UnitedHealthcare, a subsidiary of UnitedHealth Group, Inc., has been designated by the Texas Health and Human Services Commission as one of seven managed care organizations for its Medicaid managed care program, STAR+PLUS.
STAR+PLUS is a program that integrates acute care with long-term services and assistance, with the primary goal of meeting the diverse requirements of more than 700,000 Texans.
UnitedHealthcare Expands Care for Texas Elderly and Disabled with Medicaid Contract Win
Participants who qualify include individuals with disabilities and those aged 65 and older.
The program offers members in-home assistance with various daily living activities, home modifications, respite care, and personal support services.
UnitedHealthcare will be responsible for providing high-quality care in eight Texas service areas, including Bexar, Central Texas, Dallas, Harris, Hidalgo, Northeast Texas, Tarrant, and Travis, under the terms of this new contract.
Through close collaboration with Texas-based providers and community organizations, UnitedHealthcare seeks to acquire an in-depth comprehension of the needs of the state’s residents to improve healthcare outcomes, particularly for the medically vulnerable elderly and disabled population.
This contract may have been won partly due to UnitedHealthcare’s extensive experience in servicing Medicaid members in Texas, extending more than two decades. Such contract awards broaden health insurers’ customer base and increase their premium revenues, a significant driver of their top-line growth.
UnitedHealthcare’s medical membership increased by 3.1% year over year as of June 30, 2023, while its Medicaid membership increased by 4.6% during the same period.
Several contract victories have resulted from the success of UnitedHealthcare’s Medicaid business, thereby enhancing the UnitedHealth Group’s presence in numerous US states.
Read more: Texas SNAP Beneficiaries Brace For September’s End
UnitedHealthcare Expands Presence in Texas Healthcare Market
The corporation was awarded a Medicaid managed care contract by the New Mexico Human Services Department in August, with an effective date of July 1, 2024.
This sustained success in contract acquisitions is anticipated to strengthen UnitedHealthcare’s presence in Texas, with a vast network of 668 hospitals and over 126,000 physicians and care providers.
UnitedHealthcare provides employer-sponsored, individual, Medicare, and Medicaid benefits to over 4.7 million people in Texas.
UnitedHealth Group’s stock has increased 3.1% over the past six months, compared to the industry’s 4.3% increase.
The current Zacks Rank for this company is #3 (Hold).
Other notable equities in the medical space include Intuitive Surgical, Inc. (ISRG), ANI Pharmaceuticals, Inc. (ANIP), and Medpace Holdings, Inc. (MEDP).
ANI Pharmaceuticals and Medpace have a Zacks Rank #2 (Buy), while Intuitive Surgical has a Zacks Rank #1 (Strong Buy).
In the last four quarters, Intuitive Surgical has outperformed the Zacks Consensus Estimate for earnings by an average of 4.19 percent.
The company’s profits are anticipated to increase by 19% in 2023.
In the preceding four quarters, ANI Pharmaceuticals exceeded earnings expectations by an average of 91.56 %.
The consensus earnings forecast for 2023 indicates a nearly threefold increase compared to the previous year.
In the past four quarters, Medpace Holdings has exceeded earnings estimates by an average of 22.28%, with a projected 15.3% increase in earnings for 2023.
These companies are anticipated to deliver substantial returns and are worthy of consideration as investment opportunities.
Read more: Texas SNAP Benefits: September’s Maximum Payment Of $1,691 Expires In Three Day