UnitedHealth Group is expanding its supplemental health plan business with its recent acquisition of a Texas-based company, according to the Star Tribune.
UnitedHealth acquired HealthMarkets earlier in 2019. The company has a division for supplemental coverage that had a membership of roughly 850,000 people in 2018. UnitedHealth sells some supplemental policies that provide extra coverage for critical illnesses, to be used in conjunction with a comprehensive plan.
UnitedHealth told the Star Tribune supplemental policies have gained importance as more members have high-deductible health plans that require them to spend more out of pocket for healthcare. The insurer also said the policies, which usually provide consumers cash upfront rather than paying physicians or hospitals, are a low-premium option for some consumers who need the extra coverage.
However, consumer advocates have raised questions about whether the plans provide increased value to members. Sabrina Corlette, a researcher at Washington, D.C.-based Georgetown University, told the Star Tribune that consumers only purchasing supplemental plans and not comprehensive coverage are at a greater risk.
"It is very much 'buyer beware' when it comes to these products," she told the Star Tribune. She added that usually, the supplemental policies pay out a smaller share of premium dollars in benefits.
Read more here.
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