Patients covered by UnitedHealthCare may soon face challenges in one of Alabama’s major healthcare systems due to ongoing contract disputes.
If the University of Alabama Birmingham Health System cannot finalize a contract with UnitedHealth by July 31, affected patients could be deemed “personally responsible” for their medical costs starting August 1.
“We are deeply disappointed that UnitedHealthcare has created this uncertainty for our patients,” expressed Dawn Bulgarella, CEO of UAB Health System, in a press statement.
This situation impacts all UAB clinics, which includes St. Vincent facilities and pediatric care at Alabama Hospital. It affects patients enrolled in both United Commercial and Medicare Advantage Plans.
“Our aim is to remain a participating provider and deliver top-notch care to the people of Alabama,” Bulgarella noted. “We encourage patients and employers to reach out to United and emphasize the necessity of keeping UAB Health System providers in their network.”
Al.com has sought comments from UnitedHealthCare.
UAB stands as the largest healthcare system in the state, catering to approximately 1.4 million patients, or more than a quarter of Alabama’s population.
According to UAB, other hospitals nationwide have expressed concerns about UnitedHealth, citing “substandard refund rates, excessive claim denials, and delayed payments.”
Bulgarella reiterated UAB’s commitment to high-quality care, stating that they “cannot accept conditions from United that would hinder our ability to serve the patients and communities dependent on us.”
“United’s negotiation tactics have already resulted in breakdowns with numerous providers, and more may follow,” she remarked. “Their demands frequently overlook the economic challenges that healthcare systems face, while their public statements often present an incomplete or misleading picture.”
Baptist Health Montgomery also faces disputes with the insurance provider, noting that it serves around 57,000 patients from 17 counties.
Meanwhile, Huntsville Hospital ended its contract with United last October due to similar disputes, highlighting the broader issues plaguing UAB.
“UnitedHealthCare, also known as UnitedHealthGroup, is the largest health insurance company globally, bringing in $32.4 billion in revenue annually,” the Huntsville Hospital System stated at that time.
“Despite reporting these multi-billion dollar revenues, UnitedHealthcare has failed to pay any amounts owed to our healthcare system under current contracts. In fact, their patient claim rejection rate is 75% higher than that of other insurers.”
UAB emphasized United’s profitability in their news release, mentioning that the insurance giant “reported $14.4 billion in revenue in 2024, maintaining a significant lead as the most profitable health insurer.”
For patients seeking information about healthcare options, UAB suggests calling the number on the back of their insurance card to inquire about which doctors and hospitals accept their insurance.
Other in-network insurance providers recognized by UAB include:
- Alabama and Blue Advantage Blue Cross Blue Shield
- Cigna Healthcare – Commercial Planning
- Health Care Service Corporation (formerly Cigna Healthspring) Medicare Advantage Plan (excluding non-participating Baptist health)
- Humana Medicare Advantage Plan
- Viva Health Commercial and Medicare Advantage Plans
- Aetna – Commercial Planning
- Aetna – Medicare Advantage Plan (only at Callahan Eye Hospital, UAB Medical West, UAB St. Vincent’s Birmingham, UAB St. Vincent’s East, UAB St. Vincent’s Blount, UAB St. Vincent’s Chilton, UAB St. Vincent’s St. Clair)
- Ambetter – Individual and Family Planning
