News Summary
UAB Health System is in negotiations with United Healthcare over contract disputes that could impact over 500,000 Alabamians relying on United insurance. This dispute could lead to significant financial liabilities for patients if an agreement isn’t reached by the deadline. UAB has emphasized concerns regarding United’s claims denials and payment practices. Both organizations have established communication platforms regarding the negotiation status while highlighting the potential consequences on care quality and accessibility for the community.
Birmingham, AL – UAB Health System is currently embroiled in contract disputes with United Healthcare, the nation’s largest insurance provider. These negotiations have significant implications for more than 500,000 Alabamians who hold United insurance, as a failure to reach an agreement could result in losing in-network access to UAB, which is the largest hospital in Alabama.
UAB Health System serves approximately 1.4 million patients statewide and operates numerous clinics, including those under St. Vincent’s facilities and UAB-employed physicians at Children’s of Alabama hospital. Without a new contract, patients with United insurance would find themselves personally responsible for all costs incurred at affected UAB facilities.
The current dispute affects both commercial and Medicare Advantage plans associated with United. However, holders of the United PEEHIP plan may only notice a minor change in costs, as UAB has indicated they will remain covered. UAB and United are working under a deadline to finalize a new agreement by July 31. If an arrangement is not reached by August 1, 2025, members may face significant financial liabilities for services received from UAB.
Both UAB and United have set up dedicated websites to communicate their viewpoints regarding the dispute. UAB articulated that the disagreements stem from United’s high rates of claim denials and low, delayed payments to healthcare providers. Conversely, United has accused UAB of being one of the priciest academic health systems in the Southeast, asserting that UAB is demanding unrealistic increases in payment rates.
UAB’s recent acquisition of St. Vincent’s is believed to have contributed to rising healthcare costs in Alabama. United proposed a temporary 60-day extension of the existing contract, which UAB declined, stating it first sought discussions on contract renewal nearly a year ago, while United only engaged recently. United has been advocating for rate reductions, which UAB contends could threaten care quality and accessibility for patients.
UAB has a history with contract negotiations involving United. A previous agreement expired in 2019, yet both parties reached an accord just before the deadline. UAB is not alone in facing this challenge; other healthcare providers, such as Huntsville Hospital Health System and Duke Health, have likewise encountered similar contract disputes with United.
UAB provides over $100 million annually in uncompensated care, emphasizing its role as a public safety-net hospital. However, concerns surrounding United’s reimbursement rates, claims denials, and delayed payments continue to threaten the financial stability of healthcare providers throughout the region. In light of these developments, patients are encouraged to reach out to United to express the importance of maintaining UAB Health System within their insurance network.
UAB is firmly committed to delivering high-quality care to its patients and ensuring sustainable operations for the community at large as they navigate these contract negotiations with United Healthcare.
Deeper Dive: News & Info About This Topic
HERE Resources
UAB Health System Faces Contract Disputes with UnitedHealthcare
Potential Healthcare Access Disruption for UnitedHealthcare Customers in Alabama
UAB Health System and UnitedHealthcare Negotiations Impacting Patients
Potential Disruption in Healthcare Access for UnitedHealthcare Customers
UAB Health System and UnitedHealthcare Contract Negotiations
Additional Resources
- AL.com: UAB Might Stop Accepting This Major Insurance
- Wikipedia: UnitedHealthcare
- ABC3340: UnitedHealthcare Customers May Lose In-Network Access to UAB Health System
- Google Search: UAB Health System
- CBS42: Expecting Parents Are Expecting the Worst with UAB and UnitedHealthcare Negotiations
- Encyclopedia Britannica: Health Care
- 1819 News: UAB Health & UnitedHealthcare Involved in Contract Dispute
- Google News: UAB Healthcare negotiations
- WBRC: UnitedHealthcare Customers May Lose In-Network Access to UAB Health System
- Google Scholar: UAB Health System
