UAB, UnitedHealthcare finalize multi-year agreement

The University of Alabama at Birmingham Health System finalized a multi-year agreement on Friday to continue taking the largest insurance provider in the nation.

“The UAB Health System and UnitedHealthcare have finalized a new three-year health insurance agreement, ensuring continued access to high-quality care for patients across Alabama,” UAB said in a statement to AL.com. “UnitedHealthcare members will continue to receive uninterrupted care from all UAB and UAB-affiliated medical providers.”

The two entities first announced a contract dispute in June, with UAB saying that patients with United would lose coverage at their facilities if an agreement wasn’t reached by July 31.

The health system, which serves 1.4 million Alabamians, said at the time that the dispute arose from “below-market reimbursement rates, excessive claim denials and delayed payments.”

United said UAB’s contract demands would “significantly increase premiums and out-of-pocket costs for consumers.”

When the July 31 deadline rolled around, the healthcare heavyweights reached a tentative deal, agreeing to a one-week period to finalize terms.

“We’ve reached an agreement in principle that will provide continued, uninterrupted network access to UAB. Our organizations have extended our current contract through Aug. 8 as we work to finalize the terms of a long-term agreement,” a spokesperson for UnitedHealthcare said in a statement.

The new contract will be effective until August 2028.

Other hospitals around the country, including Baptist Health Montgomery and Huntsville Hospital Health System, have had contract disputes with the health insurance provider, citing similar concerns to UAB.

Contract negotiations previously broke down between the UAB and United in 2019, but an agreement was reached shortly before the deadline.