Insurer CEOs Blame Hospitals and Drugmakers at House Hearings on Care Costs

Chief executives of the country’s largest health insurers told two back-to-back House hearings on Thursday that rising health insurance costs are driven by hospitals and drug makers, a defense that did little to satisfy bipartisan frustration among lawmakers over soaring medical expenses.

Members of both parties criticized insurers for high executive pay, frequent denials and delays in paying for care, and possible anti-competitive behavior. Representative Jason Smith said “there is not one single American I have met that believes health insurers are effective at lowering costs,” and Representative Buddy Carter said “Premiums are rising — patients are struggling to afford care,” noting that CVS Health’s chief executive, David Joyner, was paid $17 million in 2024.

Executives from UnitedHealth Group, Cigna, CVS Health and Elevance Health testified, and lawmakers pressed them about prior-authorization practices that can delay or deny care. UnitedHealth’s Stephen J. Hemsley defended insurers’ role, saying, “The cost of health insurance is driven by the cost of health care.

It is a symptom, not a cause,” and he said UnitedHealth negotiated nearly $300 billion in discounts last year. He also announced that UnitedHealth would voluntarily return any profits it made this year from providing insurance and said the company covers about a million people.

Key Topics

Health, Unitedhealth Group, Cigna, Cvs Health, Elevance Health, Prior Authorization