UnitedHealthcare Selected by the State of Rhode Island to Continue Serving Medicaid Members

Rhea-AI Summary

UnitedHealthcare Community Plan of Rhode Island has been selected by the State of Rhode Island to continue serving Medicaid members through the Medicaid Managed Care Services (MMCS) program until 2030. This extends UnitedHealthcare's service in Rhode Island, which began in 1993. The MMCS program includes Rite Care, expansion, ABD populations, foster care children, and long-term support services recipients.

UnitedHealthcare will offer a wide range of benefits, including access to primary care, specialists, hospitals, and prescription drugs. In 2023, the company received NCQA Health Equity Accreditation for providing culturally sensitive services and working to reduce healthcare disparities. UnitedHealthcare serves over 250,000 people in Rhode Island with a network of 12 hospitals and more than 9,500 healthcare providers.

Positive

• Secured contract extension to serve Rhode Island Medicaid members through 2030
• Received NCQA Health Equity Accreditation in 2023
• Serves over 250,000 people in Rhode Island
• Network includes 12 hospitals and more than 9,500 healthcare providers in Rhode Island

Negative

• None.

Insights

Financial Analyst

UnitedHealthcare's selection to continue serving Medicaid members through 2030 is a significant development. This contract extension reaffirms UnitedHealthcare's strong position and trusted relationship within the state of Rhode Island. For investors, the continuation of this contract suggests stable and predictable revenue streams from Medicaid services over the next seven years, which is pivotal for financial stability and long-term planning.

A critical aspect to consider is the volume of Medicaid members—UnitedHealthcare serves more than 250,000 people in Rhode Island across various plans. This extensive member base can contribute to economies of scale, potentially improving profitability through more efficient resource utilization and administrative operations. Moreover, the company's achievement of the NCQA Health Equity Accreditation highlights its commitment to quality and equitable healthcare, enhancing its reputation and competitive edge.

Investors should also consider the financial impact of UnitedHealthcare's community investments, like the $500,000 donation to Rhode Island nonprofits. While these efforts support the community and align with corporate social responsibility goals, they also represent a financial outlay that may affect profit margins in the short term. Long-term, however, these initiatives can enhance brand loyalty and trust, potentially leading to higher enrollment and retention rates.

Healthcare Policy Expert

From a policy perspective, the contract renewal for UnitedHealthcare to serve Rhode Island's Medicaid members until 2030 underscores the state's confidence in the company's ability to manage diverse and vulnerable populations effectively. The MMCS program caters to a broad spectrum of individuals, including those in foster care and requiring long-term support services, which necessitates a robust and adaptive service delivery model. UnitedHealthcare's experience since 1993 in handling these complex needs is likely a key factor in their selection.

Moreover, the NCQA Health Equity Accreditation is not just a recognition but a critical credential that signifies adherence to high standards of culturally and linguistically sensitive services. This can influence state and federal funding decisions and policy support, potentially leading to more favorable contract terms and subsidies. It also positions UnitedHealthcare favorably against competitors in future bids for Medicaid contracts in other states.

For retail investors, understanding these policy nuances highlights the strategic importance of such accreditations and their potential ripple effects on broader business operations and growth opportunities.

Rhode Islanders eligible for Medicaid will have access to UnitedHealthcare services and benefits through 2030

UnitedHealthcare Community Plan of Rhode Island has been selected by the State of Rhode Island to serve Medicaid members through the Medicaid Managed Care Services (MMCS) program. UnitedHealthcare has served Rhode Islanders through the MMCS program since 1993; this contract award will continue to provide access to UnitedHealthcare coverage and services through 2030.

Rhode Island’s MMCS program includes Rite Care, expansion, ABD populations, children in foster care and individuals receiving long-term support services. UnitedHealthcare will offer a wide range of benefits and services to its members, including access to primary care doctors, specialists, hospitals and prescription drugs.

"We are honored to have the opportunity to continue to care for Medicaid Managed Care Services plan members in Rhode Island," said Mike Florczyk, CEO, UnitedHealthcare Community Plan of Rhode Island. "We are proud of our long-standing relationship with the State and look forward to continuing to deliver high-quality health care."

In 2023, the National Committee for Quality Assurance (NCQA) awarded UnitedHealthcare Community Plan of Rhode Island with its Health Equity Accreditation, which recognizes organizations that lead the market in providing culturally and linguistically sensitive services, and work to reduce health care disparities. One example of this work was UnitedHealthcare's donation of $500,000 to Rhode Island nonprofits to expand access to care and address social drivers of health across the state.

UnitedHealthcare serves more than 250,000 people in Rhode Island enrolled in employer-sponsored, individual, Medicare and Medicaid benefit plans, with a network of 12 hospitals and more than 9,500 physicians and other care providers statewide.

About UnitedHealthcare

UnitedHealthcare is dedicated to helping people live healthier lives and making the health system work better for everyone by simplifying the health care experience, meeting consumer health and wellness needs, and sustaining trusted relationships with care providers. In the United States, UnitedHealthcare offers the full spectrum of health benefit programs for individuals, employers, and Medicare and Medicaid beneficiaries, and contracts directly with more than 1.6 million physicians and care professionals, and 8,000 hospitals and other care facilities nationwide. The company also provides health benefits and delivers care to people through owned and operated health care facilities in South America. UnitedHealthcare is one of the businesses of UnitedHealth Group (NYSE: UNH), a diversified health care company. For more information, visit UnitedHealthcare at www.uhc.com or follow UnitedHealthcare on LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240717936110/en/

Theresa Hunter

UnitedHealthcare

(952) 406-3524

theresa.hunter@uhc.com

Source: UnitedHealthcare

FAQ

How long has UnitedHealthcare (UNH) been serving Medicaid members in Rhode Island?

UnitedHealthcare has been serving Rhode Island Medicaid members through the Medicaid Managed Care Services (MMCS) program since 1993.

Until what year will UnitedHealthcare (UNH) continue to serve Rhode Island Medicaid members?

UnitedHealthcare will continue to serve Rhode Island Medicaid members through the MMCS program until 2030.

What accreditation did UnitedHealthcare (UNH) receive in Rhode Island in 2023?

In 2023, UnitedHealthcare Community Plan of Rhode Island received Health Equity Accreditation from the National Committee for Quality Assurance (NCQA).

How many people does UnitedHealthcare (UNH) serve in Rhode Island?

UnitedHealthcare serves more than 250,000 people in Rhode Island across various health benefit programs.