UAB Health System and UnitedHealthcare Contract Negotiations

News Summary

UAB Health System patients may lose access to critical healthcare services if negotiations with UnitedHealthcare fail before the July 31 contract expiration. About 1.4 million patients could be affected, facing increased costs for care at UAB and affiliated hospitals. UAB’s CEO expresses concern over low reimbursement rates and claim denials from UnitedHealthcare. While emergency services will remain available, non-emergency access may become more challenging. Both parties must find common ground before the deadline to ensure continued healthcare access for Alabama residents.

Birmingham, Alabama – UAB Health System patients enrolled in UnitedHealthcare plans could lose access to critical healthcare services if both parties do not reach an agreement before the contract expiration date of July 31. The potential disruption is slated to begin on August 1, which includes out-of-pocket costs for services provided at UAB hospitals, St. Vincent’s, and UAB-employed physicians at Children’s of Alabama.

Approximately 1.4 million patients, or more than 25% of Alabama’s population, are served by UAB Health System, and a significant number of them could be affected by the cessation of in-network coverage. This includes patients affiliated with the Baptist Health Montgomery network, which serves 57,000 individuals across 17 counties and is currently also negotiating with UnitedHealthcare.

UAB Health System’s CEO has expressed disappointment in the actions taken by UnitedHealthcare, which has contributed to uncertainty among patients concerning their healthcare options. In response, UAB has emphasized its commitment to negotiating in good faith in hopes of resolving the issues before the contract’s expiration.

The current situation may impact both commercial members and Medicare Advantage plan members. Concerns raised by UAB include claims of low reimbursement rates, excessive claim denials, and delayed payments from UnitedHealthcare. Such challenges are part of broader patterns, as similar disputes are being reported by other healthcare providers across the region.

According to UnitedHealthcare, the demands made by UAB could significantly raise premiums and out-of-pocket costs for consumers, potentially designating UAB as one of the most expensive providers. UnitedHealthcare recently recorded annual earnings of $32.4 billion, while UAB pointed out UnitedHealthcare’s projected earnings of $14.4 billion for the year 2024, underscoring the financial pressures being experienced in the healthcare market.

While discussions continue, it is important to note that the emergency departments at UAB hospitals will remain open to UnitedHealthcare customers, regardless of the outcome of the contract negotiations. However, significant changes could soon make accessing non-emergency services more challenging and costly for patients who rely on UnitedHealthcare.

The situation remains fluid, with additional negotiations and talks expected as the deadline approaches. UAB encourages patients and their employers to reach out to UnitedHealthcare to stress the importance of keeping UAB Health System as an in-network provider to help prevent potential healthcare access issues.

The conflict comes amidst a backdrop of escalating costs in healthcare, which has led to other healthcare systems, like Huntsville Hospital Health System, successfully renewing their contracts with UnitedHealthcare after a notice of termination was initially issued. UAB acknowledges the need to reject contract terms that may compromise the quality of patient care, focusing instead on ensuring that patients receive the best healthcare possible.

As the July 31 deadline looms large, it will be crucial for both UAB Health System and UnitedHealthcare to find common ground to ensure continuous access to healthcare services for patients across Alabama.