UnitedHealth Group Incorporated (UNH - Free Report) recently unveiled that it has been chosen by the Indiana Family and Social Services Administration to bring about improved health outcomes in the state. The new agreement is likely to benefit the members of the company’s Medicaid programs in the state.
Scheduled to begin on Apr 1 of the next year, the deal has a duration of four years, with an option of two contract renewals of one year each.
The deal aims to benefit the eligible members of Hoosier Care Connect, which is a coordinated care program catering to the members of Indiana Health Coverage Programs (IHCP) who are aged or are suffering from blindness or any disability and particular part of the foster population.
A case in point is UnitedHealth’s new contract that will be providing health benefit plans for the qualifying participants of the Hoosier Care Connect program. Members will not only have access to UnitedHealth’s care provider network, wellness programs and comprehensive health coverage, but most importantly, healthcare services can be availed at reduced costs.
In fact, this contract win is expected to strengthen the company’s presence in Indiana, where it already has a robust Medicaid business. Also, the company caters to nearly 1 million members in commercial, Medicare and Dual Special Needs plans in the state.
Apart from UnitedHealth, two other healthcare providers that have been offering healthcare services through the Hoosier Care Connect Program in the state of Indiana are Managed Health Services (MHS), a subsidiary of Centene Corporation (CNC - Free Report) , and Anthem, Inc. (ANTM - Free Report) .
Shares of this Zacks Rank #3 (Hold) healthcare provider have gained 34.3% over a year compared with the industry’s 21.7% rally.
Moreover, UnitedHealth’s focus on addressing health issues of several U.S. states has been instrumental in enabling it to win several contracts time and again. In fact, the abovementioned contract is not the only one that it has received for bringing about improved health outcomes in the state. The company’s health service unit — UnitedHealthcare Community Plan — has been selected by the state of Kentucky this June for serving the Medicaid managed care program.
Furthermore, these contract wins have been benefiting the healthcare provider’s revenues, which have witnessed a 10-year CAGR of 9.9%. The momentum continued in the first half of 2020 as well. Its efforts to enhance the existing suite of health services and solid performance of two of its health service businesses —UnitedHealthcare and Optum — also contributed to revenue growth.
Also, increased adoption of telehealth services positions UnitedHealth well for long-term growth amid the present crisis period, during which the entire United States is grappling with health woes due to the COVID-19 pandemic.
Stock to Consider
A better-ranked stock in the medical space is Select Medical Holdings Corporation (SEM - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It has a trailing four-quarter earnings surprise of 212.6%, on average.
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