UnitedHealth to Give Customers $1.5 Billion of Discounts

By Anna Wilde Mathews 

UnitedHealth Group Inc. will offer customers about $1.5 billion of discounts and other help, including credits toward premiums and suspension of out-of-pocket charges for some doctor visits, amid the coronavirus pandemic.

The parent of the biggest U.S. health insurer said that in June, it would offer premium credits ranging from 5% to 20% to employers and individuals enrolled in its fully-insured plans, with larger amounts for those in areas harder-hit by the new coronavirus. A small portion of the payments represents an advance against rebates that will likely be required under the Affordable Care Act, the company said.

UnitedHealth said it would also waive cost sharing, such as copayments, for specialist and primary-care doctor visits by people enrolled in its Medicare Advantage plans, through at least the end of September.

"Taken together, these actions will help people get and pay for health care," said David Wichmann, chief executive of UnitedHealth.

Insurers have said they are seeing members drop out of employer-provided coverage, and they are expecting gains in Medicaid enrollment, as layoffs take hold across the U.S. economy. Many employers are also struggling to keep paying for coverage for workers as revenue drops.

Analysts are expecting huge savings--and rich profits--for insurers in the second quarter due to the sharp drop-off in claims for health-care services, as hospitals have canceled most elective procedures and consumers have steered clear of emergency rooms and doctors' offices. Analysts have suggested that the financial results could draw unfavorable scrutiny to the health-insurance industry at a time when most of the U.S. economy is under huge duress.

Mr. Wichmann said the new UnitedHealth payments represent "an initial effort to get a portion of what we refer to as the imbalance into the hands of either the group or the individual, whoever paid us."

CVS Health Corp. said Wednesday that its Aetna unit had seen a 30% drop in the use of health-care services in April compared with the previous year. The company said inpatient hospital use was down more than 30%, outpatient care fell by 25% and physician services were down nearly 35%.

Humana Inc. announced Tuesday it would waive cost-sharing on primary care, behavioral health and telehealth visits by its Medicare members for the rest of the year. The insurer said the move was part of its effort to disburse gains that come as the result of the downturn in most health-care services.

UnitedHealth also said it would provide "premium price stability and support" in its Medicare supplement policies, and make some moves targeted to the Medicaid population, including expanding programs that provide food and baby formula.

Write to Anna Wilde Mathews at [e-mail]

(END) Dow Jones Newswires

May 07, 2020 05:14 ET (09:14 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.