Dive Brief:.
- The case against UnitedHealthcare's planned cutbacks of its Medicare Advantage networks is heating up, with the state of Connecticut, and U.S. Senator Richard Blumenthal (D) filing briefs in support of the blockade.
- UnitedHealthcare had planned to drop thousands of doctors from its Medicare Advantage network as of February 1, but a federal judge enjoined the insurer from making the cuts, a move which was applauded by the Fairfield County Medical Association and the Hartford County Medical Association.
- Despite the injunction, UnitedHealth still plans to go ahead with its network cuts and appealed the decision; the court will appeal hearing sometime this month.
Dive Insight:
As you may know, the Medicare Advantage program is itself under fire, facing planned budget cuts which the insurance trade industry group AHIP argues will raise costs, reduced benefits, and limit healthcare choices. While I don't have an inside line into UnitedHealth's boardroom, one can only make the assumption that the health payer's planned network restructuring comes in response a possible major cutback in reimbursement from HHS is on the way. Under these circumstances, it may not be pretty but it makes sense to see UnitedHealth taking what it must see as a critical cost-saving measure under the circumstances.