UnitedHealth CEO Says Hospitals, Drug Prices Drive US Health Care Costs, Pledges ACA Rebates

Stephen Hemsley, chairman and CEO of UnitedHealth Group (NYSE:UNH), told lawmakers that rising hospital prices, consolidation, specialty services, and prescription drug costs—not insurers—are the primary forces pushing U.S. health care spending higher. He urged policy reforms to improve affordability and access.

Hemsley, alongside executives from Cigna Group (NYSE:CI), Elevance Health Inc. (NYSE:ELV), and CVS Health Corp. (NYSE:CVS), will be appearing before two House panels on Thursday.

Premium rates are based on two key factors: how much care is used and how much is charged for that care. When the price of care goes up, and care activity increases, the cost of health coverage necessarily follows, he added.

Background

A Senate Judiciary Committee investigation already found that UnitedHealth used aggressive strategies to collect diagnoses that increased federal payments under Medicare Advantage.

According to the Senate report, UnitedHealth transformed that payment adjustment process into a profit driver, ...