UnitedHealth to lose 2 major contracts for retiree health plans

UnitedHealth Group will lose two contracts with large employers to provide their workers retirement healthcare benefits, according to Bloomberg.

Beginning in 2020, Verizon Communications will no longer offer its retired workers in its western region UnitedHealth retirement benefits, people familiar with the matter told the publication. CVS Health's Aetna division will take over the benefits. UnitedHealth will keep providing retirement benefits to Verizon's eastern region. Verizon is estimated to have about 200,000 retirees in total, according to the report.

UnitedHealth will also lose its contract with the Alabama Public Education Employees Health Insurance Plan, which covers about 87,000 retirees. Humana will take over those benefits, according to the report.

Both contracts represented major parts of UnitedHealth's group retirement business, the sources told Bloomberg.

Read the full report here.

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