Yahoo Finance UnitedHealth Unit (UNH) Wins Medicaid Deal to Serve Kansas
UnitedHealth Group Incorporated’s UNH business, UnitedHealthcare, recently received a contract from the State of Kansas to cater to the members of the state’s Medicaid and Children’s Health Insurance Program, KanCare. The new deal will be in effect from the very beginning of 2025.
The recent move imparts UnitedHealthcare the power to continue offering high-quality care across Kansas through a collaborative approach with the state’s providers and community-based organizations that helps it gain an in-depth understanding of the needs of the state’s residents. This, in turn, is likely to result in better health outcomes for the KanCare members.
A longstanding experience of more than a decade in serving KanCare members may have fetched the contract renewal for UnitedHealthcare this time.These contract wins usually expand a health insurer’s customer base and generate higher premiums, contributing significantly to the top line.. Membership in the UNH unit’s Medicaid business line was 7.7 million as of Mar 31, 2024. Overall premiums of UnitedHealth Group advanced 7.1% year over year in the first quarter.
These contract wins are also a means to fortify the presence of UnitedHealth Group across several U.S. states. Needless to say, the recent move is likely to strengthen UNH’s footprint across Kansas, where it already boasts an extensive presence in terms of membership base and provider network.
Presently, UnitedHealthcare operates a network of 150 hospitals and more than 22,000 physicians and other care providers in the state. Powered by this network, the UNH unit takes care of 570,000-plus residents enrolled in employer-sponsored, individual, Medicare and Medicaid benefit plans.
The strength in its Medicaid business, built through partnerships or community investments, continues to fetch numerous contract wins or renew existing ones for UnitedHealth Group. UNH was therefore among the three managed care organizations selected by the State of Kansas for the KanCare contract, the other two being Centene CNC and reportedly, Elevance Health ELV.
In April 2024, UnitedHealthcare was awarded a Medicaid contract from the Michigan Department of Health and Human Services to serve members of the Comprehensive Health Care Program.
Shares of UnitedHealth Group have gained 4% in the past month compared with the industry’s 3.3% growth. UNH currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Stock to Consider
A better-ranked stock in the Medical space is LeMaitre Vascular, Inc. LMAT, which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LeMaitre Vascular’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 10.12%. The Zacks Consensus Estimate for LMAT’s 2024 earnings indicates a rise of 28.2%, while the consensus mark for revenues suggests an improvement of 11.3% from the corresponding year-ago reported figures.
The consensus estimate for LMAT’s 2024 earnings has moved 5.5% north in the past 30 days. Shares of LeMaitre Vascular have gained 26.7% in the past month.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Centene Corporation (CNC) : Free Stock Analysis Report
LeMaitre Vascular, Inc. (LMAT) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
