UnitedHealth Group (UNH) shares took a beating on Tuesday after the company reported quarterly results and President Donald Trump made comments about Medicare insurers. While most investors are nursing losses, one congressman managed to sidestep the worst of the damage.

The December Exit

Rep. Kevin Hern (R-Okla.) sold his entire UnitedHealth position in December, just weeks before Trump's comments and the earnings report sent shares spiraling. According to government trading disclosures, Hern unloaded $250,000 to $500,000 worth of shares on Dec. 23, completely exiting his holdings in the health insurance giant.

The transaction wasn't disclosed until Jan. 22, as required by law. At the time of the sale, UnitedHealth shares were trading between $323.76 and $327.80.

Fast forward to Tuesday, and shares are down to $285.51, marking an 18.8% single-day plunge. Since Hern's exit, the stock has dropped between 11.8% and 12.9%, depending on his exact sell price. His timing, intentional or not, helped him avoid a deeper bloodbath.

The Backstory on His Position

Hern originally bought into UnitedHealth back in September 2021 with two transactions. He purchased $250,000 to $500,000 in shares on Sept. 23, 2021, and another $50,000 to $100,000 on Sept. 2, 2021. Back then, the stock was flying high, trading above $400 per share. His September 23 purchases came when shares ranged from $407.51 to $414.85, while the September 2 buy happened between $418.24 and $424.40.

Between then and his December exit, Hern's only other moves in the stock were reinvesting dividends in 2022, 2023, and 2024.

So while his December sale helped him dodge further losses, the trade still locked in a loss of around 21.6%, or 19.6% in a best-case scenario based on the lowest purchase prices and highest sale price.

Why Everyone's Talking About It

Congressional stock trades have become a lightning rod for scrutiny, and Hern's UnitedHealth exit is no exception. The congressman is a close Trump ally and sits on both the House Republican Policy Committee and the House Subcommittee on Health. Those positions could theoretically give him early insight into government healthcare policy shifts.

Social media watchdog accounts were quick to pounce. The PelosiTracker account on X posted: "Well would you look at that … UnitedHealth $UNH down 8% after hours on news of Trump admin proposing flat rates for Medicare. Rep. Hern (R) sold off his entire $500K position just a couple weeks ago."

WatcherGuru echoed the sentiment: "Last month, Rep. Kevin Hern sold up to $500,000 worth of UnitedHealth stock. Today, the Trump administration proposed flat Medicare reimbursement rates for insurers, causing $UNH to crash over 10%. Hern is a member of the House Subcommittee on Health."

The Congressman's Trading History

Hern isn't your typical politician when it comes to investing. He's a former McDonald's franchisee who once owned multiple locations before entering Congress. A local newspaper even dubbed him "the McCongressman" before he sold his restaurant empire.

His trading activity reflects his business background. One notable trade involved buying Freddie Mac when it was trading as a penny stock at 45 cents to 47 cents, later selling for a profit exceeding 40%.

Not everything has been smooth sailing, though. Hern previously violated the STOCK Act by failing to disclose transactions he made in 2021.