Home Health Services Drive Elevated Medical Costs For UnitedHealth Group
Home health services are often considered cost-saving for payers, with industry stakeholders advising providers to share data demonstrating these savings.
However, the cost-saving nature of home health may not always be evident. UnitedHealth Group reported that home health services have contributed to elevated medical cost trends, particularly in Medicaid margins.
“As we think about 2026, we expect some margin degradation due to the continued dislocation of premium funding and what we’re seeing in terms of elevated medical cost trends, but we do see 2026 as the trough for that performance,”said Mike Cotton, CEO for UnitedHealthcare’s Medicaid division, on the company’s third-quarter earnings call.
Author's summary: UnitedHealth Group faces elevated medical costs due to home health services.
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