UNH · 10-Q · 2026Q1 · Full report

Inflation Reduction Act Pharmacy Rebate Impact

UNITEDHEALTH GROUP INC · 2026-05-05 · Importance 84 · Surprise 100

Legislative changes from the Inflation Reduction Act (IRA) impacting pharmacy rebates materially increased operating cash flows in Q1 2026, with cash provided by operating activities rising to $8,912 million from $5,456 million in Q1 2025, an increase of $3,456 million. UnitedHealth attributes the year-over-year cash flow improvement to IRA-driven pharmacy rebate changes and other working capital movements. Management notes these legislative effects as a key driver of near-term liquidity and working capital, and also highlights other year-over-year cash flow movements such as decreased share repurchases and increased dispositions receipts. The IRA impact is presented as a material, company-wide cash flow driver for Q1 2026.

Key facts

• The increase in cash flows provided by operating activities was driven by legislative changes from the Inflation Reduction Act impacting pharmacy rebates and other changes in working capital accounts. source