UnitedHealth Group Incorporated (NYSE:UNH) has unveiled its intention to expand its coverage area, targeting a reach of 96% of all Medicare customers with its 2024 Individual Medicare Advantage Plan. The company’s objective is to enhance its offerings, providing improved benefits, cost savings, and wide network access.
This strategic move is expected to benefit UNH by increasing its membership levels in the future. As UNH begins to serve more Medicare customers, its premium revenues are anticipated to grow. An 11% increase in premium revenues for 2023 is projected. UNH plans to enhance its Ucard offering by introducing a new mobile product scanner, expanding its retail network, and offering opportunities for customers to earn rewards, making it more convenient for Medicare customers to use their Ucard.
The company aims to add 700,000 individuals to its Medicare Advantage plan in 110 new counties and enroll an additional 2.7 million individuals in its Chronic Special Needs Plans. UNH will provide dental coverage with no deductible and $0 copays, which original Medicare does not cover. Furthermore, UNH plans to offer hearing and vision coverage, including coverage for 2,000 hearing aids, with per-device copays ranging from $99 to $1,249. These changes are expected to result in savings for members compared to the average retail prices. Open enrollment for these plans is set to start from October 15 to December 7.
The expansion and increased membership levels are vital for UnitedHealth Group to enhance its top-line performance. The company’s focus on product enhancements, new introductions, and expansion initiatives positions it well for the future. UnitedHealth Group expects total revenues for the year to range between $357 billion and $360 billion, indicating a 10.6% growth from the 2022 reported figure.
UnitedHealth Group’s stock has shown a 4.3% gain in the past six months, outperforming the industry’s 3.7% growth.
Featured Image: Megapixl
