UnitedHealth Group Inc. UNH has been investing heavily in its technology platform to stay ahead of peer pressure in the rapidly-changing industry, which embraced technological innovations following the COVID-19 breakout.
Digital technology began redefining the health insurance markets. Players in the United States were slow to embrace digitization and are still behind other industries in their use of AI and automation but the coronavirus pandemic now accelerated this process. Strong digital skills are a must-have for the health insurers.
Some payers are already deriving direct benefits from their digital investments by providing an enhanced customer experience, gaining from administrative and medical cost reductions, better member health outcomes and revenue growth. These payers are also finding ways to gain a plum market share with digital solutions.
UnitedHealth has been steadfast in embracing technology in its operations for a while now. The company recently enhanced its virtual care solutions with local physicians for members under employer-sponsored plans.
This health insurance giant also launched a Virtual Primary Care service that provides access to medical services in a better fashion, which is now available in Arizona, Colorado, Illinois, Maryland, North Carolina, Ohio, South Carolina, Texas, Virginia, Washington, D.C. and West Virginia.
The company recently announced that it will acquire Change Healthcare for nearly $8 billion. The deal will combine Change Healthcare with UnitedHealth’s OptumInsight unit to offer software, data analytics, technology and other services to the health care industry. The combination will help simplify services around medical care to improve health outcomes and reduce costs.
Minnetonka-based UnitedHealth generates most of its revenues through its health insurance business. But of late, it has been rearing its Optum segment that provides health-related services.
This also led to revenue diversification and now technological innovation will help this industry behemoth to lead the competition.
Other companies in the same space, such as Cigna Cop. CI, Humana Inc. HUM and Anthem Inc. ANTM are also investing in technology to serve their customers with greater efficiency.
In a year’s time, the stock has gained 41.5% compared with the industry’s growth of 29.6%.
.jpg)
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5G Revolution: 3 Stocks to Make Your Move
With super high data speed, it will make current cell phones obsolete and unlock the full potential of big data, cloud computing, and artificial intelligence. In the next few years this industry is predicted to create 22 million jobs and a stunning $12.3 trillion in revenue.
Today you have an historic chance to pursue almost unimaginable gains like Microsoft, Netflix, and Apple in their early phases. Zacks has released a Special Report that reveals our . . .
Smartest stock for 5G telecom
Safest investment in 5G hardware
Single best 5G buy of all!
Download now. Today the report is FREE >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
Humana Inc. (HUM): Free Stock Analysis Report
Cigna Corporation (CI): Free Stock Analysis Report
Anthem, Inc. (ANTM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
