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UnitedHealth Group (UNH) Arm Wins Medicaid Contract in Nevada

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UnitedHealth Group Incorporated’s (UNH - Free Report) unit Health Plan of Nevada is chosen as one of the four managed care organizations to administer the state of Nevada’s Medicaid program in the counties of Clark and Washoe.

The four-year base contract consists of the state’s Temporary Assistance for Needy Families, Children’s Health Insurance Program and Medicaid expansion programs.

The contract to be effective Jan 1, 2022 will allow Health Plan of Nevada to continue working with the state, Department of Health and Human Services and its Division of Health Care Financing and Policy that takes care of the state’s Medicaid program. It intends to improve the overall health outcomes of Nevada’s Medicaid beneficiaries.

The recent move seems a time opportune one, considering the ample prospects prevalent in the Medicaid market. Per a McKinsey report, continuous program expansions and the inclination of complex, high-need population toward managed care programs can be cited as one of the major factors driving growth across the Medicaid market.

The same article highlighted another important fact put forward by the Centers for Medicare & Medicaid Services (CMS), which projects the Medicaid plan to evolve into a roughly $1-trillion program by 2026 from the $629-billion program in 2018.

Coming back to the discussion, the leading health insurer has been associated with the state of Nevada for more than 24 years now and this recent deal will definitely strengthen its relationship. Beneficiaries will be able to gain access to value-based healthcare and innovative programs.

Health Plan of Nevada will provide health benefits for a portion of more than 600,000 adults and children who are eligible for the state’s Medicaid managed care program. The membership will give them access to Health Plan of Nevada’s integrated network of behavioral health and physical health providers, essential community providers, and long-term care providers.

The currently Zacks Rank #3 (Hold) company serves around 1 million people in commercial, Medicare and Medicaid plans in Nevada.

The recent economic downturn wherein people witnessed job losses and reduction in income increased the number of people becoming eligible for Medicaid coverage. This also led to higher Medicaid enrolment. Estimates of a rise in Medicaid spending reflecting consumers’ optimistic sentiment toward Medicaid programs were provided by the Centers for Medicare & Medicaid Services (CMS).

One of its peers Molina Healthcare, Inc.’s (MOH - Free Report) Nevada health plan subsidiary also recently won a Medicaid-managed care contract from the Nevada Department of Health and Human Services — Division of Health Care Financing and Policy (DHCFP). Besides, Centene Corporation’s (CNC - Free Report) Nevada arm SilverSummit Health plan clinched a contract from the Nevada Department of Health and Human Services — DHCFP. These deal wins are expected to aid the Medicaid beneficiaries of Nevada.

Other healthcare providers boasting a strong Medicaid business across the United States include Humana Inc. (HUM - Free Report) and Cigna Corporation.

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Shares of this company have gained 39.2% in a year’s time, outperforming its industry’s growth of 33%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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