UnitedHealth Group Incorporated’s ( UNH Quick Quote UNH - Free Report) business, UnitedHealthcare, was selected by the Texas Health and Human Services Commission as one of the seven managed care organizations for implementing its Medicaid managed care program, STAR+PLUS.
The program integrates acute care with long-term services and assistance, and focuses to address the diversified needs of 700,000-plus people in Texas. Adults with disabilities or aged 65 years or above qualify for this program. STAR+PLUS entails members to avail a suite of daily living activities, home modifications, respite care and personal support services within the comfort of their home.
The new contract imparts UnitedHealthcare the power to offer high quality care across eight service areas in Texas, which are Bexar, Central Texas, Dallas, Harris, Hidalgo, Northeast Texas, Tarrant and Travis. Working closely with the providers and community-based organizations of Texas will enable the UNH unit to gain an in-depth understanding of the needs of the state’s residents and serve them better. This, in turn, is likely to result in better health outcomes for the state’s medically vulnerable aged and disabled community.
A longstanding experience of more than two decades in serving Texas’ Medicaid members may have fetched the contract win for UnitedHealthcare this time. Such contract wins boost the customer base and fetch health insurers with higher premiums, which remain the most significant contributors to their top line. The medical membership of UnitedHealthcare grew 3.1% year over year as of Jun 30, 2023. Further, its Medicaid membership witnessed year-over-year increase of 4.6% in the same time frame.
The strength of its Medicaid business has fetched the UnitedHealth Group unit numerous contract wins from time to time. This August, it won a Medicaid managed care contract from New Mexico Human Services Department to more effectively serve New Mexican residents from Jul 1, 2024.
These contract wins are also a means to fortify the presence of UnitedHealth Group across several U.S. states. Needless to say, the recent move is likely to strengthen UNH’s footprint across Texas. It boasts an extensive network of 671 hospitals and, more than 126,000 physicians and other care providers located throughout the state and subsequently, takes care of 4.7 million plus residents enrolled in employer-sponsored, individual, Medicare and Medicaid benefit plans.
Shares of UnitedHealth Group have gained 3.1% in the past six months compared with the
industry’s 4.3% growth. UNH currently carries a Zacks Rank #3 (Hold).
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