Birmingham, AL, July 31, 2025
News Summary
UAB Health System and UnitedHealthcare have reached a tentative agreement on a new health insurance contract, ensuring uninterrupted access to care for UnitedHealthcare members. This agreement comes as a resolution to previous concerns regarding high denial rates and delayed payments. The new contract, effective for a multi-year term, will impact approximately 1.4 million patients, with current coverage for over 500,000 Alabamians. The existing contract has been extended through August 8 to finalize the agreement.
UAB Health System and UnitedHealthcare Reach Tentative Agreement on New Health Insurance Contract
Birmingham, AL – UAB Health System and UnitedHealthcare have announced a tentative agreement in principle on a new health insurance contract, ensuring uninterrupted access to care for UnitedHealthcare members at all UAB and UAB-affiliated medical providers. This agreement comes after UAB’s warning in June that their previous contract was set to expire at the end of July, potentially leading to increased out-of-pocket costs for patients.
The new contract, once finalized, will be effective for a multi-year term that offers stability and continued access to high-quality care for patients throughout Alabama. To facilitate this, the current contract has been extended through August 8, allowing both parties one week to finalize the terms of the long-term agreement.
Approximately 1.4 million patients served by UAB across Alabama could be impacted by this agreement, with UnitedHealthcare claiming coverage for over 500,000 Alabamians. The potential disruption had raised concerns over in-network access for patients using both commercial and Medicare Advantage plans from UnitedHealthcare.
Prior to reaching this agreement, UAB had been engaged in negotiations with UnitedHealthcare over concerns regarding high denial rates and delayed payments. The renewal discussions, which had started nearly a year ago, were only actively approached by UnitedHealthcare shortly before the deadline, generating significant apprehension among patients and healthcare providers.
The broader implications of this contract extension highlight ongoing disputes faced by various healthcare systems across the country over reimbursement rates and insurance negotiations. UAB’s CEO, Dawn Bulgarella, emphasized the critical importance of these negotiations, particularly in the context of the state’s healthcare landscape, where UAB provides over $100 million annually in unpaid care due to Alabama not expanding Medicaid.
The recent agreement follows a similar resolution in 2019 when UAB settled a contract dispute with UnitedHealthcare, underscoring a repeat of challenges in achieving fair reimbursement rates. Similar conflicts are a growing concern among healthcare facilities nationwide, reflecting a trend toward heightened scrutiny of healthcare costs and insurance claims handling.
As the final terms of the new contract are solidified, patients concerned about their access to UAB health services are encouraged to reach out via the contact number located on the back of their insurance card. This agreement is poised to enhance the overall stability and access to healthcare for residents of Alabama.
FAQs
What is the significance of the tentative agreement between UAB Health System and UnitedHealthcare?
The tentative agreement ensures uninterrupted access to medical care for UnitedHealthcare members at UAB, preventing potentially higher out-of-pocket costs for patients.
How long will the new contract last?
The new contract is set to be effective for a multi-year term, details of which are being finalized.
What happens next in the process?
Both parties have one week to finalize the terms of the agreement before the current contract extension expires on August 8.
Who is affected by this agreement?
Approximately 1.4 million patients who access UAB services, including over 500,000 Alabamians covered by UnitedHealthcare, are impacted by this agreement.
What previous issues led to the negotiations?
Persistent concerns regarding high denial rates and delayed payments from UnitedHealthcare prompted the negotiations aimed at ensuring fair reimbursements.
Key Features of the New Agreement
| Feature | Description |
|---|---|
| Access to Care | Ensures uninterrupted access for UnitedHealthcare members at UAB and affiliated providers. |
| Contract Duration | New agreement will be effective for a multi-year term once finalized. |
| Patient Impact | Affects approximately 1.4 million patients, with over 500,000 currently covered by UnitedHealthcare. |
| Negotiation Background | Addressed high denial rates and delayed payment issues leading to previous disputes. |
| Current Contract Extension | Current contract has been extended through August 8 for final terms to be agreed upon. |
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Additional Resources
- WBRC: UAB Health System and UnitedHealthcare Reach Agreement
- Rocket City Now: Healthcare Giants Reach Tentative Agreement
- CBS 42: UnitedHealthcare and UAB Reach Agreement in Principle
- AL.com: UAB Might Stop Accepting Major Insurance
- Wikipedia: Health Insurance in the United States
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
