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UnitedHealth (UNH) to Aid Eligible Medicaid Members in Hawaii

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UnitedHealth Group Incorporated’s UNH UnitedHealthcare Community Plan of Hawaii has been chosen by the state of Hawaii for administering its QUEST Integration Medicaid program across the state. The list includes the islands of Hawaii, Kauai, Lanai, Maui, Molokai and Oahu.

Scheduled to commence on Jul 1, 2021, this contract is of five-and-half years.

It consists of the state’s Temporary Assistance for Needy Families (TANF), Children’s Health Insurance Program (CHIP), Aged, Blind, and Disabled (ABD), and Long-Term Services and Supports (LTSS) programs.

This is expected to lead to better health outcomes of the region’s Medicaid beneficiaries and is anticipated to meet the medical and behavioural needs of patients along with social-support requirements.

The company’s relationship with the state of Hawaii dates back to 2009, which has so far helped it create a solid statewide Medicaid plan. This latest contract win is not only likely to improve health outcomes of the Hawaii residents but also strengthen the company’s presence across the state where it already boasts a robust Medicaid business.

This health plan will provide medical benefits to a portion of more than 400,000 adults and children (keiki) who meet the state’s Medicaid program requirements. Eligible members will have access to the UnitedHealthcare Community Plan’s provider network including long-term care and home care, wellness programs, etc.

The leading health insurer currently caters to around 114,000 people under commercial, Medicare and Medicaid plans in Hawaii. It comprises coverage of more than 17,000 low-income beneficiaries under the Dual Special Needs plan.

The company also expects continued growth in Medicaid owing to transitions in coverage and net new market gains.

In January 2021, management announced that the company was selected by the Oklahoma Health Care Authority for catering to the Medicaid members of the latter’s SoonerSelect. Commencing later this year, UnitedHealthcare Community Plan of Oklahoma is likely to offer self-management care solutions and bring about better health outcomes across the state.

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 win is not its only achievement in the direction of enhanced healthcare in the state.

Further, these contract wins have been benefiting the healthcare provider’s revenues over a period of time, which is evident from its CAGR of 5.1% from 2015 to 2020. All these initiatives poise the company well for growth.

Recently, Centene Corporation CNC also disclosed that its Hawaii subsidiary Ohana Health Plan received a contract from the Hawaii Department of Human Services.

Zacks Rank and Price Performance

Shares of this presently Zacks Rank #3 (Hold) healthcare provider have gained 36.1% over a year compared with the industry’s 32% rally. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other companies in the same space, such as Select Medical Holdings Corporation SEM and Anthem, Inc. ANTM have also surged 111.1% and 42.6%, respectively, in the same time frame.

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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report

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