteen year highs

These expensive claims also impact companies that provide insurance to their workers, who are facing high cost increases. In 2026, the cost for employer-sponsored insurance is expected to grow by 6.7 percent.

This is the most significant year-over-year increase for these types of plans in 15 years. Many bosses are worried that they will have to ask their employees to pay more or offer fewer benefits.

To stop this, 41 percent of employers are looking for new partners to help them manage their pharmacy costs.

Insurance companies must follow spending rules

There is a rule called the Medical Loss Ratio that dictates how insurance companies spend their money. This rule requires large insurance companies to spend at least 85 percent of the money they collect on medical care.

If they spend more than 15 percent on things like ads or executive pay, they must give money back to customers. Some lawmakers argued that this rule might actually encourage companies to raise prices to collect more total revenue.

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Congress reviews pharmacy benefit manager roles

Finally, lawmakers are focusing on how pharmacy benefit managers affect the price of medicine for all Americans. On Jan. 21, 2026, the House Budget Committee held a hearing to examine these rising costs.

Many of the biggest insurance companies also own these pharmacy businesses, which concerns many members of Congress. They are considering new laws that would require these businesses to be more open about how they set prices.

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Do you think these hearings will lead to lower healthcare costs? Share your thoughts below.

This slideshow was made with AI assistance and human editing.

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