UnitedHealth to Aid Eligible Medicaid Members in Kentucky
UnitedHealth Group Incorporated UNH recently unveiled that its health service unit UnitedHealthcare Community Plan has been chosen by the Commonwealth of Kentucky for bringing about improved health outcomes in the state. The new agreement is likely to benefit eligible enrollees of the company’s Medicaid programs in Kentucky.
Per the new deal, eligible Kentuckians will be enlisted for the Medicaid program from Jan 1 of next year. Notably, the contract intends to offer health care benefits to around 1.2 million Medicaid members in Kentucky. Also by virtue of this membership, the state’s Medicaid members can avail UnitedHealthcare Community Plan’s care provider network, wellness programs and comprehensive health coverage.
The deal is likely to strengthen the company’s presence further in Kentucky, where it already has an existing base of nearly 800 employees. The tie up will also offer self-management care solutions to the Medicaid members, which are intended to focus on their medical and social needs.
Apart from UnitedHealth, the Commonwealth of Kentucky has collaborated with four other healthcare providers which include Aetna, a subsidiary of CVS Health Corporation CVS, Humana Inc. HUM, Molina Healthcare, Inc. MOH and WellCare Health Plans, Inc.
Shares of this Zacks Rank #3 (Hold) company have gained 24.7% in a year compared with the industry’s growth of 15.6%.
Moreover, the above announcement comes at a time when the entire United States is grappling with financial woes stemming with the COVID-19 pandemic. Notably, UnitedHealth has been proactively taking measures from March itself to contain the virus spread through its two health service businesses — UnitedHealthcare and Optum.
Furthermore, the healthcare provider has been making every effort to enhance existing suite of health services. It has urged customers to adopt its telehealth policies, which will facilitate easy communication between customers sitting at home and their healthcare providers. UnitedHealth has also provided financial assistance to healthcare providers across the United States, who are constantly fighting on the frontline to limit the coronavirus spread.
Such initiatives also bode well for the top-line growth in the days ahead. Notably, the company’s revenues improved 6.8% year over year in first-quarter 2020, primarily attributable to broad-based revenue growth across its two health service businesses.
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