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UnitedHealth (UNH) Arm to Reduce Prior Authorization Time
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UnitedHealth Group Incorporated (UNH - Free Report) announced that its insurance business, UnitedHealthcare, intended to lower the use of prior authorization process or preauthorization by almost 20%. The move is expected to simplify the healthcare experience for both providers and members.
The prior authorization process requires providers to get health plans’ coverage approvals before carrying out some non-emergency medical procedures. UNH is expected to commence the code reductions in the third quarter and continue through the remaining days of the year for most procedures in commercial, Medicare Advantage and the Medicaid business.
Early next year, the company is expected to launch a solution called the national Gold Card Program for care providers, who fulfill eligibility norms. This is likely to eliminate prior authorization for most procedures. Most members of UnitedHealthcare will have Gold Card status. UNH is expected to continue to evaluate the preauthorization process to boost efficiency.
Also, certain medical equipment, including orthopedic support devices, and some genetic tests utilized in diagnostics, are expected to see the removal of prior authorization requirements. Pulling back from the old process may increase costs but the impact is expected to be small. In return, it will reduce the waiting period for patients and may lower adverse events’ occurrence.
Moves like these are expected to support UNH’s commercial business recovery. Other insurers and health plans are expected to follow suit, which will change the industry standards, benefiting caregivers, patients and other stakeholders.
Price Performance
UnitedHealth’s stock has declined 8.6% in the past year compared with the industry’s 7.4% fall.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
UnitedHealth currently has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Avanos Medical’s 2023 earnings predicts 1.8% year-over-year growth. AVNS beat earnings estimates in the past four quarters, the average being 11%.
The consensus mark for Viemed’s 2023 earnings indicates an 87.5% year-over-year increase. The consensus estimate for VMD’s revenues in 2023 suggests 15% year-over-year growth.
The Zacks Consensus Estimate for Sera Prognostics’ 2023 earnings witnessed two upward estimate revisions in the past 30 days against none in the opposite direction. SERA beat earnings estimates in three of the past four quarters and missed once, the average surprise being 7.1%.
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UnitedHealth (UNH) Arm to Reduce Prior Authorization Time
UnitedHealth Group Incorporated (UNH - Free Report) announced that its insurance business, UnitedHealthcare, intended to lower the use of prior authorization process or preauthorization by almost 20%. The move is expected to simplify the healthcare experience for both providers and members.
The prior authorization process requires providers to get health plans’ coverage approvals before carrying out some non-emergency medical procedures. UNH is expected to commence the code reductions in the third quarter and continue through the remaining days of the year for most procedures in commercial, Medicare Advantage and the Medicaid business.
Early next year, the company is expected to launch a solution called the national Gold Card Program for care providers, who fulfill eligibility norms. This is likely to eliminate prior authorization for most procedures. Most members of UnitedHealthcare will have Gold Card status. UNH is expected to continue to evaluate the preauthorization process to boost efficiency.
Also, certain medical equipment, including orthopedic support devices, and some genetic tests utilized in diagnostics, are expected to see the removal of prior authorization requirements. Pulling back from the old process may increase costs but the impact is expected to be small. In return, it will reduce the waiting period for patients and may lower adverse events’ occurrence.
Moves like these are expected to support UNH’s commercial business recovery. Other insurers and health plans are expected to follow suit, which will change the industry standards, benefiting caregivers, patients and other stakeholders.
Price Performance
UnitedHealth’s stock has declined 8.6% in the past year compared with the industry’s 7.4% fall.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
UnitedHealth currently has a Zacks Rank #3 (Hold).
Investors interested in the broader medical space may also look at players like Avanos Medical, Inc. (AVNS - Free Report) , Viemed Healthcare, Inc. (VMD - Free Report) and Sera Prognostics, Inc. (SERA - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Avanos Medical’s 2023 earnings predicts 1.8% year-over-year growth. AVNS beat earnings estimates in the past four quarters, the average being 11%.
The consensus mark for Viemed’s 2023 earnings indicates an 87.5% year-over-year increase. The consensus estimate for VMD’s revenues in 2023 suggests 15% year-over-year growth.
The Zacks Consensus Estimate for Sera Prognostics’ 2023 earnings witnessed two upward estimate revisions in the past 30 days against none in the opposite direction. SERA beat earnings estimates in three of the past four quarters and missed once, the average surprise being 7.1%.