Potential Healthcare Access Disruption for UnitedHealthcare Customers in Alabama

News Summary

UnitedHealthcare customers in Alabama may face significant disruptions in healthcare access starting August 1, 2025, unless a new contract is reached with UAB Health System and Baptist Health Montgomery. Current contracts are set to expire, affecting numerous facilities and services including those at UAB Hospital and Children’s of Alabama. UAB officials express concern over patient care and are committed to negotiating a reasonable agreement, while also highlighting ongoing challenges with UnitedHealthcare regarding reimbursement rates and claim denials.

Birmingham, Alabama – UnitedHealthcare customers in Alabama could encounter significant disruptions in their healthcare access starting August 1, 2025, if a new contract agreement is not reached with UAB Health System and Baptist Health Montgomery by July 31, 2025. This alarming news comes as the current health plan contracts between UnitedHealthcare of Alabama, Inc. and various UAB Health System entities begin to reach their expiration.

The impending expiration will impact all UAB-owned and affiliated facilities, which include the UAB Hospital, The Kirklin Clinic of UAB Hospital, UAB Medicine clinics, and also UAB St. Vincent’s facilities. Additionally, services provided by UAB- and UAB St. Vincent’s-employed physicians—particularly crucial care at Children’s of Alabama—will also be affected. For now, patients with UnitedHealthcare insurance will retain uninterrupted access to these essential facilities until the end of July 2025.

If a new agreement is not reached by the deadline, patients relying on UnitedHealthcare may be forced to pay out-of-pocket for services obtained from these facilities. However, there is potential for some patients to qualify for continued access under the continuity of care terms provided by their health plan, depending on individual circumstances.

UAB Health System’s leadership has expressed disappointment regarding the uncertainty this situation creates for patients. They have indicated a commitment to negotiating in good faith with UnitedHealthcare, expressing a desire to reach a reasonable agreement prior to the expiration date. UAB Health System is determined to continue serving Alabama residents by remaining a participating provider in United’s network.

The backdrop of this negotiation includes UnitedHealthcare’s substantial financial performance, which reported $14.4 billion in earnings for 2024 and over $6 billion in profits just in the first quarter of 2025. Such figures have led to concerns from healthcare providers regarding the insurer’s profitability strategy seemingly resting on below-market reimbursements and high claim denials affecting policyholders and care providers alike.

UAB Health System is recognized as the largest in Alabama, catering to approximately 1.4 million patients, representing over 25% of the state’s population. With such a significant role in patient care, UAB has highlighted ongoing challenges faced in working with UnitedHealthcare, including low reimbursement rates, frequent claim denials, and inconsistent payment schedules that jeopardize timely patient care delivery.

In response to the uncertainty surrounding contract negotiations, UAB encourages patients and local employers to reach out to UnitedHealthcare. By advocating for the inclusion of UAB Health System entities as in-network providers, they aim to strengthen the case for sustaining patient access to critical healthcare services.

This situation with UnitedHealthcare is not an isolated incident, as healthcare providers across Alabama and the nation are increasingly finding themselves at odds with the insurer during contract renewal processes. Baptist Health Montgomery is similarly facing contract disputes with UnitedHealthcare, impacting care for 57,000 patients who utilize its emergency room services.

In the past, other institutions like Huntsville Hospital Health System have experienced similar contract termination scenarios with UnitedHealthcare but were able to negotiate a renewed agreement to remain in-network. Nevertheless, UAB has flagged significant concerns with UnitedHealthcare’s operations, reporting a notably high claim denial rate compared to other insurers, which has contributed to ongoing financial strain on healthcare providers.

As discussions continue, all eyes will be on UAB Health System and UnitedHealthcare as the deadline approaches, emphasizing the importance of maintaining accessible healthcare for Alabama residents.