Rep. Barrett Introduces Care Over Profits Act to Raise Insurance Payouts and Curb Fraud
The Care Over Profits Act of 2026 is currently in the early stages of the legislative process after being referred to the House Committee on Energy and Commerce. It is considered actively moving as it awaits further review and potential hearings by the committee. There are no upcoming votes scheduled at this time.
Small businesses that buy health insurance through the small group market would see their insurers required to spend at least 85% of premiums on medical care, up from 80%. This means more of the money small employers pay for employee coverage goes toward actual healthcare, and they could receive larger rebates if their insurer doesn't meet the threshold.
Referred to the House Committee on Energy and Commerce.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
No votes have been recorded for this legislation yet.
U.S. Rep. Josh Riley (NY-19) announced he is co-leading the bipartisan Care Over Profits Act (H.R. 7861) to force health insurance companies to spend at least 85% of premium revenue on actual care and impose penalties on fraudulent ACA marketplace enrollments.
The managed care sector is under scrutiny as the bipartisan 'Care Over Profits Act' seeks to raise Medical Loss Ratios to 85%, potentially squeezing insurer margins further amid rising medical costs and regulatory headwinds from the Trump administration.
Managed care stocks including Oscar Health and Centene fell as investors reacted to the 'Care Over Profits Act,' which would raise Medical Loss Ratio requirements to 85%, squeezing margins for insurers already battling high medical cost inflation.
Document Type
Congressional Bill
Official Title
Care Over Profits Act of 2026
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