Health insurers report lower costs but face enrollment drops due to policy changes and lost subsidies.

Major health insurers like UnitedHealthcare, Aetna, Centene, and Elevance Health are seeing improved cost management with lower medical loss ratios in early 2026. However, enrollment in government-subsidized plans is falling sharply as enhanced Obamacare tax credits expire, making coverage less affordable. This decline in enrollment, driven by policy changes under the Republican Congress and Trump administration, threatens future insurer profitability and could lead to higher costs. Analysts warn that rising healthcare utilization and the end of subsidies may challenge insurers' financial recovery in coming quarters.