UnitedHealth Group Incorporated‘s (NYSE:UNH) subsidiary, UnitedHealthcare, has been chosen by the Texas Health and Human Services Commission as one of the seven managed care organizations to implement the STAR+PLUS Medicaid managed care program. This program combines acute care with long-term services and assistance, catering to the diverse needs of over 700,000 individuals in Texas, including adults with disabilities and those aged 65 and above. STAR+PLUS offers members access to a range of daily living activities, home modifications, respite care, and personal support services within the comfort of their homes.
Under the new contract, UnitedHealthcare gains the authority to provide high-quality care across eight service areas in Texas, including Bexar, Central Texas, Dallas, Harris, Hidalgo, Northeast Texas, Tarrant, and Travis. By collaborating closely with healthcare providers and community-based organizations in Texas, the UNH unit aims to gain a comprehensive understanding of the state’s residents’ needs, ultimately leading to improved health outcomes for the medically vulnerable elderly and disabled community.
UnitedHealthcare’s extensive experience of more than two decades in serving Texas Medicaid members likely played a significant role in securing this contract. Such contract wins not only expand the customer base but also contribute to higher premiums, a key driver of revenue for health insurers. As of June 30, 2023, UnitedHealthcare’s medical membership grew by 3.1% year over year, while its Medicaid membership witnessed a year-over-year increase of 4.6% during the same period.
The strength of its Medicaid business has consistently led to the UnitedHealth Group unit’s success in winning contracts. In August, it secured a Medicaid managed care contract from the New Mexico Human Services Department, further enhancing its ability to serve New Mexican residents effectively starting from July 1, 2024.
These contract wins also reinforce UnitedHealth Group’s presence across multiple U.S. states, solidifying its footprint in Texas. The company boasts an extensive network of 671 hospitals and over 126,000 physicians and care providers across the state, serving more than 4.7 million residents enrolled in employer-sponsored, individual, Medicare, and Medicaid benefit plans.
UnitedHealth Group’s stock has gained 3.1% in the past six months, outperforming the industry’s 4.3% growth.
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